The two segments of retail are among the 84 services sectors,including telecom,professional services,healthcare,professional services and environmental services where India has decided to bind itself to allowing the present level of FDI for Malaysian companies.In case of foreign investors from other countries,the government has the right to lower the present ceiling.Commerce department officials said in no case has the government gone beyond what is permitted under the FDI policy.In return,India has managed to get Malaysia to provide a similar dispensation for 91 service sectors.
The Malaysian CECA could be the model the government might replicate in other comprehensive treaties that are under negotiations,including the one with Asean.A CECA (as is the case with certain countries) goes beyond a free trade agreement in goods to include services and in some cases investment pacts too.
Given Indias vast talent pool,the government is keen that in return for lower tariffs in case of certain products,it will provide greater access to foreign companies through lower import duty on certain products and also by way of liberal foreign investment ceilings.In recent years,India has voluntarily gone beyond the commitment made under WTOs General Agreement on Trade in Services (GATS) that was signed in 1995.In the past,India had opposed binding itself to GATS-plus commitment,fearing that it wouldcurbitspolicyflexibility.But with WTOs latest round of trade liberalization talks on hold,India is pushing for bilateral trade deals.
Car cos split over import duty
New Delhi: The... [continues]
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