Internatinal MarketingWTO RM MCOM

8/19/2019 Internatinal MarketingWTO RM MCOM

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S.P. MANDALI’S

R. A PODAR COLLEGE OF COMMERCE AND ECONOMICS

MATUNGA, MUMBAI-400 019.

A PROJECT REPORT ON

STUDY ON WTO – POSITIVE NEGATIVE IMPLICATION –

WTO INDIA

SUBMITTED BY

!"US"BU JAIN

M.COM #SEM. III$% INTERNATIONAL MAR!ETING

SUBMITTED TO

UNIVERSITY OF MUMBAI

&01'-&01(

PROJECT GUIDE

P)*+. TEJAS"REE PATAN!AR


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S.P. MANDALI’S

R. A PODAR COLLEGE OF COMMERCE AND ECONOMICS

MATUNGA, MUMBAI-400 019.

CERTIFICATE

This is to certify that M. !"US"BU JAIN of M.Com ( Business Management) Semester III

(2015-2016) has successfuy com!ete" the !ro#ect on WTO – P*/ N2/

I3562*7-WTO I782 un"er the gui"ance of P)*+. TEJAS"REE PATAN!AR

$ro#ect %ui"e&Interna 'aminer 'terna 'aminer

$rof. $rof.

*r. (Mrs) +inita $im!ae *r.(Mrs) Sho,ana +asu"ean

Course Co-or"inator $rinci!a

D2 S25 *+ C*55


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AC!NOWLEDGEMENT

I acno/e"ge the aua,e assistance !roi"e" ,y S. $ Man"ais . . $o"ar

Coege of Commerce 3 'conomics4 for t/o year "egree course in M.Com.

I s!eciay than the $rinci!a *r.(Mrs) Sho,ana +asu"ean for ao/ing us to

use the faciities such as i,rary4 Com!uter a,oratory4 internet etc.

I sincerey than the M.Com Co-or"inator for gui"ing us in the right "irection

to !re!are the !ro#ect.

I than my gui"e $rof. T'S7'' $T89 /ho has gien her aua,e

time4 no/e"ge an" gui"ance to com!ete the !ro#ect successfuy in time.

My famiy an" !eers /ere great source of ins!iration throughout my !ro#ect4

their su!!ort is "ee!y acno/e"ge".

Signature of the Stu"ent


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DECLARATION

I4 97:S7B: I8 of R. A. PODAR COLLEGE OF COMMERCE

ECONOMICS of M.Com S'M'ST' III4 here,y "ecare that I

hae com!ete" the !ro#ect ;T< = $ositie 3 8egatie Im!ication-

;T< 3 In"ia in the aca"emic year 2015-2016 for the su,#ect

'conomics.

The information su,mitte" is true an" origina to the ,est of my

no/e"ge.

Signature of the Stu"ent

INDE:


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S). N*. PARTICULARS P2 N*.

1 INTRODUCTION

1.1 Meaning 3 *efinition 6

& W*)58 T)28 O)27;2*7 #WTO$

2.1 >unctions of ;T< ?

2.2 $rinci!as of ;T< @

2.A


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greement on Tariffs an" Tra"e (%TT). This mutiatera organiation aims to o/er tariffs an"

non-tariff ,arriers so as to increase internationa tra"e. The 15@ mem,er states meet in ministeria

sessions at east once eery t/o years. The ;or" Tra"e


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of !oicy. In other /or"s4 the rues hae to ,e trans!arent an" !re"icta,e.

Tra"e reations


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are not staticH they are renegotiate" from time to time an" ne/ agreements can ,e a""e"

to the !acage. Many are no/ ,eing negotiate" un"er the *oha *eeo!ment gen"a4 aunche"

,y ;T< tra"e ministers in *oha4 Jatar4 in 8oem,er 2001.

I35372*7 278 M*7*)7%-

;T< agreements reDuire goernments to mae their tra"e !oicies trans!arent ,y

notifying the ;T< a,out a/s in force an" measures a"o!te". +arious ;T< councis

an" committees see to ensure that these reDuirements are ,eing foo/e" an" that ;T<

agreements are ,eing !ro!ery im!emente". ;T< mem,ers must un"ergo !erio"ic

scrutiny of their tra"e !oicies an" !ractices4 each reie/ containing re!orts ,y the

country concerne" an" the ;T< Secretariat.

