India Sign Free Trade Agreement

April 10, 2021 in Uncategorized by

Before the signing of the agreement, Kerala`s Chief Minister, V.S. Achuthanandan, led a delegation to the Indian Prime Minister to protest against the free trade agreement. The state of Kerala is a major exporter of domestic exports of plantation products. It is concerned that cheap imports of rubber, coffee and fish will reduce local production and ultimately harm farmers and their economies. [13] Kerala has already experienced a flood of its market with cheap imports under the 2006 South Asia Free Trade Agreement. Cheap coconuts from Sri Lanka and palm oil from Malaysia have since hampered the cultivation of Kerala coconut. [13] Since the early 2000s, India has experienced a growing trade deficit with ASEAN, with imports exceeding exports by more than $6 billion in 2007-08. [11] There are concerns that gradual liberalization of tariffs and increased imports to India could threaten several economic sectors, including the plantation sector, some processing industries and the maritime industry. [11] As a dominant exporter of light industrial products, ASEAN has competitive tariffs that prevent India from accessing the industrial market in ASEAN countries. [12] Switzerland (which has a customs union with Liechtenstein, which is sometimes included in agreements) has bilateral agreements with the following countries and blocs:[41] Vietnam, which is forming as a huge competition for many economies, has already signed a trade pact with the EU. The EU is India`s largest trading partner, accounting for 11.1% of India`s total trade, on an equal footing with the United States and China (10.7%) ».

We are confident that free trade agreements with the EU and the US will benefit India and that talks will resume,” said Gopal Krishna Agarwal, national spokesman for the Bharatiya Janata Party for Economic Affairs. “India is not opposed to trade agreements with other countries, although now, it seems, after the release of the RCEP, the popular idea is that we understand the need to remain integrated at the global and regional level,” Agarwal added. Of course, there are two problems with this reasoning. First, as the government itself has pointed out, Indian exporters are simply not sufficiently aware of the benefits of free trade.