Trade Blocks February 20, 2010Posted by Chetan Chitre in International Business Management, Trade Blocks.
Tags: ASEAN, India's Trade, Trade Blocks
I am attaching here the ppt (Trade Blocks) and other materials I had used in the class while discussing this topic.
It would be useful to have some idea of India’s Foreign Trade by Region. A good source for Indian Trade data is the Exim Databank on the Ministry of Commerce website. On this site you will also find other interesting data regarding the exim policy, India’s stand in the WTO, several (rather all) case studies on Anti-dumping, etc.
Note here the “Look East Policy” and the decreasing share of US and Europe in India’s Foreign Trade. This can also be seen in the form of increasing engagement with countries like South Korea, Malaysia, Japan, etc.
Engagement with ASEAN is therefore crucial part of this “Look East” policy. ASEAN Basic Stats, Intra and Extra ASEAN Trade, ASEAN Trade with select Partners. The concept often discussed is ASEAN +3, the +3 being Japan, China and India. One line of thought is that ASEAN is suspicious about China’s growing dominance in the region and therefore want countries like India and Japan to join in, in order to counterbalance the Chinese juggernaut.
SAARC is another Trade Block which has been trying to take off for years now. Indo SAARC Trade. The key hurdles being the non-economic foreign policy issues such as terrorism, illegal migration, etc. Also the fact that India being the largest economy in the region, the other smaller economies are not comfortable with the Indian dominance. India is seen as a big bully rather than a big brother.
The only Trade Block which has really matured over the years is the European Union. It has traversed most of the milestones that are given in the last slide of the PPT and is moving towards a Political Union.