India's FTA ambitions in perspective

A protectionist tariff structure and an inability to integrate with global value chains may prove to be major challenges for India as it seeks deeper trade agreements

As the second year of the pandemic draws to a close, global trade recovery continues apace with world trade in goods having attained record high levels in the third quarter of 2021 and trade growth continuing at about 1 per cent each quarter (Global Trade Update, United Nations Conference on Trade and Development, November 2021).

Major trading economies, conscious of this trade momentum, have persevered with their pre-pandemic schedules of trade agreements, especially in mega regional trade agreements. The US-Mexico-Canada Agreement (USMCA) entered into force on July 1, 2020, and the EU-Vietnam FTA a month later. In Asia, the 15-member Regional