World trade organization

 Governments of the member countries of GATT (GENERAL AGREEMENT ON TAFIFFS AND TRADE) concluded the Uruguay round negotiations on the 15th December, 1994.  The ministers expressed their political support to the outcome of the meeting by signing the final act in Marrakesh, Morocco on the 15th April 1994.  According to Marrakesh declaration, the results of the Uruguay round would, “ strengthen the world economy and lead to more trade, investment, employment and income growth throughout the world.  To implement the final act of Uruguay round agreement of GATT the world trade organization (WTO) was established on January 1, 1995.  WTO‟s membership increased from 104 as on 1st January 1995 to 151 as on 27th July 2007.

 Objectives of WTO:  Promote trade flows by encouraging nations to adopt nondiscriminatory (fair, equal ) and predictable trade policies.  Raising standard of living and incomes.  Promoting full employment, expanding production and trade, and optimum utilization of world‟s resources.  Introduce sustainable development – a concept which envisage (visualize, picture) that development and environment can go together.  To ensure that developing countries, especially the least developed ones, secure a better share of growth in world trade.  Establish procedures for resolving trade disputes among members.

 Functions of WTO:  Administering and implementing the multilateral trade agreement, which together make up the WTO.  Acting as a forum (meeting, discussion) for multilateral trade negotiations.  Seeking (in search of, looking for) to resolve trade disputes.  Overseeing (supervision, control) national trade policies.  Cooperating with other international institutions involved in global economic policy-making.  Maintaining trade related database.  Acting as a watchdog of international trade, constantly examining the trade regimes of individual members.  Acting as a management consultant for world trade.  Experts on the panel of WTO scan the world economic environment, and make observations on contemporary issues.  Technical assistance and training for developing countries.  WTO does not aim at economic or political integration, but seeks to promote free trade among member countries.

 Difference between GATT and WTO:
GATT It is a set of rules and multilateral agreement WTO It is a permanent institution

It was designed with an attempt to establish It is established to service its own purpose international trade organization It was applied on a provisional basis Its activities are full and permanent

Its rules are applicable to trade in merchandise goods

Its rules are applicable to trade in merchandise and trade in services and trade in related aspects of intellectual property
Its agreements are almost multilateral

GATT was originally a multilateral instrument, but plurilateral agreements were added at a later stage. Its dispute settlement system was not faster and automatic

Its dispute settlement system is fast and automatic.

Principles of World Trade Organization
 Transparency:  Obligating members to publish their respective laws, judicial decisions, administrative ruling , valuation of products for customs, rates of duty, taxes, transportation, insurance and warehousing with objective of enabling governments and traders to become familiar with them.  WTO conducts periodic review of trade policies of member countries to promote transparency in their trade policies.  MFN treatment: (Most Favoured Nation)  That every member country lowers a trade barrier or open up a market, it needs to extend the benefits to all trading partners.  Member country shall not discriminate between its trading partners – all members countries are granted “ most favoured nation” or MFN status.

 National treatment: Non-discrimination within a country:  Implies that imported and locally-produced goods should be treated equally. financial – which they can employ to produce goods and services for their domestic market or to compete overseas.  Member countries can protect domestic industry through tariff.  Dismantling trade barriers:  Physical restrictions on the import and export of goods are prohibited under GATT.  WTO is not a „free trade‟ institution. natural. Trade ensures optimum utilization of resources. .  All countries including the poorest have assets – human.  Free trade principle: optimal utilization of resources:  Lowering trade barriers is the best way of promoting trade. It permits tariffs and other forms of protection but only in limited circumstances. industrial.

the WTO adjudicate (pass judgment. rearrangement) of obligations.. etc. . referee) on disputes between members. transfer of technology.  Treatment for LCDs: ( least developed countries)  Recognizes the need for positive policies efforts to help developing countries reap the benefits of trade liberalization.  Through its automatic and speedier disputes settlement mechanism.  Concessions include waiver or deferral (delay. Rule –based trading system:  WTO sets and enforces rules necessary for conducting world trade fairly.  WTO agreements that stipulate trade concessions for developing and least developed countries.

animal and plant life. .  Environment protection:  Agreement on technical barriers to trade and sanitary contain provisions to protect human. Competition principle:  WTO system is designed to promote open and fair competition.  Removal or reduction of tariffs and subsidies will expose locally produced goods and services to imported ones.  „Level playing field‟ between foreign and local goods and services and this promotes competition between them. health and the environment.

