Negotiations on a free trade pact with the United States are still unfinished, and now India has run into a fresh snag with another country. Commerce and Industry Minister Piyush Goyal said on Saturday that the ongoing free trade agreement (FTA) between India and Peru is unlikely to conclude anytime soon, largely because of market access concerns tied to certain products.
According to Goyal, there are several products where India simply cannot offer market access, and that is why an early deal with Peru looks improbable. He said he does not expect an FTA with Peru to happen very soon. Notably, talks on the proposed agreement between the two countries began back in 2017.
Talks With Canada Picking Up Speed
Unlike Peru, the picture with Canada is far more encouraging. Goyal said the FTA negotiations between India and Canada are making good progress. He revealed that a team of Indian officials will travel to Canada on Monday for the next round of talks, adding that the aim is to finalise the agreement within the next six months.
Goyal also shared that on 13 July he will travel to Brussels along with External Affairs Minister S. Jaishankar and Ashwini Vaishnav, the Minister for Railways, Information and Broadcasting, and Electronics and IT. There, the three will attend a meeting of the India-European Union (EU) Trade and Technology Council (TTC).
Where India Stands to Gain From Peru
Talks on this agreement with Peru began roughly nine years ago, and the deal is expected to benefit India the most. Once it is in place, imports of copper, gold and other metals from Peru will become cheaper. That directly helps India's electronics and manufacturing sectors, which would get low-cost raw material, find it easier to ramp up production, and see their costs come down.
A Boost for Exports
Completing the FTA with Peru is also expected to lift India's exports. India already ships a significant amount of automobiles, machinery and cotton yarn to Peru. Removing duties on these products would make it easier to expand those exports. Demand for Indian medicines in Peru is likely to rise too, since India remains a major hub for pharmaceutical exports. In short, a free trade agreement with Peru could turn out to be a profitable proposition for many Indian industries.
