Wednesday, December 24, 2008

Some people, mainly debaters in NCFCA, have taken the position that the U.S. should institute a Free Trade Agreement (FTA) with India. They give the reasons that we need this FTA and they say that the only reason it is not going through now is that India has problems with agricultural parts of the deal. The proposition is simple; pass the FTA with out the agricultural section. But I would argue it is not so simple, and it won't work. There are two main reasons that this plan will fail and many disadvantages to implementing a FTA with India.

The first reason that the FTA won't work is because of the incredible small impact it will have on India. With Exports increasing by just 1.14% and Imports increasing by a mere 1.84%. A US-Indo FTA is obviously not going to do any good.

The second reason is that the issue of agriculture is not the only thing hindering these FTAs. In negotiations with the EU over a FTA the issues of Intellectual Property Rights, competition, agriculture, public procurement, market access and transparency were all hindrances, not just agriculture.

Disadvantages of this plan include, an increase in the sex trade, economic meltdown, increased environmental impact and promotion of international crime. All these spurning from globalization which is a result of increased Free Trade.

Clearly now is not the time to initiate a FTA between the U.S.A. and India.

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