India’s FTAs with Asian partners: Implications for the IT and IT-eS Sector

Abstract

The past 25 years have witnessed an unprecedented proliferation in the number as well as scope of various regional and bilateral agreements across the world, including Free Trade Agreement (FTAs), Preferential Trade Agreements (PTAs), Economic Partnerships Agreements (EPAs) and Economic Cooperation Agreements (ECASs). This rise in the number of these agreements has also brought about diversity in their nature, with more and more developing countries signing them, as well as newer areas being brought under their realm. In Baldwin's1 words- "Regionalism is sweeping the world trading system like wildfire, while multilateral negotiations proceed at a glacial pace."The slow pace of the various multilateral rounds of negotiations under the WTO, an inability to reach a consensus and the risk of free riding are seen as major reasons for this spurt in their quantity and content. With time, PTAs are evolving and their focus is not limited to only merchandise trade but expanding to investment and trade in services. The content and quality of PTAs differ depending upon the location of member states, cultural proximity, position in value chains/production network, historical and political relations between the members, the level of development of member states and various other factors.