Tariff reform - trade liberalisation under wto, Macroeconomics

Tariff Reform:

India's customs tariff rates have been declining since 1991. The "peak"  rate came down from 150 percent in 1991-92 to  40 percent  in 1997-98. The downward momentum was reversed the next year with the .imposition of a surcharge. This momentum resumed with the reduction of the "peak"  rate to 35 percent in 2001 -02 and 30  percent in 2002-03. "Peak"  rate (applicable to all manufactured  and mineral products except alcoholic  beverages  and automobiles) was reduced to 20 percent  at the end of 2003-04. It  is therefore quite evident that India has drastically reduced the level of tariff, particularly industrial  tariff, in the period since 1991. Many research studies have argued that this reduction should not, however, be attributed to India's commitment under WTO because the tariff rates have in most cases been brought down to a level well below  the rates committed. It  seems reasonable  to argue that  the tariff  reform undertaken by India in the last 14  years was mostly done at India's own initiative (induced by the benefits expected from such reforms) and had little  to do with India's commitment under WTO. 

Similarly many researchers have studied the impact of India's trade reforms, particularly tariff reforms, on domestic industry. It appears that tariff reforms did not lead  to  a general  surge  in  imports of  industrial  goods adversely affecting domestic  industry. On  the  other hand,  there  is  some evidence  to indicate that  tariff reform contributed  to  higher industrial productivity and better export performance. But, these effects however, cannot be ascribed to India's tariff commitments  under WTO, since the tariff  reform took place largely independent of the WTO.  

 

Posted Date: 11/9/2012 5:34:23 AM | Location : United States







Related Discussions:- Tariff reform - trade liberalisation under wto, Assignment Help, Ask Question on Tariff reform - trade liberalisation under wto, Get Answer, Expert's Help, Tariff reform - trade liberalisation under wto Discussions

Write discussion on Tariff reform - trade liberalisation under wto
Your posts are moderated
Related Questions
The Stop decay company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per month over the past year. Recently, its closest competitor, Decay fighter, redu

From stock and Watson 3rd edition introduction to econometrics Using the data set Teaching Ratings described, carry out the following exercises. a) Run a regression of Course

You win a lottery. You have the choice of two ways to be paid. If you pick Payout Scheme X, you get $2,750 today. If you pick Payout Scheme Y, you get three payments: $1,000 today,


The aim of this task is to explore the effects of a supply shock on a firm and thereby on the industry. Suppose that war breaks out in the Middle East, where a considerable portion

The IS-curve in the AS-AD model The IS-curve is not affected by P in the AS-AD model We can define an IS-curve in the AS-AD model similarly to

Explain production as an income generating activity. What are the principal difference among government purchases of goods & service and transfer payments? Why are in

Money is anything which is acceptable in settlement of a debt. But, paradoxically, the main asset used to settle debts in modern economies is other debts. After all, bank deposits

The total cost C of producing x units of some commodity is a linear function. Records show that on one occasion, 100 units were made at a total cost of $200, and on another occasio

I am writing a research paper for my macroeconomics class and I am having trouble with it. I am writing on the topic of the monetary policy and i can''t seem to understand a few th