ENHANCING EXPORTS THROUGH FTA BY R R PADMANABHAN HON ADVISER- FOREIGN TRADE ANDHRA CHAMBER OF...
-
Upload
irea-cooke -
Category
Documents
-
view
216 -
download
1
Transcript of ENHANCING EXPORTS THROUGH FTA BY R R PADMANABHAN HON ADVISER- FOREIGN TRADE ANDHRA CHAMBER OF...
ENHANCING EXPORTS THROUGH FTA
BYR R PADMANABHAN
HON ADVISER- FOREIGN TRADEANDHRA CHAMBER OF COMMERCE
WHAT IS FTA?
FTA IS AN ARRANGMENT BETWEEN TWO OR MORE COUNTRIES TO REDUCE/ELIMINATE
TARIFF/NONTARIFF BARRIERS ON GOODS/SERVICES AMONG THEMSELVES
WHAT IS PTA?
TWO OR MORE PARTIES AGREE TO REDUCE TARIFFS ON AGREED NO OF
TARIFF LINES. THE LIST OF PRODUCTS IS CALLED POSITIVE LIST
WHY FTA/PTA?
WTO – WHICH PROMISED FREE MOVEMENT OF GOODS AND
SERVICES REMAINS A NON STARTER
PRESENT SCENARIO OF WORLD TRADE
WORLD TRADE 100%SHARE OF WTO MEMBERS 94%
TRADE BY ALL GROUPINGS AS% OF WORLD TRADE 72(SOURCE: INTERNATIONAL TRADE STATISTSICS)
INDIA’S LARGEST TRADING PARTNERS –Rs.in crores
%Share
1 U ARAB EMTS
110,229.08
113,327.23
2.81 13.41
2 U S A 96,458.42
92,386.34
-4.22 10.93
3 CHINA P RP
42,661.33
54,705.80
28.23 6.47
4 HONG KONG
30,390.69
37,297.85
22.73 4.41
5 SINGAPORE
37,756.88
35,837.68
-5.08 4.24
Total
840,755.05
845,125.20
0.52 100
STATE OF FTA
ANY REGIONAL GROUPINGS IS ALWAYS WTO PLUS
SIMILARLY ANY FTA/PTA IS ALWAYS WTO PLUS AND REGIONAL GROUPINGS
PLUS
INDIA’S FTAs
INDIAN FTAs ARE PARTLY DUE TO RECOGNITION THAT IT SHOULD NOT BE
LEFT BEHIND OTHER TRADE POWERS MOST NOTABLY CHINA. CHINA IS AHEAD OF US IN
MANY INDICES
• FTAs IN OPERATION• Agreement on Economic Cooperation between
India and Finland • Agreement on South Asia Free Trade Area • Asia Pacific Trade Agreement APTA • CECA between The Republic of India and the R
epublic of Singapore • Global System of Trade Preferences GSTP• India Chile PTA • India Afghanistan PTA • India ASEAN Agreements • India Bhutan Trade Agreement
FTA s IN OPERATION
India Bhutan Trade Agreement India Korea CEPA India MERCOSUR PTA India Nepal Trade Treaty India Sri Lanka FTA SAARC Agreement on Trade in Services
INDIAN FTAs
• CURRENTLY UNDER NEGOTIATION
• INDIA CHINA• INDIA AUSTRALIA• INDIA INDONESIA• INDIA NEW ZEALAND
Case of Indo Spore FTA2004-05 2005-06 2008-09 2009-10
501064 660408 1374435 1363877
• All figures in Indian Rupees(Crores)
Singapore’s FTAs• ASEAN Free Trade Area • ASEAN-Australia-New Zealand FTA• ASEAN-China (ACFTA) • ASEAN-India (AIFTA) • ASEAN-Japan (AJCEP) • ASEAN-Korea (AKFTA) • Australia (SAFTA) • China (CSFTA) • Hashemite Kingdom of Jordan(SJFTA) •
India (CECA) Japan (JSEPA) Korea (KSFTA) New Zealand (ANZSCEP) Panama (PSFTA) Peru (PeSFTA) Switzerland, Liechtenstein, Norway and Iceland (ESFTA) Trans-Pacific SEP (Brunei, New Zealand, Chile, Singapore) United States (USSFTA)
Case of India – Chile
• All figures in Indian Rupees(crores)
2005-06
2006-07
2007-08
2008-09
2009-10
673.61
1698.26
1004.43
1776.77
1318.98
What Chile has offered?
Agricultural Products 7 Chemicals and Pharma53
Dyes and resin 7Plastic,Rubber 14
Leather products 12Textiles and clothing106
Footwear 10Industrial products 82
Others 5
• agriculture products (7 tariff lines), 20%• chemicals and pharmaceuticals (53 tariff lines), 20-
50%• dyes and resins (7 tariff lines), 20%• plastic, rubber and miscellaneous chemicals (14
tariff lines)20-100 • Sheath contraceptives 100% 4014.10.00 • leather products (12 tariff lines) • , textiles and clothing (106 tariff lines)• , footwear (10 tariff lines),• some industrial products (82 tariff lines)• some other products (5 tariff lines).• 9018.32.00 tubular needles 100%
WHAT CHILE BUYS FROM OTHERS?
• petroleum and petroleum products, chemicals, electrical and telecommunications equipment, industrial machinery, vehicles, natural gas
• IF YOUR PRODUCT IS IN THE CATEGORY OF WHAT CHILE BUYS FROM OTHERS AND IF IT IS COVERED UNDER FTA WITH INDIA, THEN YOU CAN ENTER THE MARKET. OF COURSE, SUBJECT OTHERS THINGS REMAINING EQUAL
LEVIS EXAMPLE
• YARN FROM CAMBODIA• DYED AND SPUN IN TAIWAN• CUTTING AND STITCHED IN BANGLADESH• EXPORTED TO US AND EUROPEAN MARKETS• THE WHOLE PROCESS COORDINATED FROM
HONGKONG
COMPONENTS OF FTA
CHANGE IN HSN CODEORIGIN REQUIREMENTS
VALUE ADDITIONDE NEMISIS
REMOVAL OF BARRIERSDISPUTE SETTLEMENT MECHANISM