 Spirit of cooperation was designed to promote economic growth and stability.  Integration.Economic Integration  Economic integration is concerned with the removal of trade barrier or impediment (hurdle. hindrance) between at least two participating nations and establishment of cooperation and coordination between them. involves the organizing of individual countries into groups that eventually abolish trade restrictions with member countries. .  Countries create business opportunities for themselves by integrating their economies in order to avoid unnecessary competition among themselves and also form other countries. also called regional trading block.

special) trading agreement:  It is merely a trading arrangement between countries rather than integration.  These are agreements between developed and developing countries and are designed primarily to support the latter countries economic development.  The tariffs are reduced between the countries or that special quotas allow preferential access for their product. Canada. such a group is called „free trade area‟.  Free trade area:  A group of countries agree to abolish all trade restrictions and barriers among or charge low rates of tariffs in carrying out international trade. .  A group of countries have a formal agreement to allow each other‟s goods and services to be traded on preferential terms.  Example . North American free trade agreement (NAFTA) comprising US. and Mexico. Preferential (privileged.

 Example . Belgium. Customs Union:  Customs unions have two basic features:  (a) the member countries abolish all the restrictions and barriers on trade among themselves or charge low rates of tariffs and  (b) they adopt a uniform commercial policy of barriers and restrictions jointly with regard to the trade with the non-member countries. France.  (c) they allow free movement of human resources and capital among the member countries.  Common market:  Common market has three basic features:  (a) the member countries abolish all the restrictions and barriers on trade among themselves or charge low rates of tariffs and  (b) they adopt a uniform commercial policy of barriers and restrictions jointly with regard to the trade with the non-member countries. the European Union consisting of six countries namely (West Germany. Netherlands and Luxembourg). . Italy.

.  Political union:  Some degree of political integration often accompanies economic integration . Economic union:  Economic union has four basic features:  (a) the member countries abolish all the restrictions and barriers on trade among themselves or charge low rates of tariffs and  (b) they adopt a uniform commercial policy of barriers and restrictions jointly with regard to the trade with the non-member countries.  (c) they allow free movement of human resources and capital among the member countries  (d) they achieve uniformity in monetary policy and fiscal policy among the member countries.  political union implies more formal political links between countries.

as a countries. Limited form of political union may exist where two or more countries share common decision-making bodies and have common policies. union) of numerous kingdom. .  The world‟s best example of a political union occurred when thirteen separate colonies operating under the Article of Confederation grew into a new country – the USA.  India. emerged after unification (merger.

 Removal of tariffs and other barriers in the trading area. industries in respective countries will concentrate on the most efficient use of resources and produce those goods that they are most efficient in producing. can reallocate resources to more efficient production. . and the importer. instead of producing the goods inefficiently at home.  Trade diversion occurs when trade is diverted from countries outside the trading area to countries inside.Impact of Integration  Trade Creation and Trade Diversion:  Trade barriers between countries are removed.  Exports can now be sold or imports bought at more reasonable rates inside the trading block. making it cheaper or easier to export to or import from these countries.  Efficient exporter can sell surplus goods abroad.

 Competition stimulates innovation.. Trade diversion may not be beneficial as trade may be diverted from a more efficient producer outside the trading area to less efficient one inside.  There will be gainers and losers from trade diversion – net gain or loss will depend on the particular circumstances.  Trade barriers come down consumers can buy goods more cheaply. wider choice. not only in the products but also in the channels of distribution. . etc.  Trade creation increase the availability of goods enabling the consumers to pick and choose.  Competition benefits consumers immensely in the form of power prices.  The longer the trading area and the higher the level of integration the more competition will be created. methods of payment. and better value for money.  Prices and competition:  Consumption effects are noticed on prices and consumer choice.

