international trade agreement

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international trade agreement of India China Russia and Africa

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international trade agreement

  1. 1. Group Member:- Ritwik Sharma(90) Rajshekhar Ganti(23) Jithish Nambiar(53) Himanshu Pandey(55) Pratik Patel Priyanka Ghare Ameya Bhogwekar Abhinav Thakur Deepak Vasu
  2. 2.  BRICS  Nuclear power  FTP  Space program  Defense  Russia china defense  barriers
  3. 3.  It is the exchange of Capital goods, and services across International Borders or territories.  Increasing international trade is crucial to the continuance of globalization.  Without International trade, nations would be limited to the goods and services produced within their own borders.
  4. 4.  It is conducted within the political and geographical boundaries of a country.  It can be at local level, regional level or national level.  Trade carried on among traders of Delhi, Mumbai, etc. is called home trade.  Wholesale Trade : It involves buying in large quantities from producers or manufacturers and selling in lots to retailers for resale to consumers.  Retail Trade : It involves buying in smaller lots from the wholesalers and selling in very small quantities to the consumers for personal use
  5. 5.  It refers to buying and selling between two or more countries  Export Trade : When a trader from home country sells his goods to a trader located in another country, it is called export trade. For e.g. a trader from India sells his goods to a trader located in China.  Import Trade : When a trader in home country obtains or purchase goods from a trader located in another country, it is called import trade. For e.g. a trader from India purchase goods from a trader located in China.  Entrepot Trade : When goods are imported from one country and then re-exported after doing some processing, it is called entrepot trade
  6. 6.  Memorandum of Understanding  Non-Disclosure Agreement  Teaming Agreement  Material Transfer Agreement  Master Agreement  Subaward  IPA  Consultant Agreement
  7. 7.  A trade agreement which is also know as Trade Pact is a wide ranging tax, tariff, and trade treaty that often includes investment guarantees.  Any contractual arrangement between countries concerning their trade relations.  Trade agreements may be bilateral or multilateral, that is, between two countries or more than two.  The most common trade agreement are of the preferential and free trade type.  They are rules and regulations that govern trade. They are rules and regulations that every Nation breaks. They are also very controversial.
  8. 8. International Trade Agreement Preferential Trade Agreement (PTA) Free Trade Agreement (FTA) Multilateral Bilateral Types of International Trade Agreement
  9. 9.  It is a trading bloc that gives preferential access to certain product from the participating countries.  This is done by reducing tariffs but not by abolishing them completely.  A PTA can be established through a trade pact.  It is the first stage of economic integration.  The line between a PTA and a free trade area (FTA) may be blurred, as almost any PTA has a main goal of becoming a FTA in accordance with the General Agreement on Tariffs and Trade
  10. 10.  A multilateral trade agreement involves three or more countries who wish to regulate trade between the nations without discrimination.  States get involved in multilateral agreements because the responsibilities and risks are distributed among the group and thus the situation is more advantageous for individual
  11. 11.  A bilateral agreement is made between two and only two states. The agreement can be political, military or economic.  The major reason states might pursue bilateral agreements is because it is easier to negotiate with just one country rather than with several.
  12. 12. Multilateral 1. Asia-Pacific Trade Agreement (1976) 2. Global System of Trade Preferences among Developing Countries (GSTP) (1989) 3. Protocol on Trade Negotiations (1973) Bilateral 1. India-Afghanistan (2003) 2. India Mauritius 3. India-Nepal(2009) 4. India-Chile(2007) 5. India-Mercosur(2009)
  13. 13.  It is a trade bloc whose member countries have signed a free-trade agreement (FTA), which eliminates tariff, import quotas, and preferences on most goods and services traded between them.  It can be considered the second stage of economic integration.  Countries choose this kind of economic integration if their economic structures are complementary
  14. 14. Bilateral 1. India-Malaysia(separate from FTA agreement with ASEAN) 2. India-Sri Lanka 3. India-Singapore 4. India-Canada(negotiation on going) Multilateral 1. ASEAN Free Trade Area 2. South Asian Free Trade Area
  15. 15.  The World Trade Organization (WTO) is an organization that intends to supervise and liberalized international trade  The WTO oversees about 60 different agreements which have the status of international legal texts  Member countries must sign and ratify all WTO agreements on accession
  16. 16.  Agreement on Agriculture.  Agreement on technical barriers to trade.  Agreement on Anti-Dumping.  Agreement on Custom Valuation.  Agreement on Rules of Origin.
