Half a Dozen Countries Ready for Bilateral Trade Agreements with India

In recent days, apart from the European Union and the United Kingdom, half a dozen other countries have shown interest in bilateral trade agreements with India. Several nations are moving forward in this direction. However, it is also noticeable that multilateral trade agreements have become less likely due to U.S. policies.
The U.S. government, particularly its trade policies, has been reluctant to engage in broad-based trade agreements, which has made the prospects of multilateral trade agreements uncertain. Experts believe that America’s stance on trade deals with these countries is affecting India’s engagements as well.

New Trade Agreements with Several Nations
Negotiations on bilateral trade agreements with the European Union, the UK, Hungary, Guatemala, Peru, and Chile have already begun. Discussions have also started with New Zealand, and formal agreements with some of these nations are expected soon.

According to Commerce Secretary Sunil Barthwal,
"India is one of the fastest-growing economies in the world, and many countries want to establish trade agreements with India. We are considering mutual benefits before finalizing such agreements."

Doubt Over Reciprocal Tariffs from April 2
The U.S. has announced that it will impose reciprocal tariffs on India starting April 2, but uncertainty remains about its implementation. Sources suggest that the U.S. is still reviewing its stance on tariffs, and a final decision is awaited.
Trade experts believe that the outcome of India-U.S. trade negotiations could influence the implementation of these tariffs. The second meeting of the India-U.S. trade forum is expected to clarify this matter further.
Meanwhile, Prime Minister Narendra Modi and U.S. President Joe Biden have discussed the importance of strengthening bilateral trade relations, and India has urged the removal of additional tariffs on steel and aluminum exports.

Boost to South Asian and Pacific Trade
New Zealand, a relatively smaller economy with a $1.5 billion trade volume, is also in discussions with India for a bilateral trade agreement. If finalized, this agreement will facilitate Indian exports of dairy products, IT services, and pharmaceuticals to the Pacific and South Asian regions.