Piyush Goyal calls for PTA over comprehensive FTA for BIMSTEC nations

Goyal expressed concern about the current situation in Bangladesh and called for a smooth transition for the country.

Union Minister of Commerce & Industry Piyush Goyal has suggested that BIMSTEC nations might benefit more from initiating preferential trade agreements (PTA) rather than committing immediately to comprehensive Free Trade Agreements (FTA). Speaking at the BIMSTEC Business Summit, which runs from August 6-8, Goyal stressed that the need to reassess the ongoing FTA negotiations that have already spanned 22 rounds.

Goyal highlighted concerns about potential delays stemming from non-tariff barriers and urged business leaders to provide feedback on the practicality and advantages of pursuing an FTA with BIMSTEC nations. He proposed that a more pragmatic approach could involve starting with a PTA as a preliminary measure to facilitate trade relations.

The BIMSTEC region, which includes Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand, has seen limited trade growth among its member countries. Goyal advocated for the exploration of local currency payments to balance trade and support progress towards a Free Trade Agreement. This move, he argued, could address existing trade imbalances and foster a smoother transition towards a more comprehensive trade arrangement.

In addition to trade, Goyal expressed concern about the current situation in Bangladesh and called for a smooth transition for the country. He also highlighted the importance of enhanced cooperation within the BIMSTEC region to address climate change, improve understanding between startups and businesses, and support trade and tourism.

Despite ongoing geopolitical challenges, including the Red Sea crisis, Goyal expressed confidence in India’s economic resilience and its position as one of the fastest-growing economies globally. He urged BIMSTEC nations and their businesses to seek new alternatives to fast-track discussions and pave the way for a future Free Trade Agreement.