Recently, India has launched the Free Trade Agreement negotiations with the United Kingdom.
Context
Recently, India has launched the Free Trade Agreement negotiations with the United Kingdom.
What are Free Trade Agreements (FTAs)?
- A free trade agreement (FTA) is a treaty between two or more countries to facilitate trade and eliminate trade barriers.
- FTAs normally cover trade in goods (such as agricultural or industrial products) or trade in services (such as banking, construction, trading etc.).
- FTAs can also cover other areas such as intellectual property rights (IPRs), investment, government procurement and competition policy, etc.
- It aims at eliminating tariffs completely from day one or over a certain number of years.
- Free trade agreements help create an open and competitive international marketplace.
Status of the trade pacts under negotiation
- India now has in place 10 FTAs and six PTAs (preferential trade agreements).
- In addition, India is negotiating 16 new and expanding seven existing agreements, including with trading partners such as Canada, the EU, the US, alongside Australia and the UK.
