Types of Trade Agreements
FTA vs CEPA vs MoU
India pursues multiple forms of trade agreements, and UPSC frequently tests the distinctions between them. The key distinction is the scope and binding nature of the commitments.
- FTA (Free Trade Agreement): Covers tariff reduction/elimination on goods; may or may not include services and investment. Examples: India-ASEAN FTA (2010), India-South Korea CEPA
- CEPA (Comprehensive Economic Partnership Agreement): Broader than FTA — covers goods, services, investment, intellectual property, and other areas. Example: India-UAE CEPA (signed May 2022, operationalized May 2022 — India's first post-COVID era CEPA)
- CECA (Comprehensive Economic Cooperation Agreement): Similar to CEPA — used interchangeably. Example: India-Singapore CECA (2005)
- PTA (Preferential Trade Agreement): Limited tariff concessions on selected products — not full free trade. Example: India-Mauritius PTA
- MoU (Memorandum of Understanding): Non-binding; sets out intent and framework for cooperation
- ToR (Terms of Reference): Document defining the scope and parameters for negotiation; precedes formal FTA rounds
● Tracked since February 10, 2026 · last seen August 27, 2026 · updates as the daily brief publishes
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