Bilateral Trade Agreements in the Era of Globalization
Show Less

Bilateral Trade Agreements in the Era of Globalization

The EU and India in Search of a Partnership

Sangeeta Khorana, Nicholas Perdikis, May T. Yeung and William A. Kerr

This unique book provides an assessment of an Indian–EU agreement, drawing on the theory of preferential agreements, the history of India–European relations and the recent refocusing of the Indian economy. The authors explore both a broad overview of the agreement as well as a detailed examination of sensitive sectors.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 7: Preparing for an India–EU Trade Agreement

Sangeeta Khorana, Nicholas Perdikis, May T. Yeung and William A. Kerr


7. Preparing for an India-EU Trade Agreement As indicated by the results of the surveys presented in Chapter 6, NTBs are a prevalent feature of current India-EU trade relations. Barriers to trade arise in multiple forms and venues including different national product standards, testing and certification requirements as well as packaging and labelling specifications. Given that NTBs evolve primarily from differences in regulatory regimes in the EU and India, the importance of identifYing and addressing existing NTBs assumes an important role in any potential preferential trade agreement. This chapter also draws on the report by Khorana et al. (2008). 7.1 ECONOMIC ISSUES FOR THE PROPOSED INDIA-EU PTA A preferential trade agreement (PTA) between India and the EU should lead to an increase in bilateral trade but would not necessarily lead to an automatic increase in economic welfare. The increase in bilateral trade could occur as a result of more efficiently produced imported goods replacing less efficiently produced domestically produced goods. Trade creation as well as allocative and productive efficiency gains follow. In turn, incentives for Indian, EU and UK producers to invest in product and process innovations would increase, thereby improving the dynamic efficiency of the trading partners and subsequently resulting in greater competition amongst firms located within the agreement's partners. The resulting increased competitive pressures may encourage firms to modifY their strategies in order to restore their profit margins by either reducing 149 150 Bilateral Trade Agreements in the Era a/Globalization production costs, which can be achieved by concentrating...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.