One of the two mega regional trade and investment agreements being negotiated by the US will soon reach the winning post by the end of
2015. The US Congress might soon give fast-track authority to the US President to sign on the dotted line of the Trans Pacific Partnership
(TPP), a trade and investment agreement covering 12 countries. The other big one is the Transatlantic Trade and Investment Partnership (TTIP) between the US and the European Union, which will take a longer time. That said, the TPP becoming a reality in the Asia-Pacific region would have many implications for India, not only in tariff preferences but also higher standards.
Due to the comprehensive and expansive nature of the TPP, it has the potential to impact India through trade diversion and erosion as well as creating pressure to liberalise markets in goods and services, and raise standards where it may not be prepared. Our research has shown that trade diversion for non-member countries (of the TPP) is likely to occur and can be detrimental, especially on loss of market access. This impact may be particularly severe for products such as grains and other crops, processed food, textiles and clothing and heavy manufacturing. Read More>>