Early Harvest Deal

  • September 23, 2021
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Early Harvest Deal

Subject – IR

Context – India, UAE look to sign ‘early harvest deal’ by start of 2022

Concept –

  • Early harvest agreements are used to liberalise tariffs on the trade of certain goods between two countries or trading blocs before a comprehensive Free Trade Agreement (FTA) is concluded.
  • Early harvest scheme is a precursor to a free trade agreement (FTA) between two trading partners. This is to help the two trading countries to identify certain products for tariff liberalisation pending the conclusion of FTA negotiation.
  • It is primarily a confidence building measure between two trading partners.
  • An Early Harvest Scheme (EHS) is an agreement between two states (or regional trading blocs) which liberalizes tariffs on certain goods preceding the conclusion of a Free Trade Agreement (FTA)
Early Harvest Deal IR