KOLKATA (miningweekly.com) – India will push to break the deadlock to conclude free trade agreements (FTAs) with various African States during a meeting with African trade ministers in New Delhi in October.
According to an official in the Commerce Ministry, a lot of work has been done to fast-track the conclusion of the FTAs that have been deadlocked since 2005.
He said any progress towards finalising FTAs during the Summit of Trade Ministers, starting on October 23, would prove to be a ground-breaking achievement for the India-Africa Forum Summit, the biggest ever deliberations of African leaders and heads of State in India, which would start on October 26.
India has, since 2005, held several rounds of negotiations with various groupings of African nations, including the South African Customs Union (Sacu), Economic Community of Western African States and the Common Market for Eastern and Southern Africa towards concluding FTAs.
Stressing the importance and urgency of achieving trade objectives with African nations, the Indian government has specifically tasked 15 federal ministers to work on the trade and commerce agenda of the forthcoming summit meetings, the official said.
Until now, the preparatory and diplomatic engagements for the summit had been aimed at bridging the differences between the various African nations and India, as well as to ensure the Indian ministries of Commerce and External Affairs had working papers ready to be presented at the Summit of Trade Ministers.
Any progress made at the trade ministers' meeting towards concluding FTAs would be a significant diplomatic achievement and a landmark event for the meeting of African leaders and heads of State to follow, the official added.
Underlining one of the divergent issues, he said that while the memorandum of understanding for a FTA with Sacu was signed in 2008, differences remained regarding the number of traded items that would be brought under reduced tariffs.
India wanted a reduction in tariffs for 50% of items exported to the Sacu region, while Sacu would only allow a reduction in tariffs for 10% of items. However, officials engaged in groundwork for the summit said India would be willing to compromise on its demands in the interest of successfully concluding an FTA with Sacu at the upcoming summit.
The two back-to-back summits next month provided an opportunity for Africa and India to review their trade engagements.
India's trade with African nations was estimated at $71-billion in 2014/15 and was expected to reach the $90-billion mark this fiscal year.