Which of the following describes Early Harvest Scheme (EHS)?

[A] It is a precursor to an FTA.

[B] It is a scheme for Horticulture produce.

[C] It is a scheme to ensure MSP for farmers.

[D] It deals with crop failure due to hail storm.

Answer: A

Notes:

An early harvest deal is a precursor to an FTA, in which the trading partners reduce tariff barriers on limited goods to promote trade.

What are the reasons for India’s poor success in converting EHS into full-fledged FTAs?

Higher domestic tariffs: India has higher domestic tariffs in some of the most trade dynamic sectors, relative to other developing countries,
India hesitates to offer “more” preferential tariff lines in its FTAs,
Industrial lobby from domestic sectors limits the potential of trade liberalization,
Persisting Issues in the negotiations of trade: For example, liberalization of the dairy sector was among the major contributory factors for India’s withdrawal from the RCEP.

Source: EPIC September 2021