With the negotiations for the proposed India-UK free trade agreement (FTA) reaching its last leg, a high-level Indian official delegation is heading for London to iron out differences on remaining issues, sources said on Tuesday. The chief negotiators of both the countries would hold negotiations on different issues such as goods, services, and rules of origin.

 

The visit assumes significance as last week, the Prime Minister's Office has reviewed the progress of the talks.

 

Sources said that the attempt of this visit would be to close the remaining issues.

 

So far 13 rounds of talks have been completed. The 14th round was started last month.

 

Talks are also progressing on the proposed bilateral investment treaty (BIT).

 

India and the UK launched the talks for a free-trade agreement (FTA) in January 2022.

 

There are 26 chapters in the agreement, which include goods, services, investments and intellectual property rights.

 

The Indian industry is demanding greater access for its skilled professionals from sectors like IT and healthcare in the UK market, besides market access for several goods at nil customs duty.

 

On the other hand, the UK is seeking a significant cut in import duties on goods such as scotch whiskey, electric vehicles, lamb meat, chocolates and certain confectionary items.

 

Britain is also looking for more opportunities for UK services in Indian markets in segments like telecommunications, legal and financial services (banking and insurance).

 

The bilateral trade between India and the UK increased to USD 20.36 billion in 2022-23 from USD 17.5 billion in 2021-22.

 

Following a directive from the Indian foreign ministry, the Department of Foreign Trade (DGFT) has sanctioned urgent onion exports to select countries, including Bangladesh, Nepal, Bhutan, Bahrain, and Mauritius, despite the absence of an official announcement. This move, aimed at stabilizing the domestic markets of these nations, marks a significant and unprecedented decision by the Indian government. Concurrently, the Maharashtra government has disclosed approval for exporting 3oo,000 tonnes of onion, highlighting the central government's commitment to regional market stability.

 

During a recent visit to India, Bangladesh's Foreign Minister Hasan Mahmood appealed for the normalization of essential commodity exports, including onions, suggesting a quota system for Bangladesh to alleviate shortages. This comes as Bangladesh grapples with an annual onion demand of 2.2 to 2.5 million tonnes. In anticipation of Ramadan, State Minister for Commerce Ahsanul Islam Titu expressed optimism about securing 50,000 tonnes of onions, following assurances from India, despite ongoing discussions being delayed by the Indian Foreign Minister's commitments abroad.

 

This development is particularly crucial for Bangladesh, heavily reliant on imported onions, and is expected to positively influence market stability and consumer welfare. India's decision to resume limited onion exports, after a halt declared last December to control domestic prices, is a welcome move for the region.

India and Sri Lanka are set to take the ongoing discussions on the Economic and Trade Cooperation Agreement (ETCA) forward, with the next two rounds of bilateral talks scheduled later this month and in March.

 

The progress in negotiations is significant for New Delhi and Colombo, as the much-discussed pact was stalled in the past, owing to stiff opposition from some worker unions and hardline Sinhala-nationalist politicians, who saw the agreement as favouring Indian interests predominantly. At least 11 rounds of discussions were held between 2016 and 2019, when the Maithripala Sirisena-Ranil Wickremesinghe administration was in power, but the two signs failed to reach an agreement amid protests in Sri Lanka.

 

President Ranil Wickremesinghe, who assumed charge as President in 2022 in extraordinary circumstances during the island’s economic crisis when a mass uprising that ousted his predecessor Gotabaya Rajapaksa, has emphasised the need for trade pacts to aid the country’s economic recovery. Earlier this month, Sri Lanka inked a free trade pact with Thailand. India, followed by China, are the other two key partners that Mr. Wickremesinghe is keen to have upgraded agreements with, even as Sri Lankans reel under the painful aftermath of a financial meltdown. 

 

After talks on the stalled pact resumed under President Wickremesinghe last year, substantial discussions have been held. The Sri Lankan government sees the resumption of ETCA negotiations as 'a significant step towards strengthening the economic partnership between Sri Lanka and India.' 

 

According to an official update issued after the Sri Lankan Cabinet met on Monday, the 13th round of discussions on the proposed ETCA was held in New Delhi for 10 days beginning January 8. Nine sub-committees tasked with looking into various aspects such as goods trade, service trade, rules of the origin and customs procedure and easing the trade held deliberations.

 

Official sources familiar with the negotiations said the two sides are exploring ways of linking service trade to investments to ensure there is no threat to local labour. 'Free movement of individual professionals is not anticipated in the agreement,' said a senior official. Wickremesinghe, on Monday, briefed his Cabinet on the talks, and the 14th round of discussions of the proposed agreement is scheduled to be held on the first week of March 2024, the official press release said.

