LONDON, INTERNATIONAL POLICY NETWORK — This week India and South Korea sign an agreement that they say will reduce barriers and boost trade between our two important economies. But the reality of the Comprehensive Economic Partnership (CEPA) is in the fine print.
By signing a free trade agreement that does not actually free trade, our governments are denying us the best tools to fight the recession. They admit as much by saying it will pave the way to removing more barriers to commerce in the future, even though this agreement has been in the works for over three years.
At least it is a step in the right direction. With the World Trade Organization talks of the Doha Round in a coma, both governments are right to seek other ways to boost trade. But both governments are being far too timid by pursuing trade accords that won't boost trade much at all, such as South Korea's recent free trade agreement with the European Union and one that India is seeking with the 10-member Association of Southeast Asian Nations.