India And Philippines Exchange Terms For Preferential Trade Agreement

New Delhi, Aug 6 (KNN) India and the Philippines exchanged terms of reference for a Preferential Trade Agreement (PTA) on Tuesday, marking a significant step toward enhancing bilateral trade relations between the two nations.

The agreement will build upon the existing liberal terms established under the Asean-India Trade in Goods Agreement (AITIGA), which has been operational since 2010.

The Philippines, as a member of the Association of Southeast Asian Nations (Asean), is already covered under AITIGA. The new PTA will allow both countries to fine-tune trade concessions specifically designed to boost bilateral commerce.

According to P. Kumaran, Secretary East in India's Ministry of External Affairs, the discussions focus on securing greater market access for Indian agricultural products, particularly potatoes and grapes, while exploring opportunities in the services sector.

India is offering oil and gas consultancy services as part of the trade discussions. Meanwhile, the Philippines possesses specialised technologies for seaweed cultivation, which has attracted India's interest for potential future development in the nutrition sector.

These exchanges were discussed during the briefing on Philippine President Ferdinand R. Marcos Jr.'s state visit to India.

The Philippines has been designated as the coordinator for India within Asean until 2027, making the completion of the AITIGA review a priority for both nations.

Prime Minister Narendra Modi emphasised the importance of concluding this review as early as possible during joint press statements following delegation-level talks with President Marcos.

The Philippines has expressed support for India's request to expedite the AITIGA review, with hopes of completion before the year's end.

Current bilateral trade between India and the Philippines reached approximately USD 3.3 billion in the previous financial year. India's exports to the Philippines totalled USD 2.16 billion, while imports amounted to USD 1.17 billion.

Pharmaceuticals represent India's primary export category to the Philippines, while minerals and gems constitute the main imports from the Philippines to India.

Both countries engaged in comprehensive discussions regarding trade diversification and expanding the range of products for bilateral commerce.

Officials identified specific areas that could contribute to the potential PTA framework. Additionally, both nations are exploring cooperation opportunities for linking their respective payment systems to facilitate smoother trade transactions.

The Philippines extended an invitation to India for participation in large infrastructure development projects. India has committed to serious involvement in such projects and offered to share its Gatishakti platform for coordinated infrastructure development.

Indian companies have invested over USD 5 billion in the Philippines, with USD 1.2 billion in direct investments and the remainder channeled through third countries.

(KNN Bureau)