What does the market entry threshold mean?
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Market access refers to the degree to which a country allows foreign goods, services and capital to participate in the domestic market. Article 16 of the General Agreement on Trade in Services stipulates that the treatment given by one member to other members' services and service providers shall not be less than the time limit, restrictions and conditions specified in the schedule of commitments and obligations.
The commitment of WTO members to provide market access by lowering tariffs and reducing non-tariff barriers must be fulfilled according to the schedule of concessions. According to Article 28 of GATT 1994, once the tariff level is promised, it shall not be raised without compensation negotiation with major trading partners. The principle of market access requires the openness, continuity and binding of relevant information very clearly.
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The goal of market access
The ultimate goal of market access principle is the free and fair competition of the whole international service trade, which means the increasing integration and unification of the world market, but this is only the goal. According to article 16 of GATS,
Market access is a gradual process. Considering the different levels of economic development in different countries, it is impossible to require countries to open to the same degree at the same time and under the same project. On the contrary, governments should decide the scale, degree and time of market access according to their national conditions.
Since market access is a commitment and obligation, it is usually reciprocal. Therefore, the principle of market access is a double-edged sword for any member. In exchange for foreign markets, the domestic market must be opened, and all parties to the negotiations should make concessions on the basis of reciprocity, so as to promote the overall balance of interests, rights and obligations of all participants. However, according to Article 4 of the General Agreement on Trade in Services,
Developed countries are required to take some concrete measures to enhance the strength and competitiveness of domestic service sectors in developing countries, provide effective market access for developing countries' service exports, and relax market access conditions for service export sectors and service delivery methods that are vital to developing countries.