Free Trade Agreement (FTA)
Structure and Scope
A Free Trade Agreement is a treaty between two or more countries that reduces or eliminates tariff and non-tariff barriers on goods and services traded between them. FTAs typically cover goods trade (tariff schedules), rules of origin, standards, and sometimes services and investment. A Comprehensive Economic Partnership Agreement (CEPA) is broader, covering goods, services, investment, intellectual property, and regulatory cooperation — making it a deeper integration instrument than a standard FTA.
- Rules of Origin (RoO): Criteria that determine the national source of a product; goods must meet these rules to avail preferential tariff rates under an FTA, preventing tariff arbitrage through third countries.
- Sensitive List: A list of products a country excludes from tariff liberalisation to protect domestic industries — India typically includes dairy, agriculture, and certain manufacturing items.
- CEPA vs FTA: A CEPA integrates services, investment, and IPR in addition to goods, while an FTA primarily covers goods trade. The India–UAE 2022 agreement is designated a CEPA; the India–NZ 2026 agreement is designated an FTA.
● Tracked since April 26, 2026 · last seen June 18, 2026 · updates as the daily brief publishes
27 Apr '26
India-NZ FTA seen boosting textile exports, aiding $350 billion sector target: CITI
Economics
27 Apr '26
India New Zealand FTA to help reduce India's dependence on select markets, says CITI
Economics
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