 Economies of scale:  Industries.  A common market allows factors of production to flow freely across borders. .  Lower per unit cost resulting from scale economies may then be obtained. or superior technology.  Industries . of this type and other may not be economically viable in smaller. trade –protected countries. such as steel and automobiles require large-scale production in order to obtain economies of scale in manufacturing. more skilled labour.  The formation of a trading block enlarges the market so that large-scale production is justified. the firm may have access to cheaper capital.

drive) to improvement in efficiency.  Need to innovate promotes investment in new technology.  Market forces act as a spur (encourage. promoting the growth of businesses and decline of other. Dynamic effects of integration:  Dynamic effects describes the continues pressure for change that is a feature of an integrated competitive environment. the development of new technology and products and the elimination of old. . and product design.  Search for success is ongoing. and continual innovation. increase in investment.  The dynamic effect of integration brings about a more efficient allocation of resources throughout the trading block. new methods of production and distribution.

. Bangladesh.SOUTH ASIAN ASSOCIATION FOR REGIONAL CO-OPERATION (SAARC)  Successful performance of European Economic Community (EEC) . Bhutan. the Maldives and Sri Lanka established SAARC on December 8th 1985. incomes and living standards of the people of the region gave impetus (force. North American Free Trade Agreement (NAFTA) and other trade blocks in the economic development of the member countries and in improving the employment opportunities. Afghanistan joined SAARC in April 2007. Pakistan. thrust) for the formation of South Asian Association for Regional Co-operation (SAARC)  India.  Objective of SAARC:  To improve the quality of life and welfare of people of member countries.

autonomy ) of the member countries jointly. and technical fields. social. socially and culturally.  To enhance the self-reliance (self sufficiency.  To extend co-operation to other trade blocks. .  To enhance the co-operation with other developing economies.  To enhance the mutual assistance among member countries in the area of economic. understanding and application of one another‟s issues.  To provide the opportunity to the people of the region to live in dignity and to exploit their potentialities. To develop the region economically. cultural. scientific.  To have unity among the member countries regarding the issues of common interest in the international forums.  To provide conducive climate for creating and enhancing mutual trust.

 It formulates policies.  Council meets twice a year and more if necessary. reviews the functioning and decides the new areas of co-operation .  Council of ministers is represented by the foreign ministers of member government. . decides the issues of general interest to the SAARC member countries. .  Council meets once in two years. establishes additional mechanism. Organization structure of SAARC:  The Council of the SAARC is the highest policy making body.  Council of ministers assisted by the standing committee. It is assisted by the council of ministers.  Council is represented by the heads of the government of the member countries.

 Functions of the standing committee include: (a) Monitoring and coordinating the programmes. Standing committee consists of foreign secretaries of member government. (d) Formulating the modalities of financing. (c) Mobilizing cooperation within and outside the region.  Standing committee meet as and when necessary and submits the report to the council of ministers.  Functions of programming committee are:  Scrutinizing the budget of the secretariat. (b) Determining inter-sectoral priorities.  Standing committee is assisted by the programming committee.  Programming committee includes the senior officials of the member government. .

 Technical committee comprise the representative of all member countries. Science and Technology .  Submitting the reports to the standing committee through the programme committee. Environment.  Monitoring and implementation the projects.  Carrying out the activities assigned by the standing committee  Analyzing the reports of the technical committee and SAARC regional centers and submitting to the standing committee. Rural Development. Tourism and Transport . Communications.  Technical committee of the SAARC include:  Agriculture. Their function include:  Formulating projects and programmes in their respective areas. Health and Population activities. Finalizing the annual schedule of the secretariat.

 Servicing the meeting of the SAARC. which is located in Nepal.  Serving as communication link between SARRC and other international forums. . All the secretarial work is done by the SAARC secretariat .  The activities of the secretariat include:  Coordinating . monitoring and implementing SAARC activities.  Secretary – General is the chief of the secretariat.  Appointed by the council of ministers on rotation basis among members for a period of three years.

