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Preferential Trade Agreements This trade grants preferential import duty only to certain products. This involves the abolition of tariffs, but they will not be completely abolished. The PtA is created by a trade pact and is the weakest form of economic integration. India enjoys an EA with the following countries: open regionalism and trade cooperation between the world`s two largest developing countries, the People`s Republic of China (PRC) and India, can foster external development and intra-regional trade based on comparative advantages and available factor allocations. Given the recent wave of global sub-regional and bilateral trade cooperation and the recent suspension of the Doha negotiations by the World Trade Organization, opportunity costs could increase if we do not move towards greater trade integration between the PRC and India. Vietnam, which is becoming a huge competition for many economies, has already signed a trade pact with the EU. In addition to the India-ASEAN ECSC, the Indeinem and Korean CEPAs were commissioned from 1 January 2010. In 2009-10 to 2018-19, bilateral trade between the two countries increased from about $12 billion to $21.5 billion and is more or less similar to trade in disinfaction with the world. However, Indian imports from Korea grew much faster than exports to Korea. While Indian imports increased by about 8%, exports to Korea increased by less than 4%. Although imports from Korea grew faster than imports from the world, the growth rate of exports to Korea was much slower than Indian exports to the world.

This has resulted in a significant increase in India`s trade deficit with Korea from $5 billion between 2009 and US$10 billion in 2018-19 and a significant increase in Korea`s share of India`s total trade deficit from 4.7% to 6.5% over the same period. An interactive list of bilateral and multilateral free trade instruments can be find on the TREND Analytics website. [59] There are, however, two types of free trade agreements: bilateral and multilateral. Every customs union, every trade market, every economic union, every customs and monetary union also has a free trade area. India-Mercosur Preferential Agreement (PTA) A framework agreement between India and MERCOSUR was signed on 17 June 2003. The plan of this framework agreement is to create circumstances and mechanisms for discussion in the first phase, granting reciprocal tariff preferences and, in the second phase, negotiating a free trade area between the two parties in a conventional manner with World Trade Organization rules. As a result of the framework agreement, a preferential trade agreement was signed in New Delhi on 25 January 2004. The plan of this preferential trade agreement is to strengthen the accessible relationship between MERCOSUR and India and to support increased trade by introducing strong reciprocal tariff preferences with the ultimate goal of creating a free trade area between the parties.

India, which has not signed a trade agreement since 2012, will soon resume talks on a possible free trade agreement with the European Union and the United States. Even when the Narendra Modi government withdrew from the Comprehensive Regional Economic Partnership (RCEP), it is eager to enter into trade agreements with other economic blocs, said a leading source, adding that India could clearly gain amid growing anti-Chinese sentiment in many parts of the world. At a time when India has negotiated free trade agreements with a number of countries/groups, including the Comprehensive Economic Partnership (RCEP), and has decided to begin the review of the India-ASEAN free trade agreement, the state of trade between India and its major free trade partners needs to be examined. Among the main free trade agreements signed and implemented by India to date are the South Asia Free Trade Agreement (SAFTA), the Comprehensive Agreement between India and ASEAN (ECSA), the Partnership Agreement