Gender equality key feature in FTAs
India's free trade agreements with the United Kingdom (UK) and the European Union (EU) will have specific provisions for women's economic empowerment through around $500 billion in trade opportunities these FTAs would unlock by 2030, people aware of the development said on Sunday.
While the India-UK FTA has a dedicated chapter on gender equality, the ongoing negotiations of another free trade deal between India and the EU will have specific provisions related to gender equality and economic empowerment of women, they said, requesting anonymity.
After having announced a landmark bilateral free trade deal with the UK on May 6, New Delhi is on the verge of finalising an early harvest deal with the 27-member European Union. While returning from the US after completing a week-long visit, Union commerce minister Piyush Goyal stopped over Brussels to meet EU trade commissioner Maroš Šefčovič, signifying the pace of the ongoing bilateral negotiations.
In a post on X, Šefčovič on May 23 welcomed Goyal and said: 'We continue to make progress. Let's maintain the momentum - with hard work, clear focus - and I look forward to our next meeting soon.' This is sign of positive progress in talks between India and the EU
'Although India's FTA with the UK has a separate chapter on gender equality, India and the EU are negotiating gender equality and equal opportunities provided for women in relation to trade under the chapter of trade and sustainable development,' one person said.
While announcing the conclusion of an India-UK free trade deal on May 6, an UK government official highlighted gender equality as one of the key features and said in a statement: 'We have championed our values – securing India's first ever chapters on anti-corruption, consumer protections, labour rights, gender, and development.'
'This chapter will enhance the opportunities for women to access the full benefits of the UK-India FTA. It will also advance women's economic empowerment and promote gender equality through trade,' the UK government said in an updated statement on May 15. 'This chapter will create the space for the UK and India to work together to support women business owners, entrepreneurs, and workers to fully access and benefit from the opportunities created by this agreement,' it said.
Women's economic empowerment is a growth enabler, which is at the heart of the UK government's agenda. Through enabling women to fully engage in trade and the economy, countries can realise their potential and boost economic growth. If gender parity in the global economy is achieved, it could add trillions of dollars to global GDP, it added.
'As trade plays a pivotal role in driving growth and prosperity, increasing the participation of women in the labour market would, according to the World Bank, increase a country's productivity and GDP, creating jobs and leading to greater economic diversification, innovation and poverty reduction,' it added.
Similarly, the EU and India are striving to achieve an 'inclusive' trade deal, a second person said. 'Benefits of FTA must contribute to advancing women's economic empowerment and gender equality, in line with SDG [sustainable development goal] of the United Nations 2030 agenda. Both sides acknowledge the contribution made by women to economic growth through their participation in business and trade activities,' he said.
The inclusion of gender equality in FTAs would entail creation of some appropriate institutional mechanisms to assess the impact of the trade deal on women's economic empowerment and based on that necessary measures would be taken to achieve the gender justice, the people mentioned above said.
The India-UK FTA, which is currently undergoing legal scrubbing and is expected to be enforced in a year, is expected to double bilateral trade to over $120 billion by 2030. India's bilateral trade in goods and services with the EU is currently around $190 billion and is expected to double by 2030 after the two partners signed an FTA.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
28 minutes ago
- Hindustan Times
HT Interview: India, Aus ties have moved to a higher level, says Marles
Australia backs India's efforts to combat terrorism and the halting of military actions with Pakistan last month was 'an act of Indian leadership', Australian deputy prime minister Richard Marles said on Wednesday, while outlining Canberra's plans to foster closer defence and security ties with New Delhi. In a conversation with HT, Marles, who is also defence minister, spoke about China's backing of Pakistan during recent clashes with India, saying both Delhi and Canberra feel China's massive military build-up has had 'an impact on the strategic landscape of the Indo-Pacific', and expressed hope that am India-Australia comprehensive economic cooperation agreement (CECA) will be concluded soon. Edited excepts: Q: As India and Australia mark five years of their comprehensive strategic partnership, you've said the re-elected Albanese government is going to be more ambitious. How do you look back at these five years and what's next? Marles: India's place in Australia's worldview has grown dramatically under Prime Minister [Narendra] Modi's leadership. The bilateral relationship has gone to a greater level - we're doing more economically together and have never been more strategically aligned. This is reflected in our much greater security and defence relationship, which is not just in terms of how we engage in forums that we meet in, the way in which we speak, but actually at a practical level, we're doing more. [Something] as specific as maritime