Lok Sabha Question No. 271 (STARRED), answered on 2015-08-07
Subject: FTAs/PTAs with Countries
Ministry: COMMERCE AND INDUSTRY
Asked by: ARVIND GANPAT SAWANT, R. VANAROJA

**GOVERNMENT OF INDIA**

MINISTRY OF COMMERCE & INDUSTRY

(DEPARTMENT OF COMMERCE)

## LOK SABHA

**STARRED QUESTION NO. 271**

**TO BE ANSWERED ON 7** **TH** **AUGUST 2015**

**FTAs/PTAs WITH COUNTRIES**

***271(H).  SHRI ARVIND SAWANT:**

**SHRIMATI VANAROJA R.:**

Will the Minister of **COMMERCE & INDUSTRY (´ÉÉÉÊhÉVªÉ A´ÉÆ =tÉÉäMÉ àÉÆjÉÉÒ)** be pleased to state:

- 1.1. the countries including ASEAN countries with which India has entered into Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs) at present;
- 1.2. the impact of such agreements in boosting country's trade and investment indicating the assessment/evaluation, if any, made in this regard along with the outcome thereof;
- 1.3. the quantum and value of trade (Exports/Imports) with such countries during each of the last three years and the current year, country and commodity-wise;
- 1.4. whether the Government proposes to review the existing FTAs/PTAs and enter into FTAs and PTAs with some more countries including Thailand, Israel, Iran and European Union (EU), to boost trade and investments in the country, if so, the details thereof indicating the constraints hindering signing of such agreements alongwith the progress made to resolve the issues and sign the agreements at the earliest; and
- 1.5. the safeguard measures taken by the Government while negotiating such agreements to protect the domestic market against any surge in imports or injury?

### ANSWER

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

1. to  e): A Statement is laid on the Table of the House.

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**STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF LOK SABHA STARRED QUESTION NO. 271 FOR ANSWER ON 7** **TH** AUGUST, 2015 REGARDING “FTAs/PTAs WITH COUNTRIES”

1. India has entered into 11 FTAs and 5 PTAs with other countries. The details of Free Trade Agreements (FTAs)/Preferential Trade Agreements(PTAs), including with ASEAN countries, entered into between India and other countries is given at **Annexure-I.**
2. Impact evaluation of FTAs is a continuous process which starts even before FTA/PTA negotiations are entered into. Before entering into negotiations with its trading partners, studies are undertaken internally, as well as through the Joint Study Group (JSG) to study the feasibility of the proposed FTAs, including their impact on domestic stakeholders. Consultations are held with all stakeholders including the Apex Chambers of Commerce and Industry, Industry Associations as well as the Administrative Ministries/Departments. India’s trade and economic relations with all its FTA partners have increased substantially.
3. The quantum and value of trade (import/export) with India’s FTA partner countries during each of the last three years and current year, commodity wise is available on Department of Commerce website ( [http://commerce.nic.in/eidb/default.asp](http://commerce.nic.in/eidb/default.asp) ).
4. India is negotiating free trade agreements (FTAs) and preferential trade agreements (PTAs) with some countries including Israel and the European Union. The expansion of the existing Early Harvest Scheme (EHS) with Thailand is also being negotiated through a Comprehensive Economic Cooperation Agreement (CECA). Negotiations for a Comprehensive Economic Partnership between India and 10 ASEAN member States and its 6 FTAs partners (RCEP) is also currently underway. The list of the FTAs/PTAs currently being negotiated is given in **Annexure-II.**
5. In order to protect the interests of the domestic industry and agriculture sector, these agreements provide for maintaining sensitive/negative lists of items on which limited or no tariff concessions are granted under the FTA/PTA. In case of a surge in imports and injury to the domestic industry, a country is allowed to take recourse to measures such as anti-dumping and safeguards. Every FTA/PTA has a joint review mechanism which monitors the implementation of the FTA.

