NEW DELHI, Oct 25:India and South American country Peru will hold their next round of negotiations for a proposed free-trade agreement (FTA) at Lima in December, an official said.
“Chief negotiators from both the countries will hold the sixth round of negotiations for the agreement in Lima in December,” the official said.
In an FTA, two trading partners significantly reduce or eliminate duties on most of the goods traded between them besides relaxing norms and rules to promote trade in services and increase bilateral investments.
In the fifth round of talks, senior officials of both the sides deliberated upon issues such as national treatment and market access for goods, investments, dispute settlement, customs procedures, and trade facilitation.
The main chapters of the agreement include trade in services, movement of professionals, investments, dispute settlement, technical barriers to trade, trade remedies, rules of origin of goods, customs procedures and trade facilitation.
With growing uncertainties in its traditional markets, including the US and Europe, India is looking to enhance engagements with other regions such as Africa, South America and Central Asia.
The Federation of Indian Export Organisations (FIEO) said Peru holds enormous opportunities for domestic exports.
Engineering exporter and Ludhiana Handtool Association President S C Ralhan said, “It will be a good opportunity for domestic exporters to explore that market”.
Peru ranked third among export destinations for India in the Latin America and Caribbean (LAC) region.
The bilateral trade between the nations increased to USD 3.13 billion in 2017-18 from USD 1.77 billion in the previous fiscal.
Among the top-10 commodities that India exports to Peru are motor vehicles, cars, auto components, tyres, dyes, products of iron and steel, cotton yarn and fabrics. While imports include bulk minerals and ores, gold, fertilisers, aluminium, coffee, crude oil and zinc. (PTI)
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