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

AGREEMENTS OBJECTIVE OF
AGREEMENT
(a) Agreement on
Textiles &
Clothing
(b) Agreement on
Agriculture
keeping low
tariff rate in
mind.
• Multi Fibre
Agreements and
other QRs
usually imposed
by developed
countries to be
phased out by
year 2005 (in 4
phases)
• The subsidies
on agriculture to
be removed and
converted in
‘tariffs’; 36%
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International Business- Dr. R. Chandran
IMPACT ON
INDIAN
POLICY/ LAWS
duty is down
from 300% to
15% for goods
and services
except luxury
items.
• (Impact on
Textiles/
Garments
Export)
Also see : Impact
of act on Indian
textile
• No obligation
of India to
reduce subsidy
given to
farmers (AMS
BUSINESS
IMPLICATIONS
countries not to
have much
impact, these
have already
been very low.
The actual
benefit for India
will come from
removal of QRs
in these countries
• Opportunity:
Important
development for
textiles/
Garments
Exports from
India. Quotas
will be phased
out in 2005.
• Threat: the level
of competition
will be manifold.
• Countries
imposing quotas
authorized to
take safeguard
measures.
Punitive actions
already taken
against India in
few cases
• Removal of
distortions like
high subsidies
and QRs will
expand market
Only for Private Circulation