Lok Sabha Question No. 1283 (UNSTARRED), answered on 2022-02-09
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. 1283 TO BE ANSWERED ON 09 th  FEBRUARY, 2022

## REGIONAL TRADE AGREEMENTS

## 1283.  SHRI SUSHIL KUMAR SINGH:

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

- (a) the names of the Regional Trade Agreements (RTAs) which have been beneficial for India;
- (b) whether there are any RTAs that have not been beneficial for the country;
- (c) if so, the names of such RTAs and the manner in which these have not been beneficial to the country;
- (d) whether India's RTAs have exit clause;
- (e) if so, the list of RTAs that have exit clause and the list of those RTAs that do not have exit clause;
- (f) whether Asia Pacific trade agreement has an exit clause; and
- (g) if so, the details thereof?

## ANSWER

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

(a), (b) & (c): India has signed 11 Regional Trade Agreements (RTAs)/Free Trade Agreements (FTAs) with various countries/regions namely, Japan, South Korea, Mauritius, countries of ASEAN region and countries of South Asian Association for Regional Cooperation (SAARC). India's merchandise exports to all these countries/regions have registered a growth in the last ten years. The following table gives country/region wise merchandise export details:

| RTA partner countries/Region wise India's exports Values in US$ billion   | RTA partner countries/Region wise India's exports Values in US$ billion                                                  | RTA partner countries/Region wise India's exports Values in US$ billion                                        | RTA partner countries/Region wise India's exports Values in US$ billion                                        |
|---------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|
| India RTA partner Countries/region                                        | Names of RTAs                                                                                                            | Export in 2011                                                                                                 | Export in 2021                                                                                                 |
| ASEAN                                                                     | India-ASEAN FTA India-Singapore CECA India-Malaysia CECA India-Thailand FTA - Early Harvest Scheme (EHS)                 | 34.5                                                                                                           | 40.6                                                                                                           |
| Japan                                                                     | India-Japan CEPA                                                                                                         | 5.6                                                                                                            | 6.1                                                                                                            |
| South Korea                                                               | India-South Korea CEPA                                                                                                   | 4.6                                                                                                            | 7.0                                                                                                            |
| SAFTA                                                                     | Agreement on SAFTA India-Sri Lanka FTA India-Nepal Treaty of Trade India-Bhutan Agreement on Trade, Commerce and Transit | 13.0                                                                                                           | 31.6                                                                                                           |
| Mauritius                                                                 | India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA)                                     | It is too early to calculate quantifiable benefits for this RTA, as it was implemented only w.e.f. 10.04.2021. | It is too early to calculate quantifiable benefits for this RTA, as it was implemented only w.e.f. 10.04.2021. |

Source: Directorate General of Commercial Intelligence and Statistics (DGCI&S)

In addition, India has also signed 6 Preferential Trade Agreements (PTAs) including Asia Pacific Trade Agreement (APTA).

(d) & (e): All of India's RTA's have exit clauses. The list is mentioned in the table above.

(f) & (g): Yes, Sir. Article 32 of Asia Pacific Trade Agreement (APTA) has mention of withdrawal from  the  agreement.  The  article  mentions,  'Any  Participating  State  may  withdraw  from  this Agreement, such withdrawal to take effect six months following the day on which written notice of the same is served to the Participating States through the Executive Secretary of ESCAP.  The rights and obligations of a Participating State which has withdrawn from this Agreement shall cease to apply as of that date.  After that date, the Participating States and the withdrawing country shall jointly decide whether to withdraw in whole or in part the concessions received by the latter from the former and vice versa'.

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