 

India and Sri Lanka first signed a free trade agreement in 1998. While the two sides have since attempted to upgrade it multiple times, the attempts proved unsuccessful. New Delhi and Colombo discussed a Comprehensive Economic Partnership Agreement with former President Mahinda Rajapaksa’s government, but his administration saw the agreement as being redundant at the time. 

 

Upcoming elections

Now, as both India and Sri Lanka prepare for an election year, the two countries are keen to seal the pact, said sources. 

Presenting the State’s top food brands to a discerning global audience of industry leaders and policymakers, the Kerala Pavilion opened at Gulfood 2024, one of the world’s largest food and beverage sourcing events, in Dubai on Monday.

 

Suman Billa, Principal Secretary, Industries and NoRKA, inaugurated the pavilion set up by the Kerala State Industrial Development Corporation Limited (KSIDC) at the Dubai World Trade Centre, where the five-day 19th edition of Gulfood 2024 is being held. KSIDC Managing Director, and Director, Industries & Commerce, S. Harikishore, and promoters of the 12 co-exhibitors in the Kerala pavilion attended the inaugural function.

 

'The pavilion showcases the burgeoning opportunities in Kerala’s food sector, telling some of Kerala’s success stories from the segment,' Mr. Billa said. 'The State’s participation in one of the largest food expos is part of its continuous efforts in boosting food tech as a priority sector for the government,' he added.

 

Investor conclave

The KSIDC is also holding an investor conclave that focusses on the theme, Kerala - the Spice Capital of India, on February 21 (Wednesday) at the Ritz Carlton Dubai on the sidelines of Gulfood 2024, where delegates from 190 countries are expected to visit.

 

India’s Ambassador to the United Arab Emirates Sunjay Sudhir and Chairman, Food & Beverage Manufacturing Business Group, UAE, Saleh Abdullah Lootah, are among those who will participate in the conclave.

 

'The investor meet will discuss opportunities in Kerala’s food sector, particularly in the spices sector as well as niche segments such as seafood processing, ready-to-eat food products, coconut, and jackfruit,' Mr. Harikishore said. 'With food and food tech as a priority sunrise sector for development, the government is creating an enabling environment that encourages both domestic and foreign investors to participate in the State’s burgeoning food ecosystem,' he added.

Haryana farmers producing rice eye rich returns during the coming Gulf Food Festival to start from 19th February 2024 at Dubai. in which nearly 50 countries are participating. Basmati rice produced at Tarawadi in Karnal

 

district, Kurukshetra, Yamunanagar and Kaithal districts in Haryana state  is the first choice in export markets. According to information,  nearly 60 to 65% Basmati rice exported to160 countries across the world including USA, Europe, Italy, Spain, Thailand, Sri Lanka,  China, Africa, Nepal and Khadi countries supplied from Karnal district in the state. Exporters from Haryana state are expecting good orders from countries like Iraq, Iran, United Arab, Amirat and Yaman in the coming Gulf Food Festival.

 

Following a rise in demand, basmati rice export surged to 4.24 lakh MT in April this year, up from 3.19 lakh MT the previous year. Basmati growers and traders are likely to reap a rich harvest over the coming Kharif marketing season as the prices of all aromatic long grained varieties of rice has witnessed an increase in domestic and international market. Haryana farmers and traders are likely to reap a rich harvest over the coming Kharif marketing season. According to reports from rice exporters following a demand in the international market, the prices of Basmati rice have reached to over Rs 90,776 per metric tonne (MT) from Rs 83,068 of the last year. Following a jump in the rice export from the country, the price of basmati rice in the domestic market has reached above Rs 80 to Rs 120 a kg against Rs 70 to Rs 100 of the last year.

 

Information by the Agricultural and Processed Food Products Export Development Authority (APEDA) revealed that in April, 2023-24 India exported 4.24 lakh MT basmati rice against 3.19 lakh MT of the previous year. The rise in export has helped exporters to earn handsome profits as prices in the international market have also witnessed an increase of around Rs 7,000 per MT. They are predicting that the prices may rise further following the increasing demand of Indian rice in the international market. There is also a surge in the export and prices of the parmal or non-basmati rice in the country. It exported a total of 14.2 lakh MT non-basmati rice in 2023 as against 13.52 lakh MT last year. The prices of the non-basmati rice also reached an all-time high of Rs 30,576 per MT last year from Rs 29,265 per MT last year.

