5 ways how India stands to benefit from the US pulling out of TPP

United States President-elect Donald Trump on Tuesday said the US will quit the Trans-Pacific Partnership (TPP) trade deal on his first day in the White House. The mega trade deal involves 12 Pacific rim nations including major economies like Japan, Australia, New Zealand and Canada. With a collective population of about 800 million, almost double that of the European Union's single market, the bloc currently accounts for 40 per cent of world trade. While the free trade deal will see tariffs slashed between member nations to boost falling trade, sections within the US has argued it will further accelerate the slide in American jobs and production. Guessing that Trump does not go back on his decision, something he is known to do, India stands to benefit in a plethora of ways if TPP does not materialise.

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Here are a few of them:-

1) Access to lucrative US market to be cut for India's export competitors:

2) The Regional Comprehensive Economic Partnership deal to come into focus:

3) Pressure to conform with TPP standards in ongoing trade negotiations to slide:

4) India's concerns over trade diversions and other non-tariff barriers to lessen:

5) Greater chance of bilateral boost to trade by India and US:

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Why Trump is right, and wrong, about killing off the TPP

President-elect Donald Trump is right: The Trans-Pacific Partnership (TPP) is a damaging deal and deserves to be killed off.

But he tells a half truth about why the trade accord among a dozen Pacific Rim nations is a bad deal. In Trump’s view, trade agreements like NAFTA have allowed developing countries to “steal” American manufacturing jobs and decimate the well-waged middle class. This is why he says that America should reject the TPP.

But shifting the blame for American joblessness and stagnant incomes obscures the more complex, largely home-grown pressures that led US companies to offshore manufacturing production to low-wage jurisdictions. Promising to tear up certain trade deals and impose tariffs on imports (chiefly from China and Mexico) will do very little if anything to reverse the problem.

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Who’s really to blame for America’s manufacturing decline?

So why abandon the TPP?

A better approach to trade

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This is why the United States should abandon the TPP – and why Australia should support its abandonment. Abandoning the TPP, and requiring our governments to focus their efforts on trade deals that take a prudent approach to market access and a tough line on rent-seeking - would be beneficial for both our countries.

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India will take up visa, trade issues with Donald Trump administration

India will take up the issue of visa for Information Technology (IT) professionals as well as other contentious issues with the new Donald Trump administration in the United States.

India will continue to negotiate with the US government once it takes charge in early January, next year, Commerce and Industry minister Nirmala Sitharaman said on Thursday. India will communicate its position on trade issues and brief the US government about Indian industry's contribution to the US economy, she added.

Related Story:      Michelle Obama Gives Melania Trump Tour Of White House

Trump during his election campaign expressed concerns about immigration and outsourcing of jobs.

India has time and again raised concerns over the American visa regime and hike in visa fees as it impacts Indian IT industry which earns about 60% of its revenue from that market.

India has also filed a case in the WTO against the US decision to impose high fees on temporary working visas.

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Why boycott calls against China, India's largest trade partner will fail

The Export-Import Imbalance

Cellphones, laptops, solar cells, fertilisers, keyboards, displays and communication equipment — including earphones — these are India’s chief imports from China, according to our analysis of ministry of commerce data.

 

Why China bazars are popular

IndiaSpend visited Manish market, the hub of imported Chinese goods in Mumbai’s heart. Chinese products here are cheaper, available in bulk, neatly packaged and easy to buy.

“If the 50 different types of LED lamps that I sell were available from say, Surat, at a cheaper rate and at my doorstep, why would I go for Chinese lamps?” asked a lamp distributor and retailer, requesting anonymity. “If I had to buy these in India, this collection would cost me double.”

Market access is easier in China

Customers rarely have to waste time in China searching for markets and products, said Kasliwal. It took him less than a week to buy a three-month consignment that ranged from jewelry to fabric.

“Even small market-towns like Yiwu — comparable to Varanasi in terms of population — have a one-stop, dedicated market for all consumer durables, from fashion to home accessories, with cost and quality options,” he said. “In India, it would take us weeks.”

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