- YS Sujana Chowdary - Member Of Parliament

Wednesday, November 10, 2010

Effect Of FTAs With Neighboring Countries


MINISTRY OF COMMERCE AND INDUSTRY

STARRED

QUESTION NO . 30

ANSWERED ON 10.11.2010



Will the Minister of  COMMERCE AND INDUSTRY be pleased to state :- 

(a) the details of Free Trade Agreements (FTAs) entered into with the neighbouring countries and the impact of such agreements on domestic industry;

(b) whether Government has kept any provision for protecting and promoting the domestic industry in FTAs;

(c) if so, the details thereof; and

(d) the mechanism of reviewing FTAs from time to time with the intention of ensuring protection of domestic industry?


ANSWER

MINISTER OF COMMERCE AND INDUSTRY

(SHRI ANAND SHARMA)

a) to d): A Statement is laid on the Table of the House.


S. No
Name of Agreement
Partner Country(s)
1
Asia Pacific Trade Agreement (APTA)
Bangladesh, China, Lao PDR, South Korea, Sri Lanka
2
Global System of Trade Preferences (GSTP)
44 developing countries/least developed countries
3
India-Sri Lanka FTA
Sri Lanka
4
India-Afghanistan PTA
Afghanistan
5
India-Thailand Early Harvest Scheme
Thailand
6
South Asian Free Trade Agreement (SAFTA)
Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan, Sri Lanka
7
India-MERCOSUR PTA
Argentina, Brazil, Paraguay, Uruguay
8
India-Singapore Comprehensive Economic Cooperation Agreement
Singapore
9
India-Chile Preferential Trade Agreement
Chile
10
Indi India-Bhutan Agreement on Trade Commerce and Transit
Bhutan
11
India-Nepal Treaty of Trade
N
12
India-Korea Comprehensive Economic Partnership Agreement
South Korea
13
India-ASEAN Free Trade Agreement
Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam



(b) and (c)      Yes. Before deciding on entering into an FTA with any country, a feasibility study is conducted by a Joint Study Group (JSG) comprising of officials from both sides. The JSG examines inter-alia, trade and tariff profiles, issues of complementarities, likely benefits and areas of mutual interests. A considered view on whether to go ahead to an FTA is taken by the Government based on the report of the JSG.

Before commencement of negotiations, extensive studies are undertaken by the Department of Commerce through various academic institutions. Negotiations are done after detailed consultations with industry stakeholders as well as the administrative Ministries and Departments to protect as well as to promote the interests of the Indian industry and agriculture. Representatives from these Ministries and Departments also participate in the negotiations. Protection is provided by way of keeping sensitive items in a negative list on which no tariff concessions are given.
In addition to these measures, all the FTAs have provision for initiating safeguard action. Safeguard measures can be invoked if there is a sudden surge of imports of a particular item from the FTA partner which causes injury to domestic industry. This is done by suspending or withdrawing the tariff concession on that item so that the effect of the preferential treatment is nullified.
(d)       All the FTAs have provision for review after specific periods. During the review process negotiations are held to improve market access as well as to address concerns that may arise in the implementation of the agreement.

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Wednesday, November 10, 2010

Effect Of FTAs With Neighboring Countries


MINISTRY OF COMMERCE AND INDUSTRY

STARRED

QUESTION NO . 30

ANSWERED ON 10.11.2010



Will the Minister of  COMMERCE AND INDUSTRY be pleased to state :- 

(a) the details of Free Trade Agreements (FTAs) entered into with the neighbouring countries and the impact of such agreements on domestic industry;

(b) whether Government has kept any provision for protecting and promoting the domestic industry in FTAs;

(c) if so, the details thereof; and

(d) the mechanism of reviewing FTAs from time to time with the intention of ensuring protection of domestic industry?


ANSWER

MINISTER OF COMMERCE AND INDUSTRY

(SHRI ANAND SHARMA)

a) to d): A Statement is laid on the Table of the House.


S. No
Name of Agreement
Partner Country(s)
1
Asia Pacific Trade Agreement (APTA)
Bangladesh, China, Lao PDR, South Korea, Sri Lanka
2
Global System of Trade Preferences (GSTP)
44 developing countries/least developed countries
3
India-Sri Lanka FTA
Sri Lanka
4
India-Afghanistan PTA
Afghanistan
5
India-Thailand Early Harvest Scheme
Thailand
6
South Asian Free Trade Agreement (SAFTA)
Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan, Sri Lanka
7
India-MERCOSUR PTA
Argentina, Brazil, Paraguay, Uruguay
8
India-Singapore Comprehensive Economic Cooperation Agreement
Singapore
9
India-Chile Preferential Trade Agreement
Chile
10
Indi India-Bhutan Agreement on Trade Commerce and Transit
Bhutan
11
India-Nepal Treaty of Trade
N
12
India-Korea Comprehensive Economic Partnership Agreement
South Korea
13
India-ASEAN Free Trade Agreement
Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam



(b) and (c)      Yes. Before deciding on entering into an FTA with any country, a feasibility study is conducted by a Joint Study Group (JSG) comprising of officials from both sides. The JSG examines inter-alia, trade and tariff profiles, issues of complementarities, likely benefits and areas of mutual interests. A considered view on whether to go ahead to an FTA is taken by the Government based on the report of the JSG.

Before commencement of negotiations, extensive studies are undertaken by the Department of Commerce through various academic institutions. Negotiations are done after detailed consultations with industry stakeholders as well as the administrative Ministries and Departments to protect as well as to promote the interests of the Indian industry and agriculture. Representatives from these Ministries and Departments also participate in the negotiations. Protection is provided by way of keeping sensitive items in a negative list on which no tariff concessions are given.
In addition to these measures, all the FTAs have provision for initiating safeguard action. Safeguard measures can be invoked if there is a sudden surge of imports of a particular item from the FTA partner which causes injury to domestic industry. This is done by suspending or withdrawing the tariff concession on that item so that the effect of the preferential treatment is nullified.
(d)       All the FTAs have provision for review after specific periods. During the review process negotiations are held to improve market access as well as to address concerns that may arise in the implementation of the agreement.

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YS Chowdary Member of Parliament