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. Agreement on State Trading Enterprises • Recommends that STEs conduct their activities commercially • WTO to be informed of 172 International Business- Dr. R. Chandran IMPACT ON INDIAN POLICY/ LAWS • Restructuring of STEs like MMTC, STC etc. Commercializa tion on of their activities BUSINESS IMPLICATIONS severe pressure in coming negotiations. If gone against, it will have ser8ious fall out on almost all domestic manufacturers supplying to Govt./PSUS. • Indian exporters of goods and services can export to the countries that signed this agreement. Only the US disallows. *Chiefly of Textiles, footwear, computer hardware & Software, telecom equipment, electrical machinery, Pharma products, agri-food products, vehicles/spares, paper/stationery etc. • Currently the agreement has limited scope. In the coming negotiations it is likely that monopoly/canali zing agency Only for Private Circulation
AGREEMENTS OBJECTIVE OF AGREEMENT 2. General Agreement on Trade in Services (GATT) 173 International Business- Dr. R. Chandran IMPACT ON INDIAN POLICY/ LAWS BUSINESS IMPLICATIONS their activities status like that of Public P0etroleum companies will • All services come under GATS (12 sectors). Require countries to ensure MFN principle, transparency, mutual recognition of qualifications etc. • Lists liberalization commitments of countries • Further negotiation by 2005 • Foreign Trade Policy incorporates services chapter for the first time; same status as to merchandise • Committed to open 10 sectors • Partial liberalization in Banking sector, Telecom sector (TRAI established in line of SEBI), insurance (IRA established) etc Also see : what is service, India the world service provider be broken. • Services constitute 45% of GDP, State monopolies in all the major sectors (banking, insurance, transport-rail etc). Liberalization in the sectors will be extremely beneficial to Indian companies in competing domestically as well as internationally. • Huge potential for export of services as accountancy, date processing & software mgmt, consultancy, legal services, feasibility studies. See also ; what is service, India the world service Only for Private Circulation
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AGREEMENTS OBJECTIVE OF<br />
AGREEMENT<br />
1. Agreement on<br />
State Trading<br />
Enterprises<br />
• Recommends<br />
that STEs<br />
conduct their<br />
activities<br />
commercially<br />
• WTO to be<br />
informed of<br />
172<br />
<strong>International</strong> <strong>Business</strong>- <strong>Dr</strong>. R. <strong>Chandran</strong><br />
IMPACT ON<br />
INDIAN<br />
POLICY/ LAWS<br />
• Restructuring<br />
of STEs like<br />
MMTC, STC<br />
etc.<br />
Commercializa<br />
tion on of their<br />
activities<br />
BUSINESS<br />
IMPLICATIONS<br />
severe pressure<br />
in coming<br />
negotiations. If<br />
gone against, it<br />
will have<br />
ser8ious fall out<br />
on almost all<br />
domestic<br />
manufacturers<br />
supplying to<br />
Govt./PSUS.<br />
• Indian exporters<br />
of goods and<br />
services can<br />
export to the<br />
countries that<br />
signed this<br />
agreement. Only<br />
the US disallows.<br />
*Chiefly of Textiles,<br />
footwear, computer<br />
hardware &<br />
Software, telecom<br />
equipment, electrical<br />
machinery, Pharma<br />
products, agri-food<br />
products,<br />
vehicles/spares,<br />
paper/stationery etc.<br />
• Currently the<br />
agreement has<br />
limited scope. In<br />
the coming<br />
negotiations it is<br />
likely that<br />
monopoly/canali<br />
zing agency<br />
Only for Private Circulation
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