International-Business-Dr-R-Chandran-E-book
International-Business-Dr-R-Chandran-E-book International-Business-Dr-R-Chandran-E-book
AGREEMENTS OBJECTIVE OF AGREEMENT 1.h. Agreement on Safeguard Measures 1.i. Agreement on Antidumping Measures (ADP) • Allows countries to take action against undue import surge injurious to domestic manufacturers during the transition period • Allow countries to take measures against imported goods benefiting from ‘unfair trade 168 International Business- Dr. R. Chandran IMPACT ON INDIAN POLICY/ LAWS • The required system is put in place in Commerce Ministry • Directorate of Anti-Dumping established in Commerce Ministry • Anti-dumping duties already BUSINESS IMPLICATIONS on import sensitive products (textiles, leather products etc.) can be maintained by importing countries. • If undue spurt in imports causing ‘injury’ to domestic manufacturers, measures can be taken during the transition period (initially for 4 years extendable upto 10 years. From Jan’95) through raising duties (beyond bound rates) or by imposing QRs; for new as well as for development of existing industries. • Most important for domestic manufactures. A number of sectors have been hurt by ‘unfair import’ Only for Private Circulation
AGREEMENTS OBJECTIVE OF AGREEMENT 1.j Trade Related Investment Measures (TRIMS) 1.k. Market Access Negotiations 169 International Business- Dr. R. Chandran IMPACT ON INDIAN POLICY/ LAWS practices’. been imposed in more than 30 cases, provisional duties on few • Also see : Is you industry hurt by excess import • Currently prohibits countries form imposing 5 types of investment conditions on investors • Different negotiations are taking place with developed countries and developing countries by • Direct impact on Govt’s FOREX & Industrial policies. Foreign investment permissions. • Reduced duties on most tariff lines successively to comply with the agreement • Peak rate of BUSINESS IMPLICATIONS • Actions have been taken against such import in many cases. Mostly large units have been operating in these sectors. No action so far for those sectors hurt, in which small businesses are predominant because of their ignorance • Currently 5 types of TRIMS (investment conditions) are prohibited out of 24 already identified. Issue comes up again in year 2000 • Allows export performance requirement, majority stakes for locals etc. • Massive increase in competition for domestic manufacturers • The reduction in duties in developed Only for Private Circulation
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AGREEMENTS OBJECTIVE OF<br />
AGREEMENT<br />
1.h. Agreement<br />
on Safeguard<br />
Measures<br />
1.i. Agreement<br />
on Antidumping<br />
Measures (ADP)<br />
• Allows<br />
countries to take<br />
action against<br />
undue import<br />
surge injurious<br />
to domestic<br />
manufacturers<br />
during the<br />
transition period<br />
• Allow countries<br />
to take<br />
measures<br />
against<br />
imported goods<br />
benefiting from<br />
‘unfair trade<br />
168<br />
<strong>International</strong> <strong>Business</strong>- <strong>Dr</strong>. R. <strong>Chandran</strong><br />
IMPACT ON<br />
INDIAN<br />
POLICY/ LAWS<br />
• The required<br />
system is put in<br />
place in<br />
Commerce<br />
Ministry<br />
• Directorate of<br />
Anti-Dumping<br />
established in<br />
Commerce<br />
Ministry<br />
• Anti-dumping<br />
duties already<br />
BUSINESS<br />
IMPLICATIONS<br />
on import<br />
sensitive<br />
products<br />
(textiles, leather<br />
products etc.) can<br />
be maintained by<br />
importing<br />
countries.<br />
• If undue spurt in<br />
imports causing<br />
‘injury’ to<br />
domestic<br />
manufacturers,<br />
measures can be<br />
taken during the<br />
transition period<br />
(initially for 4<br />
years extendable<br />
upto 10 years.<br />
From Jan’95)<br />
through raising<br />
duties (beyond<br />
bound rates) or<br />
by imposing<br />
QRs; for new as<br />
well as for<br />
development of<br />
existing<br />
industries.<br />
• Most important<br />
for domestic<br />
manufactures. A<br />
number of<br />
sectors have been<br />
hurt by ‘unfair<br />
import’<br />
Only for Private Circulation
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