Article I of the General Agreement on Tariffs and Trade (“GATT”) provides for the principle of the Most Favored Nation (“MFN”). Under the principle of MFN, Member Countries of the World Trade Organization (“WTO”) must accord uniform and similar treatment to all other Member Countries. An exception to this principle is found in Article XXIV of the GATT, which allows two or more Member Countries to extend tariff concessions to one another which they do not extend to other members, by entering into Free Trade Agreements (“FTA”)/ Regional Trade Agreements (“RTA”). RTAs have risen in number over the years- as of 1st September 2019, 302 RTAs between Member Countries are in force.
India has notified 15 RTAs as of date, while several negotiations are in the pipeline. The following Indian RTAs are in force:
India is currently negotiating FTAs with European Free Trade Agreement (“EFTA”), EU, Australia, and New Zealand, among others. India was also a negotiating partner in the mega regional agreement (yet to be concluded)- the Regional Comprehensive Economic Partnership (“RCEP”). However, it seems India has taken a step back in the negotiations, due to a failure of the final texts to tackle its trade concerns. With the changing global landscape, India has been moving towards a more protectionist form of trade governance. As per WTO data, the average applied MFN tariff rate for India is 17.1%, and the trade-weighted average rate is 11.7%1, which is much higher than its counter-parts. Further, only 9.8% of the imports are MFN duty-free.2 On the other hand, the duty-free imports under the various FTAs signed by India constitute a substantial part of the total imports into India, which has been widely contended a serious set-back for the domestic industry in India.
Bu hikaye Legal Era dergisinin December 2019 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Legal Era dergisinin December 2019 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
If You Think Positive Covid Is A Big Opportunity
Senior Vice President and Head of Legal, ESSAR CAPITAL, Badrinath Durvasula, holds forth on his professional journey, the essence of leadership, working from home, books and more…
PROJECT DEVELOPMENT
JOINT VENTURE TRANSACTIONS
NEW ARBITRATION RULES
PUBLISHED BY THE LONDON COURT OF INTERNATIONAL ARBITRATION (LCIA) AND INTERNATIONAL CHAMBER OF COMMERCE (ICC)
M&A in the time of COVID and beyond
What is clear for those engaging in cross-border M&A is that countries around the world are becoming increasingly protective of their economies and industries, with new rules being introduced and existing rules being more widely applied
SWITZERLAND A DIFFERENTIATED APPROACH TO FRAUD
Swiss law interprets the offense of fraud in a special way where in addition to the characteristics of deception and damage as known in many jurisdictions, a qualified lie, i.e. a malicious approach, is required
JOINT VENTURE DISPUTES MEDIATING
Mediation has shown itself to be a powerful tool for bringing a speedy and effective end to crossborder disputes while preserving the commercial relationship between them.
Recognition of HONG KONG INSOLVENCY PROCEEDINGS IN MAINLAND CHINA
A TEST CASE IN THE MAKING?
CONFIDENTIALITY IN ARBITRATION: RECENT DEVELOPMENTS IN SINGAPORE
Two recent developments in Singapore case law and legislation reflect a willingness to preserve confidentiality related obligations in all arbitrations
ESSENTIAL GOODS SERVICES UNDER IBC
WHAT DOES IT ESSENTIALLY MEAN?
A BIDEN ADMINISTRATION'S NEW VISION FOR THE AMERICAN WORKPLACE
A LOOK AT THE KEY CHANGES PRESIDENT-ELECT BIDEN IS LIKELY TO MAKE ONCE HE TAKES OFFICE
