GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
LOK SABHA
UNSTARREDQUESTION NO: 2009
ANSWERED ON: 22.11.2010
FTAS WITH COUNTRIES
(a) the countries with which India has entered into Free Trade Agreements (FTAs) so far;
(b) whether the Union Government proposes to enter into FTAs with some more countries;
(c) if so, the details thereof alongwith the action plan and the priority areas identified in this regard;
(d) whether the Government has made any assessment regarding the impact of these FTAs on the domestic industries and farmers and if so, the details thereof;
(e) whether the Government has framed FTAs rules for prevention of trade diversions and protection of domestic industry;
(f) if so, the details thereof and the reasons therefor; and
(g) if not, the time by which such rules are likely to be framed?
ANSWER
MINISTER OF THE STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JYOTIRADITYA M. SCINDIA)
(a) India has entered into Free Trade Agreements (FTAs) and Preferential Trade Agreements with the following countries : (i) Free Trade Agreements:
SN Name of the Partner country/ies Date of Date of Implementation Agreement Signing
1 India-Sri Sri Lanka 28th March, 2000 Lanka FTA December. 1998
2 Agreement Pakistan, Nepal, Sri 4th January, 1st January, 2006 on SAFTA Lanka, Bangladesh, 2004 (Tariff concessions Bhutan and the Maldives implemented from 1st July, 2006
3 Revised Agreement Nepal 27.10.2009 27.10.2009 of Cooperation between Government of India and Nepal to control unauthorized Ntrade
4 India-Bhutan Agreement Bhutan 17.1.1972 Renewed periodically, on Trade Commerce and with mutually agreed Transit modifications.
5 India- Thailand FTA- Thailand 1.9.2004 1.9.2004 Early Harvest Scheme (EHS)
6 India-Singapore Singapore 29.6.2005 1st August, 2005 Comprehensive Economic Cooperation Agreement (CECA)
7 India-ASEAN Brunei, Cambodia, 13.8.2009 1.1.2010 Comprehensive Indonesia, Laos, Economic Malaysia, Myanmar, Cooperation Philippines, Agreement Singapore, (CECA) – Thailand only part and Vietnam dealing with Trade in Goods signed
8 India-S. Korea S. Korea 7.08. 2009 1.1.2010 Comprehensive Economic Partnership Agreement (CEPA)
(ii) Preferential Trade Agreements:
SN Name of the Partner country/ies Date of Signing Date of Implementation Agreement of the Agreement of the Agreement
1 Asia Pacific Bangladesh, China, July, 1975(revised 1st Nov,1976 Trade India, Republic Agreement signed on Agreement of Korea, Sri Lanka 2nd November, 2005 (APTA) 2 G S T P Algeria, Argentina, April, 1988 April,1989 Bangladesh, Benin, Bolivia, Brazil, Cameroon, Chile, Colombia, Cuba, Democratic People`s Republic of Korea, Ecuador, Egypt, Ghana, Guinea, Guyana, India, Indonesia, Iran, Iraq, Libya, Malaysia, Mexico, Morocco, Mozambique, Myanmar, Nicaragua, Nigeria, Pakistan, Peru, Philippines, Republic of Korea, Romania, Singapore, Sri Lanka, Sudan, Thailand, Trinidad and Tobago, Tunisia, Tanzania, Venezuela, Viet Nam, Yugoslavia, Zimbabwe) 3 India-Afghanistan Afghanistan 6th March, 2003 May,2003 4 India-MERCOSUR 25th January, 2004 Implemented w.e.f. June 1, 2009. 5 India-Chile Chile 8th March, 2006 September, 2007 (b) and (c) Yes, Sir, following is a list of the countries with whom India is negotiating Free Trade Agreements and details of such negotiations: SN Name of the Partner country/ies Details Agreement
1 India- Japan CEPA Japan Negotiations completed. The proposed agreement covers the areas of Goods, Services, Investment, Intellectual Property Rights, SPS/TBT.