 To enhance the competitive advantage of the companies operating in the USA.  NAFTA is expected to eliminate all tariff and trade barriers among these countries by 2009. This was extended to Mexico in 1994.  Free trade agreement was signed by the USA and Canada in 1989. Objective of NAFTA:  To create new business opportunities particularly in Mexico.North American Free Trade Agreement (NAFTA)  North American Free Trade Agreement (NAFTA) came into being on January 1. Canada and Mexico in wider international markets.  It comprising United States. . along with Mexico – a developing country joined together to form a trade block. Canada. 1994.

 To assist Mexico in earning additional foreign exchange to meet its foreign debt burden.  To enhance industrial development and employment throughout the region.  To improve and consolidate political relationship among member countries. . To reduce the prices of the products and services by enhancing the competition.  To provide stable and predictable political environment for the investors.  To develop industries in Mexico in order to create employment and to reduce migration from Mexico to the USA.

 Free flow of employees and business people from one member country to another.  Pollution control along the USA – Mexico border.  Protection of intellectual property rights of the NAFTA member countries.  Avoidance of re-export of the products imported by any member country from the third party.  Simplification and harmonization of product standards in all the member counties .Measures of NAFTA:  Residents of NAFTA countries can invest in any other NAFTA countries freely. .

.  NAFTA members will be able to use each other rather than Asian countries as locations for trade investment.  When it was formed NAFTA.  Many firms have established manufacturing facilities in Asian to take advantage of cheap labour and then ship products from there to the US.  Free flow of capital and human resources enables achieving equilibrium in the regional development. was seen as bold attempt to demonstrate to the world the power and ability of free trade to convert a poor country into a developing one.  NAFTA is a good example of trade diversion . Critical Appraisal:  Emergence of NAFTA enables further development of the USA and Canada and for the significant development of Mexico.

the integration may lead to massive restructuring of the economy and consequent (following. Mexico per capita income rose – which is ten times higher than the per capita income in china. Export grew. flocked (gather.  Impact of NAFTA:  One fear expressed is the loss of jobs to both US and Canada in favour of Mexico.  Mexico .  This loss stems from the increasing location of manufacturing facilities in Mexico to take advantage of low-wage labour there. collect. which is three times what India receives. subsequent) unemployment.  Economy of the country is ranked the ninth largest in the world. . desperate for relief from Asian competition . American manufactures . group) to Mexico to take advantage of wages that were a tenth of those in the US.  Foreign investment almost flooded into Mexico.

Belgium.  Joining the EU as member are (a) the country must be European country (b) it must be a democratic country. . contract) of Rome in 1957. France. allocation) on coal.  Aim of ECSC was to eliminate import duties and quotas (share.European Union (UN)  Origin of EU goes back to the European Coal and Steel Community (ECSC) which was formed with the West Germany.  It came into being on 1st January 1958. Italy. Netherlands and Luxembourg in 1952.  Treaty gave birth to European Economic Community. It is also known as European Common Market. iron ore.  Successful function of ECSC stimulated the member countries to extend this facility to all commodities by the Treaty (agreement. steel and scrap regarding the international trade among the member countries.

.  A continuous and balanced expansion . an increase in stability and accelerated (go faster.  To promote the community a harmonious development by economic activities. speed up) raising of the standard of living and closer relations between the member states belonging to it.Objectives:  EU consists of three organization (a) European Coal and Steel Community (ECSC) (b) European Economic Community (EEC) (C) European Atomic Energy Community (Euratom)  Community have its task by setting up a common market.

 Abolition of all obstacles for movement of person. services and capital among member countries. Activities of the EU:  Elimination of customs duties among member states.  Elimination of obstacles to the free flow of import and or export of goods and services among member nations.  Establishment of a common customs tariff and common commercial policy regarding countries outside the community.  Formulation of common policy in the area of agriculture and transport.  Common law to maintain competition throughout the community and to fight monopolies or illegal cartels. .  Establishment of European Investment Bank for mobilization of fresh resources and to contribute to the economic development of the community.

