PTI
Singapore
The 13-nation Trans-Pacific Partnership (TPP) deal may pose new challenges to India like adopting TPP-type rules in its trade policies as the country aims greater integration with the Asia-Pacific, a think tank here has said.
The US, Japan and 10 other Pacific Rim nations on Monday reached final agreement on the largest regional trade accord in history. "The agreement is taking off at a time when India is aiming at greater integration with the Asia-Pacific," Dr Amitendu Palit, a senior research fellow at Institute of South Asia Studies at the National University of Singapore, said in the report released this weekend on TPP and Indias Emerging Challenges. India is negotiating the Regional Comprehensive Economic Partnership (RCEP) that includes the 10-member countries from the Association of South East Asian Nations, Australia, China, Japan, New Zealand and South Korea.
"India needs to study the TPP carefully for anticipating its possible impact on its RCEP negotiations," he pointed out. India also needs to speed up at the RCEP-negotiations, given that the agreement will offer its exports greater access to several Asia-Pacific markets, including China. The TPP is also likely to become the yardstick for various commitments to trade liberalisation for countries bidding for membership of the Asia Pacific Economic Cooperation (APEC) grouping, such as India. "In all, the pressure on India to adopt TPP-type rules in its trade policies is expected to increase over time," Dr Palit opined.
"The TPP also exposes India to a couple of significant diplomatic challenges," he stressed. For avoiding the possible adverse implications on its exports to TPP member-markets because of lower tariffs on intra-TPP exports compared with those on Indian products, India needs to quickly conclude the bilateral free trade agreements it is negotiating with TPP members like Australia and Canada, he said. "But more importantly, the TPP would require India to search for closer alignment between its foreign and trade policies," said Palit. Indias foreign policy, which has become distinctly proactive and conscious of opportunities in foreign markets under the Modi Government, is aiming to posit India as a major actor in the Asia-Pacific.
Such intentions are visible from Indias desire to join the APEC grouping, expand its sphere of influence in the region through the Act East strategy and also growing bonhomie with major Pacific nations ? the US, Japan, Australia, Canada and South Korea. New Delhis greater strategic proximity with these countries, all of the TPP -- while facilitating a deeper foothold in the region and greater say in regional affairs -- will be accompanied by external demands on India for more trade liberalisation and concessions on market access, he said. The TPP also entails a major diplomatic challenge for India by focusing on the need for closer alignment of New Delhis trade and foreign policies for deeper and meaningful interaction with the region, he said.