domain awareness, what we're doing with our Boeing P-8 surveillance aircraft that both countries use. When you're sharing that kind of information, you're only doing that with the closest of friends. This collaboration enormously enhances our ability to see the ocean for both India and Australia. Q: One focus area for Australia is ensuring the Indo-Pacific remains free, open and secure, and you are looking very closely at the Indian Ocean. Australia gifted a patrol boat to the Maldives during your visit. What more would you like do with India in the Indian Ocean? Marles: We want to see a free and open Indian Ocean and work with India as the major player here. From Australia's perspective, 50% of our trade goes past the front door here. We've got a deep national interest in the rules of the road applying in the Indian Ocean, freedom of navigation, the UN Convention on the Law of the Sea, freedom of trade. The Maldives patrol boat gift builds on our Pacific Island programme experience. It presents an opportunity for us to cooperate with India in supporting smaller nations' maritime capabilities. Q: There's been a fundamental shift in India-Australia defence ties, including the signing of a logistics support agreement and an air-to-air refuelling agreement. How do you plan to expand interoperability and exercises? Marles: There is a whole lot of ambition that we have. The world's complexity and our strategic alignment make closer cooperation increasingly attractive. There's more we can do in maritime domain awareness and expanding exercises - bilaterally and potentially with other countries. We see opportunities in intelligence-sharing. But the biggest area is maritime domain awareness and activity. We want progress on key agreements and roadmaps leading to this year's 2+2 meeting [of defence and foreign ministers] and leaders' summit. This is a crucial year for advancement. Q: China's military activities across the region are a concern for many countries and there are clear signs China backed Pakistan, in terms of equipment and surveillance, during the recent clashes with India. In that context, how does Australia view the hostilities between India and Pakistan? Marles: Though there's two points [here]. We condemn the Pahalgam terrorist attack. Our sympathies are with the families who lost loved ones. We stand with India and all countries combating terrorism. We acknowledge and welcome the stoppage of military activity - we see that as an act of Indian leadership. We'll continue working with India to combat terrorism in all forms. Regarding China - our relationship is complex. It's our largest trading partner, but we have security concerns we've expressed to China directly. We're watching the world's biggest conventional military buildup since WWII, done without strategic reassurance. China's intent remains unclear, and this impacts the Indo-Pacific's strategic landscape. We feel that, India feels that. Since our last 2+2 meeting in November 2023, these issues have become more complex. The reasons for India-Australia cooperation have only grown. Q: The Economic Cooperation and Trade Agreement (ECTA) changed the economic landscape between India and Australia. How far are we on the path towards the comprehensive economic cooperation agreement (CECA)? Marles: We've seen real progress across the four economic roadmap areas PM Albanese outlined - education, green energy, agriculture and tourism. CECA negotiations continue. We're hopeful for a conclusion in the not-too-distant future, which would elevate our trading arrangements. Over the last five years, India's trade with Australia has grown at double the rate of its trade with the rest of the world. The India-Australia trading relationship, measured against all of India's trading relationships, is a standout. What we've achieved has made a huge difference, and we're excited about the next level. It's a huge opportunity - our economies are complementary. Q: Is there anything in particular holding up negotiations on CECA? Marles: No, negotiations are going well. It's natural that people bring different positions that need working through. We're pleased with progress and hopeful for a near-future conclusion. Q: India is set to host the Quad Summit at a time when the US administration appears to be more inward-looking. What would Australia like to see on the agenda of the Quad Summit? Marles: I don't necessarily accept that assertion. We all want American leadership, but the Quad has always been an opportunity for four like-minded democracies with shared values to cooperate for the Indo-Pacific's benefit. This meeting is important for continuing Quad momentum across current engagement areas. We want to see that expanded. As the first Quad Summit of the Trump administration, it has significance. The Quad is important for our countries' Indo-Pacific leadership, making this meeting crucial. Q: Do you think the Indian government's concerns about activities of Khalistani separatists in Australia have been addressed? Are there still concerns about their activities? Marles: I hope not. People in Australia have the right to their views, but there's no sympathy for the Khalistani movement from the Australian government - none at all. We take our obligations to provide security for India's missions very seriously. Q: How do you plan on building on the role of the Indian diaspora in Australia to further strengthen bilateral relations? Marles: The Indian diaspora is a wonderful asset for Australia. It's our fastest growing community, bringing energy and industry to the Australian economy. We are huge recipients of their contributions.
