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Preferential Trade Agreement With India

Goyal said removing barriers to trade between India and Europe was essential to move forward, given that the EU is India`s largest trading bloc, with about $105 billion in merchandise trade in 2019. It is also the second largest destination for Indian exports. The EU is of major strategic importance to India and was New Delhi`s largest trading partner in 2018 (as a bloc). India`s bilateral trade with the EU was $115.6 billion in 2018/2019, with exports amounting to $57.17 billion and imports at $58.42 billion. Trade in services was estimated at $40 billion, with India running a small surplus. There were also two regional trade agreements, the South Asia Free Trade Agreement (SAFTA, 2004) and the India-India Association of Southeast Asian Nations Agreement (ASEAN, 2010). However, both sides attempted to restart trade negotiations earlier this year, when the Covid-19 struck, forcing the authorities to focus on fighting the pandemic. Can we clearly conclude that all ATRs lead to the creation of commercial investments? No no. The answer is empirical and depends on the details of the agreement: what is the substance of the agreement? How deep is its coverage? Is much of the basket omitted for negative lists? The Trump regime is considering a trade pact with India as a way to reduce the trade deficit with the country, which was an intermediary between the two countries and which prompted Washington to impose unilateral tariffs on Indian steel and aluminum exports to the country and withdraw the GSP system. India and the United States are trying to seal a bilateral preferential trade agreement that will include a limited number of goods and services, but market access for dairy products, medical devices and ICT products such as mobile phones, demanded by Washington, remains sticky topics, an official said. The two countries` attempt to develop a preferential trade pact is in line with the starting line given by U.S. President Donald Trump and Prime Minister Narendra Modi earlier this year, during Trump`s visit to India, as a full-fledged free trade agreement (FTA) seemed elusive due to differences on a wide range of issues. The United States is India`s largest trading partner, with $88.74 billion in bilateral trade in 2019/20.

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