D> S537%-

The ;T587 T)28 C226?%-

;T< agreements contain s!ecia !roision for "eeo!ing countries4 incu"ing onger time

!erio"s to im!ement agreements an" commitments4 measures to increase their tra"ing

o!!ortunities4 an" su!!ort to he! them ,ui" their tra"e ca!acity4 to han"e "is!utes an"

to im!ement technica stan"ar"s. The ;T< organies hun"re"s of technica co-o!eration

missions to "eeo!ing countries annuay. It aso ho"s numerous courses each year in

%enea for goernment officias. i" for Tra"e aims to he! "eeo!ing countries

"eeo! the sis an" infrastructure nee"e" to e!an" their tra"e.

8


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O>)26%-

The ;T< maintains reguar "iaogue /ith non-goernmenta organiations4 !ariamentarians4

other internationa organiations4 the me"ia an" the genera !u,ic on arious as!ects of the

;T< an" the ongoing *oha negotiations4 /ith the aim of enhancing coo!eration an" increasinga/areness of ;T< actiities.

PRINCIPLES OF WTO%-

The ;T< agreements are engthy an" com!e ,ecause they are ega tets coering a /i"e

range of actiities. But a num,er of sim!e4 fun"amenta !rinci!es run throughout a of these

"ocuments. These !rinci!es are the foun"ation of the mutiatera tra"ing system.

N*7-86)372*7%-

:n"er the ;T< agreements4 countries cannot normay "iscriminate ,et/een their

tra"ing !artners4 grant someone a s!ecia faor (such as a o/er customs "uty rate for

one of their !ro"ucts). If you "o the same you hae to "o that for a other ;T< mem,ers. This

!rinci!e is no/n as Most >aoure" 8ation (M>8) treatment. It is soim!ortant that it is the first artice of the ;or" Tra"e 8 means that eery time a country o/ers a tra"e ,arrier

@


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or o!ens u! a maret4 it has to "o so for the same goo"s or serices from a its

tra"ing !artners = /hether rich or !oor4 /ea or strong.

Im!orte" an"ocay = !ro"uce" goo"s shou" ,e treate" eDuay - at east after the

foreign goo"s hae entere" the maret. The same shou" a!!y to foreign an" "omestic

serices4 an" to foreign an" oca tra"emars4 co!yrights an" !atents. This !rinci!e of

Knationa treatment (giing others the same treatment as oneEs o/n nationas) is aso‖

foun" in a the three main ;T< agreements (%TT4 %TS an" TI$S)4 athough once

again the !rinci!e ishan"e" sighty "ifferenty in each of these. 8ationa treatment

ony a!!ies once a !ro"uct4 serice or item of inteectua !ro!erty has entere" the

maret. Therefore4 charging customs "uty on an im!ort is not a ioation of nationa treatment

een if ocay = !ro"uce" !ro"ucts are not charge" an eDuiaent ta.

M*) O7%-

o/ering tra"e ,arriers is one of the most o,ious /ays of encouraging tra"eH these

,arriers incu"e customs "uties (or tariffs) an" measures such as im!ort ,ans or Duotas

that restrict Duantities seectiey. >rom time to time other issues such as re" ta!e an" echange

rate !oicies hae aso ,een "iscusse". The ;T< agreements ao/ countries to intro"uce

changes gra"uay4 through K!rogressie i,eraiation . *eeo!ing countries are usuay gien‖

onger time to fufi their o,igations.

