Aditya Srivastava asked: Are there any implications of Trans-Pacific Partnership (TPP) for India? Will it be a good move on the part of India to become its member?

Jagannath Prasad Panda replies: Essentially, the TPP is a US-led Pacific Rim or Asia-Pacific initiative, covering mostly APEC countries. TPP would like to take dynamic ASEAN economies into account. Currently, TPP is seen as a ‘comprehensive and high- standard’ Free Trade Agreement (FTA). The mandate of TPP is to move beyond World Trade Organisation (WTO) commitments and liberalise trade in nearly all goods and services among the APEC members. India, being not a member of APEC, seems to lose out on some of the advantages that this economic liberalisation model offers, especially being linked economically with APEC and ASEAN more closely.

India must seriously consider joining TPP. Beyond the economic nuances, there are strategic contours attached to TPP as it is closely linked with the USA's 'pivot Asia' policy. One of the core aims and interests of TPP is to concurrently manage the economic liberalisation process in the Asia Pacific region while offering the security and strategic advantages in the region through the APEC. India had earlier tried to become a member of the TPP, but did not succeed. A fresh initiative must be taken in this regard while the strategic environment in Asia Pacific is under constant transformation.

For more on the issue, please refer to my following IDSA publications:

Jagannath P. Panda, “Factoring the RCEP and the TPP: China, India and the Politics of Regional Integration”, Strategic Analysis, 38 (1), January 2014, pp. 49-67.

Jagannath P. Panda, “Beijing's APEC Call on India: A New Twist in India China Ties?”, IDSA Issue Brief, August 05, 2014.

Posted on November 11, 2014