  17. 17.  President- Mr Pranab Mukherjee.  Minister of commerce – Mr Anand Sharma.  The GDP for the entire FY13 grew at 5%.  The economy of India is the 9th largest in the world by nominal GDP and the 3rd largest by Purchasing Power Parity (PPP).  Reserves of foreign exchange and gold- $287.2 billion (31 December 2012 est.)  Stock of direct foreign investment- $256.6 billion (31 December 2012 est.)
  18. 18.  Textiles  Chemicals  Food processing  Steel  Transportation Equipment  Cement, Mining  Petroleum  Machinery  Software  Pharmaceuticals
  19. 19.  Exports- $309.1 billion(2012 est.)  Exports Goods- Petroleum products, precious stones, machinery, iron and steel, chemical ,vehicles, apparels  Exports Partners- UAE 12.7%, US 10.8%, China 6.2%, Singapore 5.3%, Hong Kong 4.1% (2011)  Imports- $488.6 Billion (est. 2012)  Imports Goods- Crude Oil, Raw precious stones, Machinery, Fertilizers ,Iron and Steel, Chemicals.  Imports Partners- China 11.9%, UAE 7.7%, Switzerland 6.8%, Saudi Arabia 6.1%, US 4.9%.  Trade deficit - $191.6 billion.  India has trade deficit with 80 countries.
  20. 20.  President- Mr. Vladimir Putin  Capital- Moscow  Economy of Russia is the 8th largest economy in the world by nominal value 6th/5th largest by Purchasing Power Parity(PPP)  The Gross Domestic Product (GDP) in Russia expanded 1.60 percent in the first quarter of 2013.
  21. 21.  Complete range of mining and extractive.  Industries producing coal, oil, gas, chemicals, and metals.  All forms of machine building from rolling mills to high-performance aircraft and space vehicles.  Defense industries including radar, missile production, and advanced electronic components, shipbuilding.
  22. 22.  Road and rail transportation equipment.  Communications equipment.  Agricultural machinery, tractors, and construction equipment.  Electric power generating and transmitting equipment; medical and scientific instruments; consumer durables, textiles, foodstuffs, handicrafts
  23. 23.  Exports- $542.5 billion (2012 est.)  Exports Goods- petroleum and petroleum products, natural gas, metals, wood and wood products, chemicals, and a wide variety of civilian and military manufactures  Imports-$358.1 billion (2012 est.)  Import goods machinery, vehicles, pharmaceutical products, plastic, semi-finished metal products, meat, fruits and nuts, optical and medical instruments, iron, steel  Gross external debt $455.2 billion (2012 est.)
  24. 24.  India, Russia mull free trade agreement.  BHEL looking to build thermal power units in Buryatia.  India’s aid on KNPP’s spent nuclear fuel.  Russia’s IG Seismic wins 3-D seismic contract in Rajasthan.  Russian Railways keen to participate in Indian track electrification.  India-Russia FGFA PAK T-50 Agreement.  India-Russia bilateral trade crosses US$ 11 billion in 2012.  India-Russia Defence Cooperation.  Agriculture Cooperation Program.
  25. 25.  The total trade between the two countries currently stands at $8.5 billion.  Indian investments in Russia stand at $5 billion while that of Russia in India stand at $3.5 billion.  Common target is to achieve $20 billion in trade by 2015
  26. 26.  BHEL looking to build thermal power units in Buryatia.(14.June.2013)  two thermal power plant units  The first phase of the project involves the construction of two power units with a capacity of 240 MW each.  India’s aid on KNPP’s spent nuclear fuel ◦ Construction on the plant began on 31 March 2002 ◦ The first reactor of the plant attained criticality on 13 July 2013 ◦ The plant was commissioned six years after the scheduled date ◦ he original cost of the two units was 13,171 crore ◦ but it was later revised to 17,270 crore ◦ Russia advanced a credit of 6,416 crore to both the units.
