Regional trade agreements (RTAs) have become an increasingly popular topic in international trade, especially in the last two decades. In Hindi, these agreements are known as “kshetriya vyapar samjhautayen.” RTAs refer to treaties between two or more countries that provide preferential treatment to the signatories in trade. These agreements aim to remove trade barriers such as tariffs and quotas between the participating countries to promote trade among them.
RTAs are becoming more important as globalization continues to reshape the global economy. The proliferation of RTAs is a response to the failure of the multilateral trade regime to meet the needs of all countries. Developing countries, in particular, have found it challenging to secure market access through the World Trade Organization (WTO) due to the dominance of developed countries in the organization.
There are different types of RTAs that countries can enter into, such as free trade agreements (FTAs), customs unions, and common markets. FTAs eliminate tariffs and non-tariff barriers on goods traded between the participating countries. Customs unions, in addition to FTAs, also have a common external tariff on goods imported from non-member countries. A common market, on the other hand, includes the free movement of goods, services, capital, and people between the participating countries.
India has been an active participant in regional trade agreements. It has signed FTAs with several countries in the region, such as the Association of Southeast Asian Nations (ASEAN), Korea, Japan, and Singapore. It has also entered into negotiations for FTAs with the European Union and the Regional Comprehensive Economic Partnership (RCEP), which includes 10 ASEAN countries and five other trading partners (China, Japan, South Korea, Australia, and New Zealand).
However, India`s experience with RTAs has been mixed. Some domestic industry sectors have been affected by competition from imports, and there have been concerns about the lack of reciprocity in some FTAs. To address these issues, India has been reviewing its existing FTAs and negotiating new ones that are more balanced and mutually beneficial.
In conclusion, regional trade agreements have become an essential aspect of international trade. For India, these agreements offer opportunities for economic growth and integration with the rest of the world. However, it is crucial to ensure that the country`s interests are protected in these agreements. As India continues to participate in regional trade agreements, it will need to strike a balance between liberalization and protecting the domestic industry.