Trade Talks With Japan, Asean, And Others Likely To Get Impetus After Completion Of US, And EU Deals

New Delhi: The Centre is likely to refocus on advancing trade negotiations with Japan, Australia, Asean, South Korea, Peru and Sri Lanka after the conclusion of talks with the US and EU, likely in the coming months, two people aware of the matter told Mint.

“The focus at the moment is largely on finalizing trade deals with Washington and Brussels-two strategic and commercially significant partners," the first person mentioned above said, requesting anonymity.

However, Indian negotiators are fully prepared to advance trade deals with other partner countries, and steady progress has been maintained, the person said.

Also read: Trump's fresh iPhone tariff threat puts India-US trade talks in a bind

“It is a two-way process, and alignment on timelines is essential from both sides. Discussions remain positive, and the next dates for negotiations will be announced shortly," the person added.

Several rounds of negotiations have taken place with Australia and Asean member-countries (10 nations from South-east Asia), but progress has been gradual, with some key issues still unresolved.

Trade talks with Sri Lanka and Peru have seen sporadic movement, and a push towards sealing them is yet to fructify.

The India-Asean free trade agreement review is ongoing, with the latest round held in February in Jakarta.

The last India-South Korea trade talks took place in July 2024 in Seoul, with further talks expected in 2025-26.

Meanwhile, India and Japan have expressed intent to review their agreement, though no dates have been set for the next round of negotiations.

“Striking trade agreements with key partners remains a top priority, with several significant deals expected in the near future. The important thing for India is to be able to extend its supply chain," the second person mentioned above said.

Also read: US meat, seafood to garnish India-US bilateral trade agreement

“Trade deals with developed economies are a priority and will strengthen India's supply chains with key markets. However, there is a need to have different strategies for trade negotiations for the others," the person added, requesting anonymity.

The India-UK Free Trade Agreement (FTA), a landmark deal finalized in May, is set to significantly boost bilateral trade and deepen economic integration.

The agreement eliminates tariffs on 99% of tariff lines, covering nearly the entire trade value, and aims to double bilateral trade to $100 billion by 2030.

Meanwhile, a proposed FTA is currently under negotiation between India and the EU.

Commerce minister Piyush Goyal visited Brussels on 23 May to join India's chief negotiator L. Satya Srinivas and his team, who were already at the EU headquarters for FTA negotiations.

In 2023–24, the goods trade with the EU reached $137.41 billion, with India exporting $75.92 billion and importing $61.48 billion-making the EU India's largest trading partner for goods. The EU accounts for around 17% of India's total exports, while India represents 9% of the EU's global exports.

Additionally, bilateral trade in services stood at $51.45 billion in 2023.

A high-level Indian delegation, led by Goyal and India's chief negotiator Rajesh Agrawal, was recently in Washington for negotiations with their US counterparts.

Also read: With India-UK FTA talks concluded, India to introduce global tendering for public procurement

On 16 May, Mint reported that India and the US are likely to sign their long-awaited bilateral trade agreement before 8 July when the 90-day pause on the US's reciprocal tariff action expires.

A deal before the 8 July deadline would help India avoid punitive tariffs after the reciprocal tariff framework announced by the US earlier this year, under which a 90-day pause was granted to key trade partners, including India.

It will also stabilize the bilateral trade relationship, and offer much-needed clarity to industry and markets.

A spokesperson for the ministry of commerce and industry didn't respond to emailed queries.

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