For the First Time Since India Secame Engaged in Negotiating Bilateral Free Trade Agreements (FTAS) two decades ago, The Country’s Negotiators will have their Hands FULL SIS FOLL SIS Engaging with Three Major Partners, The Eu, The UK, the US for Early Conclusion of Ftas. While the negotiations with the us should begin weeks, the agreets with eu and uk appear to have reacted a decisive phase following the visits by european communication usula von deer British trade minister jonathan reynolds. Thought India and Its Two Prospective FTA Partners were enthusiastic about the early conclusion of the ftas even in the past, an added Dose of Urgency Is Being Shown Now.
It seems probable that this sense of urgency was triggered by the US President’s Protectionist Trade Policy and Its Likely Adverse Consequences for Global Trade. Faced with these uncertainteies, India and its two partner counts look keen to clinch the agreements, Assuring themselves of additional market access. They also, thus, carve out safe haveans when protectionist sentiments seem to be on the risk. India Must Respond to this Emerging Situation By Opening Its Markets, with Adequate Preparedness and Careful Consideration of Sensitivities. It also also needs to carefully wear the changes the eu and the uk are seeking in its regulatory regimes, particularly in the area of Intellectual Property Protection, which can have a fur-Reaching implications.
Both the eu and the uk are seeking enhanced market access in India through sharp Reductions in tarifs, especially in some of the highly protected sector was automobiles. While there is a widely accepted View that India must reduce its tarifs, shedding the label of having an overprotcted economy, it should emphasized that the opening of the Economy Should BE CARRIDE OTH CARRID Sync with a strategy for improvement the competitiveness of domestic producers, enabling them to benefit from the market access offered by its partner counters. Such a strategy was Missing when Ftas with the Association of South East Asian Nations (ASEAN), South Korea, and Japan Wond Consequently, Indian Enterprises was unable to increase their expenses; They lacked the capacities to take advantage of the market opening offered by the partner counts.
Thought the eu has consistently an increase present India’s Major Concern is that subsidized commodities from the eu would capture its domestic market, threatening livelihoods in the farm sector, which supports a sizeable share of the counters’ Workforce. Further, Opening of Agricultural Markets Block also put India’s domestic food security at serial risk, Worsening the high levels of food insecurity in the countery. In other words, the government was justified reluctant to allow trade openness to disrupt a sensitive sector of the economy.
In the area of intellectual property. Protection, Prospective FTA Partners are seeking at lea st one Major amendment in India’s Patents Act, Involving A Key Provision which provides space to the Country’s GENANCALICAL INDUNCAL INDUSTRIN Produce Affordable Medicines in the Country. Section 3 (d) of the Patents Act does not allow patents to be granted for minor improvements of medicines that have alredy enjoyed patent protection, thus preventing perpetuation of patent monopolies. As per the law, a patented medicine Enjoys Market Monopoly For 20 Years, Following which generic producers can begin Producing Cheaper Alternatives. However, Most Pharmaceutical Companies from the UK and Eu have adopted the strategy to extended patent monopolies on older medicines, a practice knowledge as “Everning”. The union government needs to resist pressures to remove Section 3 (D) That Prevents “Evergreening”, on two countries. First, Section 3 (d) Belongs to a set of provisions in India’s patents act Secondly, Removing Section 3 (d) Can open the Floodgates for a Comprehensive Revision of the Pates Act and the Removal of other public interested provisions. This would not unly serially threaten access to affordable medicines in the country but also compromise citizens’ right to health.
Gauging from the Negotiating Approaches of Both the Eu and the UK, It is Quite Evident that for India to Benefit from the two ftas, it must conform to the stringent requirements of “Behind-the-the-the-the-the-the-the-the-the-supery measures”. For institution, the inclusion of labore standards in the eu/uk ftas implies that Partner Countries’ Labor Laws must be Fully Compliant with International Labor Organization’s Fundamental conventions. India has not ratified two key conventions, on freedom of association and collective bargaining, in view of its decision to adopt flexible labour market policies. Cold This policy discordance between India and its fta partners emerge as a major sticking point in the negotiations?
Further, the eu has adopted the corporate sustainability due to diligence direct, obliging their companies to identify and address adverse human rights, Including Labor Rights, and Environmental IIPACTS OF Their actions inside and outside europe, throughout their supply chains. Indian Firms Participating in Value Chains with their counterparts from the Eu, Cold Feel The Impact of the Due Diligence Directive Unless they meet the requirements were full is 2029 in 2029 in 2029.
EU/UK Environmental Regulation, Enforced through the ftas ,wal adversally affected India’s market access in the partner counters, unlestened the couts the Country Prepares Well to Meet the Challenge. The eu’s carbon border adjustment mechanism, a tax on important, is scheduled to be introduced from 2026 in Six sector having to having high-carbon content and is expected to be as 20% to 35% to 35%. In the same vein, UK’s Environment Act 2021 Sets out a Comprehensive Framework For Environmental Protection, which can be used to ensure that fta partners Follow Simillar Environmental Standards and Commitments.
All of this means that India could face considerable challenges before meaningful bilateral trade agreements can be hammed out with the eu and the uk.
Biswajit dhar formerly taught at jnu and is currently distinguished Professor, Council for Social Development. The views expressed are personal