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**Annexure I**

**List of free trade agreements (FTAs) entered into between India and other countries**

|   **S.**  **No.** | **Name of the Agreement and the participating countries**                                                                                             |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
|                1. | India - Bhutan Agreement on Trade, Commerce and Transit                                                                                               |
|                2. | Revised Indo-Nepal Treaty of Trade                                                                                                                    |
|                3. | India - Sri Lanka FTA                                                                                                                                 |
|                4. | Agreement on South Asian Free Trade Area (SAFTA) (India, Pakistan, Nepal, Sri Lanka, Bangladesh, Bhutan, Maldives and Afghanistan)                    |
|                5. | India - Thailand FTA - Early Harvest Scheme (EHS)                                                                                                     |
|                6. | India - Singapore Comprehensive Economic Cooperation Agreement (CECA)                                                                                 |
|                7. | India - South Korea Comprehensive Economic Partnership Agreement (CEPA)                                                                               |
|                8. | India – ASEAN Trade in Goods Agreement (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam)           |
|                9. | India - Japan Comprehensive Economic Partnership Agreement                                                                                            |
|               10. | India - Malaysia Comprehensive Economic Cooperation Agreement                                                                                         |
|                11 | India - ASEAN Services and Investment Agreement  (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam) |

**List of Preferential Trade Agreements (PTAs) entered into between India and other countries**

|   **S.No.** | **Name of the Agreement and the participating countries**                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           1 | Asia Pacific Trade Agreement (APTA) (Bangladesh, China, India, Lao PDR, Republic of Korea, and Sri Lanka)                                                                                                                                                                                                                                                                                                                                                                                                                    |
|           2 | Global System of Trade Preferences (G S T P)  (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,             Vietnam, Yugoslavia, Zimbabwe) |
|           3 | India - Afghanistan PTA                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|           4 | India - MERCOSUR PTA                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|           5 | India - Chile PTA                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

