Faced with global headwinds and the impact of trade being “weaponised”, India is focused on expanding its export basket, for which it is in talks with numerous countries, said Union Commerce and Industry Minister, Piyush Goyal on Friday.
“We have all seen trade being weaponised. We have all seen the importance of having trusted partners around the world,” he said at the Ficci annual general meeting, adding, “India is working with its trusted trading partners through these agreements to boost economic ties.”
Besides the US, with which India has held six rounds of negotiations so far in order to finalise a bilateral trade agreement before the end of this year, New Delhi has already implemented a comprehensive trade agreement with the UAE while talks with Oman are on the verge of completion, the minister informed.
Goyal’s remarks come at a time when the US administration imposed tariffs on most countries of the world, triggering a trade war. It imposed a steep 50 per cent tariff on Indian goods, 25 per cent of which is “punitive” action for buying Russian crude, which US President Donald Trump equates to “blood oil” funding the Ukraine war.
Goyal said the GCC (Gulf Cooperation Council) – a group of six countries including Saudi Arabia, UAE, Qatar, Kuwait, Oman and Bahrain – is also interested in trade pact talks with India, especially Bahrain and Qatar, who want to enter into negotiations soon.
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“The whole six-nation group would like to engage. We are talking to New Zealand...We are in active discussions with the US and with 27-nation EU,” the minister said.
Amongst other countries engaged in trade negotiations with India, Eurasia (EAEU), ASEAN bloc, Korea, Canada and the South African Customs Union (SACU) may have trade treaties concluded in the near future, he added.
“We began negotiations with Eurasia (EAEU) yesterday or the day before yesterday. We are equally engaged to begin negotiations with Israel very quickly. Canada and India are looking at CEPA (comprehensive economic partnership agreement). Next week, we are going to start a conversation around that,” he stated.
India and the five-nation grouping, the Eurasian Economic Union (EAEU), had inked the terms of reference for the agreement August 20. Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan are the five member countries of EAEU.
Additionally, the five-member South African Customs Union (SACU) and Mercosur group also want to negotiate, Goyal said.
SACU nations include South Africa, Namibia, Botswana, Lesotho and Eswatini – comprising the world’s oldest customs union, dating over a century. Mercosur is a trading bloc in Latin America, comprising Brazil, Argentina, Uruguay and Paraguay.
In a trade agreement, two or more countries negotiate provisions either to significantly reduce or eliminate import duties on the maximum number of goods traded between them. They also ease rules to promote the movement of professionals and attract investments.
India has so far implemented such agreements with a number of nations, including Singapore, Japan, Korea, Malaysia and Australia.
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