In its trade recommendations, the ICC calls on the parties to the PTA negotiations to seek, as far as possible, a comprehensive horizontal cohesion by streamlining the rules of origin and origin, by combining the provisions of the revised Kyoto Agreement (KW) of the World Customs Organization (WCO), in accordance with the principles of the World Trade Organization(WTO) Trade Facilitation Agreement (WTO). Recommendations also include the development of common procedural standards for customs verification of origin documentation, allowing for “extended cumulative” or “cross-cumulative” between common agreements and including provisions for the resolution of low-origin disputes in EPAs. As countries increasingly enter into bilateral and regional preferential trade agreements, divergent rules and procedures of origin become an obstacle to trade throughout the supply chain. As part of a preferential trade pact, two countries substantially reduce or eliminate tariffs on certain quantities of goods in order to promote trade relations. The agreement, if implemented, would help eliminate the customs disadvantage that Indian clothing faces in the Uk market. Goyal said removing barriers to trade between India and Europe was essential to move forward, given that the EU is India`s largest trading bloc, with about $105 billion in merchandise trade in 2019. It is also the second largest destination for Indian exports. Over the years, India has increasingly been seen as an EU partner. This has always been for the United Kingdom. “I think you will see a major step forward in the coming months towards preferential trade agreements with the EU and the UK,” said the CEO of India Group Inc. As countries increasingly enter into bilateral and regional preferential trade agreements, divergent rules and procedures of origin become an obstacle to trade throughout the supply chain. This will be even more difficult if there is no multilateral agreement on rules of origin, especially when new EPZs overlap beyond existing rules.
Small and medium-sized enterprises (SMEs) are often limited in resources and are therefore particularly influenced by complexity. India accounts for 40% of U.S. imports of generic drugs, including anti-malaria hydroxychloroquine flooded by U.S. President Donald Trump in the fight against coronavirus. To obtain preferential treatment for pharmaceutical exports, Prime Minister Narendra Modi`s government is trying to open its dairy and agricultural markets to the Trump administration. The proposed comprehensive agreement between India and Mauritius for Comprehensive Economic Cooperation and Partnership (CECPA) aims to help both countries in trade in goods and services, he said. Dilshod Akhatov, Uzbekistan`s ambassador to India, said India had a special place in Uzbekistan`s foreign policy. “The economic and trade potential of both countries is not fully exploited and we need to increase each other`s quality trade by improving bilateral trade,” he added. See CCI`s website: Introduction of the ICC Statement: Trade Recommendations on Rules of Origin in Preferential Trade Agreements.