Marine Product Exports of Kerala in the ASEAN India Free Trade Area: Possibilities and Challenges

In the backdrop of issues encountered by the marine product exports from Kerala in the traditional strongholds of the European Union and the United States, there is a need to target newer markets. The ASEAN India Trade in Goods Agreement (TIGA) though proposes to liberalize trade between India and the ASEAN member nations, fails to deliver greater market access for our marine products in the markets of the ASEAN nations. This can be attributed to factors such as the lower prevailing MFN base rate in the ASEAN nations, tariff reduction commitments reciprocated by them being lesser than India’s offers, inclusion of our prominent items of export in the restrictive lists of most of the ASEAN nations etc. Export forecast suggests that this is a market to be reckoned, which in turn stipulates the need to secure greater concessions and preferential treatment for our marine product exports in the ASEAN nations to capitalize on the gains that have been made

A Study on India’s Trade Relationship with SAARC Countries with Special Reference to SATA

The present study reveals that there are enormous opportunities for forging closer economic relations among SAARC countries. These opportunities could be fully utilized through the twin processes of trade liberalization and industrial restructuring which are complementary to each other. The SAARC Preferential Trade Arrangement (SAPTA) is the first step in trade liberalization. However, the scope of SAPTA has to be sufficiently widened in order to derive substantial benefits from preferential trading agreements. It is suggested that the SAARC countries adopt a combined approach for tariff elimination, tariff reduction and preferential or concessional tariffs. This process will help in moving quickly towards the creation of a Free Trade Area in the SAARC region. It is necessary to emphasis that, in any regional organization, smaller countries may feel that greater trade co-operation with their larger neighbors may result in larger countries taking over their economies. India occupies 70% of the SAARC region, both geographically and economically, and the remaining 6 nations of the SAARC borders only with India and not with each other. As the biggest, and the most industrialized trading partner among the SAARC countries, India has to recognize that a special responsibility devolves on her and take a lead in making the Regional Economic Co-operation a reality in South Asia.