Hindustan Times - 26 May 2025
Gender equality key feature in FTAs
By Rajeev Jayaswal
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.
