Weekly News 25 - 29 December 2023
Monday, 25 December 2023 (The Economic Times) Amid Dhaka's keenness to join China-led RCEP block, India reassess proposed trade pact with Bangladesh
India is reconsidering a trade pact with Bangladesh due to concerns about Dhaka joining the China-led RCEP and the potential influx of Chinese goods. Bangladesh is in talks with RCEP, and India is cautious, given its prior withdrawal from RCEP in 2019.
Bangladesh, India's major trade partner, is contemplating RCEP membership. Despite ongoing negotiations for a bilateral economic partnership, India is monitoring trade implications. Bangladesh, facing import challenges, enjoys preferential benefits under SAFTA. India's exports to Bangladesh in April-October FY24 were $6.04 billion. The EU granted preferential access to Bangladesh, contrasting with suspensions for India in 2023.
Tuesday, 26 December 2023 (Business Standard) India-ASEAN FTA review to focus on a ‘modern’ pact
India and ASEAN nations are set to initiate a review of their existing free trade agreement (FTA) signed in August 2009, with discussions aimed at modernizing the pact. The delegation from ASEAN countries, including Brunei, Cambodia, Indonesia, Thailand, Singapore, Malaysia, and others, will be in New Delhi on 18 and 19 February for negotiations.
The review includes a detailed focus on 'rules of origin' and a new chapter on trade remedies. India seeks to address concerns about the routing of goods through non-ASEAN countries to benefit from duty advantages and aims to balance trade, as imports from ASEAN nations have outpaced exports. Both sides aim to conclude the review by 2025.
Wednesday, 27 December 2023 (mint) India to draft rules for strategic trilateral developmental projects
India is crafting guidelines for strategic trilateral partnerships to enhance developmental projects in collaboration with countries like the UK, US, France, Japan, and Germany. This shift from traditional bilateral projects aims to maximize impact and counterbalance China's influence in India's vicinity.
Collaborations include healthcare projects with the US in Fiji and agricultural initiatives with Germany in Peru, Cameroon, Ghana, and Malawi. Partnerships extend to strategically vital regions, such as joint efforts with Japan and Dhaka to enhance economic links between India's North East and Bangladesh. Similar proposals with the UK and plans with France and Australia highlight India's evolving approach to regional development.
Thursday, 28 December 2023 (Hindustan Times) India, Russia aim to bolster ties in energy, military-tech
India and Russia are exploring increased Russian energy exports to Indian markets, including oil and coal. Despite global pressure, India raised purchases of Russian energy. The Indian Tea Association faced challenges, with tea prices growing at a 4% CAGR, while coal and gas costs surged at 9-15%.
Both nations signed agreements to advance the Kudankulam nuclear power project, emphasizing nuclear energy cooperation. Talks covered space programs, military hardware, trade, and global issues like Ukraine and the Indo-Pacific. India stressed a responsible approach to international matters, and discussions included ways to enhance trade and connectivity.
Friday, 29 December 2023 (Financial Express) Rice exports hit by Red Sea Crisis
Indian Trade and Commerce Minister Piyush Goyal stated that, as of now, the crisis in the Red Sea has not shown an immediate impact on India's trade. He mentioned that rice exports are the one industry reportedly affected, with freight doubling for shipments to Europe.
The disruption was triggered by Houthi attacks on cargo ships in the Suez Canal, leading major shipping lines to avoid the route. India responded by deploying warships in the Arabian Sea. However, with increased patrolling in the Southern Red Sea and Gulf of Aden, confidence is returning, and major shipping lines are announcing the return of vessels to the Suez route.
