The slow progress of negotiations at the World Trade Organization has had a gradual shift in policy focus of countries from multilateralism towards regionalism. As an outcome of this, regionalism has registered a phenomenal growth worldwide. Over the last two decades, the number of PTAs/RTAs has increased more than fourfold and there are numerous comprehensive economic partnership agreements under negotiation.
India’s response to this changing scenario has been slow and it has not gained much from its own preferential agreements. Besides this, compounding worries of receding exports in its traditional markets due to competitive pressures from other exporters has increased its trade deficit in the last few years. This can be due to the preferential access given to competing countries through PTAs.
Three of the most important external trade agreements that are being negotiated, from the point of significance for the Indian economy are the EU-ASEAN Free Trade Agreement, the Trans-Pacific Partnership agreement (TPP), and the Trans-Atlantic Trade and Investment Partnership agreement (TTIP). CUTS International with support from Department For International Development (DFID) supported Knowledge Partnership Programme (KPP) (through IPE Global, New Delhi) has undertaken this study to bring out the effects of these three mega Preferential Trade Agreement on the Indian economy. The project will also look into the effects this would have on poverty.
Key objectives are to:
- Identify possible export diversion effects on labour intensive sectors and trade intensive sectors with high concentration of small and medium scale manufacturing unit.
- Conduct extended and sectoral analysis of diversion of trade (goods and services, exports and imports) and allied economic transactions (trade-related investments) from India vis-a-vis the participating countries in the EU-ASEAN FTA, TPP, and TTIP agreements.
- Analyse the impact of these PTAs on labour intensive and small scale sectors and to frame policy responses to prevent negative impacts on poverty reduction.
- Generate awareness among the key Indian stakeholders including trade policy-makers in the Department of Commerce, GOI, other government departments, apex business organizations including sectorial bodies, farmer groups, consumer groups and other civil society organizations, trade unions and media and policy advocacy.
|ACTIVITIES||OBJECTIVES AND OUTPUTS|
|Literature review(November 2013 – February 2013)||
|Inception meeting (January 2014)||
|Secondary data analysis (January 2014 – April 2014)||
|Field research and primary data analysis <(May 2014 – August 2014)||
|Stakeholder consultation Meeting ( September 2014 – December 2014)||
|Negotiating briefs and research report (January 2014 – February 2014)||
|Dissemination meeting ( March 2014)||
Mega Regional Trade Agreements and their Impacts on the Indian Economy
April 22, 2015, New Delhi, India
India News Calling, September 11, 2014
Mega FTA’s Impact on Indian Economy Huge: Experts
Chandigarh, September 11, 2014
Government and Businesses must consolidate their efforts to reduce potential impact of Mega FTAs
Chennai, September 09, 2014
Through research need to be undertaken before signing PTAs
The Anudhyana, Odia Daily, September 09, 2014
PTAs are a challenge for country’s export
The Daily Pioneer, August 29, 2014
PTA’s are a Challenge for Country’s Exports
Political Daily, August 29, 2014
April 22, 2015, New Delhi, India
Mega FTAs and the Indian Economy- Analyses of Impacts and Counter Measures
January 24, 2014, New Delhi, India