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Outlining a fresh approach towards free trade agreements (FTAs) with other countries, India is looking at these pacts keeping the country’s strategic needs in mind rather than just viewing it from the trade perspective. Commerce Secretary Sunil Barthwal on Monday said such FTAs are being considered keeping in mind the future requirement for critical minerals for its energy transition, which would require batteries, and for strategic consideration.
India is looking at commencing negotiations for an FTA with Peru and Chile both of which have expressed interest in such trade pacts. “.Some of the smaller countries (are being considered) from the point of view of securing critical minerals. From Peru and Chile there is a good possibility of securing critical mineral supply because it will help us in our energy transition when we go for battery making…so, in addition to trade, now, we are looking at FTAs from the point of view of our strategic considerations. So, that is the fresh approach that we are taking in our FTAs,” Barthwal said.
With Australia, trade agreement talks also include smooth supplies of critical minerals like lithium, nickel, cobalt, manganese and graphite which are the key minerals used in batteries. As different countries are showing interest in negotiating these agreements with India, “depending upon capacity and gains from trade, we will be taking up those FTAs,” Barthwal said.
Chile, the country endowed with most lithium reserves, had earlier expressed its interest to partner with India on tapping into the lithium value chain. This includes potentially extending technical expertise in exploiting the newly established inferred lithium resources of 5.9 million tonnes in Salal-Haimana area of Reasi district in Jammu and Kashmir.
Barthwal also said that the India-UK FTA talks are entering the final phase. “Last round of negotiation was very intense and out of 26 chapters/policy areas 19 got closed. Now there are few issues left. So our target is that we close the issues… when the UK teams visit us in India; we are very hopeful that the issues will be sorted out,” he said.
Till date, 11 rounds of negotiations on the FTA have been held and the 12th round is on, which will continue till August 25. During this period, the UK’s top trade officials and trade minister will be in India to attend the G20 Trade and Investment Working Group meeting between August 21-25, after which the officials are expected to sort out the remaining issue in the FTA talks.
Meanwhile, the commerce ministry also said that talks between India and Australia for a comprehensive economic cooperation agreement (CECA) are going on. The fifth round of talks concluded on August 11. Major issues in talks include digital trade, government procurement, and rules of origin. Exploratory discussions are on to include 15 new areas in CECA, and that include competition policy, MSME, gender, innovation, agri-tech, critical minerals and sports.
On FTA negotiations with Canada, the ministry said the 9th round of talks was held last month. Issues in the negotiations include goods, trade remedies, rules of origin and services.
On the Indo-Pacific Economic Framework for Prosperity (IPEF), Additional Secretary in the commerce ministry Rajesh Agrawal said negotiations are underway on a clean economy and fair economy. “By November, we intend to complete three more rounds (one each in September, October and November). The target is that by the end of November, we will substantially close the negotiations for Clean Economy (Pillar III); and Fair Economy (Pillar IV), and we should sign the agreement on Pillar II (Supply Chains),” Agrawal said. With regard to pillar-I (trade), India has the observer status and has not joined it so far.
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