Since the RCEP gate is almost closed and the South Asian Regional Cooperation Association (SAARC) has been virtually abandoned, India is not part of a regional free trade agreement. Finally, the global trend does not favour trade in services, as in goods, as most countries have rejected migration. India`s strength in the services sector and its call for greater mobility of Indian workers thus become another sensitive point in the negotiations on free trade agreements. First, do free trade agreements lead to an increase in exports? Few economists have argued that the non-signing of the RCEP would allow Indian exporters to miss out on exports to RCEP countries. They forget that India has free trade agreements with the Association of Southeast Asian Nations (ASEAN), Japan, South Korea and that three-quarters of bilateral trade is already tariff-free. India also has a small preferential trade agreement with China. Seven years after the conclusion of the talks on a free trade agreement, India and the European Union (EU) will agree on a “high-level dialogue on trade and investment” to resume negotiations. The announcement is expected at a virtual “EU-India summit” led by Prime Minister Narendra Modi and Foreign Minister S. Jaishankar, who, accompanied by High Representative Josep Borrell, will make contact with European Council President Charles Michel and European Commission President Ursula von der Leyen. India`s demographic power is certainly attractive to international investors, but only if this huge market has purchasing power and is not torn apart by social unrest and instability. Historically, the decline of colonial powers and empires is due to times when they turned inward and detached themselves from foreign trade.
It is logical that India`s global ascent into a modern, economically interconnected and technologically inseparable world can only be accompanied by a spirit open to trade. Related| India, EU press again free trade pact Read | A day after RCEP, Jaishankar proposes trade pacts, globalization Pl. visit India`s next site for ISFTA tariff concessions and other India customs information: www.indiantradeportal.in/index.jsp It`s easier said than done. If India makes a complete break with the RCEP, as evidenced by its absence at the Bali meeting, it is determined not to give priority to bilateral trade agreement (TAs) negotiations for other countries until the RCEP is completed. The legal scouring process is likely to last most of the year, and all discussions with India are likely to follow.