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
(I am providing them below) of Module 5 before beginning this assignment.  You will have the opportunity to work through much of the assignment during the group activity for week 1


State about the international capital flow An international capital flow is defined as movement of money for the purpose of speculation or investment between countries. It inc

Steps to real wage rates to fall Wage 'stickiness' or wage inflexibility may stop the real wage rate falling to the full-employment wage rate. Stickiness or inflexibility is ca

After some consultants point out that the Acme Toy Company has two bottlenecks in its production of xylophones and yo-yos. The first is a critical grinding machine that only has 9

Q. Describe about Capital? By capital we characteristically mean manufactured goods which are used to produce other services and goods though aren't used up in the production p

i have assignment due within less than 24 hours if i submit assignment can i get it back before 24 hours?

WHAT IS THE CENTRAL PROPOSITION OF THE ORTHODOX KEYNESNIANS?

If the price of a good rises, what are people likely to do? a Substitute a less expensive good b Buy more of the good c Buy more of all goods because of added buying power d All of

In 2007, the potato chip industry in the Northwest was competitively structured and in long-run competitive equilibrium; firms were earning a normal rate of return and were competi