What is most striking is that the pact does not include India, another regional giant. The New Delhi government withdrew from the negotiations in July. China had rejected India`s calls for a more ambitious pact that would have done much more for the region`s economy, including trade in services and trade in goods. 2. On the basis of equality and mutual benefits, the two governments wish to maintain and develop existing trade between India and the Tibet region of the People`s Republic of China. In this section, we describe our analysis of the sensitivity of Indo-Chinese trade flows to a potential free trade agreement. To carry out this analysis, we used import elasticities of product groups at the 6-digit HS code level. Das stressed, however, that India remains interested in deepening trade relations in Southeast Asia. Our analysis shows that a free trade agreement on narrow products will be strongly favourable to China and is unlikely to be accepted by Indian industry. Any bilateral agreement between the two countries must be comprehensive and cross-cutting, in addition to covering goods, but also services, investments, research and development cooperation, and be supported by framework conditions on issues such as anti-dumping, standards and dispute resolution.
Only then will India be able to benefit from a bilateral agreement with China. That is why our work suggests that a comprehensive study is needed to assess how India and China can engage in these other areas, particularly in services trade, cross-border investment and research and development efforts before India pursues a free trade agreement with China. Finally, the role of trade and trade in moderating bilateral relations should not be ignored. A free trade agreement with China could have benefits that are beyond quantification and transcend the economy. Full multilateral agreements (not listed below) see: List of multilateral free trade agreements. It is not clear how the United States will respond to the new trade pact. As Biden takes office in January, trade and China have become difficult problems. While it may be difficult for India to re-join the RCEP, there are other free trade agreements… It is also a U.S. withdrawal from large-scale trade agreements that redefine global relations.