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

AGREEMENTS OBJECTIVE OF
AGREEMENT
between domestic
and lawfully
imported foreign
goods. Set
guidelines for
implementation of
agreements and
settlement of
disputes.
161
International Business- Dr. R. Chandran
IMPACT ON
INDIAN
POLICY/ LAWS
binding on
most tariff
lines.
• Committed to
remove all
QRs
(Quantitative
Restrictions)
by 2003* i.e.
import
restrictions/
licenses to go.
• Committed to
create freer
trade regime as
per GATT
agreement;
already
amended host
of legislation,
more to follow
*India’s plan of
phasing our QRs
(chiefly
restrictions in
import through
negative lists) is
contested by US.
Recently WTO
panel
recommendations
have gone against
India, i.e. it could
mean early phase
out, even before
2003. It will affect
BUSINESS
IMPLICATIONS
Around half of
the products
reserved for
Small Industries
already in OGL.
Removal of QRs
set to further
accelerate import
of all products.
• WTO led
external
liberalisation
speedily done;
Half baked
internal
liberalization to
hurt domestic
industries’
competitiveness
severely;
industry suffers
from poor
infrastructure,
absence of VAT,
obsolete labour
laws, lack of
coordination
among ministries
and nonavailability
of
economical,
quality services-
Banking,
Insurance, inland
transport etc.
Only for Private Circulation