Economic policy goes global

NEW DELHI: The Look East and Look West policies are pass��, the country is now looking for the ���best���. The focus of the country���s economic diplomacy may now shift to rope in big economies such as the US, European Union and Japan into the fold of Comprehensive Economic Partnership Agreement (CEPA), something beyond Free Trade Agreements (FTA).

The government now aims to sign CEPAs with big economies such as the US and EU, top officials said. It is understood that New Delhi has initiated dialogue with Washington in this regard.

In principle, there is unanimity among finance ministry, Planning Commission and commerce ministry to aim at either EU or the US in near future. ���For negotiating a deal with big economies such as EU or the US, we would like to go beyond FTAs,��� a government source said.

While FTAs are confined to trade in goods, the focus of the government has shifted in favour of Comprehensive Economic Co-operation Agreement (CECA) or CEPA, where bilateral economic ties include free movement of services as well as investments. So far, India has a CECA with Singapore.

The process has already been started with Japan to explore the possibility of a CEPA. Recently, India and Japan agreed to consider the possibility of a CEPA in the context of the ongoing work of the India-Japan Joint Study Group. The group is expected to submit its report by June.

Focus on major economies doesn���t mean that the earlier policies of Look East or Look West shall be abandoned. We expect to sign CEPA with Mauritius. Similar negotiations are on with countries such as Sri Lanka and Thailand.

The India-Korea Joint Study Group has recommended a Korea-India CEPA covering a range of issues including trade in goods, trade in services, measures for trade facilitation, liberalisation of investment flows and measures for promoting bilateral economic co-operation in identified sectors.A joint taskforce has been constituted to work on the task of developing a CEPA between the two countries, sources said.