  27. 27. ◦ Cairn India Ltd has awarded a two-year contract for a 3- dimensional seismic survey of its prolific Rajasthan oil block to Russian firm IG Seismic Services for an undisclosed sum. ◦ The works may cover over 1,500 square kilometers ◦ he start of works is planned for the beginning of October 2013 ◦ Cairn, which holds 70 per cent in the Rajasthan block, had previously announced an investment of $ 2.4 billion in the block by 2015-16 ◦ State-owned Oil and Natural Gas Corp (ONGC) holds the remaining 30 per cent interest in the block
  28. 28.  The Sukhoi/HAL Fifth Generation Fighter Aircraft (FGFA) is a fifth-generation fighter being developed by India and Russia  50:50 joint venture total of 500 Aircraft  FGFA) for the Indian Air Force  Russian fifth generation fighter, code-named T-50  Program costed US$ 30 billion  Unit costed US$100 million
  29. 29.  India-Russia bilateral trade, which stood at US$ 7.46 billion in 2009, US$ 8.53 billion in 2010, and US$ 8.87 billion in 2011, has spurted to US$11.04 billion in 2012, registering a 24.5% growth in 2012 compared to 2011.  the target of US$ 20 billion for India-Russia trade set for 2015
  30. 30.  Defense cooperation is an important pillar of the India-Russia strategic partnership  It is guided by the Program for Military Technical Cooperation signed between the two countries which is valid, at present till 2020.  Bilateral projects currently underway include indigenous production of T-90 tanks and Su-30-MKI aircraft, supply of MiG-29-K aircraft and Kamov-31 and Mi-17 helicopters, upgrade of MiG-29 aircraft repair and refit of the aircraft carrier INS Vikramaditya and supply of Multi-Barrel Rocket Launcher Smerch.  Lease of Submarines
  31. 31.  Integrated Long Term Program (ILTP) of Cooperation in Science & Technology. 1. Advanced Research Centre for Powder Metallurgy and New Materials (Hyderabad) 2. Polio & other Vaccine Manufacturing (Bulandshahr) Facility 3. Indo-Russian Centre for Advanced Computing Research (Moscow) 4. Indo-Russian Centre for Biotechnology (Allahabad) 5. Indo-Russian Centre for Gas Hydrates Studies (Chennai) 6. Indo-Russian Centre for Earthquake Research (New Delhi): 7. Russian Indian Centre on Ayurvedic Research (Moscow) 8. Indo-Russian Centre for Biomedical Technology (Thiruvananthapuram). 9. Indo-Russian Centre on Non-Ferrous Metallurgy (Jamshedpur) 10. http://www.indianembassy.ru/index.php/en/science-technology/indo- russian-s-t-cooperation
  32. 32.  President- Mr. Xi Jinping  Capital- Beijing  2nd largest economy (nominal) and 2nd largest in Purchasing Power Parity(PPP).  GDP growth by 7.8%.  FDI stock $116 billion.
  33. 33.  World leader in gross value of industrial output  Mining and Ore processing  Iron, Steel, Aluminum, and other metals  Coal  Machine building  Textiles and Apparel  Petroleum; Cement; Chemicals; Fertilizers  Consumer products  Transportation Equipment, including Automobiles, Rail cars and Locomotives, Ships, and Aircraft; Telecommunications Equipment, Commercial Space launch vehicles, Satellites
  34. 34.  Exports-$2.021 trillion (2012 est.)  Export goods-Electrical and other machinery, including data processing equipment, apparel, textiles, iron and steel, optical and medical equipment.  Imports-$1.78 trillion (2012 est.)  Import goods-Electrical and other machinery, oil and mineral fuels, optical and medical equipment, metal ores, plastics, organic chemicals.
  35. 35.  In 2012, bilateral trade was USD 66 billion a decline from USD 74 billion in 2011.  The two countries have set a target of USD 100 billion by 2015 for bilateral trade.  The signing of the MoUs between India and China is a good beginning to address the issues India is raising with China from time to time  India has been finding it difficult to expand its trade with China in the pharmaceutical sector due to the complex registration process and prolonged timelines  The average imports of medicinal and pharmaceutical products from China during the last five years were $4,332.37 million vis-a-vis exports from India of $692.44 million.
