GCC, India FTA talks on track for early deal
Gulf Times, Qatar
GCC, India FTA talks on track for early deal
By Arvind Nair
21 September 2008
Doha: Talks on a free trade agreement (FTA) between the six-nation Gulf Co-operation Council (GCC) and India have made substantial progress with the two sides committing to conclude the deal as early as possible.
The GCC delegation to the meeting in Kuwait was led by Qatar representative Ahmad Ahen. The Indian side was led by Bharathi Sihag, joint secretary at the federal ministry of commerce and industry, diplomatic sources in Doha said.
The two sides have already exchanged draft agreements and are looking forward to an early deal signing, the sources said.
The second round of talks, held after a gap of two and a half years since March 2006, showed full commitment by both sides. The Indian side presented to the GCC a list of FTAs which India has signed with other countries so far. They also discussed export-import polices, tariff schedules and trade. The sources said the third round of talks will be held in New Delhi next January. “The talks have made remarkable headway and we look for an early conclusion”, the sources said.
Indian and the GCC bloc have been discussing a trade deal since August 2004 when they signed a framework agreement on economic co-operation.
India is likely to seek greater safeguards for its chemicals and petrochemical industries with a view to protecting domestic players as crude price levels are very low in the GCC region. Other key issues include rules of origin and differential tariffs.
India exports a variety of goods and materials to the GCC countries and mainly imports petroleum and petrochemical products, including fertilisers.
Trade between India and the GCC region is growing steadily and has the potential to reach $25bn by 2010, the Association of Indian Chambers of Commerce said. Exports by India will account for $15bn while its imports will go up to $10bn.
Bilateral trade is now worth $16bn. India’s exports to GCC comprise $9.4bn compared with imports at $6.9bn.
Crude oil will form the major part of India’s import basket as domestic manufacturing activity is picking up, leading to higher energy demand.