**Annexure II**

**List of FTAs being negotiated by India**

|   **S. No.** | **Name of the Agreement**                                                                                                                                                                                                                                                                   | **Status**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|            1 | India - EU BTIA  (Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom) | Negotiations commenced in June 2007 covering a number of tracks ranging from Trade in Goods to Services. So far fifteen rounds of negotiations have been held.  The last engagement between both sides was held in May, 2013 in New Delhi. Since then, EU had largely disengaged from the negotiations. However both sides began re-engagement from October, 2014 onwards.                                                                                                                                                                                                                                            |
|            2 | India – Sri Lanka Comprehensive Economic Partnership Agreement (CEPA)                                                                                                                                                                                                                       | No discussion is currently taking place on India-Sri Lanka CEPA.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|            3 | India - Thailand Comprehensive Economic Cooperation Agreement (CECA)                                                                                                                                                                                                                        | 28 rounds of India-Thailand Trade Negotiation committee (ITTNC) meetings have been held.  The last round took place on 6-7 November, 2013 in New Delhi.                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|            4 | India - Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA)                                                                                                                                                                                                      | Ten rounds of negotiations on India-Mauritius CECPA have been held between the two sides so far.  The last round of negotiation was held between India and Mauritius on 23–24 October, 2006.  However, CECPA negotiations have been formally put on hold.                                                                                                                                                                                                                                                                                                                                                             |
|            5 | India EFTA (Iceland, Norway, Liechtenstein and Switzerland)                                                                                                                                                                                                                                 | India EFTA (European Free Trade Association) Trade and Economic Partnership Agreement (TEPA) was launched in January 2008. So far, thirteen rounds of negotiations have been held.  13  th  Round was held on 25-29  th  November, 2013 in New Delhi.                                                                                                                                                                                                                                                                                                                                                                 |
|            6 | India - New Zealand CECA                                                                                                                                                                                                                                                                    | 10 Rounds of negotiation of CECA have been held so far. The 10  th  Round was held in New Delhi on 17-18 February, 2015.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|            7 | India – Israel FTA                                                                                                                                                                                                                                                                          | Eight rounds of negotiations on India-Israel FTA have been held so far. Eighth round of negotiations was held in Israel from 24-26 November, 2013.                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|            8 | India - Singapore CECA  **(Review)**                                                                                                                                                                                                                                                        | Second review of India-Singapore CECA was initiated on 11  th  May, 2010 and is going on.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|            9 | India - SACU PTA (South Africa, Botswana, Lesotho, Swaziland and  Namibia)                                                                                                                                                                                                                  | Five rounds of negotiations have been held so far. 5  th  round of negotiations was held in Oct 2010 in New Delhi.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|           10 | India - Mercosur PTA  (Argentina, Brazil, Paraguay and Uruguay)                                                                                                                                                                                                                             | The two issues currently under discussion on the India-Mercosur PTA are the expansion in coverage and inclusion of Venezuela in the PTA.                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|           11 | India – Chile PTA                                                                                                                                                                                                                                                                           | With the objective to gain optimal benefits and boost up bilateral trade between two countries, the discussion on expansion of India-Chile PTA is currently in progress.                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|           12 | BIMSTEC CECA  (Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan and Nepal)                                                                                                                                                                                                           | 19 meetings of the Trade Negotiation Committee (TNC) have taken place.  The 19  th  Round was held in Bangkok from 21 to 23, February 2011.                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|           13 | India - Gulf Cooperation Council (GCC)  Framework Agreement  (Saudi Arabia, Oman, Kuwait, Bahrain, Qatar and United Arab Emirates)                                                                                                                                                          | Two rounds of negotiations have been held so far in 2006 and 2008.  The second round was held in September 9-10, 2008. No round could take place in the last 6 years since GCC has deferred its negotiations with all countries and economic groups and is currently reviewing its negotiations with all countries and economic groups.                                                                                                                                                                                                                                                                               |
|           14 | India – Canada  FTA                                                                                                                                                                                                                                                                         | Eight rounds of negotiation on India-Canada CEPA have been held so far.  The 8  th  Round was held in Ottawa, Canada from 24  th  to 26  th  June, 2013. The next round will be held in New Delhi.                                                                                                                                                                                                                                                                                                                                                                                                                    |
|           15 | India -  Indonesia CECA Consultations                                                                                                                                                                                                                                                       | Commencement of negotiation on Indonesia - India CECA was announced on 25  th  January 2011 during the visit of Indonesian President to New Delhi. The first meeting pre-negotiation and Biennial Trade and Investment Forum (BTIF) took place in Jakarta on October 3-4, 2011. Negotiation has been kept in abeyance watching progress of RCEP.                                                                                                                                                                                                                                                                      |
|           16 | India – Australia CECA                                                                                                                                                                                                                                                                      | Six rounds of negotiations have been held so far. The sixth round of negotiations was held on 18-19, December, 2014 in New Delhi, India.                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|           17 | India-Malaysia CECA  (1  st  Review)                                                                                                                                                                                                                                                        | 1  st  meeting of the India-Malaysia Joint Committee meeting to review implementation of the Agreement was held on 8  th  December, 2014                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|           18 | Regional Comprehensive Economic Partnership (RCEP) Agreement among  ASEAN + 6 FTA Partners (Australia, China, India, Japan, South Korea and New Zealand)                                                                                                                                    | Based on the Declaration of the Leaders during the ASEAN Summit in November, 2012, negotiations for a comprehensive economic partnership between the 10 ASEAN member states and its 6 FTA partners commenced in May, 2013.  Eight rounds of negotiations have been held so far. The 8  th  Round was held in Kyoto, Japan from 5-13 June, 2015. The 9  th  Round is being held from 1-7 August, 2015 in Nay Pyi Taw, Myanmar. The negotiations cover a number of areas like goods, services, investment, intellectual property, competition, economic & technical cooperation and legal and institutional issues. |
|          19. | India – ASEAN Trade in Goods Agreement (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam)-  **(1st REVIEW)**                                                                                                                              | The ASEAN Secretariat has agreed to the 1  st  review of India-ASEAN trade in Goods Agreement with the dates to be finalized as per mutual consultations.                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

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