Some experts, in addition to the government, have maintained that the reason for the walkout is India's adverse trade balance. However, many critics view this as a protectionist step.
India
decided to walk out of the biggest regional trade partnership the
world could have seen. The Regional
Comprehensive Economic Partnership could have given — possibly
it still can — almost unrestricted access of each other’s markets
to the members.
Some
experts, in addition to the government, have maintained that the
reason for the walkout is India’s adverse trade balance. However,
many critics view this as a protectionist step.
The
data shows India has been protecting its domestic interests for long.
The average tariff on imports into India, according to the World
Trade
Organization, went up between 2010 and 2015. Most of it was due to
farm products.
The
(weighted) average tariff applicable to most favoured nations to sell
their goods in India is highest among the 10 Asian peers, at 7.6 per
cent. This is not strictly comparable with WTO data. Moreover, India
only has about 3 per cent of tariff lines at zero duty, lowest among
its peers, and lower compared to Vietnam’s 32 per cent .
The
data also shows trade growth has largely been independent of trade
deals: India's share of trade with NAFTA countries has grown as fast
as its share with North-East Asian countries, and ASEAN, as well .
While India does not trade preferentially with any of the NAFTA
members, it does, with two members of NEA and with ASEAN.
In
terms of acting against dumping of cheap and excess goods, India has
become more proactive in recent times. More dumping cases now reach
their conclusion. But, on the flip side, members of the probable RCEP
lead in dumping goods into India .
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