In an effort to increase access to international markets for goods and services, India is reviewing free-trade offers from a number of South American and African nations.
While negotiations for a free trade agreement with the UK are expected to be finished before the end of the year and broad economic partnership agreements are being held with the European Union, Australia, and Canada, talks with Peru are soon to resume after a pause brought on by the pandemic.
“We have made the decision to move forward with the FTA talks with Peru. We’d be figuring out the top priorities… We’ll start interacting after September, Sunil Barthwal, the commerce secretary, told reporters.
According to the secretary, Chile is also asking for a comparable deal. At the India-LAC conference hosted by CII, he added, “If the countries are interested in FTAs, we will also look into options.
Belize, Ecuador, Nicaragua, Brazil, El Salvador, Panama, Chile, Guatemala, Peru, Costa Rica, Guyana, and Suriname are among the countries in the Latin America and the Caribbean (LAC) region.
India’s fourth-largest trading partner in the LAC area is Peru, while India ranks as Peru’s ninth-largest trading partner globally. The FTA negotiations had begun in 2017, but Covid caused a snag.
Bilateral trade between India and Peru totaled $3.11 billion in 2022–2023 compared to $3.6 billion in 2021–2022. India exported $866 million to Peru in FY23 while importing $2.25 billion.
Automobiles, motorcycles and three-wheelers as well as pharmaceuticals, iron and steel products, plastic goods, rubber, pipes for the oil and gas industry, tyres and pipes are among the exports to Peru. India imports agriculture products from other nations, including fresh grapes, phosphates of calcium, synthetic filaments, gold, and copper.
Regarding the India-UK Free Trade Agreement, both parties are close to agreeing on matters relating to intellectual property rights, rules of origin, and investment treaties. Both sides have come to a broad agreement on the two hot-button topics of automotive tariffs and wines and spirits.
On automobiles, the UK wants India to cut duties on imports for its manufacturers from the highs of 100% and on spirits from 150%. India is also seeking a change of rules regarding classification of products under the category so that its wines and spirit industry gets access to the UK market.
The Indian industry is demanding greater access for its skilled professionals in the UK market while the UK is looking for more opportunities for its services into the Indian markets.
