Context: Appropriate that we enter a robust trading arrangement for greater free flow of goods and services, and predictability, stability to policy: Goyal
- Representatives of India and the six-nation Gulf Cooperation Council (GCC) signed the Terms of Reference for negotiations on a free trade agreement (FTA).
- The GCC countries are together India’s largest merchandise trade partners, with total merchandise trade exceeding that done with even the EU and the U.S.
- The Terms of Reference (ToR) were signed by India’s chief negotiator for the FTA, Additional Secretary Ajay Bhadoo, and his counterpart representing the Secretariat General of the Gulf Cooperation Council, Raja Al Marzouki. The signing of the ToR is a necessary precursor for the start of formal negotiations. The GCC countries are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE.
- “It is most appropriate that we now enter into a much stronger and robust trading arrangement, which will enable a greater free flow of goods and services, bring predictability and stability to policy, help encourage greater degree of investments and take our bilateral relations between the six nation GCC group and India to greater heights,” Commerce and Industry Minister Piyush Goyal, who presided over the signing, said in his speech.
- Bilateral benefit
- Mr. Goyal pointed out that the two sides could significantly benefit from each other, with India’s workforce both within the GCC countries as well as in India standing to gain from the eventual agreement.
- “The GCC countries can help us with further diversification and growth of our energy sources, opportunities for our youth, and massive amounts of investments that different countries have already committed at different points of time, which will further get an impetus with a free trade agreement between India and the GCC nations,” he added.
Source: The Hindu