India's Strategy for Faster FTA Outcomes

India is focusing on core trade issues like import duties and non-tariff barriers in its ongoing free trade agreement (FTA) negotiations to achieve quicker results. Commerce Secretary Sunil Barthwal highlighted the importance of this approach, stating that lengthy negotiations often lead to a loss of business interest in the agreements.

Key Trade Issues and Multi-Sectoral Approach

The prioritized trade issues include tariffs, non-tariff barriers, sanitary and phytosanitary (SPS) measures, and regulatory factors. Barthwal stressed the need for both India and the Latin America and Caribbean (LAC) region to follow this approach. He also emphasized the importance of a multi-sectoral approach, similar to India's strategy with the United States under a proposed bilateral trade agreement, focusing on sectors that offer mutual benefits.

Enhancing Trade with the LAC Region

India is currently negotiating FTAs with MERCOSUR countries (Argentina, Brazil, Paraguay, and Uruguay), as well as with Chile and Peru. The goal is to double two-way trade from USD 50 billion to USD 100 billion in the coming years by identifying and addressing trade impediments. The LAC region's significant trade potential, with imports valued at USD 1.8 trillion, presents a lucrative opportunity for India.

Reducing Protectionism and Expanding Cooperation

Barthwal emphasized the need for countries to reduce protectionism to grow GDP through trade. He also highlighted potential sectors for expanded cooperation, including automobiles, medical devices, and pharmaceuticals, where India's expertise in generic drugs could benefit the LAC region with affordable medicines.