Reviewed regional trade agreements and the existence of mutual recognition provisions within the regional trade agreemet text

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Debashis Chakraborty ◽  
Julien Chaisse

AbstractThe decision of a country to join regional trade agreements (RTAs) is guided by its expected welfare gains, though potentials of both trade creation and trade diversion cannot be ruled out through such arrangements. The slow progress of the World Trade Organization negotiations has created a demand for mega-regional trade agreements in the last decade, but the recent US and Indian pullout from Trans-Pacific Partnership (TPP) and Regional Comprehensive Economic Partnership (RCEP), respectively, raised a question on their attraction. One of the major underlying objectives of RTAs is to deepen intra-bloc participation in regional value chains (RVCs) and International Production Networks (IPNs), through adoption of reformed rules of origin (ROO) provisions and mutual recognition agreements (MRA) for standard harmonization. This article, through an analysis of the RVC–IPN participation of the RCEP countries, attempts to understand to what extent the Indian pullout from RCEP can be linked to its unfulfilled expectations. The observations indicate that, relatively modest participation in the RVCs, declining domestic value added content of exports and the associated adverse trade balance scenario have critically shaped the Indian standpoint. The evolving Indian orientation towards trade remedy mechanism can be viewed in this backdrop. The analysis concludes that in the post-coronavirus disease 2019 (COVID-19) period, the Indian decision to consolidate domestic manufacturing sector needs to acknowledge the reality rather than being guided by the rhetoric.


Author(s):  
Vladimir Yu. Salamatov ◽  
Nataliia M. Galkina

The article considers the global trend towards regional trade agreements (RTA). The authors note that in addition to the common bilateral RTAs, countries conclude multilateral regional trade agreements. In particular, the article examines changes in the world economy, which occur under the influence of the mega-regional trade agreements (MRTA) formation. An example of the MRTA is the Trans-Pacific Partnership Agreement (TPP) and its possible impact onRussiais discussed in the present article. The authors discuss the stages of TPP development, its goals, provisions, innovations and prospects. The article analyses an example of a country’s withdrawal from an agreement, its’ consequences and possible impact on the country itself and other signatory countries to the agreement. The article points out the differences between TPP and TPP-11. Inparticular, the article discusses the possible impact of the TPP-11 onRussia. Trade relations betweenRussiaand TPP-11 signatory countries are considered, and key markets among TPP-11 countries are identified. The article highlights the importance ofRussia's rapid response to the possible consequences of the TPP-11, including the possible conclusion of bilateral trade agreements between the EAEU, whereRussiais a member, and potential partners from TPP-11 countries.


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