Piyush Goyal Calls For Swift Action On India-Latin America Trade Agreements; Points Out China Issue
Union Commerce and Industry Minister Piyush Goyal has called for expedited negotiations on trade agreements with Latin American and Caribbean countries, emphasising that prolonged discussions hinder tangible progress.
Speaking at the 10th CII India-LAC Conclave, Goyal underscored the need for decisive action, particularly in finalising a Free Trade Agreement (FTA) with Peru, which has been under discussion for an extended period.
"Agreements that are long drawn, negotiated over 10-20 rounds, can never get fructified into solid partnerships," he remarked, urging Latin American countries to expedite decision-making or consider expanding existing arrangements.
India currently enjoys a $45 billion bilateral trade relationship with Latin America, but Goyal believes this is far from its potential. He outlined an ambitious vision to push trade volumes to $100-$200 billion in the coming years, highlighting opportunities in critical minerals, services, tourism, horticulture, and gems and jewellery.
A key agenda for India is the expansion of preferential trade agreements (PTAs) with Latin American nations, particularly the MERCOSUR bloc. Goyal noted that while PTAs exist, they remain limited in scope. He pointed to India's existing arrangement with Chile, which expanded from 178 to 1,000 tariff lines in 2017 but has since stalled in further negotiations. India is keen on converting it into a full-fledged FTA.
Referring to China, Goyal said that one of India's concerns with the LAC region is the "presence of one of our neighbours, which is a non-market economy."
"We must agree to respect each others sensitivities...We'll be able to iron out deals faster if that's done," he said.
Goyal also emphasised the importance of addressing non-tariff barriers with countries like Brazil and Ecuador and urged Latin American nations to streamline market access, digitise customs, and simplify regulatory frameworks to facilitate trade.
With global economic slowdowns and trade uncertainties, Goyal asserted that India remains committed to strengthening partnerships and called for unity at multilateral forums like the WTO. "If we don’t stand for each other, we’ll all suffer," he stated.
