Impact of Regional Trade Blocks on India”

8/8/2019 Impact of Regional Trade Blocks on India

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Mohammad Shariq (81)

Jay Dubey (113)Vivek Gupta (106)

NDIM GROUP NO.A GBM11/12/2010 1


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WHY TRADE BLOCKS ARE DESIRABLE

y Trade blocks compliment global trade

y They protect intra regional trade from outside forces.

y They establish regional security.



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WHY T. B. ARE UNDESIRABLE

y Import quotas(limiting the amount of imports into thecountry so that domestic consumers buy products madeby their countries in their region).

y

Custom delays (establishing bureaucratic formalities thatslow down trade from the other region)

y Subsidies barrier (giving heavy subsidies to protectregional trade )

yVoluntry boycotts and technical barriers.



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IMPACT OF ASEAN

y ASEAN-India cooperation covers the economic, politicaland security, and development cooperation dimensions

y India has been an active member of the ASEAN RegionalForum (ARF) since July 1996.

y ASEAN and India committed themselves to jointlycontribute to the promotion of peace, stability anddevelopment in the Asia-Pacific region and the world.

y

ASEAN-India cooperation covers the following: trade andinvestment, science and technology, human resourcesdevelopment, tourism, transport and infrastructure,health, small and medium scale enterprise and people-to-people contact



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...y They respond positively to the challenges of a dynamic

regional and international environment

y Both sides now are in the process of jointly developingan India-ASEAN Vision 2020, as a roadmap tomutually desired objectives.

yJoint together to fight against international and

regional terrorism.y Between 2001 and 2010, two-way trade between

ASEAN and India has more than tripled from USD9.9billion to USD31 billion.



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IMPACT OF NAFTA

y Textiles & Apparel Export

y US , one of the largest trading parteners of India, is

the member of NAFTA.y signed deals worth $10bn

y lifted restrictions on dual use technologies

y Supported Indias permanent membership in UNSC

y Accounts for about 22% of Indias global exports



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...y India has signed Bilateral Investment Protection

Agreement(BIPA) with Mexico.

y Mexico offers excellent opportunity for India to go forenhanced market access through investments and jointventures

y Indian Exports- engineering goods, chemicals andpharmaceuticals, gems and jewellery, and textiles.

y

India Import- dominated by crude and petrochemicals.y Joint Ventures- pharmaceuticals and IT sectors.



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...y Nine out of top ten exports products of India have

shown a positive growth except cotton yarn and fabricwith canada.

y The Canadian exports have declined by 3% globallybut have shown a healthy growth of 10% to Indiaduring fiscal year of 2008.

y Indian exports are presently valued at US $ 1500

million and India is the 21st largest exporter of goods toCanada.

y India is the 18th largest export destination of Canadiangoods.



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SAARC (SOUTH ASIAN ASSOCIATION

FOR REGIONAL COOPERATION)



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...y The South Asian Association for Regional Cooperation

(SAARC) was established when its Charter wasformally adopted on December 8, 1985 by the Heads ofState or Government of Bangladesh, Bhutan, India,Maldives, Nepal, Pakistan and Sri Lanka.

y SAARC provides a platform for the peoples of South

Asia to work together in a spirit of friendship, trust andunderstanding. It aims to accelerate the process ofeconomic and social development in Member States.



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THE OBJECTIVES OF THE ASSOCIATION ARE:

To promote the welfare of the peoples of South Asia and toimprove their quality of life.To accelerate economic growth, social progress and culturaldevelopment in the region and to provide all individuals theopportunity to live in dignity and to realize their full potential.To promote and strengthen collective self-reliance among the

countries of South Asia.To contribute to mutual trust, understand and appreciation of oneanother's problem.To promote active collaboration and mutual assistance in theeconomic, social, cultural, technical and scientific fields.To strengthen cooperation with other developing countries.To strengthen cooperation among themselves in internationalforums on matters of common interest.To co-operate with the international and regional organizationsthat have the similar aims and purposes.


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AREAS OF COOPERATION

y Agriculture and Rural Development;

y Health and Population Activities;

y Women, Youth and Children;

y Environment and Forestry;y Science and Technology and Meteorology;

y Human Resources Development; and

y Transport.

y Recently, high level Working Groups have also been establishedto strengthen cooperation in the areas of Information andCommunications Technology, Biotechnology, IntellectualProperty Rights, Tourism, and Energy.



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IMPACT OF EUROPEAN UNION

y In the world of diverse and complex global challenges,India & Eu are committed to build upon relationshipbased upon the following foindations:-

Strengthening dialogue and consultationmechanisms;

Deepening political dialogue and cooperation;

Bringing together People and Cultures;

Enhancing Economic Policy Dialogue andCooperation;

DevelopingTrade and Investment.



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...y Economic Policy and coopration:-

Industrial policy

Finance and monetry affairsScience and technology

Energy

Space technology

Agriculture

Employment and social policy



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...y Europe accounts for about 20 percent of India's

exports.

yAbout 25-30 percent of the revenues of India's top techmajors come from Europe.

y The Union is India's largest trading partner.

y India accounts for only 1.8% of the EU's trade and

attracts only 0.3% of European Foreign DirectInvestment, although still provides India's largestsource.



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CASE STUDYWHY ASEAN IS SUCCESSFUL AND SAARC HAS BEEN

UNSUCCESSFUL?

o Asean is one of the major trading blocs in the world

o It represents 420 million people.

o It's a larger trade block than north america and western europe.

o Saarc represents 22% of humanity.

oT

here is a contradiction, an irony between asean & saarc.o While asean has been a roaring success & called asian tigers ,saarc

has been a sheer failure.



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REASONSy In asean all countries are of equal geographic size.

y Level of economic development is the same in all countries.

y Common fear of communist chinay All of them had similar economic policies.THEY ALL

INTRODUCED ECONOMIC LIBERALIZATION IN 1960s WHICHFURTHER ACCLERATED ECONOMIC GROWTH.

y Indias TRADE WITH ASEAN IS MORE THAN 20 TIMES

THAN IN CASE OF SAARC.



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... In south asia india is the largest country.It occupies more than 70% of

geographical area. So other nations feel that strengthening saarc means empowering india.

Serious bilateral disputes between two major south asian powers i.E INDIA& PAKISTAN.Bilateral disputes and differences between other member countries. India,bangladesh dispute. India ,nepal dispute. Nepal mynmar dispute.

Pakistan bangladesh dispute.



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19NDIM GROUP NO.A GBM

11/12/2010

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Impact of Regional Trade Blocks on India”