From Chile to New Zealand, India widens trade pact ambit

NEW DELHI: If it was Chile and New Zealand last week, it will be the European Union this week and the United States a few days later.

India's limited set of trade negotiators are switching between countries as govt seeks to step up efforts to de-risk the country's export basket by diversifying it at a time when the US is mounting pressure on partners to accept its terms of trade.

Besides, the new agreements are also focused on overcoming some of the challenges that the Indian economy is facing, such as access to critical minerals. Last week, India and Chile signed the terms of reference to negotiate a comprehensive economic partnership agreement (CEPA) to build upon the preferential pact that was signed several years ago. The new deal will cover a broader set of sectors, including digital services, investment promotion and cooperation, MSME, and critical minerals.

The first round of talks with New Zealand were also held as govts on both sides are keen to wrap up negotiations in a few months. With the trade deal with the UK announced last week, the one with EU - which has been in the pipeline for nearly two decades - is also expected to move faster, especially after the commerce and industry minister Piyush Goyal's parleys with MaroS Šefcovic, the EU commissioner for trade and economic security, earlier this month.

Towards the month-end, an Indian delegation will return to Washington to discuss the mother of all deals - the one with the US - which it hopes to conclude in four months or so.

Between all this, however, there are some, such as the ones with Australia and Oman, which have not moved. While talks with Australia are expected to get a fillip after the elections Down Under, there is much speculation around the one with Oman. The reasons for delay of the pact, which was seen to be less complicated, are still being speculated upon with concessions on petrochemicals being seen as the main hurdle.