Paragraph 20. "However, despite this generally positive view of regional agreements, India has some reservations regarding regionalism because of its complexity and possible trade diversion"
Could you India please indicate whether concrete examples of trade diversion caused by regional trade agreements have already been identified?
Reply: India believes that RTAs complement the multilateral rule based trading regime. India's concerns on regionalism stem not from possible trade diversion but from the multiple tariff differentials, complicated rules of origin and the duty inversion effect of RTAs and how these could act as a disincentive for local manufacturing.
