ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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ASEAN-India Pact and Plantations: Realities of the Myths

The opposition to the ASEANIndia free trade agreement, particularly from the plantation sector of Kerala, is founded on simple static analytics - a tariff cut will reduce protection, increase imports and result in a price crash. However, a more dynamic approach reveals that imports are not only dependent on tariff reduction, but equally on productivity differences, the structure of markets and the exchange rate. Moreover, the FTA takes into account the threat of import competition through safeguard measures when there is substantial injury to domestic producers. The primary issues lie in the sphere of production, agricultural research and innovation, rather than protection under the FTA.

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