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

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
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