The Eurasian Economic Union, composed of Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan, has concluded the following free trade agreements, see below. But in this heightened context, where most nations are cautious in their trade strategy, India needs to focus on deep bilateral free trade agreements with trading partners that have maximum trade leniency, especially the US and the EU. For the US, our unused export potential as a percentage of current exports is around 60%, compared to 90% for the EU. First, there have been a number of lessons learned from the experience of our previous free trade agreements. In 2018, a NITI Aayog note on free trade agreements highlighted India`s relentless and expanding trade deficits accumulated as a result of free trade agreements with ASEAN, Japan and Korea. It is important that the deficit has also increased for India`s dominant value-added sectors, due to a deterioration in the quality of India`s trade with its FTA partners. India, which has not signed a trade agreement since 2012, will soon restart discussions on a possible free trade agreement (FTA) with the European Union and the United States. Even when Narendra Modi`s government left the Regional Economic Partnership (RCEP), it is interested in making trade deals with other economic blocs, a high-level source said, adding that India could gain significantly in the face of growing anti-China sentiment in many parts of the world. “India cannot afford to have the Bombay Club that existed in the early 1990s, it is necessary to stay connected to other countries and that includes trade and economic cooperation,” said Sanjaya Baru, an economist and media adviser to former Prime Minister Manmohan Singh, previously.
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