Free Trade Agreement Between Mercosur And India: Derived Consecuences For E-commerce Transactions“The global vitality of an electronic marketplace depends upon free and open trade. Tariffs, regulations, and similar barriers to e-commerce raise costs and can price many smaller, competitive firms out of the market. When trade is restricted, economic development is slowed, consumer choice is reduced and global prosperity is harmed.” Excerpt taken from Trade & E-commerce, Business Software Alliance (BSA) website.
The evolution of e-commerce came long after the world’s tendency to the creation of free trade agreements and regional economic groups or common markets. Most of the free trade agreements and regional economic groups pursue gradual reduction of tariffs and trade barriers among the member states. Now, we may say that the success of global e-commerce is directly related to this tariffs and trade barrier reduction. For instance, e-business planners may elect to establish an offshore e-business, rather than a domestic e-business, if that is cost and business efficient, and bring tariff incentives when shipping goods overseas. Following is a description of an interesting free trade agreement between a common market, Mercosur, and a country, India, known by its technology development, and that may bring huge incentives for e-commerce transactions between the parties.
The following questions have been addressed in this article:What is the starting date and duration of this agreement?
What organ will develop and bring this agreement into practice?
What are the specific functions of the Negotiating Committee?
What specific sectors does the agreement target?