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Global system of Trade preference (GSTP) benefits for India
- 1. MSB21T1007 Economic Policy for Decision Making Submitted to –DR. Rashi Mittal Ma’am
- 2. TEAM MEMBERS FOR CAT 3 ADITYA MISHRA SWATI SHIVAM KUMAR 01 02 03 VIKAS ANAND 04 HARSH MISHRA 05
- 3. Select any regional trading block of which India is a part & critically analyze the benefits for INDIA Q2)
- 4. REGIONAL TRADING BLOCK INTER-GOVERNMENTAL AGREEMENT REDUCES/ELIMINATES REGIONAL BARRIERS TO TRADE BLOCKS/DEFEND MEMBERS FROM GLOBAL COMPETITION MEMBERS STATES CO- OPERATE IN ECONOMIC,POLITICAL,CLIMA
- 5. GSTP SIGNED 13th APRIL,1988 OBJECTIVE S PREFERENTIAL TARIFF REDUCTIONS & CO- OPERATION. TOTAL COUNTRIES 42 COUNTRIES SUPPORTE D BY UNCTAD UNITED NATIONS CONFERENCE ON TRADE & DEVELOPEMENT GLOBAL SYSTEM OF TRADE PREFERENCES IMPLEMENTED 19th April , 1989
- 6. GSTP CONFERENC ES 2009 SAO PAULO MADE B/W 22 MEMBERS OF GSTP OVER TARIFF CUTS 1989 FIRST ROUND 1991-1998 SECOND ROUND 28 COUNTRIES EXCHANGED CONCESSIONS,BUT NOT IMPLEMENTED
- 8. GSTP- Why it was formed ? Countries whose economies were affected by “cold war” & polarisation of power between RUSSIA & AMERICA Came together as an union so that could be heard in “UN” To develop economic co- operation among developing countries & LDCs To promote and sustain mutual trade • Countries were unhappy with “GATT-general agreement on tariff & trade”-1960s • The developing countries then formed “UNCTAD”-1964 • This later formed “GSTP”- 1988 • Major members were from G-77 countries
- 9. TRADE BENEFITS due to GSTP COMBINED GDP OF COUNTRIES THAT SIGNED “GSTP AGREEMENT” $6.4 TRILLION IF GSTP COUNTRIES CUTS TARIFFS BY 20% ON ALL PRODUCTS WOULD GENERATE GAIN AMONG PARTICIPATING COUNTRIES BY $7.7 BILLION MEANS AN INCREASE IN GDP OF INDIA BY 0.12% THE 22 GSTP SIGNATORIES GREW AT AN AVERAGE OF 4.2% IN 2008. TRADE BETWEEEN THESE 42 COUNTRIES NEARLY “TWO TRILLION DOLLARS” INDIA UNILATERALLY OFFERED A TARIFF REDUCTION OF 25% ON 77% OF ITS TARIFF LINES FOR LDCs.
- 10. BENEFITS OF GSTP TO INDIA IT IS PREFERENTIAL, FACILITATING MARKET OF DEVELOPING COUNTRIES FROM DEVELOPED ECONOMY AND CHINA DOMESTIC MARKET IS PROTECTTED FROM COMPETITIVE EXPORTS BY DEVELOPED ECONOMIES & CHINA ONLY 25% OF GSTP COUNTRY IMPORTS COMES FROM GSTP COUNTRIES AS SUCH THREE QUARTERS OF THE IMPORT REVENUE IS UNAFFECTED BY THE DEAL, GSTP THEREFORE PROVIDES GREATER ACCESS TO FAST GROWING MARKETS IN THE WORLD. IT STRENGTHENS INDIA’S WELCOME!
- 11. BENEFITS FOR INDIA ECONOMICAL BIGGER MARKET ACCESS LESS COMPETITION PREFERENCE OF GOODS POLITICAL GOOD POLITICAL RELATIONS BETTER POLICIES AMONG MEMBER COUNTRIES DECREASED DISPUTES MORE C0-OPERATION INTERNATIONAL RELATIONS PRESSURE ON DEVELOPED COUNTRIES & ECONOMIES SHIELDING FROM EUROPEAN ,AMERICAN & CHINESE MARKETS CO-OPERATIONS WITH LDCs & OTHER DEVELOPING NATIONS
- 12. CRITICAL ANALYSIS OF GSTP for INDIA IF CLOSELY INSPECTED,THIS TRADING BLOCK IS OF LESS SIGNIFICANCE TO INDIA CURRENTLY IT WAS BENEFICIAL DURING 1988s & WHEN THE DOMESTIC INDIAN MARKET WAS WEAK ON PRODUCTION & INDUSTRIES BUT,CURRENTLY INDIA IS A STRONG MARKET EVEN BEING A DEVELOPING COUNTRY SO TRADING PARTNERSHIP WITH THE “QUAD” GROUP is OF MAJOR BENEFIT. CURRENT GEOPOLITICS,INDIA’S DECISION TO NOT JOIN “RCEP”-REGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIPS , INDIA’S DECISION TO JOIN “IPEF”-INDO PACIFIC ECONOMIC FRAMEWORK,SHOWS ITS PROTECTIONIST FOREIGN POLICY WHICH IT DOES TO PROTECT ITS MARKET FROM CHINESE GOODS. GSTP IS NOT MUCH BENEFICIAL FOR INDIA IN TERMS TO
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