Abstract:
In this paper an attempt has been made to assess the impact of
selected multilateral and bilateral trade agreements/relations on tea trade
direction, with focus on India’s tea trade direction. And identify how
such trade agreements are affecting the efficient supplier in global tea
trade. Assessment has been made in terms of trade creation and diversion
effect of multilateral and bilateral trade agreements/relations. The
available literature on the subject shows that increase in tea export
supply of Kenya and Vietnam, stagnant in tea import in traditional tea
importing countries such as U.K, aggressive marketing strategy by Kenya
and Vietnam and decline in India’s global tea competitiveness are
responsible factors for India’s poor performance of its tea exports.
However, the present study assumes that there are hardly any study who
attributed to the role of new global trade policy such as establishment
of WTO, Regional Trade Agreements (RTAs) and bilateral trade policies,
which also influe the direction of tea trade and export performance. In
this context, the present study considers the role of trade policy on
direction of tea trade and export performance. The study points out,
such trade agreements/relations among the major tea exporting and
importing countries have been diverting global tea trade in general
and India’s tea trade in particular and affected the efficient tea supplier
such as India in the global tea market. Such developments made the
India to search for new market for its tea exports. Such developments
would be difficult for small developing nations to search for new
markets. In India, tea is mainly produced by small growers. In such a
global trade environment, riddled by complex preferences, the
exporters, particularly traditional commodity exporters, may find it
difficult to seek for new markets and adjust with new markets. It is
important on the part of state to keep track on such trade integration
among the nations of the world and assist small growers.
