Competition provisions in regional trade agreements: The Indian experience

Abstract

The proliferation of regional trade agreements (RTAs) is one of the defining features of the present day world trading system. This burgeoning of RTAs is accompanied by another process of “deeper integration”. Compared to the older genre of RTAs, the recent RTAs cover a wider range of obligations than those contained within the WTO framework like environmental and labour standards. Among these, competition policy is the most covered topic in recent RTAs. India is not an exception to this trend, and increasingly many Indian RTAs contain provisions relating to competition policy that impose a wide range of obligations on her. Broadly, these RTAs may be classified under three heads: (1) RTAs that contain a separate chapter on competition policy; (2) RTAs that contain obligations with regard to competition policy in the context of the service sector and (3) RTAs that contain competition related objectives. The presence of these provisions in Indian RTAs is intriguing as India was at the forefront of opposing the inclusion of competition policy within the WTO framework. Insistence by the hegemonic partner, reduced negotiating power in the bilateral context, and the give and take policy adopted during the negotiations could be some possible explanations for this change in stand. Undertaking obligations in the field of competition policy may not be in the interest of a developing country like India as it can significantly reduce the crucial industrial policy space.