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Course change

Course change What is the reason for the growing regional trade agreements (rtas)?
The key driver seems to be the slack in the multilateral process and the desire to achieve greater market access through alternative trade policy instruments. Thus, in 2004-2005, when progress at the World Trade Organization (WTO) was haltingly slow, 43 rtas were notified to the wto . Sometimes, foreign policy goals may also explain the phenomena.

Do you think RTAs can surpass the failing multilateral trade regime?
Currently, nearly 50 per cent of trade occurs through RTAs. These have surpassed WTO in lowering tariffs and introducing stricter disciplines like Intellectual Property Rights and investment regimes. However, India's best interests lie in ensuring that the Doha talks are revived.

What should be the nature of RTAs?
rtas should not result in reducing the critical policy space for using liberalisation to serve development. This means saying no to wto Plus provisions in North South RTAs and using RTA to further South-South cooperation.

How should India strategise its approach towards RTAs?
There is a need to strike a balance between seeking greater market access abroad and protecting vulnerable sectors, especially agriculture and small-scale industries. Also, India should be wary of the complexities in signing up to RTAs indiscriminately.

What is the alternate trade regime, if not WTO or RTA?
While WTO and RTA both have their own set of problems, an international trading system without them, may result in reduced predictability for businesses. Alternatives therefore lie within the system while working to correct the asymmetries and imbalances.

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