Criminal prosecution for misuse of FTA - India

India has warned that any misuse of the Free Trade Agreements (FTA) would lead to criminal prosecution of those involved in such practice.

"We are planning criminal prosecution to prevent misuse of trade agreements," Commerce and Industry Secretary S. N. Menon said on the sidelines of a meeting with Bengal National Chamber of Commerce and Industry. The senior official's comments were made in the wake of reports of misuse of the Sri Lanka trade agreement.

The ministry had accepted that Pepper and Copper were finding way into India through Sri Lanka taking advantage of the trade agreement benefits.

Menon, who was speaking about the forthcoming FTA roadmap with other countries, said the FTA between India and Singapore will be signed by July while other bilateral and multilateral agreements are in progress.

"Agreement for goods, services and investment with Singapore will be signed by June-July," Menon said.

Menon said joint study groups for Japan, Korea and Malayasia have already been set-up and meetings taking place. These groups aim to find out areas of the bilateral agreements between the countries.

The South Asian Free Trade Agreement (SAFTA) is moving towards a reality which will help South Asian countries, while the 'negative list' of goods is under the process of being finalised. By January 2006, the SAFTA is expected to fall in place, Menon said.

Once SAFTA is in place, the denial of Pakistan for granting MFN status to India will be overcome resultng in trade benefits.

(PTI)