Mega trade pact TPP to certainly impact exports: Nirmala
Mega trade agreement TPP will certainly have an impact on India's exports in sectors such as pharmaceuticals, textiles and chemicals, Commerce and Industry Minister Nirmala Sitharaman said today.
New Delhi: Mega trade agreement TPP will certainly have an impact on India's exports in sectors such as pharmaceuticals, textiles and chemicals, Commerce and Industry Minister Nirmala Sitharaman said today.
She, however, said that the country is preparing itself to deal with the adverse impact of the Trans Pacific Partnership (TPP), a mega trade deal among 12 countries, including the US.
"We have certainly started looking into all the implications of any possible diversion in trade ... so keeping that diversion possibility which will happen and which can negatively affect India we are certainly looking at those sectors which will be bearing the brunt immediately after the TPP comes into the force," she told reporters here.
She said that the government is also looking and identifying countries where Indian investments for
manufacturing can happen.
Talking about negative impact of Trans Pacific Partnership (TPP), she said there also will surge in imports into India.
"The TPP will certainly have an impact on India's exports and it is most likely to affect sector like leather goods, plastics, chemicals, textiles and clothing," she said.
On investments, the minister said the investor-State dispute mechanism will have a "serious bearing" on countries like India which are not part of the TPP.
Besides, India would have to look at the labour laws, rules of origin of products, intellectual property rights and product standards.
She said that this trade pact could impact the overall trade scenario and countries like India would have to look at their policy stance to cope up with the implications.
To deal with the situation both the industry and the policy makers will have to work together in this situation, she added.
The TPP is a trade agreement among 12 countries, including Australia, Brunei, Chile, Canada, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Vietnam.
The TPP agreement has been concluded but is not yet ratified for implementation by the participating countries.