Trade liberalisation under wto, Macroeconomics

Assignment Help:

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. 


Related Discussions:- Trade liberalisation under wto

Break-even level of income, Assume that when an economy has a GDP of $500, ...

Assume that when an economy has a GDP of $500, Consumption is $550. The MPC is .75. Investment is 25. Begin the problem by setting up an Income/Consumption Schedule like the one on

Checkijaskfd, kajfasklfasklfj laksflaskfads

kajfasklfasklfj laksflaskfads

Advantage and disadvantage of reducing dependence, What are the pros and co...

What are the pros and cons of reducing dependence on outsourcing in order to fulfill social obligations toward stakeholders?

What do you mean by multiplier effect, Q. What do you mean by multiplier ef...

Q. What do you mean by multiplier effect? Loans and deposits in banks give rise to a significant multiplier effect. We use a simple instance to explain this effect. Consider th

Elasticity of demand questions need to be done in graphs, To really underst...

To really understand it, compute the following price elasticities of demand: ·          The price of a laptop increases by 20% and there is a 40% drop in the quantity dem

Perfect competition, c) Explain why perfectly competitive markets lead to a...

c) Explain why perfectly competitive markets lead to an allocatively efficient allocation of resources in the long run

Lag length criteria, In order to estimate aVAR, alag length must be used in...

In order to estimate aVAR, alag length must be used in the estimation. There are many different criteria which can be used to signal the ideal lag length to use.Asteriou & Hall (20

5 key pieces of data, Review the Federal Reserve Board website. Identify at...

Review the Federal Reserve Board website. Identify at least five key pieces of data (links) you would use in microeconomic decision making on the Web site, and tell what data that

Balance of trade, Balance of T rade A country's present accoun...

Balance of T rade A country's present account reflects a money drain when exports exceed imports. The net distinction in-between the dollar value of a world imports an

Keynesian cross in an open economy, why does the price level not enter desi...

why does the price level not enter desire consumption, investment and net exports of the desired aggregate expenditure function in the keynesian cross model

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd