Developed countries are indicating that they are ready to proceed with negotiations for proposed free trade agreements (FTAs) without insisting much on the inclusion of non-trade issues like sustainability and climate obligations. They said gradually those countries are suggesting that “let’s start business first, we will look into the rest of the extraneous issues later”.
In a free trade agreement negotiation, trading partners should keep all the options open so that things can move smoothly. Major countries that used to pressure on issues like sustainability and climate have now gone quiet, one of the sources said. India has always maintained issues like sustainability, labour, and the environment should be addressed in separate forums or international platforms rather than being integrated into trade agreements. The International Labour Organization (ILO) is there for for labour standards, and the United Nations Framework Convention on Climate Change (UNFCCC) for environmental issues. Regions like the European Union and the UK have insisted on including such issues in the proposed trade agreements.
In February, Prime Minister Narendra Modi and European Commission President Ursula von der Leyen agreed to conclude an ambitious India-EU free trade deal by this year. In such pacts, two trading partners negotiate to either significantly reduce or eliminate imports duties on maximum number of goods traded between them.