P)862=5 278 T)272)7%-

Sometimes4 !romising not to raise a tra"e ,arrier can ,e as im!ortant as o/ering one4 ,ecause

the !romise gies ,usinesses a cearer ie/ of their future o!!ortunities. ;ith sta,iity an"

!re"icta,iity4 inestment is encourage"4 #o,s are create" an" consumers can fuy en#oy the

,enefits of com!etition - choice an" o/er !rices. The muti-atera tra"ing system is an attem!t

,y goernments to mae the ,usiness enironment sta,e an"

!re"icta,e. In the ;Tor goo"s4 these ,in"ings amount to ceiings on

customs tariff rates. Sometimes countries ta im!orts at rates that are o/er than the

,oun" rates. >reDuenty this is the case in "eeo!ing countries. In "eeo!e" countries

the rates actuay charge" an" the ,oun" rates ten" to ,e the same. country can

10


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change its ,in"ings4 ,ut ony after negotiating /ith its tra"ing !artners4 /hich cou"

mean com!ensating them for oss of tra"e.


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economies. The ;T< agreements gie them transition !erio"s to a"#ust to the more unfamiiar

an" !erha!s "ifficut ;T< !roisions.

P)*6 E7/)*737%-

The ;T


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'. '!oit a !otentia !roisions of ;T< agreement aaia,e to the "eeo!ing

nations an" a"ising an" counseing the %oernment of In"ia on a such issues

of nationa im!ortance.

(. To assist the %oernment in negotiating /ith the Internationa Community in the

!ers!ectie of the ;T< regime an" to he! strengthen the In"ian !osition in

these regar"s in a !ossi,e /ays.

. To co-or"inate efforts /ith the %oernment in creating a ee !aying fie" !articuary

for the accounting !rofessionas in In"ia s!eciay in ie/ of the im!ementation of the

;T< regime on %TS through the most effectie means !ossi,e incu"ing the

organiation of seminars4 !u,ication of artices an" monogra!hs4 an" !resentation ,efore

the %oernment.

. I"entify areas of non-fufiment of the ;T< agreement /hich concern In"ian interest

an" suggest ine of action an" reme"ies o!en for fufiment of these o,igations.

9. Initiate "iscussions on maing the "omestic tra"e an" e!ort an" im!ort !oicies

more ;T< com!ati,e an" suggest initiaties to ,e taen in this res!ect at

arious ees to ensure high gro/th in e!ort an" economy incu"ing the "eeo!ment of

arious mo"es of synergy an" effectie reguation of tra"e a/s /hich are functionay

"ii"e" ,et/een Commerce4 >inance4 >oreign an" $ro"uct reate" Ministries.

10. To stu"y the im!act an" threat !erce!tion of ;T< agreement on the gro/ing

serice sector in"ustries incu"ing a those coere" un"er ,usiness serices of

%TS agreement in genera an" no/e"ge4 accountancy an" consuting serices4

trans!ort4 communication4 me"ica4 e"ucation4 insurance4 ,aning in !articuar an"

suggest !oicy issues4 "eeo! research an" e"ucation !rograms aime" at e"ucating

mem,ers of ICI.

11. To "eeo! a ,ase of e!ertise amongst the mem,ers of the Institute on Inteectua

$ro!erty ights4 TI$S4 nti-"um!ing a/s4 'NIM $oicy matters etc.4 through

seminars4 training !rograms an" such other metho"s as may ,e consi"ere" effectie.

1

3


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OT"ER OBJECTIVES%-

. To im!ement the ne/ /or" tra"e system as isuaise" in the greementH. To !romote ;or" Tra"e in a manner that ,enefits eery countryH

. To ensure that "eeo!ing countries secure a ,etter ,aance in the sharing of the

a"antages resuting from the e!ansion of internationa tra"e corres!on"ing to

their "eeo!menta nee"sH

/. To "emoish a hur"es to an o!en /or" tra"ing system an" usher in

internationa economic renaissance ,ecause the /or" tra"e is an effectie

instrument to foster economic gro/thH

. To enhance com!etitieness among a tra"ing !artners so as to ,enefit consumers an"

he! in go,a integrationH

/. To increase the ee of !ro"uction an" !ro"uctiity /ith a ie/ to ensuring ee

of em!oyment in the /or"H

/. To e!an" an" utiie /or" resources to the ,estH

/. To im!roe the ee of iing for the go,a !o!uation an" s!ee" u! economic

"eeo!ment of the mem,er nations.

