India, Uzbekistan explore PTA
India and Uzbekistan agreed to work towards early conclusion of the Feasibility Study to be jointly conducted by the two sides to begin negotiations for a Preferential Trade Agreement. This was agreed when Abdulaziz Kamilov, Uzbekistan Foreign Minister met his Indian counterpart in New Delhi. External Affairs Minister S Jaishankar reiterated the need for early operationalization of $ 200 million Line of Credit extended by India to Uzbekistan for which Uzbek side is in the process of finalizing necessary details of the identified projects.
- Kamilov reiterated the invitation extended by President of Uzbekistan to Prime Minister to visit Uzbekistan. Foreign Minister Kamilov briefed EAM on Uzbekistan’s efforts to liberalize its economy, create business friendly conditions and attract foreign investment including that from Indian companies.
- The Ministers agreed to strengthen cooperation in the fields of defence, counter-terrorism and security, information and communication technology, development partnership and promote cultural exchanges.
- Jaishankar and Kamilov evaluated the initiative of the India-Central Asia Dialogue at the level of Foreign Ministers with the participation of Afghanistan which was held in Samarkand, Uzbekistan in January 2019. The next Dialogue will be held in India in 2020. Kamilov stated that he looks forward to participating in it.
- Cooperation in the multilateral fora including the United Nations and the Shanghai Cooperation Organization (SCO) was also discussed. Kamilov extended an invitation to External Affairs Minister to visit Uzbekistan. Dates of the visit will be decided in due course.
- During his visit, Kamilov will give an address at the Raisina Dialogue and is expected to call on the Prime Minister Narendra Modi on 15 January.
- Preferential Trade Agreements (PTAs) or Generalized System of Preferences (GSP) is a special status given in trade by various countries.
- In the United States, it is designed to promote economic growth in the developing country, the agreement provides duty-free entry for up to 4,800 products from 129 designated beneficiary countries and territories.
- GSP was instituted on January 1, 1976, by the Trade Act of 1974, mentioned the US government. India government, however, thinks the plan has been proliferating since the establishment of the World Trade Organisation (WTO) in 1994.
List of India's trade agreements
Partial Scope Agreement (PSA)
Partial Scope Agreement (PSA)
- A PSA allows countries to trade in a small number of goods, making the scope minimal.
- A free trade agreement is a preferential arrangement in which members reduce tariffs on trade among themselves while maintaining their own tariff rates for trade with non-members.
- A customs union (CU) is a free-trade agreement in which members apply a common external tariff (CET) schedule to imports from nonmembers.
- A common market is a customs union where movement of factors of production is relatively free amongst member countries.
- An economic union is a common market where member countries coordinate macro-economic and exchange rate policies.