Duty concession on gold will be major concern for India under proposed FTA with Peru: Economic think tank
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Duty concessions on gold, which accounts for 80 per cent of India's imports from Peru, is the most challenging issue for New Delhi under the proposed free trade agreement with the South American nation. The next round of talks is expected to start this week in Lima, Peru. Tariff concessions on gold, accounting for USD 1.8 billion or 80 per cent of India's imports from Peru in FY23, is the most challenging issue for India. After tariff concessions under the India-UAE free trade agreement, gold imports from the UAE, India's second-largest gold supplier, doubled in 2023 compared to 2022. Peru, the fifth-largest supplier to India, could see a similar surge in gold imports if concessions are made. In 2023, India's global imports of unwrought gold are estimated at USD 43 billion, with Switzerland accounting for 40 per cent of these imports. FTAs offer concessions on effective duties rather than on the bound duty. Excluding gold from an FTA would violate the World Trade Organization's Article XXIV, which requires duty cuts on substantial trade for FTAs. Peru has a bilateral trade pact with major economies like the US, EU, China, Australia, and Singapore. Negotiations for the agreement started in 2017, and the fifth round concluded in August 2019. During 2022-23, the bilateral trade between India and Peru stood at USD 3.12 billion (exports USD 866 million and imports USD 1.4 billion). Key Indian exports to Peru include motor vehicles/cars (USD 282 million), cotton yarn (USD 101 million), electrical and electronics (USD 51.3 million), machinery (USD 50.2 million), tyres (USD 17 million), and pharmaceuticals (USD 87.3 million), while imports items include gold (USD 1.77 billion), copper ores and concentrates (USD 391 million), silver (USD 14.5 million).

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https://www.newindianexpress.com/business/2024/Feb/11/duty-concession-on-gold-will-be-major-concern-for-india-under-proposed-fta-with-peru-gtri