Commerce Secy bats for inking early tranches of FTAs to ensure speedier outcome

NEW DELHI : India’s Commerce Secretary Sunil Barthwal bats for quicker outcomes from negotiations for free trade agreements (FTA) by going for early tranches of trade deals similar to the one planned with United States (US).

“Sometimes FTAs are so time consuming (to sign) that businesses lose interest. So, we are also reviewing some of these issues so we are talking to our FTA partners and our internal departments that why can’t we first look at the core trade issues. And even if it is an early tranche or first phase of that comprehensive agreement, but let there be some kind of an outcome from these negotiations,” Barthwal said at an event on March 19.

Barthwal added that the focus is on first resolving core trade issues such as tariff and non-tariff barriers as well as certain regulatory hurdles to ensure speedier outcomes from FTA negotiations.

As part of its aim to increase total bilateral trade to $500 billion by 2030, India and US are negotiating the first tranche of a mutually beneficial, multi-sector Bilateral Trade Agreement (BTA) by fall of 2025.

Commerce Secretary also advocated for a multisectoral approach in FTAs, “an approach we have taken with our BTA with US, looking at sectors of mutual benefit.”

India has deployed its energies on the proposed trade deal with US and is currently working on drawing out the scope of the first tranche of the deal.

“India and US is regularly speaking on the BTA, it is a multi-sectoral trade deal, we haven’t decided on the contours yet. We haven’t decided what will be covered, what won’t be,” a government official said on March 17.

Recent reports have indicated that as part of the proposed trade deal between the two nations, Washington wants New Delhi to eliminate import duties on cars, while India is said to have agreed to reduce tariffs on certain US imports, such as apples, walnuts and cranberries.