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Mega-­Regional Trade Agreements: Implications or Public Health in Developing Countries

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  • Narayanan, Badri
  • Khorana, Sangeeta

Abstract

This paper employs dynamic GTAP (GDyn) model to firstly, examine the effects of TPP and TTIP on production, consumption, prices and trade of ‘harmful’ products, i.e. sugar and tobacco, over 2015-2030. Secondly, to assess the costs as a result of imposing stringent IP rules across the world following commitments under these megaregional agreements. The analysis focus primarily on developing countries, mainly India and China, which are the two most populous countries. Results indicate that there are health consequences of commitments under mega regionals in that firstly, there is notable expansion in the production of sugar (about 0.3% per year) due to trade liberalisation; secondly, while stricter IP rules are likely to lead to net global gains in terms of gross domestic product (GDP), poorer countries suffer implying that even without accounting for the ‘health justice’ argument about allowing access to medicines stricter IP rules are likely to work against the poorer countries.

Suggested Citation

  • Narayanan, Badri & Khorana, Sangeeta, 2016. "Mega-­Regional Trade Agreements: Implications or Public Health in Developing Countries," Conference papers 332710, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332710
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    File URL: https://ageconsearch.umn.edu/record/332710/files/7910.pdf
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    References listed on IDEAS

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    1. Taiji Hagiwara & Yoichi Matsubayashi, 2014. "Capital Accumulation, Vintage and Productivity: The Japanese Experience," Discussion Papers 1418, Graduate School of Economics, Kobe University.
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    1. Badri G. Narayanan & Sangeeta Khorana, 2017. "Mega-regional trade Agreements: Costly distractions for developing countries?," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 6(1), pages 1-18, December.

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