Committee is also called „Corper‟ .  Corper is the link between the EU and member governments.  European council consist of various committees like (a) European commission (b) Court of justice (c) Court of auditors (d) European parliament (e) Advisory committee – consists of (i) economic and social committee (ii) monetary committee .  Each member country is represented by a minister in this council.Organization of EU:  European council is the main administrative body of the EU.  A committee of permanent representatives acts as the secretariat of the council.  Member country holds the presidency of the council for sixmonthly period by rotation.

 Assistant take decision on behalf of their commissioner. .  Court of justice:  Court of justice to adjudicate disputes relating to agriculture.  Member of commission are appointed for a period of four years.  Court also adjudicate disputes between the member countries brought by the commission against the council or commission reported by a person or a company. social security for migrants among the member countries and competition policy.  Commissioner is assisted by a chief of cabinet of his country.  One or more EU policies are entrusted (hand over. assign) to each commissioner.  Executive body of the EU. European commission:  European commission assists the council.

 European Parliament:  Commission should consult the parliament before a final decision is taken.  Activities of European parliament are: (a) Provide consultations and information to the commission. Court of Auditors:  Activities of court of auditors are: (a) Auditing the European Economic Community. (b) Approve or reject the draft budget prepared by the commission. (c) Dismiss the commission. (c) Laying down improved procedures for collection of duties and levies. . (b) Monitoring the EEC‟s expenditure.

employee unions.  Monetary committee:  Committee examines the monetary problems. .  Commission appoints the members on this committee. Advisory Committee –  Economic and Social Committee:  Committee represents the activities like employers. problems of the balance of payments and suggests measures to overcome. farmers. retail traders.

subsidies are allowed to export or to encourage additional consumption among the member countries.  Reforms enabled the rich farmers to become richer. Functioning of the EU:  Common agricultural policy:  Agricultural products are free to move from one member country to other member countries.  Variable import levy is used to offset any price advantage to the importers. but the poor farmers incurred losses. .  Community supply is more than the demand.  European Economic Community (EEC) has achieved selfsufficiency in agriculture.  Imports are allowed only when the demand for a product is more than its supply.

.  European monetary union:  Started in March 1979. EEC reformed its CAP by introducing „cuts‟ in subsidies in a view to make its agriculture more competitive globally.  Exchange Rate Mechanism – helps the member countries to regulate inflation and interest rates.  Market for fresh frozen and preserved fish.  Common Fisheries Policy:  Policy can into force February 1971.  To prevent wide shifts in the value of their currencies.  Common market standards and facilities for trading among members.  This policy fails in the reality as it was based on ad hoc compromises and concessions to member countries.  Equal access to fishing areas to all the nationals of the EU countries.

 EU could not achieve its objective with regard to capital mobility. social security and taxation.  European Monetary Cooperation Fund – act as „clearing house‟ of the central banks of the member countries.  The workers and their family members can move freely from one member country to the another without any permit. .  Similar rights and obligations as the nationals have like right to work.  Factor mobility:  Formal restrictions on the movement of labour were abolished by July 1968.  Official rate of the ECU is calculated on „daily-basis‟. European Currency Unit – meant for settlement between the central banks of the member countries.

 Organization and control of the transport system within the community. Regional development policy:  To promote balanced development of the member countries by reducing disparities and by developing rapidly the backward regions. EU provides financial assistance to the backward regions of the member countries.  Common transport policy:  Removal of obstacles for having a common transport policy with a view to have common market place.  EEC fails to achieve due to infrastructure pricing. .  To achieve the objective.  Integration of transport facilities of the entire community.  Financial assistance is provided through –(a) European investment bank (b) European social fund (c) European regional development fund . entry control.

mineral resources.The Association of South-East Asian Nations (ASEAN)  The six countries namely Singapore. Philippines.  CEPT allows for tariffs cut ranging from . Thailand and Indonesia. agreed in January 1992 to establish a common effective preferential tariffs (CEPT) plan.  Member countries are rich in oil.  Strength lies is well educated and skilled human resources. Brunei. agricultural goods and modern industrial products. force) for forming of ASEAN. .  Member countries invite and allow the free-flow of foreign capital. Malaysia.50 per cent to 20 per cent beginning with 15 products.  Emergence and successful operation of EEC and NAFTA gave impetus (drive.  Member countries have developed economically at a fast rate in the globe.  Strength enabled to achieve faster industrialization.

