Evolving India's FTA Strategy: Addressing TBTs and Strengthening Institutional Capacity for Sustainable Export Growth

The WTO TBT Agreement aims to ensure that technical regulations, standards, and conformity assessment procedures are non-discriminatory and do not create unnecessary barriers to trade. This paper explores the importance of strengthening institutional capacity and addressing the challenges faced by businesses due to Technical Barriers to Trade (TBT) to fully realize the benefits of trade liberalization. As India negotiates Free Trade Agreements (FTAs) the paper emphasizes the growing significance of strategically using TBT related disciplines in FTAs to address barriers arising from TBTs that often restrict market access and increase trade costs, Utilizing the World Bank's Deep Trade Agreement Database 2.0, we conduct a comparative analysis of TBT provisions in FTAs across seven economies, including India, to understand global trends in development of disciplines and associated rule-making to address TBT issues. Based on this analysis, the paper goes on to suggest a forward-looking approach for India in negotiating TBT chapters with potential FTA partners. The paper also advocates leveraging obligations arising from TBT related provisions to push for reforms of India’s domestic eco-system of rule-making, implementation, and monitoring of standards. This includes capacity building leading to development of strong institutional frameworks and adoption of risk management systems and effective surveillance mechanisms to ensure effective compliance and build trust with global partners. By prioritizing these efforts, India can more effectively leverage FTAs, enhance export capabilities, and foster economic growth in a competitive global trade environment.