BENEFITS OF WTO%-

1. "5 )*3* 26 2) 27858 6*7)>6/5?%- s tra"e e!an"s in oume4 in the

num,ers of !ro"ucts tra"e" an" in the num,er of countries an" com!any tra"ing4

there is a greater chance that "is!utes /i arise. ;T< he!s resoe these

"is!utes !eacefuy an" constructiey. If this cou" ,e eft to the mem,er states4

14


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the "is!ute may ea" to serious confict4 ,ut ot of tra"e tension is re"uce" ,y

organiations such as ;T5 32 5+ 2) +*) 255%- ;T< system is ,ase" on rues rather than

!o/er an" this maes ife easier for a tra"ing nations. ;T< re"uces some ineDuaities

giing smaer countries more oice4 an" at the same time freeing the

ma#or !o/ers from the com!eity of haing to negotiate tra"e agreements /ith

each of the mem,er states.

. F) )28 6> 6* *+ 5/7%- $rotectionism is e!ensie4 it raises !rices4 ;T<

o/ers tra"e ,arriers through negotiation an" a!!ies the !rinci!e of non-"iscrimination.

The resut is re"uce" costs of !ro"uction ( ,ecause im!orts use" in !ro"uction are

chea!er ) an" re"uce" !rices of finishe" goo"s an" serices4 an" utimatey a o/er cost

of iing.

'. I )*/8 3*) 6*6 *+ )*8>6 278 >25%- It gies consumer more

choice an" a ,roa"er range of Duaities to choose from.

(. T)28 )2 76*3%- Through ;T< tra"e ,arriers are o/ere" an" this

increases im!orts an" e!orts thus earning the country foreign echange thus

raising the countrys income.

A. T)28 3>52 6*7*36 )*


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o,,ying from narro/ interest grou!s ,y focusing on tra"e-offs that are ma"e in

the interests of eeryone in the economy.

10. T ?3 76*>)2 **8 */)7276%- The ;T< system encourages goo"

goernment. The ;T< rues "iscourage a range of un/ise !oicies an" the

commitment ma"e to i,eraie a sector of tra"e ,ecomes "ifficut to reerse.

These rues re"uce o!!ortunities for corru!tion.

16


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STRUCTURE OF WTO%-

1?


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19/33


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"*< D* A++6 I782

In"ia is a foun"er mem,er of ;or" Tra"e ) #TRIMS$

The agreement reates to inestments originating from one country to another. The agreement

!rohi,its the host country to "iscriminate the inestment from a,roa" /ith "omestic inestment4

/hich im!ies that it faours nationa treatment of foreign inestment. Besi"es this4 there are

seera other causes of the agreement totaing to 5 in this segment4 one agreement reDuires

inestment to ,e freey ao/e" /ithin "omestic ,or"ers /ithout any maimum ca! on it. nother

restricts to im!ose any in" of e!ort o,igation or im!ort ca! on the inestment. nother reDuires

that there shou" not ,e any "omestic content reDuirement on foreign firms o!erating an"

manufacturing in other countries.


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These agreements hae a "irect im!act on our Tra"e4 Inestment an" foreign echange !oicy4

"omestic annua ,u"getary !ro!osas an" aso on the in"ustria !oicy.

Im!ementation !rocess for the a,oe reDuires !ro!er !re!aration ,y the in"ustries an" !oicy

maers4 as su""en change may resut in oss of reenue an" "ecine of foreign echange for the

goernment an" economy4 an" it may resut in "ecine of maret share an" !rofita,iity of

,usinesses4 "ecine in em!oyment o!!ortunities an" oer a "ecine in gro/th.

@. T)28 R528 I7556>25 P)*)? R #TRIPS$

n inteectua !ro!erty right refers to any creation of human min" /hich gets ega recognition

an" !rotection such that the creator of the intangi,e is !rotecte" from iega use of his creation.

This agreement incu"es seera categories of !ro!erty such as $atents4 Co!yrights4 Tra"emars4

%eogra!hica in"ications4 *esigns4 In"ustria circuits an" Tra"e secrets.

Since the a/ for these intangi,es asty arie" ,et/een countries4 goo"s an" serices tra"e"

,et/een countries /hich incor!orate" these intangi,es face" seere ris of infringement.

