The effects of regional trade agreements on the import of intermediate rubber products of India

Intermediate rubber goods are either used for production of finished rubber goods or used as a final consumer good. The intermediate rubber goods import of India are growing at a higher rate than the import of other major rubber products under the WTO regime. Regional Trade Agreements (RTAs) of India have further liberalised the import into the country. The present study is an attempt to understand whether the tariff liberalisation of India under the RTAs causes growth in import of intermediate rubber products. The study analysed all the major intermediate rubber products listed in Chapter 40 of the Harmonised System Nomenclature of the World Customs Organisation using the methodologies, such as gravity modelling and break point analysis. The study found that more than the tariff policy, the growth in the domestic economy of India is the prime reason for higher import growth of items under the intermediate rubber products into the country.