 Formation of ASEAN enabled member countries to have close cohesiveness (interrelated. industrial sectors and service sectors.  Common historical and cultural background made member countries to maintain their unity and solidarity (team spirit) by establishing a trade block. interconnected) share their economic and human resources and achieve synergy in development of their agricultural sectors. .

 To enhance economic development.  To enable free trade in western Europe. Great Britain and Denmark.  Associate (join together) member countries are Finland. income and living standards of the people of the member countries. Sweden and Switzerland. Portugal.  Member countries of EFTA include Austria.  Objectives:  To eliminate almost all tariffs among member countries.European Free Trade Association (EFTA)  European free trade association was formed in 1959. Iceland.  To abolish the trade restrictions regarding imports and exports of goods among member countries. Norway. employment. .

.  EFTA council makes policy decisions of the organization. EFTA does not regulate the agriculture and economy of the member countries and member‟s trade outside the EFTA.  EFTA is managed by council and each member country is represented by its representative.

 SAPTA became effective from 7 December 1995.  Inclusion of all types of products – raw material. semi-finished goods and finished goods. 1992 during the seventh SAARC Summit in Dhaka.  Principles of SAPTA:  Overall reciprocity (give and take) and mutuality of advantages. arguable) the idea of a SAARC Preferential Trading Arrangement (SAPTA)  The foreign ministers of all the member states signed the Agreement on April 2.SAARC Preferential Trading Arrangement SAPTA)  Sixth SAARC summit (meeting) held in Colombo in 1991 strongly mooted (debatable.  Step-by-step negotiations and extension of preferential trade arrangement in stages.  Special and favorable treatment to Least Developed Countries (LDCs) .

providing duty free access.  Establishing training facilities in the area of export trade.  To promote and sustain mutual trade and economic cooperation among member countries. .Special treatment for the least developed countries are - Providing technical assistance.  To eliminate trade barriers and reduce or eliminate tariffs.  Providing export and credit insurance and market information.  Entering into long-term contracts.  Tariffs:-. etc.  Enhancing their exports by eliminating non-tariff and Para-tariffs barriers. establishment of industrial and agricultural projects in order to boost up their exports. Objective :  To gradually liberalize the trade among member countries.

 To act as an effective instrument of economic growth by giving a thrust to employment generation.  The Foreign Trade Policy of India is based on two major objectives. they are  To double the percentage share of global merchandise trade within the next five years. boost) economic growth and national development.Objectives of the Foreign Trade Policy of India  Trade propels (drive.  The primary purpose is not the mere earning of foreign exchange. . but the stimulation of greater economic activity.

trading and services. particularly in semi-urban and rural areas. especially through imports and thereby increasing value addition and productivity. while attaining global standards of quality. industrialization and trades. Strategy of Foreign Trade Policy of India  Removing government controls and creating an atmosphere of trust and transparency to promote entrepreneurship.  Facilitating technological and infrastructural up gradation of all the sectors of the Indian economy. and developing a series of „Initiatives‟ for each of these sectors. .  Generating additional employment opportunities.  Simplification of commercial and legal procedures and bringing down transaction costs.  Facilitating development of India as a global hub for manufacturing.

 Up gradation of infrastructural network. both physical and virtual. giving it due recognition and inducting foreign trade experts while drafting Trade Policy.  Involving Indian Embassies as an important member of export strategy and linking all commercial houses at international locations through an electronic platform for real time trade intelligence. related to the entire Foreign Trade chain.  Revitalizing the Board of Trade by redefining its role. inquiry and information dissemination.  Neutralizing inverted duty structures and ensuring that India's domestic sectors are not disadvantaged in the  Free Trade Agreements / Regional Trade Agreements / Preferential Trade Agreements that India enters into in order to enhance exports. . Simplification of levies and duties on inputs used in export products. to global standards.

