India Free Trade Agreements

Indias Free Trade Agreements Free trade agreements are normally made between two countries. Many governments, throughout the world have either signed FTA, or are negotiating or contemplating new bilateral free trade and investment contracts. There are 2 types of FTAs: bilateral and multilateral. Every customs union, trade common market, economic union, customs and monetary union also has a free trade area. India looks at regional trading arrangements (RTAs) as building blocks towards the overall objective of trade liberalization. Therefore, it is participating in a number of RTAs which include structures such as free trade agreements (FTAs), preferential trade agreements (PTAs), and comprehensive economic cooperation agreements (CECAs). Free Trade Agreement A free trade agreement among two countries or group of countries agrees to abolish tariffs, quotas and preferences on most of the goods (if not all) between them. Countries choose an FTA if their economic structures are complementary, not competitive. India enjoys FTAs, till date, with the following two countries:   Srilanka (December 28, 1998)  Thailand (October 9, 2003) Trade Agreements Its a bilateral or multilateral treaty or any other enforceable compact which commits two or more nations to specified terms of commerce, most of time involving mutually beneficial concessions.   Bangladesh  Bhutan  Ceylon  Maldives  China  Japan  Korea  Mongolia Trade Treaty   Nepal Comprehensive Economic Cooperation Agreement Singapore Framework Agreement A framework agreement is one which sets the period for future substantive liberalization by defining the scope and provisions of orientation for some new area of discussions. List of countries with which India enjoys a framework agreement with are as mentioned under: GCC states i.e. the member states of the Cooperation Council for the Arab States of the Gulf  The Association of South East Asian Nations  Chile BIMSTEC (Bay of Bengal Initiative for Multi Sectoral Technical and Economic Cooperation) Bangladesh India Myanmar Sri Lanka and Thailand Technical and Economic Cooperation were formed in 1997. A sub-regional monetary collaboration alliance was formed in Bangkok in June 1997. Myanmar joined the grouping later in December 1997. Bhutan and Nepal also joined in February 2004. Its association involves 5 members of SAARC (India, Bangladesh, Bhutan, Nepal & Sri Lanka) and two members of ASEAN (Thailand, Myanmar). Therefore, it is visualized as a bridging link between the two major regional groupings i.e. ASEAN and SAARC. Its chairmanship of BIMSTEC revolves among the member countries in alphabetical order. The instant priority of the grouping is consolidation of its activities and making it attractive for economic cooperation.At its first summit held in Bangkok on July 31, 2004, the short form BIMSTEC was renamed as Bay of Bengal Initiative for Multi Sectoral Technical and Economic Cooperation.. Cooperation is proposed in 13 sectors and each sector is led by member countries.   Trade and Investment (Bangladesh);  Technology (Sri Lanka);  Energy (Myanmar);  Transport and Communication (India);  Tourism (India);  Fisheries (Thailand);  Agriculture (Myanmar);  Cultural Co-operation (Bhutan);  Environment and Disaster Management (India);  Public Health (Thailand);  People-to-People Contact (Thailand);  Poverty Alleviation (Nepal)  Counter-Terrorism and Transnational Crimes (India)