Hayek Order

Friday, July 23, 2010

Distance dream of free trade with our lost neighbour

There is no doubt that it is much easier for a communist-party controlled government like China’s to sign FTAs than it is for a democratic government like India’s. The Indian government, almost by definition, has to be more sensitive to public opinion and negotiate its way carefully taking into account special domestic interests, that may be opposed to FTAs. The reason why India took a longer time to conclude its FTA with ASEAN was because of the Indian farm sector’s protest over products such as fish, rubber and palm oil. India may never be able to catch up with China but it can at least start moving in the direction of significantly improving its ties with its neighbours.

Chandra at 7:47 PM

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