Therefore the agreement sti!uate" some ,asic uniformity of a/ among a tra"ing !artners. This

reDuire" suita,e amen"ment in the "omestic I$ a/s of each country. Since this !rocess is not a

sim!e one4 a time !erio" of 10 years /as gien to the "eeo!ing countries.

s a resut4 in In"ia there /as a reDuirement to change the !atents act4 Tra"e an" merchan"ise mar

act an" the co!yright right act. Besi"es these main a/s4 other reate" a/s aso reDuire" changes.

The main im!act of this is on in"ustries such as !harma an" ,io-technoogy4 ,ecause no/ /ith the

a/ in !ace4 it is not !ossi,e to reerse engineer the eisting "rugs an" formuas4 change the

!rocess an" !ro"uce the same !ro"uct. 8o/ ne/ inestment in fresh research is reDuire". This is

Duite a ,ur"en for sma in"ustries an" there is a !ossi,iity that they are thro/n out of ,usiness "ue

to com!etition.

Besi"es these4 the technoogy transfer from a,roa" is e!ecte" to ,ecome costy an" "ifficut.

Strict im!ementation of a/ is ery im!ortant in In"ia4 other/ise there cou" ,e "isastrous affect

on the reenue of in"ustries /hich inest miions of ru!ees in esearch an" "eeo!ment if their

!ro"ucts get infringe".


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4. A)37 *7 A)6>5>) #AOA$% The gricuture ha!!ens to ,e one of the most !rotecte"

sectors in a the countries /ithout any ece!tions4 an" therefore an agreement on the agricutura

issues hae a/ays ,een ea"ing an" "e,ate" strongy ,y a the countries inoe" in tra"e in

agricuture.

The agreement on agreement "eas /ith maret access4 '!ort su,si"ies an" goernment su,si"ies.

Broa"y4 as of no/ the reDuirement is to o!en u! the marets in s!ecific !ro"ucts in maret access

an" incase of su,si"ies4 it is to go for tarrification an" !hase it out eentuay or re"uce it to ,oun"

imits. The imme"iate im!act of the agreement /ou" ,e on the !oicy maers to scrutinie a the

items un"er su,si"y4 Js an" tariffs. 7o/eer4 the cacuation of MS reeas that the su,si"y

gien to In"ian farmers are much ,eo/ the acce!ta,e ees an" therefore nee" not ,e change".

ooing from other !ers!ectie4 the re"uction of tariffs an" su,si"y in e!ort an" im!ort items/ou" o!en u! com!etition an" gie a ,etter access to In"ian !ro"ucts a,roa". 7o/eer4 the

concern is on the com!etitieness an" sustaina,iity that the In"ian farmer /ou" ,e a,e to !roe

in the ong run once the marets o!en u!. Thus there is a reDuirement to change !oicy su!!ort to

meet the changing nee"s of In"ian agricuture to gear it u! for future.

'. A)37 *7 S272)? 278 ?*-272)? 32>) #SPM$% this agreement refers to

restricting e!orts of a country if they "o not com!y /ith the internationa stan"ar"s of

germs&,acteria etcP if the country sus!ects that ao/ing of such !ro"ucts insi"e the country

/ou" resut in s!rea" of "isease an" !est4 then there is eery right gien to the authorities to ,oc

the im!orts.

In"ian stan"ar"s in this area are area"y mentione" an" therefore there is no nee" to change the a/4

,ut the !ro,em is that of stricty im!ementing the a/s. There is an urgent nee" to e"ucate the

e!orters regar"ing the changing scenario an" stan"ar"s at the internationa arena4 an" oo at the

!ossi,e conseDuence an" osses to ,e incurre" if the sti!uations are not foo/e". Therefore4 to

meet the stan"ar"s certain o!erationa changes are reDuire" in the in"ustries such as foo"

!rocessing4 marine foo" an" other !ace" foo" that is ,eing currenty e!orte" from In"ia.

(. M>5-F=) A)37 #MFA$% This agreement is "ismante" /ith effect from 1 anuary 2005.

