Lok Sabha Question No. 571 (UNSTARRED), answered on 2017-02-06
Subject: Trade Agreements
Ministry: COMMERCE AND INDUSTRY
Asked by: ANOOP MISHRA, NISHIKANT  DUBEY, JYOTIRADITYA MADHAVRAO SCINDIA, SRINIVAS KESINENI, KAMAL NATH, RAVINDRA KUMAR PANDEY

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 571 TO BE ANSWERED ON 06 th  FEBRUARY, 2017

## TRADE AGREEMENTS

## 571. SHRI ANOOP MISHRA:

SHRI NISHIKANT DUBEY:

SHRI JYOTIRADITYA M. SCINDIA:

SHRI KESINENI NANI:

SHRI KAMAL NATH:

SHRI RAVINDRA KUMAR PANDEY:

Will the Minister of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

- (a) the details of the bilateral trade agreements/Free Trade Agreements (FTAs) signed by India till now with other countries/regions/trading blocs;
- (b) whether  the  quantum  of  trade  with  these  countries/regions/trading  blocs  has increased after signing FTAs with them and if so, the details thereof along with the total trade carried out with them during the last three years;
- (c) the details of the steps taken/being taken by the Government to spread awareness amongst business community about FTAs and the possible benefits to them in order to boost trade;
- (d) whether the Government has decided to review its FTAs with its partners and if so, the details thereof and the reasons therefor along with the reaction of exporters and other stakeholders thereto and its impact on country's trade deficit;
- (e) whether India  and  European  Union  (EU)  are  negotiating  a  Bilateral  Broad  Based Trade and Investment Agreement/FTA and if so, the details and the current status thereof; and
- (f) the likely impact of said FTA on domestic textile industry along with the excepted steps to meet the demand of textile industry in the absence of FTA?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

- (a) The  details  of  the  Free  Trade  Agreements  (FTAs),  including  Comprehensive Economic Cooperation Agreements (CECAs) and Comprehensive Economic Partnership Agreements (CEPAs) and Preferential Trade Agreements entered into by India is given in Annexure-I and Annexure-II.
- (b) The total trade before entering into a Free Trade Agreement (FTA) and until 2015-16 is  given  in  Annexure-III.    The  data  show  that  the  total  trade  with  all  Free  Trade Agreements (FTA) partners has increased after the signing of the agreement.
- (c) With a view to effectively disseminate information on the Free Trade Agreements(FTAs) signed by India as well as to feed into the process of review of these agreements, the Department  of Commerce  regularly conducts outreach programmes across the country with participation of industry stakeholders.
- (d) The review of the trade agreements is undertaken on the basis of mutual consent of trading  partners.  The  impact  of  Free  Trade  Agreements  (FTAs)  is  assessed  on  a regular basis in consultation with various stakeholders, including industry representatives as well as Administrative Ministries/Departments.
- (e)  &  (f):    India  and  EU  have  agreed  to  negotiate  a  Broad-based  Bilateral  Trade  and Investment Agreement (BTIA). The negotiations started in 2007 and sixteen rounds have  been  held  so  far.   India  is  committed  to  a  balanced  and  positive  outcome, including for the domestic textile industry.

*****

## FTAs already in force:

|   SN | Name of the Agreement                                                                                                                                                        | Date of Signing of the Agreement                                            | Date of Implementation of the Agreement                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    1 | India - Sri Lanka FTA                                                                                                                                                        | 28th December. 1998                                                         | 1 st March, 2000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|    2 | Agreement on SAFTA (India, Pakistan, Nepal, Sri Lanka, Bangladesh, Bhutan, the Maldives and Afghanistan)                                                                     | 4th January, 2004                                                           | 1st January, 2006 (Tariff concessions implemented from 1 st July, 2006)                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|    3 | Revised Agreement of Cooperation between Government of India and Nepal to control unauthorized trade                                                                         | 27 th October, 2009                                                         | 27 th October, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    4 | India - Bhutan Agreement on Trade Commerce and Transit                                                                                                                       | 17 th January, 1972                                                         | Renewed periodically, with mutually agreed modifications.                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|    5 | India - Thailand FTA - Early Harvest Scheme (EHS)                                                                                                                            | 9 th October, 2003.                                                         | 1 st September, 2004                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|    6 | India - Singapore CECA                                                                                                                                                       | 29th June, 2005                                                             | 1st August, 2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|    7 | India - ASEAN- CECA - Trade in Goods, Services and Investment Agreement (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam) | 13 th August, 2009 for goods and November, 2014 for Services and Investment | Goods  1st January 2010 in respect of India and Malaysia, Singapore, Thailand.  1 st June 2010 in respect of India and Vietnam.  1 st September 2010 in respect of India and Myanmar.  1 st October 2010 in respect of India and Indonesia.  1 st November 2010 in respect of India and Brunei.  24 January 2011 in respect of India and Laos.  1 st June 2011 in respect of India and the Philippines.  1 st August, 2011 in respect of India and Cambodia. Services and Investment 1 July, 2015 |
|    8 | India - South Korea CEPA                                                                                                                                                     | 7 th August 2009                                                            | 1 st January, 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|    9 | India - Japan CEPA                                                                                                                                                           | 16 th February, 2011                                                        | 1 st August, 2011                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   10 | India - Malaysia CECA                                                                                                                                                        | 18 th February, 2011                                                        | 1 st July, 2011                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

