Free Trade Agreements (FTAs) are generally made between two countries. Many governments, throughout the world have either signed FTA, or are negotiating or contemplating new bilateral free trade and investment agreements.
Free Trade AGREMEENT (FTA) is a trade bloc whose member countries have signed a free trade agreement (FTA), which eliminates tariffs, import quotas, and preferences on most (if not all) goods and services traded between them. Countries choose this kind of economic integration if their economical structures are complementary
Since independence, India has always tried to keep healthy relation with the neighbouring countries, especially when trading is concerned. From the following data we can see the zeal of India government to pave the way for free trade with at least the southern countries of Asia. By 2016, India will be trading at zero duty with a dozen countries.
List of Various FTAs signed by India which has Impact on Machine Tool Industry
Indo – Asian Agreement came into effective from 2009: Under this agreement import duty will be zero from 2014.
Indo- Korea FTA Agreement effective from 2009: Under this agreement import duty will be zero from 2016.
Indo Thailand FTA Agreement affective from 2006: Under this agreement import duty will be zero from 2017.
Indo –Singapore Agreement came into effective from 2007: Under this agreement import duty will be zero from 2011.
India – MERCOSUR PTA: Under this agreement 20% margin preference is proposed
India - Japan CEPA effective from August 2011: Under this agreement import duty will be zero under 11 equal instalments
India – Malaysia CECA effective from July 2011: This agreement provides for more liberal tariff concessions than in ASEAN –INDIA trade in goods agreement
Agreements in the pipeline
1. Indo- EU FTA
Negotiations on a comprehensive free trade pact between India and the European Union, which began in June, 2007, have reached at an "advanced and delicate stage. So far, 13 rounds of negotiations have been held.
2. Indo – China FTA
The Joint Study Group was constituted and MEA is the nodal Ministry for the JSG.In pursuance to the recommendations of the JSG, Six meetings of the JTF have taken place. In its sixth meeting held on 21st and 22nd October, 2007 the JTF has finalized its draft report on issues covering Trade in Goods, Trade in Services, Bilateral Investment, Trade Facilitation and Economic Co-operation.
3. Indo – Australia FTA
India and Australia agreed in early 2008 to set up a Joint Study Group comprising government officials and research organizations to explore the feasibility of Free Trade Agreement (FTA) between the two countries.
4. Indo – New Zealand FTA
India and New Zealand have already completed about five rounds of negotiations and are likely to sign FTA agreement by March 2012
5. Indo – US Commercial Dialogue
The Dialogue is a cooperative undertaking to facilitate regular discussion to deepen ties between the Indian and the American business communities. The Dialogue will encompass regular government-to-government meetings to be held in conjunction with private sector meetings. Its aim will be to (a) facilitate trade (b) maximize investment opportunities across a broad range of economic sectors, including information technology, infrastructure, biotechnology, and services.
Indian Machine Tool Manufacturers’ Association; Head Office : 10th Mile, Tumkur Road, Madavara Post, Bengaluru, Karnataka (India) 562123; Regd. Office : Plant No.13, Extension Office, Godrej Campus, Vikroli East, Mumbai – 400079
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