. Partnership Foreign Trade Policy of India foresees merchant exporters and manufacturer exporters.  Road ahead of Indian foreign trade policy:  Foreign Trade Policy of India is a stepping stone for the development of India‟s foreign trade.  It would naturally require modification from time to time with changing dynamic of international trade. business and industry as partners of Government in the achievement of its stated objectives and goals.  A trade policy cannot be fully comprehensive in all its details.  It contains the basic principles and points the direction in which it propose to go.

 MAI scheme include market studies.. setting up of showroom/ warehouse. Promotional Measures:  Assistance to States for Infrastructure Development of Exports (ASIDE):  Encouraged to participate in promoting exports from their respective states. publicity campaigns.  Utilize this amount for developing infrastructure such as roads connecting production centers with ports. international departmental stores. etc.  Creation of new state level export promotion industrial parks/ zones and stabilizing power supply. setting up of inland container depots and container freight stations. sales promotion campaigns. .  Market Access Initiative (MAI):  To provide financial assistance for medium term export promotion efforts with a sharp focus on a country and product.

Africa..  Assistance for participation in trade fairs abroad and travels grant is available to such exporters if they travel to countries in one of the four focus area.  Include participation in trade fairs and buyers seller meets abroad or in India.  Can receive financial assistance from the government ranging from 25% to 100% of the total cost depending upon the activity and the implementing agency. Participation in international trade fair. such as Latin America..  Market Development Assistance (MDA)  To provide financial assistance for a range of export promotion activities implemented by export promotion councils. export promotion seminars. and New Zealand .  MDA is available for exporters with annual export turnover up to Rs. brand promotion. etc.5 crores. industries and trade associations. etc. Australia.

 Extend support and assistance to trade and industry to launch a nationwide programme on quality awareness and to promote the concept of total quality management.  Towns of Exports Excellence in the Handloom. Handicraft. . Agriculture and Fisheries sector.  Brand Promotion and Quality (BPQ):  To encourage manufacturers and exporters to attain internationally accepted standards of quality for their products. Towns of Exports Excellence (TEE):  Number of towns in specific geographical locations have emerged as dynamic industrial clusters contributing handsomely to India‟s exports.1000 crore or more will be notified as towns of exports excellence on the basis of potential for growth in exports.  Selected towns producing goods of Rs.250 crores. the threshold limit would be Rs.

 EPCG scheme to be fulfilled over a period of 8 years reckoned (consider) from the date of insurance license. production and post-production at 5% customs duty subject to an export obligation equivalent to 8 times of duty saved on capital goods imported.  Capital goods be allowed at 0% duty for exports of agricultural products and their value added variant. .  High performing star export houses shall be entitled for a duty credit based on incremental exports substantially higher than the general annual export target fixed. Target plus scheme (TPS):  To accelerate growth in exports by rewarding star export houses who have achieved a quantum growth in exports.  Export promotion capital goods scheme (EPCG):  Scheme allows import of capital goods for re-production.

. which replaced the Imports and Exports (Control) Act. the orders and rules made under this Act and the export and import policy. came into force on 19th June 1992. 1947.Regulation and Promotion of Foreign Trade  Foreign trade policy is implemented by means of the regulatory framework provided by the Foreign Trade (Development and Regulation ) Act.  No export or import shall be made by any person except in the provision of this Act. 1992.  This Act.

facilitating imports and increasing exports. Inspection and Seizure  Penalty for Contravention .  Prohibition and Restriction  Exim Policy – formulate and announce the export and import policy and may also amend that policy.  Importer-Exporter Code number – no person shall make any import and export except under an Importer-Exporter Code (IEC)  Issue and Suspension/ Cancellation of license – empowered to suspend or cancel a license issued for export and import. Main Provisions of the Foreign Trade (Development and Regulation) Act (FTDR):  Development and regulation --.  Director General of Foreign Trade – advice central government to formulate the export and import policy and responsible for carry out.  Search.

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