Trade will grow despite protectionism, phased approach in FTAs key: Commerce Secretary

“There are issues related to protectionism and regulation that inhibit trade. But trade is going to grow because that is the need of nations. You cannot grow your gross domestic product (GDP) without growth in trade. And for India, trade is going to be an engine for growth,” Barthwal said while speaking at the Confederation of Indian Industry (CII) India-LAC Business Conclave.

“When we look at free trade agreements, sometimes they are so time-consuming that businesses lose interest. So we are also reviewing some of these issues in the [Commerce] department and we are talking to our partners who are negotiating FTAs with us… why can’t we first look at an early tranche? Let there be some kind of outcome,” he said.

Barthwal said that India aims to strengthen trade ties with Latin America and the Caribbean (LAC) region and double trade with the region to $100 billion, adding that the LAC region, with its $3.6 trillion trade volume, presents vast opportunities for collaboration.

“We are reviewing our FTA strategy to prioritise core trade issues such as tariffs, non-tariff barriers, and regulatory hurdles. Our experience with global partners like the EU and the UK has shown that focusing on key trade aspects in the initial phases can yield faster results,” he said. India has already signed preferential trade agreements with MERCOSUR and Chile and is in talks with Peru for a free trade agreement. Barthwal said that by adopting a phased approach, India and the LAC region could achieve meaningful trade outcomes more efficiently.

“India’s automobile industry is diverse, manufacturing everything from two-wheelers to high-end tractors. There are tremendous opportunities to integrate supply chains with LAC countries. India’s expertise in generic medicines can make healthcare more affordable in the LAC region, and with growing demand for medical devices, this sector is ripe for collaboration,” he added.