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PYQ 1200 Q/A Part - 1
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Kerala PSC Indian Economy Book Study Materials Page 436
Book's First Page15.22 ndian onom Experts have highlighted serious impact given to the transnational companies, on the current global trade pattern once this diluting sovereign powers of the nations. agreement comes into force. India has its own As per experts, it could liberalise one third share of concerns regarding it22. Meanwhile, of global trade and create millions of new by late January 2017, the USA (under its new jobs. President Mr. Donald Trump) pulled out from As per the estimates of the European the ongoing negotiations of the TPP. Once the US Commission, it will boost the EU’s (the biggest force behind it) has opted out from economy by €120 billion, the US it, the pact looks losing its real steam. This may economy by €90 billion and the rest of look a relief for India and other similar economies the world by €100 billion. it may be temporary—as the new dispensation The agreement has been severely criticised in the country has given clear signs of becoming and opposed by majority of the unions, charities, protective regarding trade and globalisation (these NGOs and environmentalists across Europe. issues were the benchmark of Trump’s presidential Critics have highlighted several apprehensions election campaign). also related to it such as—the number of net job gains as there are chances of job losses, and low transatlantic traDe anD economic gains accruing at the household level. The reports on the ongoing negotiations and its investment PartnershiP contents are not available in the public domain as Considered a companion of the TPP (Trans- only authorised persons can access them. Whatever Pacific Partnership), the TTIP (Transatlantic comments, reactions or criticisms we find on it are Trade and Investment Partnership)23 is a newly on the multiple leaks which the world had by now proposed trade agreement (a regional trade through different sources. agreement of different kind which includes As in case of the trans-pacific partnership investment also) between the European Union (TPP), the new government in the USA—the and the United States. Planned to be finalised by most important force behind the pact—has 2014, the pact is still (by March 2017) under the dropped out (by late January 2017) of the TTIP, too. This way, the proposed pact looks becoming negotiation process. This agreement touches three weaker before its finalisation. And finalising the broad areas—market access; specific regulation partnership without USA is neither possible nor and co-operation. The possible features and its will it have much substance. In this case, the impact are available in international media and EU may be more open to new regional trade other documents as given below: agreements with other nations—India may also The major provisions included under this explore one such pact with it. pact are—dilution in regulatory provisions to promote trade and investment, liberal Deglobalisation anD inDia banking regulation, liberal role and access Global factors are yet to stabilise since the financial 22. e find a very detailed discussion on it in the Economic crisis hit the developed economies. Recovery Survey 2015-16, Government of India, Ministry of among these economies are getting tough job— Finance, N. Delhi (Vol. 2, pp. 76-78) which quoted several international studies in this regard. even unconventional monetary policies have been 23. Based on the several issues of The Economist, London, tried (pursuing for negative interest rate regime). UK from 2013 to March 2017. Meanwhile, several of these economies have