New Delhi: The government said on Monday that talks for trade agreements offered with the European Union (EU) and the United States are still at the discussion stage. India and the United States negotiate a bilateral trade agreement (BTA) and are aimed at concluding the first phase of the pact in the fall (September-October) of this year. Likewise, India and the EU also negotiate the free trade agreements (ALE).
“The FTA, which India is doing, is one of the key catalysts to promote global capacity centers (GCC) in the country. The FTA with the United Kingdom has just been announced on May 6 and with the EU and the United States, it is still happening, with the United States, discussions are here,” said Sunil Barthwal trade secretary during the CII event.
In June 2022, India and the EU block of 27 countries resumed negotiations for a complete free trade agreement, an investment protection agreement and a pact on geographic indications (GIS) after a difference of more than eight years. He stalled in 2013 due to differences on the market opening level.
India and the EU therefore aim to conclude the free trade agreement by the end of this year. “Today’s agreements are different from traditional ALFs, which were limited to traditional trade. New pacts are a more complex set of agreements that also include services,” said the secretary.
He added that there was now an institutional mechanism in these pacts to examine questions such as the harmonization of regulations and standards and the resolution of disputes, if necessary. “And these are important facets of CCG and Modern ALFs will lead to the innovation corridor, which will facilitate CCG in India,” he said.
The new trade agreements, said Barthwal, tackle a whole range of questions, which could be one of the reasons why the negotiations of these pacts take time to conclude. “In the FTA with the United Kingdom, there is a chapter on innovation, which was not the case earlier,” he added.
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