The resut /as remoa of J on the tetie im!orts in seera 'uro!ean countries. s a

conseDuence a huge tetie maret is o!ene" u! for "eeo!ing countries tetie in"ustry as /e as

for other countries that hae com!etitie a"antage in this area. The imme"iate im!act is on the


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garment an" tetie manufacturers an" e!orters. 7o/eer4 it sti nee"s to ,e seen /hether the

in"ustry is a,e an" rea"y to tae a"antage of the arge marets. This reDuires Duite an amount of

mo"erniation4 stan"ar"iation4 cost efficiency4 an" customiation an" freDuent u! gra"ation of

"esigns to meet the changing nee" of go,a customers. The "ismanting of J aso mean more

com!etition to In"ian tetie e!orters an" therefore4 it ,ecomes im!eratie to enhance the

com!etitieness in niche areas.

Besi"es these ma#or agreements there are seera other agreements such as agreement on M2)

A66 4 /hich !ro!agates free maret access to !ro"ucts an" re"uction of tariff an" non-tariff

,arriersH agreement to hae S2+>2)8 M2>) if there is an im!ort surge an" it is ia,e to affect

the "omestic in"ustries in the transition economies. These measures can incu"e im!osing J for a

certain !erio" an" aso im!osing tariffs on the concerne" !ro"ucts. There are other agreements thatca for "irect re"uction of S >=8 *7 E*)4 /hich are not !ermissi,e4 an" !hasing it out

oer a !erio" of time. Besi"es these there are other C*>7)-V57 D> #CVD$ that are

!ermitte" to ,e use" in certain con"itions. These are su!!ose" to hae an im!act !ositie if they

he! the in"ustries an" negatie if they re"uce the cost com!etitieness.

The tra"ing countries are ao/e" to im!ose an A7-D>37 D>? #ADD$ against im!orte"

!ro"ucts if the charge of *um!ing is caime" against them. The reDuirement is to !roe that the

!ro"uct is ,eing so" at a !rice4 /hich resuts in materia in#ury to the "omestic in"ustries. There

are seera cases in /hich the "uty is im!ose" ,ut it sti remains to ,e !roen ,y the *is!ute

settement tri,una in case the other tra"ing !arty o!!oses the "uty im!ose" as QunfairQ. 7o/eer4

the !ro!osa a/ays shou" come from the re!resentaties of the in"ustries affecte"H this may resut

in a !ro,em4 as sma in"ustries oice may remain unhear" in the !rocess.


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C)27 O) U7)*5/8 I>%

There are seera causes in each of the a,oe agreementsH /here there has ,een no consensus

arrie". Besi"es that there are seera other cases /here there is no consensus on the entire

agreement itsef4 /hich means that these are sti in their conce!tua an" "rafting stages.

Some of such agreements are on L2=*>) S2782)8 an" core socia causes4 /hich inten" to

im!ose a a,our stan"ar" an" certain norm against e!oitation of a,our ,y the organiation /here

they /or. Such stan"ar"s are iey to resut in ,anning of certain items e!orts to "eeo!e"

/or" causing seere "amage to in"ustries such as Car!et manufacturing4 cracers4 eather4

han"icrafts an" s!orts goo"s.

There is another agreement4 /hich is sti un"er "iscussion ,y mem,er countriesH this is on T)28

278 E7/)*737. Some countries /ish to im!ose restrictions on tra"e on enironmenta groun"s.

The agreement reoes aroun" !rotecting go,a enironment ,y enforcing stan"ar"s on

!ro"uction an" consum!tion. The ranges of causes are from !ro"uction4 !acaging to

trans!ortation of the goo"s as s!ecifie" ,y norms. The main im!act of this cause /ou" ,e on

in"ustries such as seafoo"4 foo" !rocessing an" "rugs an" chemica manufacturing. There /ou"

aso ,e a oera im!act on the e!ort ,usiness as the rues reate" to !acaging /ou" ,e ery

stringent.

nother agreement /here the consensus is yet to ,e reache" is on T)28 278 I7/37. The

main o,#ectie of this agreement is to ena,e a free o!erating enironment for foreign inestment in

host countries such that there is minimum interference an" eDua rights. There /ou" ,e a "irect

im!act on the foreign inestment !oicy an" tra"e !oicy of the goernment /ith a ong-term

im!act on ,aance of !ayment an" foreign echange !osition of the country. This agreement /ou"

affect amost a in"ustries an" serices /ithout an ece!tion. 7o/eer the s!ecific im!act is

e!ecte" on auto com!onents an" sma retaiers.

