FTA strategy meet: Trade ministry of India plans steps to prevent overstraining of resources

India is currently negotiating an FTA with the UK, European Union and a widening deal with Australia.

At a time when the commerce ministry is involved in negotiations on multiple trade deals, a meeting to strategize approach to negotiate free trade agreements (FTA) headed by commerce secretary Sunil Barthwal discussed ways to effectively manage workload and to prevent overtraining of resources, a statement released by the Commerce and Industry Ministry said on Tuesday.

This comes after experts pointed out that opening multiple negotiations might not be an effective strategy at maximising gains as India’s FTAs are leading to widening of trade deficit and the negotiators should focus on elimination of non-tariff barriers and better market access in the service sector rather than negotiating tariff that often serves the FTA partners not India.

India is currently negotiating an FTA with the UK, European Union and a widening deal with Australia. Moreover, with an eye on narrowing the trade gap, the ministry is reviewing a trade deal with Association of Southeast Asian Nations (ASEAN) countries. During the last couple of years, the ministry completed negotiations with UAE, Mauritius and a mini trade deal with Australia.

“The participants also explored robust resource management strategies and its implementation, to prevent overstraining, and ensure proactive problem-solving thereby providing useful and constructive attributions. The discussions highlighted that relevant stakeholder consultations are essential for inclusive and supportive outcomes, how the stakeholders provide critical insights and hence continuous outreach to stakeholders is necessary to keep them informed and engaged,” the commerce and industry ministry said.

Department of Commerce, Ministry of Commerce and Industry in collaboration with Centre for Trade and Investment Law (CTIL), Indian Institute of Foreign Trade, New Delhi organised a ‘Chintan Shivir’ on Free Trade Agreement Strategy and standard operating procedures (SoP) for Trade Negotiations from 16 to 17 May 2024 at Neemrana, Rajasthan. Former senior officials, national and international experts in FTA negotiations, academicians, and legal professionals also attended the meet.

“Speakers highlighted the importance of interdisciplinary support noting that successful negotiations require expertise in law, economics, data analytics, and industry specific knowledge and how gathering expert opinions and insights from various sectors enhances the negotiation process. Participants explored ways to utilise the resources of India’s embassies or missions abroad, towards leveraging on-ground insights from embassies which would help understand the regulatory regimes of partner countries,” the statement read.

The ministry said that the discussions also touched upon changing industrial policy across the globe that is shifting the contours of trade deals. The members noted that the global trend towards partial de-globalisation and the use of industrial policy as a “cover for protectionism, and geopolitics” now play equally an influential role that of geoeconomics in shaping trade policies, the ministry said.

Suggestions were made that India should use FTAs to build resilient supply chains, focus on capacity building and interdisciplinary expertise, and adapt to the current trend of partial de-globalisation and geopolitical influences. “India should negotiate a dedicated chapter on Critical Minerals or Critical Minerals-based agreements specially with such mineral-rich countries to protect India from abrupt disruption in supply chain,” the ministry said.

‘Standard Operating Procedures for FTA Negotiations including Stakeholder Consultations’, speakers and participants discussed evolution and drafting of SOP and its benefits in enhancing the objectives of trade agreements and creating documentational or institutional memory for future negotiations, the statement read.

Source: The Indian Express