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

AGREEMENTS OBJECTIVE OF
AGREEMENT
1.1 Agreement
on Govt.
Procurement
reduction of
tariffs by
developed, 24%
by developing.
Min. market
access in closed
markets
• MFN &
National
Treatment on
the purchase of
goods as per
their
commitments
171
International Business- Dr. R. Chandran
IMPACT ON
INDIAN
POLICY/ LAWS
calculations
reveal it is
taxed than
subsidized).
Sets high tariffs
100% on
primary
products, 150%
on processed
food. 300% on
edible oils.
• No
commitment
regarding
market access
9being under
balance of
payment
Cover, though
disputed)
• (India is not a
party to the
agreement)
BUSINESS
IMPLICATIONS
for Indian
Agriculture
products. E.g.
closed markets as
Japan will have
to procure rice
min 3% of home
consumption
• QRs imposed by
India on variety
of agri products
could be phased
out by 2003 or
before (through
some bilateral
agreements with
Austr4alia. NZ,
EU etc. It has
already been
started
competition to
hot up.
• Govts. are large
buyers (often
purchasing 10-
15% of their
GNP) India is not
a party to the
agreement, hence
GOI could
exercise its right
to purchase from
domestic
manufacturers
even at higher
cost. This right is
to come under
Only for Private Circulation