Preferential trade agreements (EPAs) or the Generalized Preference System (GSP) are a special status granted in trade by different countries. In the United States, the goal is to stimulate economic growth in developing countries, and the agreement provides duty-free access for up to 4,800 products from 129 designated countries and territories. The GSP was introduced on January 1, 1976 by the Trade Act of 1974, the U.S. government said. However, the Indian government believes that the plan has expanded since the creation of the World Trade Organization (WTO) in 1994. MUKHERJI Biman, “Rubber planters wary of free-trade pact,” Reuters, India, April 17, 2007. The agreement came into force in July 2006. This is the revised version of the Indo-Bhutan trade agreement signed in Thimphu in January 1972. In the revised agreement, eight starting points/entry points were added to the twelve existing points, with some changes to simplify the export/import procedure. There are no modalities for implementing a free trade system yet. EFTA  has bilateral agreements with the following countries – including dependent regions – and blocs: India is a newcomer to the free trade agreement.
Its first real free trade agreement began only in 2000 with its neighbour, Sri Lanka. But since parliaments are very calm on the multilateral front in Geneva, India also seems to have given way to Plan B; bilateral and regional path of trade liberalization. More than 25 such agreements are being implemented either by the Ministry of Trade and Trade at various stages of the negotiations. The Comprehensive Economic Cooperation Agreement (ECSC) between India and Singapore came into force in August 2005 and is currently India`s most ambitious free trade agreement. The ECSC includes a free trade agreement on goods and services, a bilateral investment protection and promotion agreement, as well as an improved agreement to avoid double taxation, mutual recognition agreements29 (MRA) and cooperation agreements in various fields – customs, science and technology, education, e-commerce, intellectual property and media. In the trade in goods, Singapore had few tariffs and eliminated them when the ECSC came into force. India`s concessions to Singapore are based on three levels, with the exception of products on a negative list (until April 2009) 30. With regard to trade in services, the two countries have engaged in certain sectors receiving special treatment – no quantitative restrictions, no restrictions on the number of providers or on the total value of trade in services. Singapore receives preferential treatment: business services, construction and related engineering services, financial services, telecommunications services, tourism and travel-related transport services and services.
India receives preferential treatment in the areas of business services, distribution services, education, environmental services and transport services. The ECSC also provides additional disciplines and procedures for financial and telecommunications services. Investments benefit from national treatment that includes important aspects such as the free transfer of income and payments to investors in both countries31.