PM Narendra Modi with Finance Minister Nirmala Sithraman, Commerce and Industry Minister Piyush Goyal, CII President Sanjiv Puri and Director General Chandrajit Banerjee during the CII post-budget conference, in New Delhi on July 30, 2024.
| Photo Credit: PTI
The negotiations to review the free trade agreements (FTAs) implemented with Japan, Korea, and ASEAN are moving slowly, but India is pursuing those talks, Commerce and Industry Minister Piyush Goyal said on July 30. He said these agreements were signed and implemented during the UPA regime.
These pacts are hurting the domestic industry and almost all firms stated that they are “unfair” agreements, Mr. Goyal said.
“I am helpless as those agreements (came into effect) before we came to power. I am helpless to change it until we close the negotiations. We are under re-negotiations but obviously when they (Japan, Korea, ASEAN) realise that the Congress’s agreement was better for them (Japan, Korea, ASEAN), they are happier to keep that rather than change the agreements… they are going very slow, (but) we are also pursuing,” he said while speaking at a CII programme on Viksit Bharat.
ASEAN (Association of Southeast Asian Nations) is a major trade partner of India, with a share of 11% in the country’s global trade. The bilateral trade stood at $122.67 billion in FY2023-24. Members of the bloc include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
In general, such review exercises include implementation issues, rules of origin; verification process and release of consignments; customs procedures; further liberalisation of trade in goods; and sharing and exchange of trade data.
The India-Korea agreement, dubbed as comprehensive economic partnership agreement (CEPA), was operationalised in January 2010.
India has sought greater market access for certain products like steel, rice, and shrimp from South Korea to boost exports of these goods. India has flagged issues over Korean firms not buying Indian steel.
India has also raised concerns about the growing trade deficit between the two countries. India’s exports to Korea dipped to $6.41 billion in 2023-24 from $6.65 billion in 2022-23 and $8 billion in 2021-22.
India and Japan had implemented the CEPA in August 2011.
Mr. Goyal added that the Modi government signed four free-trade pacts (Australia, Mauritius, EFTA, and the UAE) after holding a series of consultations with stakeholders.
“I am happy to do more FTAs and the industry can guide us on that. FTA is a two-way traffic. I would urge your cooperation to do move faster on FTAs and QCOs (quality control orders),” he said.
The Minister also urged the industry to come forward and support the startups in funding so that they do not have to sell their ideas for “few” dollars.
“Why do we have to sell out cheap at a very low valuation, the ideas of young boys and girls… I would urge all of you to please be forthcoming and support the startups and MSMEs,” he said.
