INTERNATIONAL TRADE

Presented by:-

Pushpanjali Devi
Neha Choudhury Papori Nayak Pallabi Dwarah

Romila Saarkar
Himadri Das Pompi Brahma Pratima Patir

Rima Bharali
Annapurna Chakraborty Priyanka Deka Parinita Baruah

Antara Dwarah

International Trading Environment

TRADE STRATEGIES: Outward oriented strategies Inward oriented strategies MERITS AND DEMERITS OF PROTECTION METHODS OF PROTECTION: Tariff barriers Non-tariff barriers

 Different forms of NTBs Commodity agreements CARTELS

State trading
Canalisation

Multilateral Trade Negotiations

Regulates trade negotiations through a number of specific articles.

1) Principle of tarification: No prohibition or restriction other than

duties, taxes and other charges. Prohibition of export subsidies.

2)Principle of non-discrimination: Internal taxes or any internal

charges cannot be applied in excess .

3) Principle of reciprocity: Appears in two specific applications. Balance of concessions. Withdraw substantially equivalent concessions.

Eight GAAT sessions

1st Round: Geneva Tariff Conference, 1947, tariffs reduced by 20% 2nd Round: Annecy Tariff Conference, 1949, reduced by 2% 3rd Round: Torquay Tariff Conference, 1950-51, reduced by 3%

4th Round: Geneva Tariff Conference, 1955-56, reduced by 2.5%

5th Round: Dillon Round, 1960-61, reduced by 4% 6th Round: Kennedy Round, 1963-67, reduced by 35% 7th Round: Tokyo Round, 1973-79, reduced by 33% 8th Round: Uruguay Round, 1986-94, reduced by 38%( WTO established)

Economic Integration
Unification of economic policies between different countries through the partial or full abolition of tariff and non-tariff restrictions on trade taking place among them prior to their integration. STAGES OF ECONOMIC INTEGRATION
Free Trade Area Customs Union Common Market Economic Union Complete Economic Integration

Free Trade Area

Elimination of tariff barriers between member countries Focus on their competitive advantage

Customs Union
Elimination of tariff barriers Adoption of common external tariff against nonmembers

Common Market
Members trade freely in all economic resources Free movement of labour and capital

Economic Union
Common market between members and a common trade policy towards non-members Harmonization of national policies

Complete Economic Integration

Highest level of Economic Integration Complete harmonisation of all policies, rates, and economic trade rules Members need to be in the same stage of the economic cycle

Advantages of Regional Trade Agreements

Lower Prices
International Export Advantages Allies can receive rewards through a regional trade agreement Dispute Resolution

Dispute Remedies

SAARC INITIATIVES:
LOOK EAST POLICY OF INDIA:
Ample possibilities for North-East India to reap benefits from Indias thriving relations with South East Asia as the process of globalisation provides the countries with the opportunities to grapple with cross-market accessibility and enabling them alleviate their poverty and economic backwardness.

The ministry of tourism (MoT), Government of India organised an International Tourism Mart at Guwahati, Assam.

RISE OF CROSS REGIONAL TRADE AGREEMENTS

The new wave of cross regional trade has become an important part of the global political economy today. An increasing awareness of the weakness of existing regional institutions
An expectation of positive demonstration effects A positive impact in reforming domestic economic interests.

Regional Factors Favouring Crossregionalism

Economic factors

Security and diplomatic factors

Areas of IPR
Patents Trade Marks Copyrights Geographical Indications Industrial Designs Lay out design of Integrated Circuit

Trade Secret

Features of TRIPs
Standards
Enforcement Dispute settlement

Intellectual Property Regime In India

Robust IP laws FICCI-DIPP Consultative Working Group objective.
Online availability of Patent database Online availability of Controllers decision User Friendly E-filing of Patent Applications Uniform Protocol

ASEAN
Economic hub in North Eastern region by exploring the commerce and trade. In 2004, an India ASEAN car rally was held. There are also plans for a Delhi Hanoi rail link and a trilateral highway project between India, Myanmar and Thailand.

Indo ASEAN FTA for NER is based primarily on NERs trade with ASEAN.
Share of NER was around 12%. Countries like Myanmar and Thailand which are closer to the NER can provide many of the items at much cheaper price because of saving in the cost of carriage. Basic infrastructures are developed and industrial growth of NER is promoted.

Trade agreement is likely to boost the trade between the NER .

India ASEAN FTA: Prospects For North East Development

Border Trade.
NER Myanmar Trade.

Trade in Primary Products.

Tea & Silk

Bamboo Products
Handicrafts Export

OPEC
Organization of Petroleum Exporting Countries. Intergovernmental organization created at Baghdad conference in 1960 by Iraq, Kuwait, Iran, Saudi Arabia, Venezuela. Later on it was further joined by Libya, United Arab Emirates, Qatar, Indonesia, Algeria, Nigeria, Ecuador, Angola & Gabon. Headquartered in Viena, Austria. Objective :
Co-ordinate and unify petroleum policies among member countries, in order to secure fair and stable prices for petroleum producers, and provide efficient and regular supply of petroleum to consuming nations

Enough SHALE OIL To Join OPEC .

India has enough oil trapped in shale and coal deposits in Assam and Arunachal Pradesh to produce apparently 140 million tonnes per year. High enough to make INDIA a member OPEC. Estimated that extracting shale oil would become economic at $35 40 per barrel. Current price is more than $65 per barrel. High time to invest in this venture. Upcoming opportunity in response to ever rising oil prices. Shale mining was tried in USA (1970) but it succumbed to failure because i) Fall in price of oil per barrel.
ii) Tried in arid areas lacking water.

NORTH EAST To Capture The Opportunity

OIL INDIA LTD has attained NELP for shale oil. WHAT ELSE CAN BE DONE ???
Government can ensure further dip in oil price by guarantying a floor price of $35 40 per barrel.
Govt. could ask for 50% share in price hike above $60. This would make project attractive both for bidders and guarantor. This would help in throwing open the deposits for competitive bidding.

NAFTA
North American Free Trade Agreement. It is a treaty between Canada, Mexico and United States designed to foster greater trade between the three countries. 2 major additions
NAAEC { North American Agreement for Economic Cooperation } NAALC { North American Agreement for Labor Cooperation }

Benefits of NAFTA
Eliminated large number of tariffs on goods shipped between the three countries. Encourages greater immigration between the three countries.

European Union (EU)

Economic and political union of 27 member states that are located primarily in Europe. Economic and political entity. Common market with all countries having same external tariffs. EU is an economic union that fosters greater trade and cooperation between a large handful of countries of europe. EU has
Common currency Own government Own political element

COMPARISON
NAFTA
Simple free-trade agreement : one policy

EU
Transnational government that produces policies.

Does not unify currencies

Has a single currency : EURO Acts as socializing agency & uses government money to fund program, give grants and aid economic development.

Allows Capitalists free reign to invest and industrialize.