How is an Early Harvest Scheme Programme EHS different from a Free Trade Agreement FTA ........

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How is an Early Harvest Scheme/Programme (EHS) different from a Free Trade Agreement (FTA)?

EHS is a Trade facilitation agreement (TFA) to ease the administrative implementation of an FTA.

EHS supplements an FTA by extending its scope to encompass a Comprehensive Economic Partnership Agreement (CEPA).

EHS is restricted to terms and conditions of the FTA related to agricultural commodities.

EHS is a precursor to a free trade agreement (FTA) between two trading partners.

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Explanation:

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 liberalization pending the conclusion of FTA negotiation. It is primarily a confidence building measure. A good example of an EHS is between India and Thailand signed in October 2003, wherein 83 products were identified to be reduced to zero in a phased manner. The EHS has been used as a mechanism to build greater confidence amongst trading partners to prepare them for even bigger economic engagement.