International-Business-Dr-R-Chandran-E-book

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International Business- Dr. R. Chandran
conditions of competition and adding to the restrictions against the low-cost
textile exports from other countries.
New rules regarding information on plants will have both agricultural and
medical implications. The Trade Related Intellectual Property Rights
Agreement (TRIPS) fiercely protects the rights of corporations but easily
allows the shared knowledge of indigenous communities to be patented by
others. When fully implemented, developing countries will lose billions of
dollars to the richer countries, as MNCs will continue to control virtually all
the patents of developing countries.
The agreement between the U.S. and China, stipulated the terms on which
China would join the WTO. This is the most significant deal between the
two countries since diplomatic relations were established more than two
decades ago. The Clinton administration hoped that this would pave the way
for Congress to now vote permanent Normal Trade Relations (NTR) (also
known as Most Favored nation), thereby giving China the same trading
privileges now enjoyed without an annual review, by almost every other
U.S. trading partner. The only other nations denied NTR status by the U.S.
are: Afghanistan, Cambodia, Cuba, Laos, North Korea, an Yugoslavia,
China has enjoyed NTR since 1980, but only by an annual vote of Congress.
Only if the U.S. Congress approves permanent NTR for China can the
November agreement be implement. WTO membership for China and
permanent NTR status will clear the way for Taiwan to join the WTO.
IMPACT OF WTO AGREEMENTS ON INDIAN BUSINESSES: AT A
GLANCE
AGREEMENTS OBJECTIVE OF
AGREEMENT
General
Agreement on
Tariffs & Trade
(GATT)
Prohibits: actions
of Govt/
organizations that
distort normal
trade;
discrimination
between member
nations and
discrimination
IMPACT ON
INDIAN
POLICY/ LAWS
India started
reforms during
GATT negotiation
period (86-94)
• Import duties
down form
peak 300% to
15%. Already
complies WTO
BUSINESS
IMPLICATIONS
Import on all
manufacturers,
traders and service
providers
• Competition to
intensify as more
imported
products finds
easy access.
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