India Inks ToR With Philippines and Maldives To Kickstart Trade Negotiations

New Delhi: The commerce ministry on Monday said that India inked terms of reference (ToR) with countries such as Philippines and the Maldives to start negotiations for free trade agreements (FTAs). The ToR, however, outlines the scope and modalities of a proposed trade pact.

The ministry also said that India will begin negotiations with the Philippines, a Southeast Asian nation, for a preferential trade agreement (PTA), while with the Maldives, it will be for a free trade agreement (FTA). In a PTA, two trading partners either significantly reduce or eliminate import duties on a specific number of goods traded between them. On the other hand, in an FTA, two trading nations either significantly reduce or eliminate import duties on the maximum number of goods traded between them, besides easing norms to promote trade in services and investments.

As per the latest data, India’s exports to the Philippines rose 3.11 per cent to $2.16 billion in 2024-25, while imports dipped 17.8 per cent to $1.17 billion. The Philippines is a part of the ASEAN bloc, with which India has a free trade agreement in goods. India and the 10-nation bloc are reviewing the trade pact, as it is hurting Indian exports. The pact was signed in 2009. ASEAN countries are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

The ministry also said that the Asean-India trade in goods agreement (AITIGA) joint committee has met for review 11 times so far. The next meeting is scheduled for March 30-31, 2026. “India-Korea comprehensive economic partnership agreement (CEPA) is under review for upgradation of the pact. The review started in 2016, and so far, 11 rounds of negotiations have been held, with the last round held in Seoul in July 2024,” the ministry said.

India’s exports to the Maldives dipped 37.11 per cent to $56.88 million in 2024-25, while imports rose 37.14 per cent to $118.82 million. Recently, India launched trade pact talks with the Gulf Cooperation Council (GCC) and Canada. Similar negotiations are going on with Australia, Sri Lanka, Peru, Chile, EAEU, and Israel.