ABSTRACT
This chapter discusses the gainers and losers as a result of tariff liberal-isation using a computable general equilibrium model called the GTAP model. Indian suppliers can substantially increase their exports to the European Union (EU) in response to any meaningful trade concessions. On the other side, EU suppliers may also gain significant market access to the Indian market as India has high tariff protection on a range of products. The High Level Trade Group recommended that under any possible future Free Trade Agreement, the ambition shall be to achieve elimination of duties on 90 per cent of tariff lines and trade volume within 7 years of the entry into force of the agreement. Economic theory suggests that the most desirable trading bloc is one that is the most trade-creating, and that bloc is global which is expected to be materialised if free, transparent and non-distorting trade flows of goods and services take place under WTO rule-based regime.
