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India

The Indian government is getting more active in seeking out bilateral trade agreements, mainly with other so-called developing countries.

Delhi has signed limited free trade agreements with Sri Lanka (1998) and Thailand (2003) plus a number of preferential trade agreements (tariff concession schemes) with countries/blocs such as Afghanistan, Nepal, Chile and Mercosur.

At the end of June 2005, the government signed a Comprehensive Economic Cooperation Agreement with Singapore, what many consider India’s first "comprehensive" FTA. India expects to upgrade its pact with Sri Lanka into a similar type of Comprehensive Economic Partnership Agreement. India signed FTAs with ASEAN (2009), Korea (2009) and Japan (2010) as well.

Currently, bilateral FTA negotiations are going on with Australia, the GCC, Bangladesh, Canada, Colombia, Israel, New Zealand, Uruguay, Venezuela and Mauritius. Further down the line, the government is in various stages of considering talks with Indonesia, Malaysia, China, Korea, Egypt, SACU (Southern African Customs Union), Russia and Hong Kong.

In 2007/2008, India commenced FTA talks with European powerhouses EFTA and the EU. In 2010, it began talks with New Zealand and in 2011 with Australia. Since 2013, India has also been negotiating the mega-regional RCEP (Regional Comprehensive Economic Partnership) agreement with the 10 ASEAN nations, Australia, China, Japan, New Zealand and South Korea. These are the deals that are generating the most controversy and resistance at home.

India is also part of SAFTA (the South Asia FTA), BIMSTEC (aiming to develop an FTA), the Asia-Pacific Trade Agreement (a preferential trade agreement with Bangladesh, China, Laos, South Korea and Sri Lanka) and IBSA (the India-Brazil-South Africa triangle aiming to develop a trilateral South-South FTA).

India’s growing business community is lobbying for an India-US FTA, but for the moment Washington and Delhi are still building their bilateral relations through a possible investment treaty as well as smaller sectorial deals.

In 2017, Delhi expects to start talks on a trade deal with the Russia-led Eurasia Economic Union.

Apart from these trade deals, India has signed 82 bilateral investment agreements with a wide array of countries. Following a few controversial investor-state disputes (ISDS), India released a revised model BIT in December 2015, which will serve as a basis for future negotiations and should replace existing treaties. This new model tries to achieve more balance by, for instance, requiring investors to use local courts before turning to international arbitration and leaving out the highly contested provision on “fair and equitable treatment”. The adoption of the country’s new model text has been holding up on-going negotiations, such as those towards a US-India BIT.

last update: October 2016


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With eye on African market, India readies offers for free trade pact with Mauritius
India is hopeful that a bilateral trade agreement with the country could open the doors wider to the entire continent.
Kerala pushes for consensus with other States on FTAs
The Kerala government is reaching out to other south Indian States in a bid to create lobbying power to influence the Central government policy on international trade treaties and to cushion the impact of Free Trade Agreements on various domestic sectors.
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India and South Korea have agreed to reduce tariffs on 11 items as part of the on-going negotiations for upgrading the existing Comprehensive Economic Partnership Agreement.
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The three-day discussions comprise sessions on trade in goods and services; sanitary and phyto-sanitary measures; technical barriers to trade; requests lists; rules of origin and finalisation of economic cooperation chapter.

    Links


  • Forum against FTAs
    The Forum is formed by trade unions, people movements and civil society organizations to campaign against the impact of free trade agreements on labour and livelihood rights of people in India.
  • India FDI Watch
    India FDI Watch is building awareness and facilitating grassroots action to prevent the take-over of India’s retail sector by corporations.