Indian Tea Industry

1. Introduction The last two decades have witnessed a virtual detonation in the number of free backup agreements (FTAs), some of them involving several(prenominal) countries, many of them bilateral. The proliferation of FTAs has led to fierce debate about the merits of these agreements. objet dart some herald the FTAs as stepping-stones towards worldwide free trade, others much(prenominal) as Bhagwati (1994), fear that preferential trading arrangements may orchestrate to trade diversion and welfare loss. Recently, with the signing of the FTA with the 10 element states of the Association of South East Asian Nations (ASEAN), India too has easy joined the bandwagon. According to this agreement, about 80 percent of the traded goods lead be subjected to obligation reducing or tariff elimination. The countries at a lower place ASEAN are: Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, & VietNam. 2. Objective of this term paper: This paper will focus on the impact of the agreement in the selected grove good, Tea, which is part of what is called the special products in Indias tariff reduction negotiations. Indias present tariff rate in this commodity is quite high by international standards.

The ASEAN-India FTA (henceforth AIFTA) envisages that the tariff rate in these commodities will be brought down in a phased manner during 2010-19. ASEAN and India signed the ASEAN-India Trade in Goods (TIG) Agreement in Bangkok on 13 August 2009, after vi years of negotiations. The signing of the ASEAN-India Trade in Goods Agreement paves the agency for the creation of one of the worlds largest free trade areas (FTA) a market of almost 1.8 billion people with a combined GDP of US$ 2.75 trillion. The ASEAN-India FTA will see tariff liberalisation of over 90% of products traded between the two   including the alleged(prenominal) special products, such as palm oil (crude and refined), coffee, glowering tea and pepper. Tariffs on over 4,000 product lines will be eliminated... If you want to get a full essay, order it on our website: Orderessay

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