Lok Sabha Question No. 1703 (UNSTARRED), answered on 2021-12-08
Subject: Regional Trade Agreements
Ministry: COMMERCE AND INDUSTRY
Asked by: Sushil Kumar Singh

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

## LOK SABHA UNSTARRED QUESTION NO. 1703 TO BE ANSWERED ON 08 th  DECEMBER, 2021

## REGIONAL TRADE AGREEMENTS

## 1703.  SHRI SUSHIL KUMAR SINGH:

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

- (a) the exact number of Regional Trade Agreements (RTAs) category-wise, that India currently has with countries/regions;
- (b) the names of Free Trade Agreements (FTAs) India currently has;
- (c) whether there are instances of re-routing goods through the countries with which India has RTAs by certain countries;
- (d) if so, the ways in which ministry is dealing with this issue; and
- (e) the exact monetary value of trade carried out through RTAs in the last five years, year-wise?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SMT. ANUPRIYA PATEL)

(a) & (b): India currently has 11 Free Trade Agreements (FTAs)/Regional Trade Agreements (RTAs) with  other  countries/regions.  In  addition,  it  has  6  limited  coverage  Preferential  Trade  Agreements (PTAs). The details are as under:

## (i) Free Trade Agreements (FTAs)

|   S.No. | Name of the Agreement                                               |
|---------|---------------------------------------------------------------------|
|       1 | India-Sri Lanka Free Trade Agreement (FTA)                          |
|       2 | Agreement on South Asian Free Trade Area (SAFTA)                    |
|       3 | India-Nepal Treaty of Trade                                         |
|       4 | India-Bhutan Agreement on Trade, Commerce and Transit               |
|       5 | India-Thailand FTA - Early Harvest Scheme (EHS)                     |
|       6 | India-Singapore Comprehensive Economic Cooperation Agreement (CECA) |

|   S.No. | Name of the Agreement                                                                |
|---------|--------------------------------------------------------------------------------------|
|       7 | India-ASEANFTA                                                                       |
|       8 | India-South Korea Comprehensive Economic Partnership Agreement (CEPA)                |
|       9 | India-Japan CEPA                                                                     |
|      10 | India-Malaysia CECA                                                                  |
|      11 | India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA) |

## (ii) Preferential Trade Agreements (PTAs)

|   S.No. | Name of the Agreement                        |
|---------|----------------------------------------------|
|       1 | Asia Pacific Trade Agreement (APTA)          |
|       2 | Global System of Trade Preferences (GSTP)    |
|       3 | SAARC Preferential Trading Agreement (SAPTA) |
|       4 | India-Afghanistan PTA                        |
|       5 | India - MERCOSUR PTA                         |
|       6 | India - Chile PTA                            |

(c)  &  (d): A  few  instances  of  re-routing  of  goods  through  the  countries  with  which  India  has FTAs/RTAs  have  come  to  notice.  To  address  this issue,  Government  has issued  Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR, 2020) with effect from September 21, 2020 to supplement the procedures prescribed under different FTAs. These rules also cast responsibility on the importers to conduct due diligence for ensuring that the goods meet the prescribed rules of origin. The newly introduced provisions act as deterrent against misuse of trade agreements. In addition, an FTA monitoring committee has been constituted with representation from government  departments,  trade  and  industry  bodies  to  identify  issues  relating  to  misuse  of  FTA provisions and recommend action.

## (e): The value of India's trade with FTA/RTA partner countries in the last five years is as below:

(Figures in US $ Million)

| Export/Import   |   2016-17 |   2017-18 |   2018-19 |   2019-20 |   2020-21 |
|-----------------|-----------|-----------|-----------|-----------|-----------|
| India's exports |   59152.3 |   67576.9 |   73550.1 |   63515.5 |   63105.5 |
| India's imports |   65789.1 |   77692.2 |   93287.6 |   87327.7 |   74538.1 |

(Source: DGCIS)

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