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Trans-Pacific agreement has an impact on India’s foreign trade

  • The US and 11 other countries reached a landmark deal on the Trans-Pacific Partnership, which aims to become the world’s largest free-trade zone linking 40 per cent of the global economy and would also have implications on India’s foreign trade.
  • The deal would have implications on India’s foreign trade as it would break down tariffs on thousands of goods and establish uniform rules of commerce.
  • The joint statement released by the trade ministers of the 12 countries said in addition to “liberalising trade and investment between us, the agreement addresses the challenges our stakeholders face in the 21st century, while taking into account the diversity of our levels of development.”
  • “This partnership levels the playing field for our farmers, ranchers, and manufacturers by eliminating more than 18,000 taxes that various countries put on our products,” Obama said in a statement after the 12 countries released a joint statement following the agreement in the US city of Atlanta.
  • In a recent report “India’s Rise: Toward Trade-Led Growth,” C Fred Bergsten at the Peterson Institute for International Economics argued that if India joined the TPP it could expand its exports by more than $500 billion an year.
  • The TPP eliminates or reduces tariff and non-tariff barriers across substantially all trade in goods and services and covers the full spectrum of trade so as to create new opportunities and benefits businesses, workers, and consumers.
  • It includes new elements that seek to ensure economies at all levels of development and businesses of all sizes can benefit from trade.
  • TPP also includes specific commitments on development and trade capacity building, to ensure that all Parties are able to meet the commitments in the Agreement and take full advantage of its benefits.

Source: EconomicTimes

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