FREE

TRADE
AGREEMENT
Presented By :
Jyoti Gupta
Tejal Pawar
Rahul Pawar
Aadarsh Bhoir
Mudita Paikrao
Harsha Jain
Babali Yadav
 INTRODUCTION
 Free trade agreements (FTAʼs) are arrangements between
two or more countries, or between a country and a trading
bloc to abolish or reduce tariffs, quotas, and preferences on
goods and services traded.
 FTAs also cover areas such as intellectual property rights
 (IPRs), investment, and government procurement and
competition policies.
 A Free trade agreement can be an agreement between two
countries (bilateral ) or many countries (multilateral).
 FTA and PTA have obscure distinctions. However, we can
say that almost every PTA has a main goal of becoming a
FTA.
 RULES
 To receive preferential treatment under an
FTA, the exported good:
1. Must be made in the FTA territory
2. Must meet the appropriate Rule of Origin
pertaining to specific products and
the specific FTA
3. Must be documented as originating via
appropriate certifications or information
provided to the importer or its
representative broker
 NEED OF FREE TRADE
AGREEMENT
Economic Growth
Job creation
 Foreign Direct Investments
 Expertise
 Maintaining Balance Of Payments
 Increasing influence over market
 FREE TRADE AGREEMENTS
SIGNED BY INDIA
1. India Sri Lanka Free Trade Agreement :
India Sri Lanka Free Trade Agreement (ISLFTA)
was signed by the Prime Minister of India and the
President of Sri Lanka on 28th December 1999.

2. India Bhutan Agreement on Trade :

India Bhutan Agreement on trade , Commerce
and transit was signed 17th January 1972.  Since
then, the Agreement has been renewed/revised five
times, including the agreement signed on 12th
November 2016.
 CONTI…..

3. Indo Nepal Treaty Of Trade :

India Nepal Treaty of Trade was signed on 6th
December 1991.It was revised on 27th October 2009.

4. India Thailand FTA (EHS) :

India Thailand FTA Early Harvest Scheme was
signed on 9th October 2003.
 CONTI…..

5 . India Singapore Comprehensive Economic

Cooperation Agreement :
India Singapore Comprehensive Economic Cooperation
Agreement (CECA) was signed on 29th June 2005 .

6. India South Korea Comprehensive Economic

Partnership Agreement :
India South Korea Comprehensive Economic Partnership
Agreement (CEPA) was signed on 7th August 2009
 CONTI…..

7. India Malaysia Comprehensive Economic

Cooperation Agreement :
India Malaysia Comprehensive Economic
Cooperation Agreement was signed on 18th February
2011.
 FREE TRADE AGREEMENTS
UNDER NEGOTIATION
 India Israel Free Trade Agreement
 India New Zealand Free Trade Agreement
 India Gulf Cooperation Council Free Trade Agreement
 Bay Of Bengal Initiative For Multi-Sectoral Technical and Economic Cooperation Free Trade
Agreement
 India Australia Free Trade Agreement
 SAFTA
 The South Asian Free Trade Area (SAFTA) is an
agreement signed in 6th January 2004 and came
into force on 1st January 2006.
 The purpose of SAFTA is to encourage and
elevate common contract among the countries
such as medium and long term contracts.
 SAFTA signatory countries are Afghanistan,
Bangladesh, Bhutan, India, Maldives, Nepal,
Pakistan and Sri Lanka
 SENSITIVE LIST
SR NAME OF THE NO. OF TARIFF LINE NO. OF TARIFF CONSOLIDATED
NO. CONTRACTING FOR LDCS LINES FOR NON LIST
STATES LDCS
1. Afghanistan - - 858

