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ENHANCING EXPORTS THROUGH FTA BY R R PADMANABHAN HON ADVISER- FOREIGN TRADE ANDHRA CHAMBER OF COMMERCE

Mar 26, 2015

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ENHANCING EXPORTS THROUGH FTA BY R R PADMANABHAN HON ADVISER- FOREIGN TRADE ANDHRA CHAMBER OF COMMERCE Slide 2 WHAT IS FTA? FTA IS AN ARRANGMENT BETWEEN TWO OR MORE COUNTRIES TO REDUCE/ELIMINATE TARIFF/NONTARIFF BARRIERS ON GOODS/SERVICES AMONG THEMSELVES Slide 3 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 Slide 4 WHY FTA/PTA? WTO WHICH PROMISED FREE MOVEMENT OF GOODS AND SERVICES REMAINS A NON STARTER Slide 5 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) Slide 6 INDIAS LARGEST TRADING PARTNERS Rs.in crores %Share 1U ARAB EMTS 110,229. 08 113,327. 23 2.8113.41 2U S A96,458.4 2 92,386.3 4 -4.2210.93 3CHINA P RP 42,661.3 3 54,705.8 0 28.236.47 4HONG KONG 30,390.6 9 37,297.8 5 22.734.41 5SINGAP ORE 37,756.8 8 35,837.6 8 -5.084.24 Total 840,755. 05 845,12 5.20 0.52100 Slide 7 STATE OF FTA ANY REGIONAL GROUPINGS IS ALWAYS WTO PLUS SIMILARLY ANY FTA/PTA IS ALWAYS WTO PLUS AND REGIONAL GROUPINGS PLUS Slide 8 INDIAS 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 Slide 9 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 Republic of Singapore CECA between The Republic of India and the Republic of Singapore Global System of Trade Preferences GSTP India Chile PTA India Afghanistan PTA India ASEAN Agreements India Bhutan Trade Agreement Slide 10 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 Slide 11 INDIAN FTAs CURRENTLY UNDER NEGOTIATION INDIA CHINA INDIA AUSTRALIA INDIA INDONESIA INDIA NEW ZEALAND Slide 12 Case of Indo Spore FTA 2004-052005-062008-092009-10 50106466040813744351363877 All figures in Indian Rupees(Crores) Slide 13 Singapores 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) Hashemite Kingdom of Jordan(SJFTA) Slide 14 India (CECA) Japan (JSEPA) Korea (KSFTA) New Zealand (ANZSCEP) Panama (PSFTA) Peru (PeSFTA) Switzerland, Liechtenstein, Norway and Iceland (ESFTA) Switzerland, Liechtenstein, Norway and Iceland (ESFTA) Trans-Pacific SEP (Brunei, New Zealand, Chile, Singapore)Trans-Pacific SEP (Brunei, New Zealand, Chile, Singapore) United States (USSFTA) Slide 15 Case of India Chile All figures in Indian Rupees(crores) 2005- 06 2006- 07 2007- 08 2008- 09 2009- 10 673.6 1 1698. 26 1004. 43 1776. 77 1318. 98 Slide 16 What Chile has offered? Agricultural Products 7 Chemicals and Pharma53 Dyes and resin 7 Plastic,Rubber 14 Leather products 12 Textiles and clothing106 Footwear 10 Industrial products 82 Others 5 Slide 17 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% Slide 18 WHAT CHILE BUYS FROM OTHERS? petroleum and petroleum products, chemicals, electrical and telecommunications equipment, industrial machinery, vehicles, natural gas Slide 19 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 Slide 20 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 Slide 21 COMPONENTS OF FTA CHANGE IN HSN CODE ORIGIN REQUIREMENTS VALUE ADDITION DE NEMISIS REMOVAL OF BARRIERS DISPUTE SETTLEMENT MECHANISM