## Annexure I

## PTAs already in force:

|   S. No. | Name of the Agreement                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Date of Signing of the Agreement           | Date of Implementation of the Agreement   |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|-------------------------------------------|
|        1 | Asia Pacific Trade Agreement (APTA) (Bangladesh, China, India, Republic of Korea, Sri Lanka)                                                                                                                                                                                                                                                                                                                                                                                                        | July, 1975 (revised on 2 nd November, 2005 | 1st Nov,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, Viet Nam, Yugoslavia, | 13 th April, 1988                          | 19 th April,1989                          |
|        3 | SAARC Preferential Trading Agreement (SAPTA)                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 11 April, 1993                             | 7 December,1995                           |
|        4 | India - Afghanistan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 6th March, 2003                            | 13 th May,2003                            |
|        5 | India - MERCOSUR                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 25th January, 2004                         | 1st June, 2009                            |
|        6 | India - Chile                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 8 th March, 2006                           | 11 th September, 2007                     |

## Annexure II

## Annexure-III

## Total Trade with India's Free Trade Agreement partners (in $ million)

| COUNTRY/BLOC   | YEAR    |   Total Trade |
|----------------|---------|---------------|
| ASEAN          | 2009-10 |      43911.7  |
| ASEAN          | 2010-11 |      56235.8  |
| ASEAN          | 2011-12 |      78917.9  |
| ASEAN          | 2012-13 |      75874.6  |
| ASEAN          | 2013-14 |      74413.7  |
| ASEAN          | 2014-15 |      76527.4  |
| ASEAN          | 2015-16 |      65064.3  |
| JAPAN          | 2009-10 |      10363.7  |
| JAPAN          | 2010-11 |      13724.2  |
| JAPAN          | 2011-12 |      18295.6  |
| JAPAN          | 2012-13 |      18513.5  |
| JAPAN          | 2013-14 |      16295.3  |
| JAPAN          | 2014-15 |      15516.9  |
| JAPAN          | 2015-16 |      14513.1  |
| SOUTH KOREA    | 2009-10 |      11997.1  |
| SOUTH KOREA    | 2010-11 |      14205.2  |
| SOUTH KOREA    | 2011-12 |      17148.6  |
| SOUTH KOREA    | 2012-13 |      17310.8  |
| SOUTH KOREA    | 2013-14 |      16680.5  |
| SOUTH KOREA    | 2014-15 |      18133.3  |
|                | 2015-16 |      16570.8  |
| MALAYSIA       | 2009-10 |       8012.19 |
| MALAYSIA       | 2010-11 |      10394.8  |
| MALAYSIA       | 2011-12 |      13454    |
| MALAYSIA       | 2012-13 |      14395.1  |
| MALAYSIA       | 2013-14 |      13428.2  |
| MALAYSIA       | 2014-15 |      16934.3  |
| MALAYSIA       | 2015-16 |      12790.7  |
| BHUTAN         | 2009-10 |        271.97 |
| BHUTAN         | 2010-11 |        377.6  |
| BHUTAN         | 2011-12 |        432.41 |
| BHUTAN         | 2012-13 |        397.22 |
| BHUTAN         | 2013-14 |        507.78 |
| BHUTAN         | 2014-15 |        483.81 |
| BHUTAN         | 2015-16 |        750.22 |
| NEPAL          | 2009-10 |       1985.92 |
| NEPAL          | 2010-11 |       2681.46 |
| NEPAL          | 2011-12 |       3271.46 |
| NEPAL          | 2012-13 |       3631.94 |
| NEPAL          | 2013-14 |       4122.38 |
| NEPAL          | 2014-15 |       5213.8  |
| NEPAL          | 2015-16 |       4400.67 |
| SAFTA          | 2009-10 |      10048    |
| SAFTA          | 2010-11 |      13830    |
| SAFTA          | 2011-12 |      15726.6  |
| SAFTA          | 2012-13 |      17790.8  |
| SAFTA          | 2013-14 |      19977.7  |
| SAFTA          | 2014-15 |      23424.5  |
| SAFTA          | 2015-16 |      21595.3  |

| COUNTRY/BLOC   | YEAR    |   Total Trade |
|----------------|---------|---------------|
| SINGAPORE      | 2004-05 |       6674.93 |
| SINGAPORE      | 2009-10 |      14046.7  |
| SINGAPORE      | 2010-11 |      16964.8  |
| SINGAPORE      | 2011-12 |      25197.1  |
| SINGAPORE      | 2012-13 |      21105.7  |
| SINGAPORE      | 2013-14 |      19273.9  |
| SINGAPORE      | 2014-15 |      16934    |
| SINGAPORE      | 2015-16 |      15028.4  |
| SRI LANKA      | 2009-10 |       2580.2  |
| SRI LANKA      | 2010-11 |       4009.24 |
| SRI LANKA      | 2011-12 |       4956.83 |
| SRI LANKA      | 2012-13 |       4609.68 |
| SRI LANKA      | 2013-14 |       5201.45 |
| SRI LANKA      | 2014-15 |       7459.89 |
| SRI LANKA      | 2015-16 |       6052.32 |
| THAILAND       | 2009-10 |       4671.68 |
| THAILAND       | 2010-11 |       6546.3  |
| THAILAND       | 2011-12 |       8239.72 |
| THAILAND       | 2012-13 |       9085.78 |
| THAILAND       | 2013-14 |       9043.75 |
| THAILAND       | 2014-15 |       9330.71 |
| THAILAND       | 2015-16 |       8498.03 |

Source: Directorate General of Commercial Intelligence and Statistics (DGCIS)