2. Bangladesh 987 993 -

3. Bhutan - - 156
4. India 25 614 -
5. Maldives - - 154
6. Nepal 998 1036 -
7. Pakistan - - 936
8. Sri Lanka 837 963 -
 INDIA'S EXPORT TO SAFTA
COUNTRIES
 Optical, Photographic, Cinematographic,
surgical Instruments etc.
 Cotton fabrics, madeups etc.
 Textile and Textile Articles
 Vegetable Products
 Rice(other than basmati). -Prepared
foodstuffs; beverages, spirits; tobacco etc.
 Dairy products
 Animal or Vegetable Fats and Oils etc.
 INDIA'S IMPORT FROM SAFTA
COUNTRIES
 Pearls, Precious Or Semi-Precious Stones,
Metals
 Base Metals and Articles of Base Metal
 Ship, boat and floating structure
 Footwear, Headgear, Umbrellas, etc.
 IC engines and parts
 alcoholic beverages
 INDIA'S EXPORT TO SAFTA
COUNTRIES
10
9
8
Amounts in $ billions

7
6
5
4
3
2
1
0
Sri Lanka Pakistan Nepal Maldives Bhutan Bangladesh Afghanistan
Year

2016 2017 2018

 India Japan Comprehensive Economic Partnership Agreement
 India and Japan, two of Asia's largest economies, signed a landmark free trade agreement (FTA)
on Wednesday, paving way for the elimination of tariffs on more than 90 percent of goods traded
between the two countries over the next decade.
 India Japan Comprehensive Economic Partnership Agreement was signed on 16 th February 2011
and came into force from 1st August of the same year.
 Apart from accelerating business activities, the deal aimed to eliminate tariffs on 90 % of Japanese
exports to India, such as auto parts and electric appliances, and 97 % of imports from India,
including agricultural and fisheries products, until 2021.
 EXPORTS TO JAPAN

Agricultural Products - mangoes, citrus

fruit, spices, instant tea, most spirits
 Petrochemical
 Chemical products
 Cement
 Jewellery
 Textiles
 Seafood
 IMPORTS FROM JAPAN

 Automobile and automobile parts

 Consumer durable
 Infrastructure
 Machinery and machine tools
 Transport equipment
 Organic chemicals
 Export and Imports
14

12

10
Amounts ( in billion)

0
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Year

Exports Imports
 FDI
4500

4000

3500

3000
Amounts (in $ millions

2500

2000

1500

1000

500

0
2013-14 2014-15 2015-16 2016-17 2017-18

Year

Amounts

As Per Reports of Reserve Bank Of India

 ASEAN – INDIA FREE TRADE
AGREEMENT
 ASEAN–India Free Trade Area (AIFTA) is
a free trade area among the ten member states of
the Association of Southeast Asian Nation
(ASEAN) and  India.
 The initial framework agreement was signed on
8 October 2003 in Bali Indonesia , The free
trade area came into effect on 1 January 2010.
 Association of Southeast Asian Nation include
countries which are Singapore , Brunei ,
Malaysia , Thailand , Philippines , Indonesia,
Vietnam , Laos, Cambodia, Myanmar.
 INDIA'S IMPORTS FROM
ASEAN
 Pulses
 Petroleum Products
 Chemicals
 Pharmaceuticals
 Electrical and Electronics
 Plastics and raw martial
 Transport Equipment's
 INDIA'S EXPORT TO ASEAN

 Cotton
 Precious stones and Jewellery
 Fresh Vegetables and Fruits
 Fish and meat products
 Sugar
 Spices
 Fibre
 INDIA'S TRADE WITH ASEAN

70
AMOUNT (IN USD BILLION)

60

50

40

30

20

10

0
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
YEAR

EXPORTS IMPORTS
 FDI INFLOWS FROM ASIAN
COUNTRIES
16000

14000

12000
Amount ( $ in millions)

10000

8000

6000

4000

2000

0
2011 2012 2013 2014 2015 2016 2017
YEAR
CURRENT NEWS
 CONCLUSION

 India is one among top countries in Asia with the maximum number of FTAs either in
operation or under negotiation or proposed.
 According to the Asian Development Bank Institute, as of now, India has 42 trade agreements
(including preferential agreements) either in effect or signed or under negotiation or proposed.
 Out of this, 13 are in effect, one is signed but not yet implemented, 16 under negotiation and 12
are proposed/under consultation or study. 
THANK YOU