Brief Paper 1/2001: A Nova Política Comercial Indiana

Abstract:

On 31 March 2000, the Indian government announced a set of measures that significantly alter this country’s trade policy, studied in A nova política comercial indiana (The New Indian Trade Policy). This is not, however, a surprise or a change of direction in relation to the general orientation of the economic policy of the recent past. This set of measures was foreseen some time ago and, moreover, partly stems from a WTO decision to that effect. On the other hand, the trend towards liberalisation – along the lines of the “Washington Consensus” – has dominated the Indian economic and political landscape since the early 1990s. Hitherto Indian trade policy was characterised by the existence of numerous and complex import barriers. Depending on the good concerned, these barriers took the form of quantitative restrictions, import licensing, tariffs or a complete ban on imports. Some of these restrictions were fully justified on environmental or safety grounds and will therefore remain in place. Others, however, were essentially a form of protectionism. The latter, particularly when they took the form of quantitative restrictions, conflicted with WTO rules. Thus, following a trade dispute between India and the US and subsequent WTO demand, quantitative restrictions on 714 of the 1429 types of goods that were subject to them were abolished. It is also expected that over the next two years many of the remaining restrictions will be removed or reduced, in particular all quantitative restrictions – with the exception, as already mentioned, of those for environmental or safety reasons – and a substantial part of customs duties.

Quotation:

Abreu, Alexandre. 2001. “A nova política comercial indiana”. Instituto Superior de Economia e Gestão – CEsA Brief papers nº 1-2001.