In a bid to fortify India’s strategic interests and shield against supply chain disruptions, the commerce and industry ministry is deliberating the formulation of a standard operating procedure (SOP) for trade negotiations, with a dedicated focus on critical minerals.
The proposal was discussed at a recent Chintan Shivir, emphasizing India’s Free Trade Agreement (FTA) strategy and the imperative for institutionalizing protocols to navigate complex trade dynamics. The envisioned SOP seeks to establish a structured framework for engaging in trade talks, encompassing stakeholder consultations, capacity building, and resource management for FTAs. Of particular significance is the proposition to integrate a dedicated chapter on critical minerals or critical minerals-based agreements, especially with mineral-rich nations. This strategic initiative aims to safeguard India’s access to essential minerals and mitigate risks associated with abrupt disruptions in global supply chains. During the deliberations, participants underscored the challenge of drafting agreements in real-time during negotiations, highlighting the need for mechanisms to ensure clarity and consensus on commitments undertaken. Additionally, economic assessment and modelling of FTAs emerged as crucial components, with experts advocating for detailed studies to inform negotiation strategies.
The discussions also delved into addressing emerging areas such as carbon border adjustment mechanisms, supply chain disruptions, and digital trade, reflecting India’s proactive stance towards evolving trade dynamics. Key considerations encompassed incorporating new disciplines into FTAs, including labour, environment, gender, indigenous rights, and services.
Moreover, the session spotlighted the complexities surrounding digital trade, including issues of data sovereignty, consumer protection, and cybersecurity. India’s adequacy status under the European Union’s General Data Protection Regulation (GDPR) and the evolving landscape of e-commerce were subjects of keen scrutiny, underscoring the need for robust regulatory frameworks to navigate digital trade challenges effectively. As India advances its trade agenda and navigates evolving global dynamics, the formulation of a comprehensive SOP for trade negotiations, coupled with strategic initiatives to secure critical mineral supplies, underscores the nation’s commitment to fostering resilient and sustainable trade relations in the contemporary global landscape.
