What does the entire Double Taxation Convention (DTA) cover? A joint DTA agreement between India and another country generally applies to persons residing in India or the other contracting country that has concluded the contract with India. It is unlikely that a person who does not reside in India or the other contracting country will make a profit under the DTA agreements. The very first trade – thousands of years ago – was based on barter. BarterDirect exchange of one property for another, without money involved. is simply the direct exchange of one good for another, with no money involved. Thus, barter is even older than the invention of money. Barter is the oldest counter-exchange agreement. It is the direct exchange of goods and services of equivalent value, but without payment in cash. The barter transaction is called a transaction. For example, a bag of nuts could be exchanged for coffee beans or meat. MERCOSUR is a trading community in Latin America founded in 1991 that includes Brazil, Argentina, Uruguay and Paraguay. It was set up with the aim of facilitating the free movement of goods, services, capital and persons between the four Member States.
It is the fourth largest integrated market after the European Union (EU), the North American Free Trade Agreement (NAFTA) and ASEAN. Outside Asia, free trade agreements have been concluded with Chile (2006) and MERCOSUR (2004). Another example where companies have exchanged goods and services instead of paying hard currency is Bharat Heavy Electricals Limited (BHEL), the largest manufacturer of power generation equipment in India. BHEL wanted to get more foreign orders. To do this, BHEL sought opportunities for counter-exchange with other state-owned enterprises. The company has made a joint effort with a state-owned indian mineral trading company, MMTC Ltd., to import $1 billion worth of palm oil from Malaysia in exchange for setting up a hydropower project in that country. Malaysia is the world`s second largest producer of palm oil. Since India imports an average of 8 million tons of cooking oil each year, but consumes 15 million tons, importing edible oil is valuable. Utpal Bhaskar and Asit Ranjan, “Bhel Looking at Counter-Trade Deals to Secure Overseas Orders,” Live Mint, May 11, 2010, accessed November 18, 2010, www.livemint.com/2010/05/11224356/Bhel-looking-at-countertrade.html. Currently, India shares privileged market access and economic cooperation through trade agreements with more than 50 countries.
The following table lists the main bilateral and regional agreements that India has signed and implemented: India considers regional trade agreements (RTAs) to be “building blocks” of the overall objective of trade liberalization. As a result, it participates in a number of RTAs that include structures such as Free Trade Agreements (FTAs), Preferential Trade Agreements (PTAs), and Comprehensive Economic Cooperation Agreements (CEAs). Regardless of the potential benefits, India`s refusal to join the agreement was not entirely surprising. For decades, New Delhi has pursued a highly protectionist economic policy as part of its historic commitment to an industrialization strategy that substitutes imports. It was only after an unprecedented financial crisis in 1991 that the country gradually began to dismantle a number of tariff barriers. Although India`s integration into the global economy has increased significantly over the past 30 years, New Delhi`s rhetoric in trade negotiations has remained largely protectionist. And that tone intensified during Prime Minister Narendra Modi`s tenure, who focused on a “Make in India” strategy early in his term. Recently, even before the coronavirus pandemic shook the Indian economy, he announced a policy of economic autonomy – Atmanirbhar in Hindi – aimed at boosting domestic industry. In a way, this policy dates back to an earlier era, when the pursuit of economic autonomy was an integral part of India`s development strategy. SAARC was founded on September 7 and 8.
Recognized in Dhaka in December 1985 with the following objectives: to promote the interests of the peoples of South Asia; increase economic development and social progress; support active partnerships in the field of economic development and social progress; support active partnerships in the economic, social, cultural, technical and scientific fields; intensification and cooperation in international for a on issues of similar interest; and cooperation with international and regional organizations with similar objectives and objectives. Members include Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. If negotiations on a multilateral trade agreement fail, many countries will instead negotiate bilateral treaties. However, new agreements often lead to competing agreements between other countries, eliminating the advantages offered by the free trade agreement (FTA) between the two home countries. There is no trade agreement between India and the United States. In April 2018, the United States launched an approval review of India`s compliance with the Market Access Criteria of the Generalized System of Preferences (GSP) and in March 2019 decided that India no longer met the criteria, revoking India`s GSP status. With the end of GSP benefits, special treatment for $5.6 billion of Indian exports to the United States was lifted, impacting India`s export-oriented sectors such as pharmaceuticals, textiles, agricultural products and auto parts. The United States and India are continuing their discussions on trade issues. In addition, the way in which activities interact with different trade policies can also be a source of concern for open market operations.
Opportunities for trade progress, changing conditions and conditions introduced by developing countries could lead to discrimination in the market. One of the reasons companies use this practice is that some governments impose counter-trade for very large transactions (over $1 million) or if the deal takes place in a particular sector. .