Prelims perspective: What needs to be  learned

  • Key Features of India- New Zealand FTA
  • Regional Comprehensive Economic Partnership (RCEP)
  • Understanding the difference between Preferential Trade Agreements, Customs Unions, Economic Unions, Free Trade Agreements & Common Market.

Mains Perspective: Notes need to be prepared

  • Implications of Free Trade Agreements on Indian Economy (GS III- Economy)
  • Effects of agreements involving India and/or affecting India’s interests (GS II – IR)

What needs to be Known:

  • Key Features of India- New Zealand FTA:
    • Provides duty-free access for 100% of Indian exports.
    • Includes a USD 20 billion investment commitment over 15 years.
    • India safeguards sensitive sectors, particularly dairy and agriculture, while securing major gains for labour-intensive industries such as textiles and leather.
    • New Zealand has, for the first time, signed an Annex on Health and Traditional Medicine Services, opening new avenues for services trade.
    • Enhances people-to-people links through provisions on student mobility and post-study work visas for STEM graduates and skilled professionals, creating a new visa pathway for around 5,000 skilled occupations.
  • Regional Comprehensive Economic Partnership (RCEP):
    • It is a multilateral trade agreement between the member states of the Association of Southeast Asian Nations (ASEAN) and their Free Trade Agreement (FTA) partners.
    • Initially envisaged to cover 16 countries, it became operational with 15 countries as India withdrew from the partnership.
    • Members: ASEAN countries (10, except Timor Leste), China, Japan, South Korea, Australia and New Zealand.
    • Objective: RCEP seeks to create a large integrated regional market, facilitating easier movement of goods, services, and investments across member countries, thereby strengthening regional supply chains and economic integration.

Source: The Hindu