Lok Sabha Question No. 2337 (UNSTARRED), answered on 2016-05-09
Subject: Free Trade Agreements
Ministry: COMMERCE AND INDUSTRY
Asked by: OM PRAKASH YADAV

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

## LOK SABHA UNSTARRED QUESTION NO. 2337 TO BE ANSWERED ON 09 TH   MAY, 2016

## FREE TRADE AGREEMENTS

## 2337. SHRI OM PRAKASH YADAV:

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

- (a) the details of Free Trade Agreements and limited scope of Preferential Trade Agreements concluded by India during the last three years;
- (b) the details of the outcome of the Tenth Ministerial Conference of WTO held in Nairobi, Kenya in December 2015;
- (c) whether from lowering of tariffs and removal of quantitative restrictions, the focus in international Trade has now shifted to the simplification of trade procedures in general and customs procedures in particular;
- (d) if so, the details thereof; and
- (e) the details of the new initiative taken by the Government for trade facilitation?

## ANSWER

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

- (a) India  has  not  entered  into  any  new  Free  Trade  Agreement  (FTA)  or  Preferential Trade Agreement (PTA) during the last three years. However, India expanded the scope of the  India-ASEAN  Trade  in  Goods  (TIG)  Agreement  in  November,  2014  to  cover  both Services and Investment with its date of implementation being 1 July, 2015.

(b) The  outcomes  of  the  10 th Ministerial  Conference  of  the  World  Trade  Organisation (WTO), referred to as the 'Nairobi Package' includes a Ministerial Declaration and Decisions on  some  agricultural  issues  and  issues  relating  to  Least  Developed  Countries  (LDCs). Ministerial  Decisions  were  adopted  relating  to  public  stockholding  for  food  security purposes,  an  agricultural  Special  Safeguard  Mechanism  (SSM)  for  developing  countries,  a commitment to abolish export subsidies for farm exports and measures related to cotton. The Ministerial  decision  on  public  stockholding  for  food  security  purposes  commits  WTO members  to  engage  constructively  in  finding  a  permanent  solution  to  the  issue  of  public stockholding  for  food  security  purposes  and  translates  into  a  commitment  by  the  WTO

members to agree on and adopt a permanent solution by the Eleventh Ministerial Conference of  the  WTO  in  2017.    India  also  negotiated  a  Ministerial  Decision  which  recognizes  that developing countries will have the right to have recourse to an agricultural Special Safeguard Mechanism (SSM) as envisaged in the Doha mandate for which negotiations will be held in dedicated sessions with the General Council mandated to regularly review progress of these negotiations.      The  SSM  is  intended  to  help  developing  countries  protect  their  agriculture sector, inter-alia, from the effects of import surges.  Decisions were also adopted regarding preferential treatment to LDCs in the area of services and the criteria for determining whether exports  from  LDCs  may  benefit  from  trade  preferences.  One  of  the  Decisions  adopted extends  the  relevant  provision  to  prevent  ' evergreening '  of  patents  in  the pharmaceuticals sector.  This  would  help  in  maintaining  an  affordable  and  accessible  supply  of  generic medicines. A Ministerial Declaration was also adopted which reflects the Decisions adopted at the Conference and the views on the way forward in the WTO negotiations.

(c) to (e): Yes, Madam. There is  an increased focus in international trade on simplification of trade procedures. India ratified the  World Trade Organisations (WTO's) Trade Facilitation Agreement (TFA) on 22 April, 2016. The new initiatives taken by the government for trade facilitation  are  reduction  in  mandatory  documents  for  exports  and  imports;  electronic processing of  a  significant  number  of  shipping  bills;  implementation  of  the  single  window project;  integrated  risk  management;  and  extended  coverage  of  24x7  customs  clearance facility.

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