Priyanka Tiwari
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India’s Commerce Secretary, Sunil Barthwal, emphasized the need for quicker outcomes from Free Trade Agreements (FTAs) by focusing on early phases or tranches of trade deals. Speaking at an event on March 19, Barthwal highlighted that long-drawn FTA negotiations often lead to a loss of interest among businesses, which slows down progress. To address this, Barthwal proposed the idea of targeting core trade issues first, such as tariff and non-tariff barriers, and regulatory hurdles, ensuring that even early stages of the agreements bring visible outcomes.
India-US Bilateral Trade Agreement (BTA) and Early Tranches
India is particularly focused on a Bilateral Trade Agreement (BTA) with the United States, aimed at boosting bilateral trade to $500 billion by 2030. Barthwal mentioned that the first tranche of this trade deal is expected to be finalized by fall 2025. The BTA with the US will focus on key sectors of mutual benefit, reflecting a multi-sectoral approach that India is pursuing in its FTAs. This approach has also been applied in discussions with other trade partners, including the United Kingdom, the European Union, Oman, and New Zealand.
Core Trade Issues in Early FTA Phases
Barthwal’s strategy includes fast-tracking the resolution of core trade issues at the beginning of negotiations. The focus will be on addressing tariffs, non-tariff barriers, and regulatory challenges. This would ensure that there are concrete early-stage outcomes from negotiations, helping both parties maintain interest and momentum in the FTA process.
US Trade Demands and India’s Response
Recent reports have suggested that as part of the US-India trade talks, Washington has requested India to eliminate import duties on cars, while India is negotiating to reduce tariffs on certain US imports, including apples, walnuts, and cranberries. This marks the beginning of the broader trade deal discussions between the two nations, focusing on multi-sectoral benefits that aim to balance the interests of both countries.
India’s Growing Role in Global Trade Deals
In addition to the India-US BTA, India is negotiating trade deals with several other nations and trading blocs. India is currently in talks with the United Kingdom, European Union, Oman, and New Zealand, indicating a broadening of India’s global trade network. The strategy of addressing core trade issues in the early stages of these negotiations is expected to accelerate the pace of global trade deals and benefit all involved parties.
