Significant progress made in FTA negotiations with four countries

India has achieved significant milestones in the ongoing free trade negotiations with at least four countries or groupings, the UK , the EFTA, the European Union, and Canada, with prospects bright for the conclusion of talks for the first two very soon.

 India has achieved significant milestones in the ongoing free trade negotiations with at least four countries or groupings, the UK , the European Free Trade Association (EFTA), the European Union, and Canada, with prospects bright for the conclusion of talks for the first two very soon, three officials aware of the development said.

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Bilateral negotiations with several countries and groupings, including the four are being held on the sidelines of the G20 Trade and Investment Ministers Meeting (TIMM) in Jaipur, they added requesting anonymity. The visiting UK trade minister Kemi Badenoch on Thursday evening confirmed that the FTA negotiations *is part of the agenda for her India visit.

She declined to put a definite timeline for conclusion of the FTA negotiations saying that the hardest bits tend to come at the end. She said the two parties have closed many chapters, “perhaps the more simpler tasks”.

The minister hinted that India’s demand of easier mobility for its professionals in the UK may not face any major roadblock. According to her, while mobility for business and trade could be part of a trade framework, general visa regulations are subject matters of the home ministry.

One of the three officials mentioned above said India and the UK have narrowed the gap on contentious issues such as mobility and liquor in their free trade negotiations though more work needs to be done to resolve differences on rules of origin and investments. Both sides are making efforts to arrive at some tangible outcomes that can be forwarded to the political leadership ahead of the G20 Leaders Summit in September, he said. HT reported this on August 17.

The other negotiation in terms of fast progress and possibility of early closure is the one with EFTA, a second official said. EFTA is a grouping of four countries -- Iceland, Liechtenstein, Norway, and Switzerland. Commerce minister Piyush Goyal has already met with key officials of some of these countries, including Swiss State Secretary for Economic Affairs Helene Budliger Artieda, he added.

India and EFTA are currently negotiating a Trade and Economic Partnership Agreement (TEPA). This aims to enhance trade and economic cooperation between India and the EFTA member countries, fostering an environment conducive to increased investments, reduced trade barriers, and greater market access.

TEPA negotiations are centred around “outstanding chapters” such as trade in goods, trade in services, intellectual property rights (IPRs), rules of origin and trade and sustainability. Goyal, during his UK visit on July 11-12, met a EFTA delegation led by Artieda, who was accompanied by industry representatives from the pharmaceutical, machinery and electronics industry. “The industry of both sides are eager to conclude the FTA for mutual benefit at the earliest,” the official said.

“An deal with Canada is also a possibility as the negotiations are centred around an early harvest , followed by a comprehensive FTA,” a third official said. India is negotiating an interim Indo-Canada Early Progress Trade Agreement (EPTA), which may finally culminate in a Comprehensive Economic Partnership Agreement (CEPA).

After the relaunch of FTA negotiations between India and Canada in March, 2022, nine rounds of negotiations had been held till July this year. The ninth round was held from July 12-21, 2023, in a virtual format. The two partners have so far discussed trade matters related to goods, trade remedies, rules of origin, origin procedures, services, institutional and core provisions.

The previous and the sixth ministerial dialogue on trade and investment (MDTI) was held on May 8, 2023 in Canada. “On the basis of ministerial guidance, work on various tracks are on-going to complete negotiations as soon as possible to achieve mutually beneficial outcome,” the official added.