{"id":162965,"date":"2022-01-18T20:57:18","date_gmt":"2022-01-18T15:27:18","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=162965"},"modified":"2022-01-18T20:57:18","modified_gmt":"2022-01-18T15:27:18","slug":"think-give-and-take-to-expand-trade-relations","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/think-give-and-take-to-expand-trade-relations\/","title":{"rendered":"Think, give-and-take to expand trade relations"},"content":{"rendered":"\n

News<\/span><\/b>\u00a0<\/span><\/p>\n

India in 2020 declined to join the Chinese led RCEP.<\/span>\u00a0<\/span><\/p>\n

This\u00a0fueled\u00a0the concerns of trade isolation and to overcome this India has been trying to forge some bilateral free trade agreements (FTAs)<\/span>. \u00a0<\/span>\u00a0<\/span><\/p>\n

What are the initiatives taken by India in this direction?<\/span><\/b>\u00a0<\/span><\/p>\n

India has been generally following a \u2018<\/span>Look West\u2019 approach<\/span><\/b>\u00a0and has initiated FTA talks with\u00a0the\u00a0US, Europe, UK.<\/span>\u00a0<\/span><\/p>\n

Its full trade agreement with UAE is also in the final stages.<\/span>\u00a0<\/span><\/p>\n

Although negotiations have taken place with\u00a0EU,\u00a0US, Australia and Canada but the progress has been slow.<\/span>\u00a0<\/span><\/p>\n

UK after Brexit has been keen for a trade alliance with India.\u00a0<\/span>\u00a0<\/span><\/p>\n

What should India focus on\u00a0while signing FTA with UK?<\/span><\/b>\u00a0<\/span><\/p>\n

India and UK\u00a0both have been trying to put some goods and services off the pact.\u00a0This may lead to a\u00a0situation\u00a0where only 65% of goods and 40% of the services get covered.<\/span>\u00a0<\/span><\/p>\n

However,\u00a0both the sides in a bilateral FTA\u00a0<\/span>should not go closely into sectoral details<\/span><\/b>\u00a0as only a\u00a0full-scale FTA can bring long term benefits to both\u00a0the parties.<\/span>\u00a0<\/span><\/p>\n

The\u00a0<\/span>short term\u00a0effects on local markets<\/span><\/b>\u00a0should not prevent India from seeing the\u00a0<\/span>long term\u00a0gain from the deal.\u00a0For example-\u00a0<\/span><\/b>India has a very high\u00a0tariff\u00a0on Scottish whiskey which only leads to custom duties but does not automatically generate jobs in local markets.\u00a0<\/span>\u00a0<\/span><\/p>\n

India should\u00a0<\/span>focus on having competitive edge<\/span><\/b>\u00a0rather than market access to derive benefit from the deal.<\/span>\u00a0<\/span><\/p>\n

As India and UK have\u00a0<\/span>little overlaps in terms of what they manufacture<\/span><\/b>\u00a0at\u00a0scale,trade\u00a0pact will not be hard to negotiate.<\/span>\u00a0<\/span><\/p>\n

Source<\/span><\/b>–<\/span>\u00a0<\/span><\/b>This post is based on the article \u201c<\/span>Think, give-and-take to expand trade relations<\/span><\/b>\u201d\u00a0published in\u00a0<\/span>Live Mint<\/span><\/b>\u00a0on\u00a018th\u00a0Jan 2022.\u00a0<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

News\u00a0 India in 2020 declined to join the Chinese led RCEP.\u00a0 This\u00a0fueled\u00a0the concerns of trade isolation and to overcome this India has been trying to forge some bilateral free trade agreements (FTAs). \u00a0\u00a0 What are the initiatives taken by India in this direction?\u00a0 India has been generally following a \u2018Look West\u2019 approach\u00a0and has initiated FTA… Continue reading Think, give-and-take to expand trade relations<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[212,10501],"class_list":["post-162965","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-2","tag-live-mint","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704924931},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/162965","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=162965"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/162965\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=162965"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=162965"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=162965"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}