A free trade agreement removes all barriers to trade among members, which means that they can freely move goods and services between them. When it comes to dealing with non-members, each member`s trade policies continue to come into force. The 1992 agreement was due to expire in March 2007, but was extended until March 2012, after discussions. Under the agreement, products manufactured in Nepal, which exclude 3 items from the negative list and 5 items subject to quantitative restrictions, will have duty-free access without reciprocity. Agricultural products are traded in both directions without tariffs. India continues to insist that infrastructure (including hydropower) be included and that customs checkpoints be facilitated. Nepalese businesses are concerned about non-tariff barriers, trade facilitation, dispute settlement mechanisms and unpredictable tariff increases, and have called for India to address the issues in the treaty itself3. These issues were not adequately addressed at a meeting in February 2007 and were therefore not included in the new agreement. India, Brazil and South Africa Trilateral Cooperation Forum (IBSA) was established in 2003 at the UN General Assembly Forum. The T-FTA was proposed at the first IBSA summit in Brasilia in September 2006. The establishment of the working group, which will focus on the terms of the agreement, was also announced. The last IBSA summit was held in South Africa in October 2007 and a trilateral meeting is scheduled for 2008, but none of the modalities have yet been agreed.
Anonymous, “Nath sees the trade pact with Thailand,” The News International, Pakistan, April 16, 2007. Regional trade agreements have the following advantages: It is important to note that India views the free trade agreement as an important instrument for improving trade and investment and has signed a series of trade agreements with different countries or groups. India is one of the most advanced countries in Asia, with the maximum number of free trade agreements under way or under negotiation or proposed. According to the Asian Development Institute, India has currently in force, signed or negotiated 42 trade agreements (including preferential agreements). Thirteen of them are in force, one is signed but has not yet been implemented, 16 are being negotiated and 12 are proposed/in consultation or under study. Most of the free trade agreements in force in India are with Asian countries that are very different in terms of the level of their economic development. In addition to the India-ASEAN ECSC, the Indeinem and Korean CEPAs were commissioned from 1 January 2010. In 2009-10 to 2018-19, bilateral trade between the two countries increased from about $12 billion to $21.5 billion and is more or less similar to trade in disinfaction with the world. However, Indian imports from Korea grew much faster than exports to Korea. While Indian imports increased by about 8%, exports to Korea increased by less than 4%.