Presentation is loading. Please wait.

Presentation is loading. Please wait.

Free Trade Agreements  As the name indicates, this is an International Agreement to facilitate Free Trade among the countries signing the FTA.  Many.

Similar presentations


Presentation on theme: "Free Trade Agreements  As the name indicates, this is an International Agreement to facilitate Free Trade among the countries signing the FTA.  Many."— Presentation transcript:

1 Free Trade Agreements  As the name indicates, this is an International Agreement to facilitate Free Trade among the countries signing the FTA.  Many Governments through out the world have either FTA or are negotiating signing of such agreement towards international integration into a global free market economy.

2 Free Trade Agreements (Contd.)  It is presumed that Free Trade and removal of duties will lead to faster economic growth and help in reducing poverty and increasing standard of living and employment opportunities.  Normally FTA covers merchandise exports only. The duty level for the goods traded between the countries could be as low as 0%.

3 Free Trade Agreements (Contd.)  India has signed FTA with Sri Lanka in 2000 and Thailand in 2004.

4 India’s Trade with Thailand before and after signing the FTA in 2004 2002-032003-042004- 05 2005-062009-10 Export711.20831.68901.391,075.311,740.16 Import379.00609.05865.881,211.582,931.52 Total1090.001440.731767.272286.894671.68 USD Million

5 India’s Trade with Sri Lanka before and after signing the FTA in 2000 1998-991999- 2000 2000- 01 2001-022009-10 Export437.13499.27640.14630.892,188.01 Import37.6844.2345.0167.38392.19 Total474.81543.50685.15698.272580.20 USD Million

6 Current Engagements in FTAs  The Government of India is negotiating more FTAs with a number of countries including Japan, EU, Chile and MERCOSUR, which may materialize in the near future.  It is hoped that with the revival of global economy and economic growth, these FTAs will have better impact on India’s trade and economic relations with these countries.

7 Comprehensive Economic Partnership Agreement (CEPA)  CEPA is a Comprehensive Agreement which includes merchandise services, investment and trade barriers.  CEPA is much more advantageous for the signing countries as it has a wider base then FTA, and helps promoting economic growth at a much faster pace.  This Agreement helps the services sector by providing additional favourable treatment to the service providers in these countries and thereby promoting this very important sector.

8 Comprehensive Economic Partnership Agreement (CEPA)  The Agreement also covers investment climate for the signing countries as more liberal and concessional treatment could be agreed for the investors thereby giving a boost to investment.  India has already concluded CEPA with Singapore and Korea.  On going negotiations are in progress with a number of countries like Malaysia, Japan, Sri Lanka, Thailand, etc.

9 How FTA/ CEPA benefits exports?  Exports get better market access by reduction in import duty in the country with whom FTA is signed  Encourages inputs of imports at lower or zero duty for manufacture of export goods and also increases competitiveness  Flags Non Tariff Measures in such country for the redressal  In CEPA, services exports also gain momentum due to liberalization of all four modes

10 THANK YOU


Download ppt "Free Trade Agreements  As the name indicates, this is an International Agreement to facilitate Free Trade among the countries signing the FTA.  Many."

Similar presentations


Ads by Google