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

Definition of exchange rate, Definition of Exchange rate The exchange r...

Definition of Exchange rate The exchange rate is stated as the price of one unit of currency in terms of other currency. If one euro costs 1.5 USD then 1 USD costs 1/1.5 = 0.66

Difference between sampling error and standard error, Which is not true of ...

Which is not true of the difference between sampling error and standard error? a. Standard error is a difference from the population. b. Sampling error can't usually be calcula

Perfectly competitive firm, Consider the following demand schedule. Does it...

Consider the following demand schedule. Does it apply to a perfectly competitive firm? Compute marginal and average revenue Price Quantity Price Quantity $95 2 $55 5 $88 3 $40 6 $

Neoclassical view, Roles of government in controlling market forces under n...

Roles of government in controlling market forces under neoclassical view

Draw a typical frap curve and explain its different regions, 1. Describe th...

1. Describe the process of diffusion in cells (not more than 2 pages). 2. Derive the equation for Fick's second law. 3. Draw a typical FRAP curve and explain its different re

Solow model, Q1. The poorest countries in the world have a per capita incom...

Q1. The poorest countries in the world have a per capita income of about $600 today. We can reasonably assume that it is nearly impossible to live on an income below half this leve

#title. phillip curve, what does phillip curve signify? how do you reconcil...

what does phillip curve signify? how do you reconcile the difference in the shap of the curve in the short run and the long run?

What are the profit-maximizing levels, Suppose Zippy's Banana Juice can pro...

Suppose Zippy's Banana Juice can produce according the following long-run production function. Q = 5 L 2 + 20 K - 0.4 K 2 where Q is gallons of juice per hour, L is labor hours,

Graph the industry demand and supply, Construct two graphs that exhibit equ...

Construct two graphs that exhibit equilibrium in the petrol market - assume that there are no taxes. Clearly label the equilibrium values. (a) Graph the AFC, AVC, ATC, and MC fu

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