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

Badri Narayanan and Sangeeta Khorana

No 332710, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

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.

Keywords: International Relations/Trade; Health Economics and Policy (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:332710

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