  36. 36.  By end 2011, India's trade deficit was USD 27 billion. According to Chinese trade figures released in January 2013, the figure expanded to USD 29 billion by 2012.  As per Chinese figures, cumulative Chinese investments into India till December 2011 stood at USD 575.70 million while Indian investments into China were USD 441.70 million.
  37. 37.  India-China Signed 8 MOU:- 1. The Kailash Mansarovar Yatra to the Tibet Autonomous Region of China. 2. Work Programs of the Three Working Groups under Joint Economic Group. 3. MOU on Buffalo Meat, Fishery Products and Agreement on Feed and Feed Ingredients. 4. MOU on Cooperation in the field of Sewage Treatment.
  38. 38. 5. MOU in the field of Water Efficient Irrigation. 6. MOU on Cooperation in Mutual Translation and Publication of Classic and Contemporary Works. 7. MOU upon Provision of Hydrological Information of the Yaluzangbu/Brahmaputra River in Flood Season by China to India. 8. MOU to facilitate cooperation and linkages between Indian and Chinese cities & states/provinces
  39. 39.  India's trade deficit with China is $40 billion  24% slump in Indian exports http://www.thehindu.com/business/Economy/24-slump-in-indian-exports-highlights-china-trade- barriers/article4696235.ece)
  40. 40.  Russia and China agree $270bn oil deal.  China-Russia currency agreement further threatens U.S. dollar.  Russian-Chinese trade to reach 100 billion dollars by 2015.  Russia reopens railway crossing from Maritime Territory to China  Russia ramps up seafood exports to Asia Pacific(more than 40 per cent in the first half of 2013.).
  41. 41.  Russia-India-China perceives that in today’s world, it is important to discuss the challenges of global security and stability.  The diverse threats and risks cannot be addressed by military power alone but need to be appraised through political, social and economic prisms.  The population of these three countries together amounts to around 2.4 billion, 40 percent of the world’s total population. They cover a total area of 29.96 million square kilometers which is 22.5 per cent of the total area of the world. Undoubtedly, the three countries have great human resources, huge potential of market and rich endowment of natural resources
  42. 42.  Russia, India, China have agreed to provide credit to each other in local currencies. (BRICS March 29, 2012)  Establishing effective foreign-policy and economic cooperation in the trilateral Russia-India-China format  Alliance framework aimed at countering the US influence.  Need for a Multi-Polar International System
  43. 43. North and West Africa
  44. 44.  Algeria  Egypt  Libya  Morocco  Sudan  Ghana  Nigeria  Western Sahara.
  45. 45.  Nuclear reactors, boilers, machinery  Cereals  Iron and steel  Electrical, electronic equipment  Salt, sulphur, earth, stone, plaster, lime and cement  Cotton
  46. 46.  Oil  Natural gas  Phosphates  Cocoa  Chemicals  Chemical fertilizers
  47. 47.  West Africa Economic and Monetary Union (UEMOA)- Benin, Burkina Faso, Cote d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal & Togo  Economic Community of west Africa States (ECOWAS)- Benin, Burkina Faso, Cape Verde, Cote d'Ivoire, the Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone & Togo
  48. 48.  Central Africa Customs and Economic Union (UDEAC)- Cameroon, the Central Africa Republic, Chad, the Republic of Congo, Equatorial Guinea & Gabon  Ghana – Netherlands  Ghana-EU  United States-Morocco FTA Trade Blocs
  49. 49.  South Sudan-American Friendship and Trade Association  Sudan Chamber of Commerce, Industry and Agriculture  AEC – African Economic Community  EU-Egypt Association Agreement
  50. 50.  European Union  United States  South Africa
  51. 51.  Free trade within the bloc  Economies of scale  Market access and trade creation  Jobs  Protection
  52. 52.  Loss of benefits  Distortion of trade  Inefficiencies and trade diversion  Retaliation
  53. 53.  Intra African Trade – 12% only  Poor Infrastructure  Limited national markets  Poverty
  54. 54.  Scheme for Least Developed Countries (LDCs)  DFTP Scheme provides duty free and preferential market access on tariff lines that constitute 92.5 % of global exports of LDCs.

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