인도의 TBT와 SPS: 제도, 사례, 대인도 수출에 미치는 영향 (India's TBT and SPS: Institutions, Cases and Impact on Exports to India)
138 Pages Posted: 5 Apr 2017
Date Written: December 30, 2016
Korean Abstract: 최근 주요 비관세조치인 TBT와 SPS가 확대되고 있는 상황하에서 본 연구는 인도의 TBT와 SPS 관련 정부 조직과 각종 제도 및 정책을 조사하고 관련 무역 현안사례를 분석하였으며, 인도의 TBT와 SPS가 대인도 수출에 미치는 영향을 분석하였다.
English Abstract: Since the financial crisis began in the late 2000s, the tendency of protective trade has been strengthened in the globe. In India, Prime Minister Narendra Modi, evaluated the current FTAs of India as non-beneficial to India. The Modi administration has redirected its FTA strategy from the quantitative expansion that the previous administration pursued to the strategy that emphasizes qualitative growth. It is possible that the Modi administration implements protective trade policies directly and indirectly in order to push the 'Make in India' industrial growth policy that seeks to make India a global manufacturing hub. Therefore, negotiations for improving the Korea-India CEPA are likely to be delayed and face various obstacles.
This study investigates relevant government bodies, institutions and policies on TBT (Technical Barriers to Trade) and SPS (Sanitary and Phytosanitary Measures) in India. It also analyzes relevant specific trade concerns to TBT and SPS, and explores the effects of TBT and SPS on exports to India.
In Chapter 2, this report examines government bodies and institutions related to TBT and SPS and also relevant articles and Mutual Recognition Agreements (MRAs) to the FTAs that India has already signed. India's standards and regulation systems are complex and poorly established, compared to those of advanced countries and hence India has continuously expanded its regulations and has established, revised and supplemented its systems. While most of the FTAs by India deals with TBT and SPS, the Japan-India CEPA and Singapore-India CECA are more detailed, compared to the Korea- India CEPA. On the other hand, India is not yet active to enforce MRAs.
Chapter 3 analyzes pending specific trade concerns (STCs) on India's TBT and SPS, and especially the STCs on Korea by reviewing WTO's TBT and SPS Committees and STCs from the various trade reports. Most TBT related STCs raised by India were raised by the EU and the US and automobile-related items were the most frequently discussed. Most countries that raised TBT and SPS against India were advanced countries including the US. The most controversial issues were the differences between India's standards and international standards.
In addition to the qualitative analysis, chapter 4 provides an empirical analysis of the effects of India's TBT and SPS measures on the exports to India of trading partners.
First, in case of the entire trading countries and industries, the results show that overall India's TBT measures had a positive effect on exports to India while SPS measures are not expected to have much influence. In other words, India's TBT measures have a positive effect on export through the provision of market information and increasing product reliability against expectations.
Secondly, when the industries are divided into agriculture and manufacturing, the estimates show that TBT has significant positive on exports to India in the manufacturing sector while SPS's effect is limited. Our empirical results are in line with previous studies. However, the results for SPS were still statistically insignificant.
Lastly, results of the effects of TBT and SPS on individual industries were disparate. TBT forms a trade barrier for processed primary goods, processed minerals, general machines, and electric machines, while rubber/chemicals and nonmetallic minerals that have high portions of intermediary goods and precision machinery and other manufacturing sectors that have high levels of capital goods gained positive impacts. In the case of SPS, exports of processed primary goods and the paper/lumber industry were expedited as a result of India's SPS measures while exports of the rubber/chemicals industry were blocked.
This study provides suggestions and policy implications. It is suggested that the creation of a new division exclusive to the TBT and SPS measures on the Agri-food sector, policies in response to the political industrial application of the TBT and SPS, and policies in response to the poor administration systems on the TBT and SPS are needed. Lastly, it is recommended that the Korean government seeks to conclude an MRA with India to invigorate economic cooperation, including merchandise trade, between the two countries.
Note: Downloadable document is available in Korean.
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