2 India-EU BTIA Austria, Belgium, Bulgaria, Negotiations launched on Cyprus, Czech Republic, Denmark, 28th June 2007 in the areas Estonia Finland, France, Germany, of Goods, Services, Greece, Hungary, Ireland, Italy, Investment, Sanitary Latvia, Lithuania, Luxembourg, and Phyto-sanitary Malta, Netherlands, Poland, Measures, Technical Portugal, Romania, Slovakia, Barriers to Trade, Slovenia, Spain, Sweden, Trade Facilitation United Kingdom and Customs Cooperation, Competition, IPR & GIs. etc
3 India-ASEAN CECA- Brunei, Cambodia, Indonesia, Negotiations on Trade Services and Laos, Malaysia, Myanmar, in Services and Investment Investment Philippines, Singapore, are under way. Agreement Thailand and Vietnam
4 India – Sri Sri Lanka FTA in goods implemented from Lanka CEPA March 2000. Negotiations on Investments and Services underway.
5 India-Thailand CECA Thailand Early Harvest Scheme on 82 items implemented. Negotiations for Comprehensive Economic Cooperation Agreement underway.
6 India-Malaysia CECA Malaysia Negotiations for Comprehensive Economic Cooperation Agreement underway.
7 India-Mauritius CECPA Mauritius Negotiations for a Comprehensive Economic Cooperation Agreement are at a standstill since the tenth round held on October, 2006.
8 India EFTA BTIA Iceland, Norway, Liechtenstein and Switzerland Negotiations for Comprehensive Economic Cooperation Agreement underway.
9 India-New Zealand FTA/CECA New Zealand Negotiations for Comprehensive Economic Cooperation Agreement underway.
10 India –Israel FTA Israel Negotiations for Comprehensive Economic Cooperation Agreement underway.
11 India-Singapore CECA Singapore Negotiations for Comprehensive Economic Cooperation Agreement underway.
12 India-SACU PTA South Africa, Negotiations for Comprehensive Botswana, Lesotho, Economic Cooperation Agreement Swaziland and Namibia underway.
12/6/2018
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13 Indian Mercosur PTA Argentina, Brazil, The existing agreement is being Paraguay and Uruguay expanded by widening product coverage and deepening preferences
14 India –Chile PTA Chile The existing agreement is being expanded by widening product coverage and deepening preferences.
15 BIMSTEC CECA Bangladesh,India, Negotiations for Comprehensive Myanmar, Sri Lanka, Economic Cooperation Agreement Thailand, Bhutan underway. and Nepal
16 India-GCC Saudi Arabia, Negotiations for Comprehensive Framework Oman, Kuwait, Economic Cooperation Agreement Agreement Bahrain, Qatar underway. and Yemen.
17 India –Canada FTA Canada Negotiations for a Comprehensive Economic Cooperation Agreement started in Nov 2010.
(d) Before entering into negotiations with its trading partners, studies are undertaken internally, as well as through the joint study groups to evaluate the feasibility of the proposed FTAs, including their impact on the domestic industry. Consultations are also held with the domestic stakeholders including the Apex Chambers of Commerce and Industry, industry associations as well as the administrative Ministries and Departments. (e) to (g) Yes. All of India’s major Free Trade Agreements incorporate a number of provisions to protect the interest of domestic industry and also prevent products from third countries taking advantage of the FTA.The chapter on Rules of Origin ensures that only goods produced in the FTA partner country qualifies for benefits under the FTA when imported into India. These Rules also ensure that raw material and other inputs to a production process coming from a non partner country are sufficiently processed in the FTA partner country before being exported to India. Free Trade Agreements also protect items considered sensitive by retaining them in the sensitive/ negative lists of items on which limited or no tariff concessions are granted. In addition, in case of surge in imports and injury to the domestic industry, India can suspend or withdraw the tariff concessions to a product taking recourse to measures such as anti-dumping and safeguards.