India–Republic of Korea CEPA: Assessment and Future Path (original) (raw)
Related papers
India-Korea CEPA: Harnessing the Potential in Services
2014
Under India-Korea Comprehensive Economic Partnership Agreement, both India and Korea have offered trade liberalisation commitments in services. This paper examines the CEPA with the objective of identifying potential areas for harnessing services trade between the two countries. Using the Revealed Comparative Advantage (RCA) index, the paper shortlists four sectors of interest and identifies possibilities of bilateral trade flows in these sectors in the purview of existing domestic regulatory regime. Through a qualitative examination, it highlights the market access barriers and suggests areas of cooperation for enhanced trade in services. The paper also draws a comparison between the schedules of commitments offered by India and Korea under WTO revised offer and CEPA to analyse the extent of liberalisation undertaken in the bilateral agreement. The paper concludes that there are strong complementarities for services trade in sectors such as IT, transportation, construction and audiovisual services. By collaborating in these areas, India and Korea can not only strengthen their trade ties but can also gain a competitive advantage in the global market.
Is It Finally Time for India's Free Trade Agreements? The ASEAN “Present” and the RCEP “Future”
Asian Journal of International Law
Since the inception of the WTO in 1995, India enthusiastically explored export-promotion strategies through multilateral trade reforms. However, the country has moved towards the regional trade route since 2004, primarily owing to the slow progress of the Doha Round negotiations. As a result, the whole architecture of international trade law and governance is being redesigned in the Asia Pacific region. This paper focuses on the pivotal role played by India in this rebalancing. Given the stress on services exports and investment requirements, India focused on entering into comprehensive agreements encompassing merchandise and services trade as well as investment provisions. Presently, India is involved in the ongoing Regional Comprehensive Economic Partnership [RCEP] negotiations, where ASEAN remains at the core. The current analysis evaluates the Indo-ASEAN trade patterns and evolving dynamics over the last decade through select trade indices, and comments on the future of the RCEP.
South Korea's Marginal Intra-Industry Trade and the Choice of Preferential Partners*
Asian Economic Papers, 2004
South Korea recently signed a free trade agreement (FTA) with Chile and is currently negotiating or studying bilateral FTAs with about 20 countries. However, some South Koreans oppose such agreements because they fear that trade liberalization would result in costly factor adjustment. Many researchers believe that intra-industry trade expansion generates smaller inter-industry factor adjustment (and therefore lower costs) compared with the costs associated with inter-industry trade expansion. This paper analyzes the extent and nature of intra-industry trade and marginal intra-industry trade in South Korea, to help predict the relative costs it might face upon opening its markets to various countries. * This is a revised version of a paper presented at the sixth Asian Economic Panel meeting held on 9-10 October 2003 at the Korea Institute for International Economic Policy (KIEP), Seoul. The authors are grateful to Kwanho Shin, Mari Pangestu, Shigeyuki Abe, and other participants for their useful comments and suggestions. The authors are also grateful to Euijung Park and Hongchul Rha for their research assistance. This research was supported in part by Korea Sanhak Foundation.
India-Korea Trade and Investment Relations
2009
is in the process of negotiating several other regional and bilateral trade agreements such as India-ASEAN CECA, BIMSTEC FTA, and India-GCC framework agreement on economic cooperation , India-Australia Trade and Economic framework agreement, India-Israel PTA, India-Chile PTA India-Japan CECA/CEPA and India-Korea CECA etc. Apart from these, India has set up various joint study groups to see the feasibility of economic cooperation with several countries like China, Malaysia, Indonesia, etc.
The Canada-Korea Free Trade Agreement: A First Look at the Numbers
SSRN Electronic Journal, 2014
This paper analyzes the impact of the Canada-Korea Free Trade Agreement (CKFTA) on the basis of the published text and agreed schedule of commitments. We find that the CKFTA tends to reinforce existing patterns of comparative advantage between Canada and Korea: for Canada, the agricultural sector gains and, for Korea, the industrial sector gains. The sensitive sectors that had held up the deal for yearsautos into Canada and beef into Koreaare also the sectors where the major gains are expected. In both economies, the major output gains otherwise come in non-traded services sectors, driven by the deal's income effects. We find that trade diversion effects are quite significant; this lends support for the domino theory of major free trade agreementssince the Korea-EU agreement broke the ice, the pressure intensifies on third parties to claw back lost preferences by striking their own deals. The evaluation remains ex ante in nature, as the agreement has not been implemented and the trade value assigned to the commitments in the services and investment areas remain to be validated Whether the various transparency and facilitation measures simply remove nuisance factors in services trade and investment or whether they materially affect the costs, resulting in expanded trade flows and inducing investment, will need to be evaluated on an ex post basis. The present study is nonetheless, in our view, a step forward in understanding the impact of the CKFTA.
Margin: The Journal of Applied Economic Research, 2016
Our purpose is to undertake a comparative analysis of the likely impact of tariff reduction under the Trans-Pacific Partnership (TPP) on various macro and trade variables of the Indian economy under different scenarios. The TPP was concluded in October 2015, but it is yet to be ratified by the partner countries, and while Asian giants like India, China and Korea have not joined the TPP, there are some talks about their joining the partnership in future. Ours is a unique study that evaluates India’s perspective on joining the TPP, in terms of tariff reduction, and not in terms of the removal of non-tariff barriers. We employ the widely used standard Global Trade Analysis Project (GTAP) model for this exercise. This is a unique framework with a global economy-wide approach, in a Computable General Equilibrium (CGE) setting. Five different scenarios of complete integration in terms of tariff reduction between different regions are simulated using the GTAP model. Under each scenario, the tariff among members of a group of regions is eliminated, but is unchanged for other regions. Higher welfare arising from allocative efficiency comes with the cost of a relatively lower consumption of domestic products and investment, resulting in a loss in terms of GDP. Therefore, we conclude that there are mixed prospects and no strong reason for India to pursue being part of the TPP in future, from a perspective of tariff reductions. JEL Classification:F15, F17