Trade liberalisation under wto, Macroeconomics

TRADE LIBERALISATION UNDER WTO:

In  the Uruguay Round negotiations, India agreed to reduce tariff on a  large number of  commodities and  remove quantitative restrictions (QRs) on  all, except for about 600 commodities. For industrial products,  India's commitment was to bring down the average tariff rate from 71 per cent in the pre-Uruguay Round period to 32 per cent in the post-Uruguay Round era. While the 1991 reforms removed QRs on most manufactured intermediate and capital goods, there was little change in the import policy for textiles and clothing. The imports of  these products remained practically  banned. Thesituation began  to change substantially  in December  1994 when  in separatetreaties with the EU and  the USA, India agreed to a comprehensive  liberalisationof  import policies for textiles. This liberalisation in  imports of textiles wasagreed  to  in part  as quid pro quo  for the ATC  (Agreement on Textiles and Clothing) to phase out the MFA quotas, and in part in exchange  for increasedMFA quotas in the US and EU markets. The reform process started in  1995with the removal of QRs on imports of wool tops, synthetic fibers, textile yarnand  some selected industrial fabrics. It was also agreed that these productswould be free from import licensing altogether at specified future  dates (1 998,2000 or 2002), and tariff rates would be reduced to levels between 20 and 40percent by 2000.  

Turning now to other international agreements, India had used the balance of payments provision given in GATT (Article VIII (B))  to  justify her routine use of QRs. Soon after the Uruguay Round agreements became effective India's unconstrained use of the balance of payments provision was challenged  by the US, EU and other developed countries. It became difficult for India  to justify QRs on grounds of balance of payments since there was  a  strong current account, substantial capital  inflow and  large foreign  exchange reserves. -In 1999-00,2134 items  were  subject to QRs, of which 1589 items had QRs on imports, being maintained under  the balance of payments provision. 

Posted Date: 11/9/2012 5:32:47 AM | Location : United States







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

Write discussion on Trade liberalisation under wto
Your posts are moderated
Related Questions
The price and quantity of lumber and other building materials has gone up recently. Show graphically and explain what might have caused this.

Aggregate supply Remember that labor demand provides us profit-maximizing quantity of L for a given real wage. If W/P is given (as it's in cross model), we can find profit-maxi

Consider the following macroeconomic model: Y = C + I + G + NX C = 100 + 0.8 YD I   =  300 - 1000 i NX =  195 - 0.1 Y - 100 (E.R.) E.R. =  0.75 + 5 i M  =  ( 0.8

Question: Table below shows the recent trends in terms of consumption. (a) (i) Explain what is meant by the term ‘marginal propensity to consume' (MPC) and the ‘averag


what is money multiplier? what is role , importance, advantages , disadvantages , limitations and examples of money multiplier?

distnguish betweenNational income at market price and National Income at factor cost, explain the importance of the distinction

critically analyse the ways at which the government of zimbzbwe has put in place to address unequal employment opportunities between men and women

Q. Relation between Money - wealth and income? Money isn't the same as wealth. An individual may be very wealthy however have no money (for instance by owning stocks and real e

Shambles have selected the "Mythical Beasts" range and decided to concentrate on "Pegasus" and "Phoenix." They would now like to find the right mix of these two products in order