In this article, we will discuss Interim Trade Agreement. So, let’s get started.
Interim Trade Agreement (ITA)
- An interim or early harvest trade agreement is used to liberalise tariffs on the trade of certain goods between two countries or trading blocs before a comprehensive FTA is concluded.
- Government’s emphasis on interim agreements may be tactical so that a deal may be achieved with minimum commitments and would allow for contentious issues to be resolved later.
- Recently, India and Australia have announced plans to conclude an ITA in March 2022.
- India is also looking to complete an early harvest agreement with the UAE and the UK in the first half of 2022.