India and Peru have agreed to recommence negotiations for a proposed Free Trade Agreement (FTA) aimed at boosting trade and investment between the two countries. Discussions are slated to begin after the G20 summit scheduled in September.
“We’ve decided to proceed with the FTA negotiations. We’ll be determining the priority areas post September, and we’ll commence engagement,” stated Sunil Barthwal, Commerce Secretary, at the CII’s LAC conclave on Friday.
The crucial aspects of the trade agreement may include market access for goods, trade in services, movement of professionals, investments, dispute resolution, technical barriers to trade, trade remedies, rules of origin for goods, and customs procedures and trade facilitation. Peru also happens to be the third-largest export destination for India in the Latin America and Caribbean (LAC) region.
Bilateral trade between the nations dwindled to $3.11 billion in 2022-23, down from $3.6 billion in 2021-22. Key exports to Peru encompass items like motor vehicles, cars, and products of iron and steel, while imports chiefly include bulk minerals and ores, gold, fertilisers, and crude oil.
According to the official, Chile has also expressed interest in a trade deal with India. Both countries had previously signed a preferential trade agreement in 2005.
Speaking at the event, Commerce Secretary Sunil Barthwal emphasised that since imports from India account for less than 2 per cent of LAC’s total imports, there is substantial potential for expanding India-LAC bilateral trade.
While steps are being taken to double bilateral trade to $100 billion, Barthwal stressed the need for a fresh approach to broadening trade exchanges, such as integrating with diversified global value chains in a globalised world.
He also proposed a Joint Economic and Trade Cooperation (JETCO) model for collaboration between the two regions and advocated for closer India-LAC cooperation on issues at the upcoming trade ministers level meeting of the WTO in Abu Dhabi next year.