India signs bilateral trade agreement update

India signed an updated bilateral trade agreement aimed at boosting exports and easing tariffs. Trade agreements connect the Economy and International Relations sections of the syllabus.

• • Trade agreements typically cover tariffs, rules of origin, services and dispute settlement.
• • An FTA removes or reduces tariffs between members.
• • A Customs Union adds a common external tariff against non-members.
• • The WTO's Most Favoured Nation (MFN) rule treats all members equally; FTAs are an exception.

FTA

Free Trade Agreement — reduces tariffs and barriers between member countries.

CEPA

Comprehensive Economic Partnership Agreement — covers goods, services and investment.

MFN

Most Favoured Nation — a WTO principle of non-discrimination among trading partners.

• Q. An FTA differs from a Customs Union in that a Customs Union also has ___? (A common external tariff.)
• Q. MFN status is associated with which organisation? (WTO.)

• ↗ Ministry of Commerce & Industry
• ↗ WTO trade agreement summaries