India's trade with Africa, Latam and CIS show substantial increase .

India's trade with African, Latin American and Commonwealth of Independent States (CIS) countries have shown substantial increase in the last three financial years, ie, 2006-07, 2007-08 and 2008-09.

Total trade (including both exports and imports) with African countries as a whole rose from   $24.986 billion in 2006-07 to $34.663 billion in 2007-08 and to $39.542 billion in 2008-09, minister of state for commerce and industry Jyotiraditya M Scindia informed the Lok Sabha in a written reply on Friday.

India's exports to Africa rose from $10.269 billion in 2006-07 to $14.192 billion in 2007-08 and to $14.813 billion in 2008-09. Imports from African countries also rose from $14.716 billion in 2006-07 to $20.471 billion in 2007-08 and further to $24.728 billion in 2008-09.

Total trade with Latin American countries rose from around $10.336 billion in 2006-07 to $12.216 billion in 2007-08 and to $15.752 billion in 2008-09, official figures showed.

India's exports to Latin America rose from $4.275 billion in 2006-07 to $5.657 billion in 2007-08 and further to $6.008 billion in 2008-09. Imports from Latin American countries rose from $6.061 billion in 2006-07 to $6.558 billion in 2007-08 and to $9.744 billion in 2008-09.

Total trade with the Commonwealth of Independent States (CIS) countries rose from $5.341 billion in 2006-07 to $5.528 billion in 2007-08 and $8.552 billion in 2008-09.

India's exports to CIS countries rose from $1.479 billion in 2006-07 to $1.740 billion in 2007-08 and to $1.925 billion in 2008-09. Imports from CIS countries increased from $3.861 billion in 2006-07 to $3.788 billion in 2007-08 and to $6.627 billion in 2008-09.

Under the recently announced Foreign Trade Policy (2009-2014), the government has provided a number of incentives to promote exports to various countries, including African, Latin American and CIS countries.

The government has launched various schemes such as Focus Market Scheme (FMS), Focus Product Scheme (FPS), Vishesh Krishi and Gram Udyog Yojna (VKGUY), and Status Holders Incentive Scrips to encourage export of various products.

India-EU FTA plan

He also stated that the government is negotiating a bilateral broad-based trade and investment agreement with the European Union (EU).

The negotiations commenced in June 2007 covering areas of trade in goods, trade in services, investment, sanitary and phytosanitary measures, technical barriers to trade, trade remedies, customs cooperation and trade facilitation, dispute settlement, competition and intellectual property rights. So far, eight rounds of negotiations have been held. The eighth round of negotiations was held in January 2010. Legal texts of the proposed agreement in all these areas have been exchanged and are being discussed. Tariff liberalisation offers have also been exchanged on trade in goods. The negotiations are at an advanced stage, he added.

Indian exports to EU will increase as products exported from India to EU will get preferential duty treatment from EU on conclusion of this FTA.

India, he stated, has undertaken consultations with the stake holders, including local producers, to assess the impact of various offers and requests made by the EU for the FTA negotiations to protect the interests of Indian agricultural, industrial and other sectors. The feedback received from these consultations has been considered for drawing up the initial sensitive list of products on which no tariff reductions proposed to be offered by us to the EU. In addition, in case of a surge in imports and injury to the domestic industry, India can take measures such as anti dumping and safeguards.

CEPA with Japan

India and Japan held an informal working level meeting of delegation from either countries on 29 January 2010 in New Delhi. During the informal meeting both sides have shown desire to conclude this agreement for their mutual benefit. The next round of India-Japan negotiations for a Comprehensive Economic Partnership Agreement (CEPA) will be held in April 2010, the minister said.

Since trade agreements give preferential market access to the trading partners, substantial increase in trade with the partner countries is expected. In respect of comprehensive economic partnership agreements, the expectations are of substantial increase in trade in goods, services and investments along with integration of economies of partner countries, he added.

The following are the free trade agreements signed and agreements under negotiations:

FTAs already concluded (with the date of signing in bracket) include: India-Sri Lanka FTA (28 December 1998); Agreement on SAFTA (4 January 2004); India-Singapore CECA (29 June 2005); India-Nepal Treaty of Trade (6 March 2007); India-Bhutan Agreement on Trade Commerce and Transit (17 January 1972) ASEAN-India Free Trade Agreement in Goods (13 August 2009) and India-S Korea Comprehensive Economic Partnership Agreement (7 August 2009). 

FTAs under negotiation include: India-Japan Comprehensive Economic Partnership Agreement, India-Sri Lanka Comprehensive Economic Partnership Agreement, India-EU Trade and Investment Agreement, India-Thailand Comprehensive Economic Cooperation Agreement, India-Malaysia Comprehensive Economic Cooperation Agreement, Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Comprehensive Economic Cooperation Agreement, India-Gulf Cooperation Council (GCC) Framework Agreement, India-Mauritius Comprehensive Economic Cooperation Partnership Agreement, India-South Africa Custom Union Preferential Trade Agreement and India European Union Free Trade Agreement. 

Source : domain-b.com