Commerce

 INDIA’S ENGAGEMENT IN FREE TRADE AGREEMENTS (FTAS)

  • India has always stood for an open, equitable, predictable, non-discriminatory and rule based international trading system. FTAs, in India‘s point of view, are the building blocks’ towards the overall objective of trade liberalization and should complement the multilateral trading system
  • As a result, so far India has concluded 10 Free Trade Agreements, 5 Limited scope Preferential Trade Agreements and is in the process of negotiating / expanding 18 more Agreements.

TERMINOLOGY

Preferential Trading Agreement (PTA) Tariff liberalization on a limited number of lines e.g. India-Mercosur PTA.
Free Trade Agreement (FTA) Elimination of Tariffs on items covering substantial bilateral trade between the partner countries e.g. India – Sri Lanka FTA.
Comprehensive Economic Cooperation Agreement (CECA) CECA or CEPA or BTIA terms are used to describe Agreements which consist of an integrated package of Agreement on Goods, Services, and Investment.
Comprehensive Economic Partnership Agreement (CEPA) Mutual Recognition, Intellectual Property etc. e.g.   India—Korea CEFA.
Broad based Trade and Investment Agreement (BTIA)

                                        FTAS ALREADY IN FORCE

No. Name of the Agreement Year of Signing Year of Implementation
1. India-Sri Lanka FTA 1998 2000
2. Agreement on SAFTA (India, Pakistan, Nepal, Sri Lanka, Bangladesh, Bhutan and the Maldives) 2004 2006
3. Revised Agreement of Cooperation between India and Nepal to control unauthorized trade 2009 2009
4. India-Bhutan Agreement on Trade Commerce and Transit 1972

 

Renewed periodical, with mutually agreed modifications
5. India-Thailand FTA

(Early Harvest Scheme)

2004 2004
6. India-Singapore CECA 2005 2005
7. India-ASEAN-CECA-Trade in Goods Agreement

(Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam)

2009 2010

(Came into force between India & Laos, Philippines and Cambodia in 2011)

8. India-South Korea CEPA 2009 2010
9. India-Japan CEPA 2011 2011
10 India-Malaysia CECA 2011 2011

 

                                           PTAs ALREADY IN FORCE
No. Name of the Agreement Year of Signing Year of Implementation
1. Asia Pacific Trade Agreement (APTA)

 

(Bangladesh, China, India, Republic of Korea, Sri Lanka)

1975

(Revised Agreement signed in 2005

1976
2. Global System of Trade Preferences(GSTP)

 

(Algeria, Argentina, 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, Vietnam, Yugoslavia, Zimbabwe)

1988 1989
3. India-Afghanistan 2003 2003
4. India-MERCOSUR Block 2004 2009
5. India-Chile 2006 2007

 

UPSC Prelims 2025 Notes