India open to free trade agreement with US

Betwa Sharma
Washington, Nov 24 (PTI) Indian Prime Minister Manmohan
Singh Tuesday said India is open to discussions on a free
trade pact with the US on the lines of the agreement New Delhi
already has with the 10-nation South East Asian bloc.
"I don't mind exploring the possibility for a free trade
agreement with the US," Singh, who is on a four-day state-
visit to the US, said during an interaction with the Council
on Foreign Relations, a think tank.
The Prime Minister, however, said India's "first
preference" was a fair and equitable multilateral trading
agreement, and expressed "hope" that the Doha Round can
succeed.
Calling for "reduced role for trade distortions
represented by tariffs and non-tariff barriers," the Prime
Minister stated, "I sincerely hope that the Doha Round can
succeed."
The Doha Round of talks on a global trade deal have been
stalled for last eight years now on differences over farm
subsidies, lowering of tariff on industrial goods and
protection to farmers in developing countries.
India in August signed a free trade agreement in goods
with Association of South East Asian Nations (ASEAN) aimed at
eliminating duties on 4,000 items by 2016.
Singh also said a trade agreement like the one with the
European Union, was not conducive for south Asia due to "tight
regional arrangements".
"For various historical reasons we are not able to have a
regional tariff union of the type that exists in some other
parts of the world," the Prime Minister said.
"So our first preference would be that the multilateral
trading system should evolve in a direction where there is a
reduced amount of tariff distortion, which distort the flow of
trades, goods and services," he added. PTI BS
ANU