Hindustan Times
33 minutes ago
- Hindustan Times
Delhi to get ₹24k-cr road projects with Centre's aid: CM Gupta
The central government has given to the national capital various road projects worth ₹1.25 lakh crore over the last years due to which key connectivity stretches are in the works, including an underground tunnel from Shiv Murti to Nelson Mandela Road, an elevated corridor from Sarai Kale Khan to IGI Airport, the Delhi–Katra–Amritsar Expressway, and a 20km-long new road from Inderlok metro station to Sonepat via Munak canal, chief minister Rekha Gupta said on Wednesday. Detailed reports of each of the projects have been prepared and the work is likely to begin soon, she said. The announcement came after a high-level meeting chaired by Union minister of road transport and highways Nitin Gadkari. Lieutenant governor V K Saxena, Union minister of state Harsh Malhotra, Delhi cabinet ministers, members of Parliament Ramvir Singh Bidhuri and Manoj Tiwari, and senior government officials were also present at the meeting. The CM said that the aforementioned projects 'will be crucial in easing the traffic between Delhi and Haryana.' 'Projects worth nearly ₹35,000 crore are currently being implemented in Delhi, and projects worth ₹64,000 crore have already been completed. In the coming times, ₹24,000 crore worth of projects for which detailed project reports have been made will be implemented to decongest Delhi and make traffic movement smooth…I want to thank (PM) Narendra Modi and Nitin Gadkari for helping decongest Delhi and make it a pollution-free city,' said Gupta. The upcoming projects include the construction of an approximately 7km-long underground tunnel from Shiv Murti to Nelson Mandela Road; an elevated road from INA to the airport — which will later connect to Faridabad and Gurugram; a highway connecting Delhi to Katra and Amritsar, which will be linked to the Urban Extension Road (UER)-II; and a second extension of UER-II, which will connect Alipur to Tronica City and the Delhi–Dehradun route. These new routes will enable seamless travel between Haryana, Dehradun, and Noida without the need to enter Delhi, officials said. 'A feasibility study is also underway for a tunnel from Sarai Kale Khan to IGI Airport,' CM Gupta said, adding that several key initiatives are being undertaken to decongest Delhi. The CM also gave details on the completed and ongoing projects. The National Highways Authority of India is currently implementing projects in Delhi worth ₹35,000 crore, while projects worth ₹64,000 crore have already been completed, she said.. According to a government report, the major completed road projects include the 135km Eastern Peripheral Expressway ( ₹12,000 crore), Dhaula Kuan–Gurugram corridor ( ₹373 crore), Gurugram–Sohna Road ( ₹2,009 crore), Delhi–Panipat corridor ( ₹2,205 crore), and the 32km Delhi–Dehradun Expressway stretch from Akshardham to EPE junction ( ₹3,500 crore). Several other flagship projects are nearing completion, such as the Delhi–Meerut Expressway (92% work done), Dwarka Expressway (98%), UER-II (95%), and the DND Interchange–Kalindi Kunj–Faridabad–Sohna–Jewar Airport Link Road (93%). Major roads such as Rohtak Road, Punjabi Bagh to Nangloi, Ashram to Badarpur, and MG Road have also been handed over to NHAI, not only for decongestion works but also for the development of proper drainage systems, side lanes, and necessary infrastructure. 'Earlier, such tasks were handled by multiple agencies, leading to issues such waterlogging and unconnected drainage. Now, these problems will be resolved solely by NHAI at its own expense, with support from the Delhi Public Works Department,' said CM Gupta. NHAI has also sanctioned ₹150 crore for construction of RUBs (Road Under Bridges) and ROBs (Road Over Bridges) to eliminate bottlenecks caused by railway crossings. 'A total of ₹1.25 lakh crore worth projects for decongestion projects have been initiated in Delhi by the central government. I want to thank the Centre for supporting Delhi,' said CM Gupta. She further said that all future road projects would maximise the use of inert construction material. This initiative will not only reduce burden on landfill sites but also re-purpose the waste into valuable construction resources, she said.
