The Shift in Free Trade Agreement Negotiations: A Quiet Move Away from Non-Trade Issues

Developed countries are increasingly open to starting free trade agreement negotiations without focusing on non-trade issues like sustainability and climate obligations. The shift in approach prioritizes business deals, with potential dispute areas to be addressed separately, reflecting India's stance on maintaining separate forums for non-trade matters.

Negotiations for free trade agreements among developed countries are taking a new turn as pressure to include non-trade issues such as sustainability and climate obligations in the discussions seems to be waning, sources reveal.

Key players who previously emphasized the inclusion of these issues are now shifting focus, proposing that business should commence first with peripheral matters to be addressed subsequently. This approach aligns with India's long-standing position that matters of sustainability and labor should be handled independently in international forums or by relevant organizations, such as the International Labour Organization and the United Nations Framework Convention on Climate Change.

Regions like the European Union and the UK have traditionally pushed for incorporating such issues in trade talks. Notably, in February, Indian Prime Minister Narendra Modi and European Commission President Ursula von der Leyen aimed to finalize a robust India-EU trade agreement by year's end. The agreement would focus on significantly reducing or eliminating tariffs on the majority of goods exchanged between the partnering nations.

(With inputs from agencies.)