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GTAP Resource #2948

"EU - India free trade agreement: A quantitative assessment "
by Achterbosch, Thom, Marijke Kuiper and Pim Roza

Negotiations are underway for a regional trade agreement (FTA) between India and the EU. This paper analyzes the impact of tariff slashes on merchandise trade between the EU and India. Of particular interest are the implications for agricultural markets, given the tension between agricultural liberalization and India's policy goals relating to self-sufficiency in food grains and poverty reduction. The analysis employs GTAP-AG, a global general equilibrium model using a recent database which has 2004 as its reference year. Results indicate the rationale for a strongly asymmetric arrangement: it would be in the interest of both partners if the EU provides large concessions to India for market access, while India maintains the bulk of current border protection. An EU-India FTA delivers little scope for achieving efficiency gains via adjustments to the pattern of international specialization. Probably, India can find more suitable FTA partners. Agriculture comes out as a key sector for India in the consideration of equity and growth purposes of a FTA with EU.

Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
Status: Published
By/In: LEI
Date: 2008
Created: Achterbosch, T. (2/16/2009)
Updated: Batta, G. (2/16/2009)
Visits: 2,019
- Preferential trading arrangements
- Agricultural policies
- Asia (South-Central)

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