T)28 278 C*3*7 is another agreement on /hich the "iscussions are going on to reach a

consensus. The main aim of this is to sto! the ,usiness !ractices that "istort com!etition in any /ay

an" to cur, mono!oistic gro/th in tra"e. The agreement /ou" hae an im!act on the MT$ act4

/hich nee"s to ,e re!ace" ,y the ne/ com!etition a/4 the !rocess for /hich has area"y starte".

These changes /ou" resut in a more com!etitie enironment an" it /ou" aso ,e a "eterrent for


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,ig ,usiness houses if they /ish to e!an" further in the same area. Thus4 the formation of cartes

an" mergers an" acDuisitions /ou" ,e restricte" to a great etent.

T)272)76? 7 P)*6>)37 328 =? G*/)737 is one such cause /here it is ,eing

"e,ate" to a arge etent. This is !articuary of concern to "eeo!ing countries as the roe !aye"

,y the goernment in a countries "eeo!ment is much higher than /hat it is in other "eeo!e"

countries. This /ou" hae a serious im!act on the /ay the goernment an" other !u,ic sector

units a!!roach the "omestic !rocurement. This /ou" im!y that no s!ecia !reference /ou" ,e

gien to the "omestic su!!iers an" they aso nee" to com!ete on a !rice ,asis for getting or"ers

from "omestic goernment. This ceary can mean that many goernment su!!iers may ose out in

com!etition /ith efficient an" o/ cost foreign su!!iers.

M2*) C*765>*7

The In"ian economy has e!erience" a ma#or transformation "uring the "eca"e of the 1@@0s. !art

from the im!act of arious uniatera economic reforms un"ertaen since 1@@14 the economy aso

ha" to reorient itsef to the changing mutiatera tra"e "isci!ine /ithin the ne/y /ritten

%TT&;T< frame/or. The uniatera tra"e !oicy measures hae encom!asse" echange-rate

!oicy4 foreign inestment4 eterna ,orro/ing4 im!ort icensing4 custom tariffs4 an" e!ort

su,si"ies. The mutiatera as!ect of In"ias ;T< commitments is regar"ing tra"e in goo"s an"serices4 tra"e-reate" inestment measures4 an" inteectua !ro!erty rights.

fter anayes of the economic effects on In"ia an" other ma#or tra"ing countries&regions of the

:ruguay oun" (:) tra"e i,eraiation an" the i,eraiation that might ,e un"ertaen in a ne/

;T< negotiating roun". In"ias /efare gain is e!ecte" to ,e 1.1L (R.? ,iion oer its 2005

%*$) /hen the : scenarios get fuy im!emente". The a""itiona /efare gain is an estimate"

2.?L (R11. ,iion) /hen the assume" future ;T< roun" of mutiatera tra"e i,eraiation is

achiee".

It is e!ecte" that esources /ou" ,e aocate" in In"ia to the a,or-intensie sectors such as

teties4 cothing4 eather an" eather !ro"ucts4 an" foo"4 ,eerages4 an" to,acco. These sectors

/ou" aso e!erience gro/th in out!ut an" e!orts. ea returns to ,oth a,or an" ca!ita /ou"

increase in the economy. 7o/eer as mentione" a,oe in the anaysis of each agreement there is a

serious an" urgent nee" to re-oo the strategies foo/e" ,y in"ii"ua firms in the changing

contet of increasing com!etition an" o!ene" marets. s sai" time an" again there is no reersa


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of agreements4 so /hat is reDuire" is to mae interna !oicy changes at macro4 meso an" micro

ee to suit the change" eterna enironment.

B'8'>ITS T< I8*I

The %TT secretariat estimate" that argest increase in the ee of merchan"ise tra"e in goo"s (in

genera4 it /ou" ,e :S R ?5 ,iion .,y the en" of 2005) /i ,e in the areas of cothing (60 !er

cent)4 agricuture4 forestry an" fishery !ro"ucts (20 !er cent) an" !rocesse" foo" an" ,eerages (1@

!er cent). In"ias com!etitie a"antage ies in these fie"s. 7ence4 it is ogica to ,eiee that In"ia

/i o,tain arge gains in these sectors.

