The U.S. Trade Representative (USTR) continues to struggle with the European Union (EU) and certain member states over U.S. rights under the World Trade Organization. That struggle has resulted in the U.S. imposing additional duties on a host of products from an array of EU members effective October 18, 2019.
On August 28th 2019, the Union Cabinet chaired by the Prime Minister Shri. Narendra Modi approved proposal for review of the current Foreign Direct Investment (“FDI”) policy on various sectors. In respect of the above, the proposed changes in the FDI policy are listed herein below:
1. Contract Manufacturing: 100% FDI now being permitted under the automatic route in contract manufacturing.
Presently, it is 100% in manufacturing and there is no specific provision for contract manufacturing. This change will be a big boost to Manufacturing sector in India.
Employee stock option plan (ESOP) refers to the employee benefits scheme under which the employees are allowed to purchase the shares of their company. Most of the Indian and multinational companies use ESOPs as a compensation tool. The company encourages the employees to acquire firm ownership by offering the shares at a below-market rate in order to increase their involvement in the scheme. In many cases, the companies in India also offer the stocks as remuneration up to a specific percentage to employees. The compelling reasons for companies to implement ESOPs include wealth creators for its employees and retention. It also provides a measure of employee ownership in a high growth environment.
Author: Matt Cunningham
“Tit-for-tat tariffs” are making major headlines daily, specifically those aimed at China by the U.S. under Section 301 of the Trade Act of 1974. Politics aside, the two main objectives of tariffs in general are:
The tariffs over recent news cycles focus on the second objective, aiming to protect U.S. domestic industries by making it more expensive for foreign goods to enter our country. Through a multi-stage process, the new tariffs have impacted everything from soap to aerospace products — with the current tariffs coming in at a hefty 25% for affected goods.