MEA asks commerce ministry to review FTAs, slowdown talks
Business Standard, India
MEA asks commerce ministry to review FTAs, slowdown talks
By Nayanima Basu | New Delhi
13 August 2013
Ministry of external affairs (MEA) is learnt to have asked the ministry of commerce and industry to review some of the key free trade agreements (FTAs) the country has signed with Singapore, Japan, Korea and Association of Southeast Asian Nations (ASEAN).
It has also urged commerce ministry to slow down pace of negotiations with which it is negotiating similar deals presently such as with Thailand, New Zealand and Canada among others.
Ironically, it was the very same MEA that had spearheaded signing of the FTAs in an effort to promote economic diplomacy thereby optimizing resources. India had been on a signing spree ever since, firstly because talks to sign a global trade deal under the Doha round had failed to make any headway and secondly, India had always been keen to gain greater market access for its professionals in the services sectors of various countries.
However, in an effort to get more access under services trade in terms of greater movement of professionals such as doctors, nurses, accountants and teachers, India has got subjected to similar demands from other countries.
For example, under the proposed FTA with Thailand, it has demanded opening up of massage parlors and spas across the country since that is their main revenue earner while for India it is not. This has turned out to be main stumbling block of the negotiation.
On the other hand, India is running a huge trade deficit with Japan even though both have signed a comprehensive economic partnership agreement.