 

Former president of All India Rice Exporters Association former president Vijay Setia said that the prices of both basmati and non-basmati rice have witnessed rise following an increase in demand in the international market. Setia, however, demanded the government to lift levy from the procurement of basmati paddy in Haryana mandis and the move will boost the competition and the farmers will earn more. According to information farmers of Haryana and Punjab are the biggest producer of basmati rice and contribute around 80% of the country’s total produce and the benefit from rising prices will increase farmers as well as rice exporters income. While talking to media persons, Setia said that there are  nearly 150 Basmati and Non-Basmati rice exporters in the country which include nearly 60 rice export in Karnal district alone because of production of high quality rice in the area.

Finance Ministry has lowered import duty on certain items from the US. These include blueberries and cranberries where duties have been cut to 5-10 per cent from 30 per cent. Similarly, import duty pertaining to meat and edible offal of turkey, frozen meat is reduced to 5 per cent from 30 per cent.

 

New tariff rates have been made effective from Tuesday, February 20, a notification issued by the Ministry said. This move is a follow-up of an announcement made in September last year after Prime Minister Narendra Modi’s meeting with the US President Joe Biden.

 

Both countries agreed to resolve their last outstanding dispute at the World Trade Organisation on import restrictions on poultry products from Washington with New Delhi throwing in some additional sweeteners in the form of duty cuts on frozen turkey, frozen duck and a variety of cranberries and blueberries.

 

A statement issued by the US Trade Representative office, in September last, said that as part of the agreement, India had agreed to reduce tariffs on certain US products including frozen turkey, frozen duck, fresh blueberries and cranberries, frozen blueberries and cranberries, dried blueberries and cranberries, and processed blueberries and cranberries. 'These tariff cuts will expand economic opportunities for US agricultural producers in a critical market and help bring more US products to customers in India,' it had said.

 

Poultry case

The US filed a poultry case against India in the WTO way back in 2012 for the removal of an import ban imposed by the country on US poultry on account of bird flu. India lost the case at the WTO at the panel level in 2014 and also subsequently at the appellate level. While India then lifted the ban, the US was not satisfied with the mechanism involved for poultry shipments and also the steep import duties and hence did not withdraw the case at the WTO.

 

Commenting on the latest development, Khushbu Trivedi, Associate Director- with Nangia Andersen India said, 'Reduction of the duty on these niche items rarely produced in India would help the USA in penetrating the Indian market and also in bringing the prices of these products down in India. This move shall also benefit other nations forming part of WTO,' she said.

 

The notification has also reduced the import duty to ‘NIL’ on ‘Cotton, not carded or combed, with staple length exceeding 32mm.’ This has been done in response to the concerns raised by the cotton industry, 'This decision reflects a proactive approach by the government to address industry feedback and adapt import regulations accordingly, potentially benefiting stakeholders involved in the cotton sector,' Trivedi said.

India must focus on exports to achieve a 10% growth rate for the economy, said Arvind Panagariya, chairman of the Sixteenth Finance Commission.

 

'I’ve looked at successful countries such as Hong Kong, Singapore, Taiwan, South Korea, China, and India – these are the six high-growth examples. My conclusion is very clear – countries that have been open are the ones that have grown rapidly,' Panagariya said.

 

The former vice chairman of Niti Aayog further highlighted that the country needed to follow China’s strategy to increase its per-capita income and wean away from idea of import substitution.

 

'Even if we can capture the global market for a few products, that’s it! We don’t have to do anything else. That really is the China story – it acquired a very large share in certain products. And that gave China such a huge boost; for 3-4 decades, it grew at 10% a year,' he pointed out, noting that the global export market, at $32 trillion in 2022, was almost 10 times India’s GDP.

 

India’s GDP is expected to grow 7.3% in FY24, as per first advance estimate released in January. The IMF expects Indian growth to ease to 6.5% over the next two fiscal.

 

Panagariya cited the South Korea example, where growth dipped 2-3 percentage points once the country succumbed to the temptation of import substitution.

 

'I fear that in our (India’s) case, exiting this new phase of import substitution will be a challenge,' he pointed.

 

In a conversation with the Foundation for Economic Development, he also argued for states to create a favourable environment for labour-intensive industries.

 

'I think that to me is the single most important policy objective that states ought to be pursuing, particularly the larger states agriculture still dominates very heavily…And to do that, I have championed, creating special zones,' he said.