The Hindu
40 minutes ago
- The Hindu
Impact of Trump's new tariffs on steel, aluminium on U.S. economy
While addressing steel workers in the U.S. state of Pennsylvania, Mr. Trump threatened to increase the import tariffs on steel and aluminium from the current 25% to 50% from June 4, upset by the slow progress of a trade deal between the U.S. and the EU. Steel and aluminium are used as basic inputs in a host of industries and sectors ranging from transportation (rail, road, sea and air), defence and aerospace, household appliances, engineering machinery of all kinds, agricultural tools and implements, civil engineering and construction, power generation and transmission and a whole lot of others. Now that the tariffs have come into effect, they would further increase the domestic prices of goods and services in the U.S. where steel and aluminium are used, either as intermediate products and inputs or as fully finished products, lower the consumer and industrial demand for such products and slow down the overall growth of the economy, as steel and aluminium happen to be key basic inputs used in a wide variety of industries and economic activities. The U.S. economy had contracted by 0.2% in the first quarter of 2025 as compared to the previous quarter, while inflation had declined to 2.31% at the end of April 2025, still higher than the threshold level of 2% for the Federal Reserve to start cutting interest rates again. Impact on GDP With the economic and trade disruption caused by uncertain trade policies and the widening U.S. Budget deficit, there is a fear that U.S. inflation may go up again, forcing the Federal Reserve to postpone its interest rate cuts to September, and in a worst-case scenario, towards the end of the year. The Paris-based Organization for Economic Cooperation and Development (OECD) has forecast a slowing down of the U.S. GDP growth rate to 1.6% in 2025 from 2.8% in 2024 and a fall in World GDP growth rate to 2.9% for 2025 as compared to 3.3% in the previous year. In April 2025, the U.S. economy added 1,77,000 new jobs, exceeding previous expectations, though falling short of the 2,56,000 new jobs generated in December 2024, the last month of the Biden administration, before Mr. Trump assumed office. The unemployment rate, however, remained steady at 4.2% April 2025. Loss of consumer's surplus Economic theory tells us that when an import tariff is imposed on a commodity in a free-market economy following free international trade, the higher tariff-inclusive price will become the new domestic price. It reduces the consumer's surplus, which is calculated as the notional difference between what consumers are prepared to pay for a product or service and what they actually end up paying - the lower the actual price the higher the consumer's surplus and vice versa. It transfers some of this lost consumer's surplus to the domestic producers of the import competing industry as producer's surplus, while the rest (of the lost consumer's surplus) is treated as a deadweight loss to society as a whole. Still, Governments all over the world use import tariffs as measures to increase Government revenue (ultimately paid for by the domestic consumers) and to support domestic manufacturers of the import competing products for generating local employment, incomes and economic growth. Rarely are tariffs used as measures to promote national security which Mr. Trump is signalling in justification of his new 50% levies on steel and aluminium imports. Nominal vs. effective rate The rate of effective protection provided by an import tariff to domestic producers of an import competing product is perceived to be high, if the tariff on the imported input used in the manufacture of that product is lower than the tariff on the imported finished product. Otherwise, the domestic producers suffer the consequences of negative protection and the anomalies of an inverted duty structure, which arises when the tax rate on inputs used to produce goods or services is greater than the tax rate on the finished output. Impact on U.S. auto units Let us consider the impact of Mr. Trump's new tariff levies on steel and aluminium imports on the American automobile producers. Currently automobile imports into the U.S. from the EU attract an import tariff of 25%. With the new 50% import tariffs on steel and aluminium imports from the EU and other countries (excepting U.K.), American producers of automobiles who use steel and aluminium as inputs in their manufacturing process, will not only see a sharp rise in their manufacturing costs, but will also see the 25% import tariff on automobiles not providing the protection that it is intended to provide. Far from providing a positive rate of effective protection, the proposed higher tariffs of 50% on steel and aluminium imports, will end up as disincentives to ramping up domestic production of automobiles in the US. Domestic firms Let us illustrate this with a hypothetical example. Assume the basic starting price of a Ford Mustang car in the U.S. is $30,000. The cost of steel and aluminium parts used in the Mustang car is $20,000. The U.S. is taxing a comparable car model of the EU imported into the U.S. (Volkswagen Jetta), an import tariff of 25%, but the imported steel and aluminium metals and components, an import tariff of 50%. The rate of effective protection provided to Ford to ramp up the domestic production of Mustang car can be estimated using the following formula: g = {(t-a¡t¡) / (1-a¡)} where, g= rate of effective protection to domestic producers of the final product, t= nominal tariff rate on consumers of the final product, a¡= ratio of the cost of the imported input to the price of the final product in the absence of tariffs, t¡= the nominal tariff rate on the imported input. In the above example: t= 25% t¡= 50% price of final product = $30,000 cost of steel input = $20,000 Negative vs. positive rate Using the above formula for estimating the rate of effective protection, g can be calculated as -0.25 or -25%, which is a negative rate and acts as a disincentive for ramping up the domestic production of Ford Mustang cars. On the other hand, if the import tariff on steel and aluminium metals and parts is fixed at 10%, like the basic import tariff on all other imports announced by Mr. Trump, then the rate of effective protection, g, will be 0.55 or 55%, which will be a sufficient incentive for Ford to ramp up the domestic production of its Mustang cars. (The writer is former associate professor of economics, Loyola College, Chennai)
