Working Paper

Economic Implications of a Potential Free Trade Agreement between India and the United States

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Fukase, Emiko
dc.contributor.author
Martin, Will
dc.date.accessioned
2015-03-31T14:41:42Z
dc.date.available
2015-03-31T14:41:42Z
dc.date.issued
2015-03
dc.date.lastModified
2021-04-23T14:04:03Z
dc.description.abstract
This paper explores the economic implications of a potential free trade agreement between India and the United States. A series of simulations is conducted assuming 100 percent ad valorem equivalent tariff cuts for goods and 50 percent cuts for services. The overall impacts are likely to be positive for the United States and India. While gains from trade creation are offset by trade diversion on the import side, both countries appear to gain from improved access on the export side. The United States is likely to gain largely through terms of trade improvements for its goods and services, as initial protection in India is particularly high. India would experience an expansion of exports and output, especially in textiles and apparel. As the United States and India are negotiating other free trade agreements, such as the Trans-Pacific Partnership and India's agreement with the Association of Southeast Asian Nations, the paper also explores how the effects of an India-United States free trade agreement are affected by prior free trade agreements. Adding an India-United States free trade agreement to prior agreements tends to bring additional welfare benefits to both countries. India would also gain substantially if it concluded a free trade agreement with the United States and then extended it to other partners. The results suggest that an India-United States free trade agreement might become a building block toward more liberal trade regimes.
en
dc.identifier.uri
http://hdl.handle.net/10986/21651
dc.language.iso
en_US
dc.publisher
World Bank Group, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 7212
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
free trade agreement
dc.subject
CGE model
dc.subject
computable general equilibrium modelling
dc.subject
preferential trade liberalization
dc.subject
welfare effects
dc.subject
FTA
dc.title
Economic Implications of a Potential Free Trade Agreement between India and the United States
en
dc.type
Working Paper
en
okr.date.disclosure
2015-03-10
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.globalpractice
Trade and Competitiveness
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-7212
okr.identifier.report
WPS7212
okr.language.supported
en
okr.region.administrative
South Asia
okr.region.country
India
okr.topic
International Economics and Trade :: Free Trade
okr.topic
International Economics and Trade :: International Trade and Trade Rules
okr.topic
International Economics and Trade :: Trade Liberalization
okr.topic
International Economics and Trade :: Trade Policy
okr.topic
International Economics and Trade :: Trade and Regional Integration
okr.topic
Law and Development :: Trade Law
okr.unit
Agriculture and Rural Development Team, Development Research Group (DECAR)

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