WORLD TRADE ORGANIZATION

Export AgricultureUva Wellassa University

INTRODUCTION

• Location: Geneva, Switzerland• Established: 1 January 1995• Created by: Uruguay Round negotiations (1986-94)• Membership: 160 countries (on 6 June 2014)

Need for formation of WTO

Objectives

• Remove or reduce international trade barriers with the member countries

• Achieve global economic development through optimum utilization of world resources

• Increase market shares of developing countries through assistance in their development efforts

• Follow a non discriminatory policy for all member countries

• Act as dispute settle machinery

Who benefits from WTO

Functions of WTO

• Administering WTO trade agreements• Forum for trade negotiations• Handling trade disputes• Reviewing national trade policies• Assisting developing countries in trade policy issues,

through technical assistance and training programme• Monitoring national trade policies• Cooperation with other international organizations

WTO Agreements• Cover goods, services and intellectual property• Clarify about

– the principles of liberalization– the permitted allowances

• To lower customs tariffs and other trade barriers• To open and keep open services markets• Procedures for settling disagreements• Suggest special treatment for developing countries

WTO Agreements

• General Agreement on Tariffs & Trade (GATT)• General Agreement on Trade in Services (GATS)• Trade Related aspects of Intellectual Property

rights(TRIPS)• Trade Related Investment Measures(TRIMS)• Agreement On Agriculture(AOA)• Agreement on Technical Barriers Trade(TBT)• Sanitary & Phyto Sanitary (SPS) Agreement

General Agreement on Tariffs & Trade (GATT)

• GATT was 1 st signed in 1947• Was designed

– To provide an international opportunity– To encouraged free trade between member states– To regulate and reduce tariffs on traded goods– To provide a common mechanism for resolving

trade arguments

• Main Objective Reduction of barriers to international trade

• This was achieved through the reduction of –Tariff barriers–Quantitative restrictions–Subsidies on trade through a series of agreements

General Agreement on Trade in Services (GATS)

The most development-friendly of WTO Agreements because of its great flexibility:

Objectives•Expansion of services trade•Progressive liberalization through successive rounds of negotiations•Transparency of rules and regulations•Increasing participation of developing countries

• Sectorial Coverage - Business Services- Communication- Construction- Distribution- Education- Environmental Services- Health-Related Services- Financial Services- Tourism- Culture

Trade Related Aspects of Intellectual Property Rights

Agreements (TRIPS)

• It was negotiated at the end of the Uruguay round of the general agreement on tariffs and trade (GATT) in 1994

• This agreement concern about research, designs, sciences and other fields along growth in industrial sector

• Objectives• Protection & enforcement of intellectual property

– to the promotion of technological innovation

– to the transfer dissemination technology

• To resolves disputes in trade related issues

Agreement on Trade Related Investment Measures(TRIMs)

• Refers to certain restrictions imposed but governments in respect of foreign investment in the country

• Provides that no contracting party shall apply any TRIM which is inconsistent with the WTO articles

Agreement on Agriculture(AOA)

• A part of the final act of the Uruguay round• Implications differ to country to country• Contain provisions in 3 broad areas of agriculture

and trade policy– Market access– Domestic support– Export support

Agreement on Technical Barriers to Trade (TBT)

ObjectivesAllows members to apply standards, technical regulations, conformity assessment procedures for - Protection of human safety or health e.g:- sockets, seat belts, labeling cigarettes - Protection of animal & plant life or health

e.g:-pollution, extinct egg turtle extruder device) - Protection of environment e.g:-level of vehicle emissions

- Prevention of deceptive practices e.g :- labeling, size - Quality-size of fruits & vegetable

•However need to ensure that these do not create obstacles to international trade

Sanitary and Phyto sanitary (SPS) Agreement

• All countries have rights to take Sanitary and Phyto sanitary (SPS) Measures for protection of human, animal and plant life and health

The right to protecthuman, animal or plant life or health

Avoiding unnecessary barriers to trade

Economic Influence

3 main advantages•Free trade can be done with the countries which has no economic sanctions•Can bond to free trade agreements•Trade & Tariffs can be controlled as per the country’s economical situation

Disadvantages•Increased domestic economic instability from international trade cycles, as economies become dependent on global markets•Developing or new industries may find it difficult to become established in a competitive environment 

Political influence

If Human Right Resolutions are accepted, trade cannot be done

On our point of view…• As a WTO member, we are bond with internationally

recognized rules• So, the independence of the Srilankan economy has

been reduced• We also have to act on globally accepted quality

standards• We could go on to regional trade agreements

e.g: Indu Lanka SAPTA

THANK YOU!