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Indo-US FTA: Prospects for the Telecommunication Sector

Author

Listed:
  • Arpita Mukherjee

    (Indian Council for Research on International Economic Relations)

  • Prerna Ahuja

    (Indian Council for Research on International Economic Relations)

Abstract
Since telecommunication is one of the main drivers of economic growth and globalization, WTO (World Trade Organization) negotiations and New Age FTAs (Free Trade Agreements) have focused on liberalizing trade in this sector. The present paper analyses the possibilities of liberalizing trade in telecommunication services if India and its largest trading partner-the US-enter into a bilateral agreement. The study found that India and the US have trade complementarities in telecommunication services and that it should be a priority sector in the FTA negotiations. The study identified certain areas such as R&D related to telecommunication and broadband infrastructure where collaboration between companies of both countries would be mutually beneficial. The study found that telecommunication services have been significantly liberalized in the US FTAs-much beyond the scope of the GATS and the Reference Paper on Basic Telecommunications. While the current policy regime in India is consistent with some of the requests made by the US in its bilateral negotiations, for meeting others, the policy regime needs to be examined and, if required, reformed. The present paper suggests certain reforms which would enhance the productivity, efficiency and global competitiveness of the sector and enable the country to benefit from the bilateral liberalization.

Suggested Citation

  • Arpita Mukherjee & Prerna Ahuja, 2006. "Indo-US FTA: Prospects for the Telecommunication Sector," Indian Council for Research on International Economic Relations, New Delhi Working Papers 190, Indian Council for Research on International Economic Relations, New Delhi, India.
    • Handle: RePEc:ind:icrier:190
    as

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    File URL: http://www.icrier.org/pdf/workingPaperNo190.pdf
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    References listed on IDEAS

    as
    1. Arvind Virmani, 2004. "Economic reforms: Policy and institutions some lessons from Indian reforms," Indian Council for Research on International Economic Relations, New Delhi Working Papers 121, Indian Council for Research on International Economic Relations, New Delhi, India.
    2. World Bank, 2006. "World Development Indicators 2006," World Bank Publications - Books, The World Bank Group, number 8151.
    3. Debjani Ganguly, 2005. "Barriers to movement of natural persons: A study of Federal, State and Sector-specific restrictions to mode 4 in the United States of America," Indian Council for Research on International Economic Relations, New Delhi Working Papers 169, Indian Council for Research on International Economic Relations, New Delhi, India.
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    More about this item

    Keywords

    Indo-US FTA; GATS; bilateral agreements; telecommunication; services;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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