India Nears Conclusion of FTA Talks with EU and New Zealand

India’s negotiations for free trade agreements (FTAs) with the European Union (EU) and New Zealand are nearing completion, according to Commerce Secretary Rajesh Agrawal. Speaking in New Delhi on November 17, 2023, Agrawal emphasized the importance of wrapping up these discussions swiftly, which could lead to simultaneous launches of both agreements.

An Indian delegation is currently in the United Kingdom to engage in discussions regarding the Double Contribution Convention (DCC) agreement. Agrawal expressed optimism about finalizing this agreement alongside the FTAs, stating, “We hope to complete it soon so that both (DCC and FTA) can be launched together.” Although India and the UK have signed a trade pact, it remains unimplemented pending approval from the UK parliament.

Progress on Multiple Fronts

Regarding the status of the negotiations with the EU, Agrawal noted that they are currently in the final phase. He remarked, “But the last phase is always hard,” reflecting the complexities often encountered in concluding trade agreements. Simultaneously, discussions with New Zealand are also progressing, with Agrawal expressing hope for a swift resolution: “We hope that we will achieve closure (of the talks) in the shortest possible time.”

In addition to the EU and New Zealand, Agrawal indicated that negotiations with two South American countries—Peru and Chile—are advancing. He reported that progress is evident with Peru, while talks with Chile are moving at a commendable pace, with the fourth round of discussions scheduled for December 2023 in New Delhi.

ASEAN Trade Review Challenges

Agrawal also addressed the ongoing review of India’s FTA with the Association of Southeast Asian Nations (ASEAN). He characterized this review as challenging but highlighted that progress is being made. A new round of talks is anticipated in December, which may yield positive developments. The 10 ASEAN countries include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.

The review of the ASEAN agreement has been a long-standing demand from the Indian industry. India aims to achieve an upgraded pact that addresses current imbalances in bilateral trade, fostering a more equitable and sustainable trade relationship.

The ongoing negotiations reflect India’s commitment to expanding its international trade relationships, a crucial element for economic growth. As talks progress with multiple partners, the potential for enhanced trade frameworks could significantly influence India’s position in the global market.