Do you think that policy makers should pay enough attention in signing Free trade agreements for effecient functiong of trade regime? Comment (200 Words)
Refer - Financial Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 5 years
KEY POINTS
· The official version is that India runs a large trade deficit with RCEP countries, and was expecting specific protection for its industry and farmers from a surge in imports, especially from China.
· In fact, the official view is that poor negotiations of FTAs under previous governments have harmed Indian industry, and led to a distorted trade balance.
· One of the earliest FTAs India singed, and for which more evidence is available from our recent in-depth study. In 2005, 98% of Sri Lankan exports availed the FTA route.
· This has declined to about 50% in recent years. On the other hand, only 13% of India’s exports are routed through FTA.
· All FTAs are bound by the additional rule of the game, which needs to be adhered to if one is to benefit from the tariff concessions. For that reason, concerned officials for enforcing the rules need to be well-versed with their intricacies.
· Another shortcoming in the architecture of India’s FTAs is the avenue of discretionary power of officials in judging tariff concession claims. Both these add to transaction costs.
· Currently, any food item exported either from India or Sri Lanka is tested twice —once at the port of origin, and again at the destination port—which unnecessarily increases trading time.
· This happens because no attention was paid to harmonising standards for food items. Since there is also a shortage of proper storage facilities at ports, especially for items requiring cold storage, the possibility exists that traders suffer loss due to damage of goods.
· Certification is an issue that needs attention at the time of signing of FTA if the interests of traders/manufacturers are to be protected.
· Therefore, Indian products do not face unnecessary delays, or additional costs in this respect while entering Sri Lanka. On the contrary, as Sri Lanka’s authorities have not entered into an agreement that provides for acceptance of test reports/certification issued by Sri Lanka with their Indian counterparts.
Shivangi 5 years
Please review. Thank you.
IAS Parliament 5 years
Good attempt. Keep Writing.
Raj 5 years
Kindly Review Thanks!!
IAS Parliament 5 years
Good attempt. Try to stick to word limit. Keep Writing.
