GOVERNMENT OF INDIA

MINISTRY OF COMMERCE AND INDUSTRY

LOK SABHA

UNSTARRED QUESTION NO: 6396

ANSWERED ON:06.05.2013

TRADE AGREEMENTS

ANANT KUMAR HEGDE

(a) the details of the free trade agreements/bilateral trade agreements signed and discussed between India and other countries, including Custom Union Troika along with its impact on export/import during each of the last three years and the current year, country-wise;

(b) whether the Government has failed to strike a trade-off-between goods and services and if so, the details thereof;

(c) whether the imports have become cheaper and has increased in volume in respect of exports from the country after the signing of these FTAs with those countries and if so, the details thereof along with the reaction of the Government thereto;

(d) whether the Government proposes to re-negotiate to the respective countries with whom FTA signed for lower tariffs and other benefits for India also and if not, the reasons therefor;and

(e) whether India has got visa and other facilities in service sector with those countries with which India has entered into a FTA with and if so, the details thereof and if not, the reaction of the Government thereto?

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:- 

ANSWER

MINISTER OF STATE IN THE

MINISTRY OF COMMERCE AND INDUSTRY

(DR. D. PURANDESWARI)

 (a) India has signed the following two free trade agreements/bilateral trade agreements during the last three years:

Agreements signed:

S.No. Name of the Agreement Date of Signing Date of implementation and partner country

1. India - Japan Comprehensive 16.02.2011 01.08.2011 Economic Partnership Agreement (CEPA)

2. India - Malaysia Comprehensive 18.02.2011 01.07. 2011 Economic Cooperation Agreement (CECA) 

 No Agreement has been signed during the current year. The details of the bilateral trade carried on with India’s FTA partner countries (Japan and Malaysia) during the financial year 2009-10 to 2012-13 are annexed.

India - ASEAN have concluded negotiations on India - ASEAN Agreement on Trade in Services and Agreement on Investment. In addition, negotiations on the following agreements are underway:- 

S.No. Name of the Agreement and partner countries

1. India - EU BTIA (Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg , Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom)

2. India – Sri Lanka CEPA

3. India - Thailand CECA

4. India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA) negotiations

5. India- European Free Trade Association (EFTA) BTIA (Iceland, Norway, Liechtenstein and Switzerland)

6. India - New Zealand FTA/CECA 7. India – Israel FTA

8. Second Review of India-Singapore CECA 9. India - SACU PTA (South Africa, Botswana, Lesotho, Swaziland and Namibia)

10. India - Mercosur Preferential Trade Agreement (PTA) (Argentina, Brazil, Paraguay and Uruguay)

11. India – Chile PTA

12. Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) CECA (Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan and (Nepal)

13. India - Gulf Cooperation Council (GCC) Framework Agreement(Saudi Arabia, Oman, Kuwait, Bahrain, Qatar and Yemen.)

14. India – Canada CEPA

15. India - Indonesia CECA

16. India - Australia CECA 17. Regional Comprehensive Economic Partnership Agreement (RCEP) negotiations amongst the Association of South East Asia Nations (ASEAN) Member States and its six FTA Partners (Australia, China, India, Japan, South Korea and New Zealand). 

 (b) In Trade Agreement negotiations, India is committed for a balanced and mutually beneficial outcome.

(c) The India-Malaysia CECA and India-Japan CEPA have been implemented with effect from 1st July, 2011 and 1st August, 2011 respectively. These agreements provides for a gradual elimination/ reduction of tariffs over a period time. (d) Every FTA has a Joint Review Mechanism to review the FTA. For example, the 1st Review of India-Singapore CECA, which was signed on 29th June, 2005 and implemented with effect from 1st August, 2005, was concluded on 1st October, 2007 and the Second Review is underway.

(e) In order to facilitate as temporary entry of professionals/service suppliers, a separate chapter on Movement of Natural Persons (MoNP) has been agreed between India and its trading partner i.e. Singapore, Japan, Malaysia & Korea. The chapter on MoNP, not only enhances the coverage of types of professionals/service suppliers for purpose of entry into territory of each other but it also defines the duration of stay to be allowed to various categories of natural persons.