Mattoo, AadityaSubramanian, Arvind2015-02-132015-02-132000-06https://hdl.handle.net/10986/21442The authors argue that India should engage more actively in the multilateral trading system for four reasons: First, such engagement could facilitate domestic reform, and improve access to export markets. If the government could show that domestic reform would pay off with increased access to markets abroad, those who gain from such access - whether they export textiles, software, professional services, or other products - could represent a countervailing voice to reform's opponents. In turn, the need for this external payoff to secure domestic reform makes India a credible bargainer, which could induce trading partners, to open their markets to India. Second, external commitments can foster good domestic policies, by providing guarantees against the reversal of current policies, or lending credibility to promises of future reform. Such pre-commitments could help strike a balance between the reluctance to unleash competition immediately, and the desire not to be held perpetual hostage to vested interests, or weak domestic industries. Third, engagement can help enforce India's market access rights. If other countries do not eliminate quotas on textiles, and clothing as scheduled, India can credibly threaten to withdraw its obligations under the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs). Fourth, multilateral tariff reduction could reduce the disadvantage (to India) of not being part of regional agreements. The value of multilateral engagement might be limited, if the prospects for securing increased market access are dim, as the failed Seattle negotiations might appear to suggest. India must credibly test negotiating pessimism by showing its willingness to open its markets in return for improved access to foreign markets. Success is not certain, but India's chances are improved if aligns itself with countries pressing for sound policies of open trade.en-USCC BY 3.0 IGOmultilateral trade negotiationsreform policyexport marketsdomestic regulatory frameworkexportsopposition to participationexternal tradecredibilitylending instrumentscompetitivenessmarket accessquota ratiotariff reductionsregional cooperationtrade liberalizationadverse impactsagricultural exportersagricultural marketsagricultural productsagricultural tradeagricultureanti-competitive practicesantidumpingantidumping actionsantidumping casesapplied tariffaverage tariffaverage tariff ratesbalance of paymentsbargaining powerbarriers to entrybound tariffcomparative advantagecompetition lawcompetition policiescompetition policycompetitive marketscompetitive practicesconcessionsconsumer protectioncountry marketscurrent environmentcustomsdeveloped countriesdispute settlementdispute settlement processdomestic economydomestic firmsdomestic industrydomestic investorsdomestic legislationdomestic policy reformdomestic reformsdomestic regulationdomestic regulationsdomestic suppliersdynamic benefitseconomic efficiencyeconomic policieseconomic researcheconomic valueeliminating barriersenvironmental standardsexport marketsexport subsidiesexportersexportsfinancial servicesforeign banksforeign marketsglobal liberalizationguarantee of accesshigh tariffsimportsincomeindustrial productsintellectual propertyintellectual property rightsinterest groupsinternational negotiatinginventionsinvestment policylabor mobilitylabor standardslegal systemslegislationliberal policieslocal contentmarket accessmarket failuresmarket powerMFN tariffsmultilateral arenamultilateral systemmultilateral tariff reductionmultilateral tariffsmultilateral trademultilateralismmutual recognitionmutual recognition agreementsnational sovereigntynegotiating agendanegotiating positionopen tradeopennesspartner countriespartner countrypolicy environmentpolicy instrumentspolicy makerspolicy reformpolitical economypreferential accesspreferential arrangementspreferential tradingpreferential trading arrangementsprogramsproperty rightsprotectionismpublic policyquantitative restrictionsquotasreducing barriersregional agreementsregionalismregulatory barrierstariff linestariff ratestariff reductionstaxationtelecommunicationsterms of tradetrade barrierstrade diversiontrade diversion coststrade liberalizationtrade lossestrade policiestrade policytrade protectiontrading partnerstrading systemtransfer of technologyTRIPs agreementunilateral reformUruguay Roundworld exportsworld marketsWorld TradeWorld Trade OrganizationWTO10.1596/1813-9450-2379