 

Panagariya also noted that the lack of reforms in manufacturing also has held back from the growth rate going to 10%.

The 3rd meeting of AITIGA Joint Committee for undertaking the review of ASEAN-India Trade in Goods Agreement (AITIGA)  was hosted by India in Vanijya Bhawan, New Delhi from 16-19 February 2024. The meeting was co-chaired by Shri Rajesh Agrawal, Additional Secretary, Department of Commerce, Ministry of Commerce and Industry, India and Ms. Mastura Ahmad Mustafa, Deputy Secretary General (Trade), Ministry of Investment, Trade & Industry, Malaysia. Delegates from ASEAN countries viz. Brunei, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand & Viet Nam participated in the meeting.

 

The AITIGA was signed in 2009.  In September 2022, both sides tasked the AITIGA Joint Committee  to undertake the review with the aim of making the Agreement more trade facilitative and mutually beneficial. A total of eight Sub-committees have been constituted under the AITIGA Joint Committee for undertaking negotiations on different policy areas related to the Agreement. The   first two meetings of  the Joint Committee were held in  May and August 2023.

 

The Joint Committee in its 3rd meeting held detailed discussions and took stock of the progress in the  negotiations.  The Sub-Committeesreported the progress and outcome of their discussions related to market access, Rules of Origin and Standards, technical regulations and conformity assessment procedures to the Joint Committee.  Following the   intense discussions, the Joint Committee outlined the  focus areas for  further deliberations  and updated the work programme  for  the Review  while providing necessary guidance to the Sub-committees to carry forward the negotiations.

 

India-ASEAN trade has grown to USD 131.58 Bn in 2022-23. The review of AITIGA will facilitate further expansion of trade between India and ASEAN in a balanced and sustainable manner.Both sides are aiming to conclude the review in 2025. The 4th meeting of AITIGA Joint Committee is planned to be held in Kuala Lumpur, Malaysia in May 2024.

ICAR-Central Citrus Research Institute, Nagpur organised a training programme on ‘Advanced Production and Post Harvest Technologies for Boosting Citrus Export’ for citrus farmers and exporters in the institute today. The program was sponsored by APEDA. The collaboration was done considering the ongoing harvest and export season in Vidarbha of Mrig bahar fruits of Nagpur mandarin.

 

Prof. Prakash Kadu, Associate Dean, College of Agriculture, Dr. P.D.K.V Akola, Nagpur was the Chief Guest for the programme, and Shri. P. A Bamane, Assistant Manager, APEDA RO Mumbai, was the Guest of Honour.

 

Dr. Dilip Ghosh, Director, ICAR-CCRI, highlighted the importance of the selection of suitable land, rootstock, and planting materials for citrus production. Dr. Ghosh urged the farmers to adopt a scientific package of practices for citrus cultivation and technologies developed by the institute and briefed them about export quality late maturing varieties of sweet orange like Cutter Valencia. He accentuated the participants to follow Good Agricultural Practices to obtain export-quality fruits.

 

Scientists from ICAR-CCRI provided technical sessions to farmers on practices, disease, and insect pest management, and post-harvest citrus management for export quality citrus fruits, involving interaction and feedback sessions.

 

About 120 citrus farmers, FPOs, FPCs, and exporters participated in the program.

India has lifted a ban on onion exports to 'offload huge stocks' and get a better price in the international market, cheering local farmers.

 

The committee of ministers headed by Union Home Minister Amit Shah on Sunday approved the export of 50,000 tonnes of onions to Bangladesh on top of 300,000 tonnes to other countries, the local media reported.

 

One of the reasons for lifting the ban is said to be huge onion stocks in Gujarat and Maharashtra, the Hindustan Times said, citing experts.

 

India imposed the ban in December to keep prices under control after drought and bad weather hit production.

 

The ban, which was to be effective until Mar 31, sent prices higher in Bangladesh because the country depends partly on supply from India.

 

Bangladeshi ministers spoke to their Indian counterparts about the issue on several occasions.

 

Foreign Minister Hasan Mahmud raised the issue in meetings with Indian External Affairs Minister S Jaishankar and Commerce Minister Piyush Gojyal earlier this month.

 

Mahmud said he urged Jaihsankar to ensure uninterrupted supply of essential commodities to Bangladesh for maintaining price stability, especially during Ramadan.

 

He also said he discussed with Goyal India’s export of perishable products to Bangladesh, including 50,000 tonnes of onions and 100,000 tonnes of sugar before Ramadan, which is expected to begin on Mar 11.