The Department of Commerce is set to finalise a Standard Operating Procedure (SOP) for negotiating Free Trade Agreements (FTAs) by the end of this year. This significant step aims to streamline and enhance the FTA negotiation process, drawing on lessons from past agreements and best practices from international organisations.
The upcoming SOP, which will be used internally by officials, is designed to provide a standardised framework for future FTA negotiations. While it won’t require formal Cabinet approval, it will be presented to higher authorities for guidance and input.
A Learning-Based Approach
The SOP is being developed as a dynamic document, with regular revisions planned to incorporate insights from ongoing complex FTA negotiations, such as those with the UK and the European Union. By documenting best practices and lessons learned, the Department of Commerce aims to optimise the negotiation process and achieve more favourable outcomes.
The SOP will not only guide the negotiation process but also serve as a valuable tool for capacity building across various ministries involved in FTA discussions. As modern FTAs increasingly encompass a wider range of issues beyond traditional trade in goods, such as services, investments, customs procedures, sustainability, and gender equality, a standardised approach becomes crucial.
Expanding India’s Trade Network
India’s active pursuit of FTAs with key partners like the UK, EU, Chile, Peru, Oman, and the Eurasian Economic Union underscores the country’s commitment to expanding its global trade network. By adopting a more structured and efficient approach to FTA negotiations, India aims to secure mutually beneficial agreements that promote economic growth and development.
