What are Early Harvest Deals?
When two countries are working on a big trade deal (FTA), they might agree on some things early on, before the full deal is finished. These smaller agreements are called Early Harvest Deals (EHDs). It's like enjoying the first fruits of a garden before the whole harvest is ready.
Why do countries like EHDs?
EHDs give quick benefits. For example, two countries might agree to remove taxes on certain goods right away. This can help businesses in both countries start trading more of those goods immediately.
How does this work for India?
India has used EHDs in its trade talks. Before finishing the whole trade agreement, India and the other country might agree on some smaller things first, like removing taxes on specific items.
Why are EHDs helpful?
These deals can help increase trade and investment fast, giving a quick boost to both economies. But, the countries have to be careful that these early deals don't conflict with the bigger agreement they're still working on.
Examples of EHDs with India:
India has done these early deals with groups like ASEAN and countries like South Korea and Japan as part of bigger trade talks called Comprehensive Economic Partnership Agreements (CEPA). There's EHD in the deal with Australia called the ECTA.
In Simple Words:
Imagine you're making a big trade with a friend, swapping many items. But you both agree on a couple of things right away and make a small trade first. That's like an Early Harvest Deal in big country-to-country trade talks. It's a way to get some benefits fast while still working on the bigger deal.
