Non-trade issues making FTAs more complex: Commerce Secy Sunil Barthwal

India's free trade agreements are evolving, incorporating new areas like labour, environment, and intellectual property. Barthwal highlighted the complexity of India's deals with the EU and UK.

Free trade agreements (FTAs) are getting more complex, with the inclusion of matters such as non-service, labour, environment, intellectual property rights (IPR) and government procurement that go beyond the arena of trade, commerce secretary Sunil Barthwal said on Friday.

 

Citing the example of the European Union (EU), the secretary said that the ongoing negotiation for a trade deal is complex, with discussion on new areas such as non-services.

 

“India-EU FTA will be more complex. There are many new subjects, such as non-services, which we never had. We used to think that it is only merchandise trade and other services that are getting into the investment issue of services,” Barthwal said at an event organised by Centre for Trade and Investment Law.

 

 

Similarly, the recently signed India-UK FTA is also a complex deal and includes several regulatory and sectoral areas such as IPR, non-tariff barriers, trade remedies, innovation, good regulatory practices, government procurement and dispute settlement. There are also sectoral chapters, such as digital trade and e-commerce, among other areas.

 

The secretary further said that the India-UK FTA is a gold standard for future trade deals, considering that India is negotiating pacts with a bunch of countries right now.

 

“Why is it the gold standard? It is because we were able to take a viewpoint. We were able to devise a text draft, the legal text in a manner which satisfied our stakeholders,” he added.

 

Under the India-UK FTA, it was for the first time that India took commitments on matters related to labour and environment.

 

The secretary’s comment came at a time when India is fast tracking FTA negotiations and reviewing existing trade agreements.

 

While a trade deal with the four-member European Free Trade Association (EFTA) nations will come into force from October 1, India has reached out to the UK to fast track implementation of the FTA by wrapping up parliamentary procedures.

 

An agreement with Oman has been finalised and will be signed soon. Talks with the EU are also being fast-tracked. The government is also looking to complete FTA negotiations with Chile and Peru by the end of this year.

 

That apart, substantial completion of the FTA review with the 10-member Asean nations is expected by year-end.