Tariffs and non-tariff barriers, Macroeconomics

Tariffs and Non-tariff Barriers

A significant aspect of the trade reforms of the 1990s was the reduction in the then prevailing very high import duties (over 300 percent in some cases). Since then, the peak rate has come down progressively from 150 percent in 199 1-92" to 25 percent in 2003-04 and 15 percent in 2005-06 in case of non-farm goods.

The government is committed to reducing tariffs to the levels comparable with those prevailing in East Asian countries in the near future. For instance, the weighted average import duties on various goods even though reduced from the earlier high levels are still higher in India from those of some of East Asian countries.

As against 28.5 percent of weighted average duty in India in 2000, China had 14.7 percent; Philippines, 3.8 percent; Thailand, 10.1 percent in the same year. More so, additional customs duty in India seems to continue on products that attract very low basic duty. But products covered by Information Technology Agreement attract only 4 percent tax.

The most common NTBs are the restrictions or prohibitions on imports maintained through import licensing requirements. Having been mostly justified on BOP basis, 80 percent of tariff lines were subject to some form of import licensing restrictions in mid-1990s. India started removing these restrictions since 1996 and virtually there are no such restrictions any more. As a result, the share of unrestricted product a under imports increased to more than 95 percent in 2003 from about 61 percent in 1996. The remaining 5 percent of tariff lines are permissible under Articles XX and XXI of GATT on the grounds of health, safety, moral conduct and essential security. More so, the proportion of canalised items in total imports in value terms declined from 27 percent to 19 percent between 1988-89  and 1997-98.

 

 

Posted Date: 11/9/2012 4:36:50 AM | Location : United States







Related Discussions:- Tariffs and non-tariff barriers, Assignment Help, Ask Question on Tariffs and non-tariff barriers, Get Answer, Expert's Help, Tariffs and non-tariff barriers Discussions

Write discussion on Tariffs and non-tariff barriers
Your posts are moderated
Related Questions
In 2010, Forbes magazine listed Bill Gates, the founder of Microsoft, as the richest person in the United States. His personal wealth was estimated to be $53 billion. If there were

Differentiate economic growth and economic development. Economic growth is a raise into real GDP. GDP is only one dimension of development and therefore is a narrow measure of

Q. Illustrate the Says Law? With Say's Law, aggregate demand would always be equal to aggregate supply and cross model would be incorrect.  Keynes's argument as to why Say's

What are the potential disadvantages of growth? The potential disadvantages of growth are as follows: • Raised pollution, • Depletion of non renewable natural resources

Until recently you worked as an accountant, earning $30,000 annually. Then you inherited a piece of commercial real estate bringing in $12,000 in rent annually. You decided to leav

The annual income from an apartment complex is $20,664. The annual expense is estimated to be $3,414. The apartment complex could be sold for $146,499 at the end of 10 years. If yo

Oil price shocks lead to large adverse supply shocks in the macroeconomy, infer Dornbusch et al (2008) who define an adverse supply shock as; ‘one that shifts the aggregate supply

A sample of 60 mutual funds was taken and the mean return in the sample was 13% with a standard deviation of 6.9%. The return on a particular index of stocks (against which the mut

how do I calculate the chained dollar method for real gdp

Explain the meaning of a production possibilities curve