Free Trade Agreements: Concept, Forms, Implications and India’s Strategic Turn
Free Trade Agreements (FTAs) are treaty-based arrangements between two or more countries aimed at reducing or eliminating barriers to trade in goods and services, facilitating investment flows, and promoting economic integration. In an era marked by supply chain fragmentation, geopolitical rivalry, and slowing multilateralism, FTAs have emerged as critical instruments of economic diplomacy. India’s renewed push towards FTAs reflects both economic necessity and strategic recalibration.
Concept and Types of FTAs
At their core, FTAs seek to liberalize trade by reducing tariffs, easing non-tariff barriers, harmonizing standards, and enabling market access. Over time, FTAs have evolved into deeper arrangements. SAFTA (South Asian Free Trade Area) focuses primarily on tariff liberalization among SAARC countries. CEPA (Comprehensive Economic Partnership Agreement)
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