Assocham calls for clarity in regional trade pacts

Too many trade agreements with regional partners are creating hurdles for the Indian industry, and may grow bigger in the coming years unless corrective steps are taken fast, apex chamber Assocham said today.

While there is a clear-cut roadmap under these regional trade agreements (RTAs) on liberalisation at the global or multilateral level, there is no such clarity on the ground, the chamber said.

"For instance, India is engaged with Sri Lanka under bilateral FTA, APTA, SAPTA, SAFTA and BIMSTEC. The different rules of origin and different treatment of items for concession have already created many problems for the Indian industry," Assocham said.

Since duties in India are higher that those in most of its RTA partners, the benefits of a trade pact are likely to be more for the partner rather than Indian exporters, it said.

"Lack of transparency in the regulatory system, lack of a mechanism to raise concerns and market access issues in the financial sector are the major concerns," it said.