“…the experience has been that when we look at these free trade agreements, sometimes they are so much time taking that people lose interest, the businesses lose interest.
“So we are also reviewing some of these issues in the department (of commerce) as well, as we are talking to our partners who are doing FTAs with us that why can’t we first look at the core trade issues, and even if it is early tranche, or even if it is first phase of that comprehensive agreement, but let there be some kind of outcome which should come out of these negotiations. So we are taking that approach, that let us first focus on the core trade issues,” Barthwal said at CII’s India-LAC (Latin America and Caribbean) Business Conclave here.
The secretary said that the core trade issues are tariffs, non-tariff barriers, SPS (sanitary and phyto-sanitary) barriers, and regulatory factors.
He added that there is a need for India and the LAC region to follow this approach.
“Look at the core trade issues with you, and start working in that direction. I think that is going to be a great way forward by which we will be able to achieve many things, and the businesses will be able to see that the outcomes are very, very fast,” Barthwal said. He added that the multi-sectoral approach, which India is talking to the US with under the proposed bilateral trade agreement is also important. In this approach, “we look at the sectors of mutual advantage, of mutual benefit”, he said.
India is negotiating trade agreements with MERCOSUR (Argentina, Brazil, Paraguay, and Uruguay), Chile and Peru.
“We are also thinking of how to look at this (LAC) region in terms of looking the impediments, whether it is non-tariff barriers, whether it is tariff barriers or the regulations, to see that trade grows between these two regions,” he said, adding there is a target to double two-way commerce from USD 50 billion to USD 100 billion in the coming years.
The secretary said that huge potential is there to boost trade between the two regions.
LAC region imports are at USD 1.8 trillion and exports of goods and services are around USD 1.8 billion.
He also said that countries will have to cut down protectionism to increase trade because that is the need of the nations.
“You cannot grow your GDPs, unless and until the trade also grows… we are embarking upon our trade promotion mission, which would be a kind of umbrella, a kind of scheme, where we look at how to take our trade further.
“So trade is going to be an engine of growth, not only for that region, but also for India, and that is the path which we will be taking forward,” Barthwal said.
He added that sectors where cooperation can be increased included automobile, medical devices and pharmaceuticals.
“So can we look at the automobile sector, in a manner in which there are gains to both the regions. Similarly, the pharmaceutical sector, again, India has developed that ability of focusing on generic drugs, which can provide affordable medicines,” he said.
Content Source: economictimes.indiatimes.com