In"ias tetie an" cothing e!orts /i increase "ue to the !hasing out of Muti-fi,re nangement

(M>) ,y 2005 .

The re"uction in agricutura su,si"ies an" ,arriers to e!ort of agricutura !ro"ucts4 agricutura

e!orts from In"ia /i increase .

The mutiatera rues an" "isci!ines reating to anti-"um!ing4 su,si"ies an" counteraiing

measures4 safeguar"s an" "is!utes settement machinery /i ensure greater security an"

!re"icta,iity of internationa tra"e. This /ou" ,e faoura,e enironment for In"ias internationa

,usiness .

In"ia aong /ith other "eeo!ing countries has the maret access to a num,er of a"ance"

countries "ue to the im!osition of the causes concerning to tra"e /ithout "iscrimination.

*IS*+8T%' T< I8*I

*es!ite the ,enefits of ;T< to In"ia4 many economists an" socioogists argue that4 In"ia /ou" ,e

in a "isa"antageous !osition ,y ,ecoming a mem,er of ;T


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"uration of !atents un"er TI$s is 20 years .

Intro"uction of !ro"uct !atents in In"ia /i ea" to hie in "rug !rices ,y the M8Cs /ho hae the

!ro"uct !atent. This /i hit the !oor !eo!e /ho /i not hae the generic o!tion o!en .

The etension of inteectua !ro!erty right to agricuture has negatie effects on In"ia. $resenty4

!ant ,ree"ing an" see" !ro"uction are argey4 in the !u,ic "omain. In"ian scientists hae

un"ertaen !ant ,ree"ing an" muti!ication is in the han"s of 8ationa an" State See"

Cor!orations. %oernment4 through this machinery4 !roi"es see" to In"ian farmers at ery o/

!rices. In"ian scientists4 in future /i fin" it etremey "ifficut to ,ree" ne/ arieties an" In"ian

research institutions /i ,e una,e to com!ete financiay /ith M8Cs an" /i ,e "enie" access to

!atente" genetic materia. M8Cs /i get the contro oer our genetic resources an" as such the

contro oer foo" !ro"uction /ou" ,e #eo!ar"ise" .

$atenting has aso ,een eten"e" to a arge area of micro-organisms .

!!ication of TIMs agreement un"ermines any !an or strategy of sef-reiant gro/th ,ase" on

oca technoogy an" resources .

Serices Serice sector ie insurance4 ,aning4 teecommunications4 trans!ortation is ,ac/ar"

in In"ia com!are" to that of "eeo!e" countries. Therefore4 incusion of tra"e in serices is

"etrimenta to the interest of In"ia. i,eraisation of serice sector /ou" ,e un"er tremen"ous

!ressure.


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MEMBERS OF WTO%-

Currenty ;T< has 15@ mem,ers. The ist is as foo/s-

MEMBER DATE OF JOINING MEMBER DATE OF JOINING

B8I F S'$T'MB' 2000 IT7:8I A1 MO 2001

8%'B:O 200A M;I A1 MO 1@@5

:STI 1 8:O 1@@5 MOSI 1 8:O 1@@5

:STI 1 8:O 1@@5 M*I+'S A1 MO 1@@5

B7I8 1 8:O 1@@5 MI A1 MO 1@@5

B8%*'S7 1 8:O 1@@5 MT 1 8:O 1@@5

BB*S< A :8' 1@@5 8MIBI 1 8:O 1@@5

B::8*I 2A :O 1@@5 8'$ 2A $I 200

CMB


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CM'


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*8C' 1 8:O 1@@5 S'B:O 1@@6 S;'*'8 1 8:O 1@@5

%:T'M 21 :O 1@@5 S;IT'8* 1 :O 1@@5

%:I8' 25


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7


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LIST OF OBSERVERS%-

1. >%78IST8

&. %'I

@. 8*


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BIBLOGRAP"Y%-

Internatinal MarketingWTO RM MCOM

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