India-ASEAN Free Trade Agreement: A Sectoral Analysis

Does Trade Liberalization Improve Public Health? The Effect of Free Trade Agreements and Multilateralism in Pharmaceutical Sector in India

“…33(p8) –35 Moreover, the CGE model cannot handle disaggregated data, while a partial equilibrium model like the SMART allows evaluating impacts of an FTA at a much-disaggregated product level. 36 One special advantage of the SMART model is that it allows quantifying impacts of tariff policy changes in a single market on trade flows, tariff revenue, trade creation effect, trade diversion effect, and social welfare of a nation detailed at HS 6-digit products. 36(p8) –39 Inference from results of the SMART simulation can also be good policy implications for both governments and enterprises in a given industry to prepare them for trade liberalization under an FTA.…”

“…36 One special advantage of the SMART model is that it allows quantifying impacts of tariff policy changes in a single market on trade flows, tariff revenue, trade creation effect, trade diversion effect, and social welfare of a nation detailed at HS 6-digit products. 36(p8) –39 Inference from results of the SMART simulation can also be good policy implications for both governments and enterprises in a given industry to prepare them for trade liberalization under an FTA. As this article aims at estimating impacts of the FTA on trade flows and social welfare, partial equilibrium through the SMART model, therefore, is the most suitable choice for analysis.…”

The potential impacts of the EVFTA on Vietnam’s imports of dairy products from the EU: a SMART model analysis

“…The second method, which is grounded in microeconomic theory, enables an evaluation of the economic e ects of an FTA in an individual market. Its main strength is the ability to quantify changes in trade ows, tari revenue, and economic welfare resulting from an FTA in a speci c market at the most disaggregated level (Cheong, 2010;Ahmed, 2010) thus it is useful for policymakers focusing on a single commodity. Nevertheless, as being a partial equilibrium model with a focus on only one market, SMART does not account for the indirect e ects of trade policy changes in other markets or the impacts on related industries.…”

Reassessing the Impact of the ASEAN-India Free Trade Agreement

“…Based on trade specialization and trade intensity indicators, Ohlan (2012) found that India is less competitive than ASEAN and by implication; the agreement may not benefi t India, unless the country enhances its competitiveness. The SMART and gravity models were used by Veeramani and Saini (2010), Ahmed (2010), and Mondal et al (2012) to measure the trade and welfare impact of the FTA. Specifi cally, the fi ndings of Veeramani and Saini support the negative trade impact of the agreement on India's plantation commodities, although a net welfare gain is obtained as the gain in consumer surplus outweighed the loss in tariff revenue.…”

“…ASEAN, on the other hand, would not be able to gain much in terms of its dairy exports to India, as India has kept most of the dairy product tariff lines in its exclusion list. Ahmed (2010) used both the Global Trade Analysis Project (GTAP) and SMART models to examine the welfare and trade impact of the agreement. His main fi ndings indicate welfare gains for both India and ASEAN, although the terms of trade for India will deteriorate.…”