Should India obtain the membership of the Comprehensive and Progressive Trans-pacific Partnership (CPTPP) which is set to alter the global trade regime significantly? Analyze (200 Words)
Refer - Business Standard
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IAS Parliament 5 years
KEY POINTS
· Yes, India needs to obtain membership to join the 11-member grouping that is set to alter the global trade regime quite significantly.
· The CPTPP continues to be an ambitious pluri-lateral free-trade agreement (FTA) like the TPP. It offers WTO-plus commitments that go beyond trade and investment facilitation to include enforcement of high labour and environmental standards among the Asia-Pacific economies.
· The CPTPP is designed to provide more efficient production sharing and network possibilities. FTA induced ease of doing business, lower trade costs and preferential market access will help facilitate multiple cross border movement of intermediate goods that is integral to global value chains (GVCs) as well as movement of final goods to consumption demand.
· This is relevant in the current context when global trade and growth is weighed down by risks of escalating “trade wars” among major economies. Rising trade protectionism that can negatively impact investor sentiment, investment levels and thereby disrupt global value chains will be countered by the CPTPP as an instrument of deep and progressive trade liberalisation.
· India’s participation in FTA (Free Trading Agreements) is an important instrument for shaping trade norms and rules, regionally and globally. Smaller countries such as Vietnam perceive participation in FTAs as an opportunity to attract GVC-creating FDI.
· India should, therefore, also derive confidence from such assessments and consider FTAs as a means to lock in domestic reforms and leverage its, Global Value Chain potential and participate in the CPTPP.
· CPTPP concessions for individual country sensitivities, such as for Canada’s cultural industries and labour protection laws in case of Vietnam as well as its varying levels and period of tariff reduction across member countries, should provide India with examples and means to negotiate concessions and safeguards for its sensitive sectors like Information technology , infrastructure etc.
· CPTPP’s commitment towards membership expansionism will, over time, imply greater regional and global trade coverage.
Sandeep 5 years
Kindly review thanks
IAS Parliament 5 years
Good
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