WTO final(1)
-
Upload
david-jonathan-dpenha -
Category
Documents
-
view
221 -
download
0
Transcript of WTO final(1)
-
8/2/2019 WTO final(1)
1/21
Presented by:David DPenha 33Deepa Thakkar 34Gayatri Das 48
Kunali Shah 69
-
8/2/2019 WTO final(1)
2/21
Before WTO
The General Agreement on Tariffs and Trade (GATT), multilateraltreaty between governments, was signed in 1947 and came into forceon 1st January 1948.
OBJECTIVES:
The primary of GATT is to expand international trade by liberalizingtrade so as to bring about all around economic prosperity. The
Preamble to the GATT mentions the following as its importantobjectives:
Raising standard of living.
Ensuring full employment and a large and steadily growing volumeof real income and effective demand.
Developing full use of resources of the world. Expansion of production and international trade.
-
8/2/2019 WTO final(1)
3/21
Evaluation of GATT
The member countries of GATT account for over 90 % of the internationaltrade. This indicates that GATT can considerably help in the orderlydevelopment of global trade.
One of the principles accomplishments of GATT has been the establishmentof the forum for continuing consultations. Disputes that might otherwisehave caused continuing hard feeling, reprisals and even diplomatic rupturehave been brought to the conference table and compromised.
GATT has so far held 8 multinational trade negotiations. Though GATTsefforts at getting tariff reductions and other measures aiming at tradeliberalizations are not up to expectations, they are in no way insignificant.The average level of tariff on manufactured goods in industrial countries isabout 3% now compared to about 40% in the immediate post 2nd war years.
-
8/2/2019 WTO final(1)
4/21
Formation of WTO The World Trade Organization was founded in 1995 to replace the General
Agreement on Tariffs and Trade (GATT). This multilateral organizationaims to lower tariffs and non-tariff barriers so as to increase internationaltrade.
The 146 member states meet in ministerial sessions at least once every twoyears. NGOs and poor countries fear that further liberalization of trade willonly benefit rich countries.
WTO negotiations favor the interests of investors and neglect agricultural
protectionism by rich countries. Critics often charge that the WTO functionsundemocratically and that it has opaque negotiation procedures that harmthe interest of the poor.
The World Trade Organization (WTO) is an international, multilateralorganization, which sets the rules for the global trading system and resolvesdisputes between its member states, all of whom are signatories to its about
30 agreements.
-
8/2/2019 WTO final(1)
5/21
The WTO in brief
The World Trade Organization (WTO) is the onlyinternational organization dealing with theglobal rules of trade between nations. Its mainfunction is to ensure that trade flows assmoothly, predictably and freely as possible.
-
8/2/2019 WTO final(1)
6/21
Fact File
Location: Geneva, Switzerland
Established: 1 January 1995
Created by: Uruguay Round negotiations (1986-94)
Membership: 153 countries on 10 February 2011
Budget: 196 million Swiss francs for 2011
Secretariat staff: 640
Head: Pascal Lamy (Director-General)
-
8/2/2019 WTO final(1)
7/21
-
8/2/2019 WTO final(1)
8/21
10 Common misunderstandings aboutthe WTO WTO dictates policy
WTO is free for trade at any cost
Commercial interests take priority over development Commercial interests take priority over the environment
Commercial interests take priority over health and safety
WTO destroys jobs, worsens poverty
Small countries are powerless in the WTO
WTO is the tool of powerful lobbies Weaker countries are forced to join the WTO
The WTO is undemocratic
-
8/2/2019 WTO final(1)
9/21
Functions
Administering WTO trade agreements
Forum for trade negotiations
Handling trade disputes
Monitoring national trade policies
Technical assistance and training for developing countries
Cooperation with other international organizations
-
8/2/2019 WTO final(1)
10/21
-
8/2/2019 WTO final(1)
11/21
Important Agreements under WTO
General Agreement on trade in Services
Trade Related Intellectual Property Rights
Trade Related Investment Measures
Agreement on Anti-Dumping
-
8/2/2019 WTO final(1)
12/21
New issues Regional economic groupings
Trade and the environment
Aid for trade
Transparency in government procurement
Trade facilitation
Electronic commerce
Trade and labour rights
-
8/2/2019 WTO final(1)
13/21
Dispute Settlement First stage: consultation
Second stage: the panel
Before the first hearing First hearing: the case for the complaining country and defence
Rebuttals
Experts
First draft Interim report
Review
Final report
The report becomes a ruling
-
8/2/2019 WTO final(1)
14/21
Difference between GATT and WTO
Sr.
No
GATT WTO
1 GATT was ad hoc andprovisional.
WTO and its agreements arepermanent.
2 GATT has contracting parties. WTO has members.
3 GATT system allowed existingdomestic legislation to continueeven if it violated a GATTagreement.
This is not permitted by WTO.
4 GATT was less powerful, disputesettlement system was slow andless efficient, its ruling could beblocked.
WTO is more powerful than GATT,dispute settlement mechanism isfaster and more efficient, verydifficult to block the ruling.
-
8/2/2019 WTO final(1)
15/21
10 benefits of the WTO trading system
The system helps promote peace
Disputes are handled constructively
Rules make life easier for all Freer trade cuts the costs of living
It provides more choice of products and qualities
Trade raises incomes
Trade stimulates economic growth
The basic principles make life more efficient Governments are shielding from lobbying
The system encourages good government
-
8/2/2019 WTO final(1)
16/21
Implications for India
It appears that India does not stand to gain much by shouting foragriculture reforms in developed countries because the overall tariff is
lower in those countries. India will have to tart major reforms in agriculture
sector in India to make Agriculture globally competitive.
It is likely that China, Germany, North African countries, Mexico and suchothers may reap benefit in textiles and Clothing areas unless India embarks
upon major reforms in modernization and up gradation of textile sector
including apparels.
In Pharma-sector there is need for major investments in R &D and mergersand restructuring of companies to make them world class to take
advantage. India has already amended patent Act and both product and
Process are now patented in India.
-
8/2/2019 WTO final(1)
17/21
Problems faced by India due to WTO &
its Implementation Predominance of developed nations in negotiations extracting more
benefits from developing and least developed countries
Resource and skill limitations of smaller countries to understand and
negotiate under rules of various agreements under WTO
Incompatibility of developed and developing countries resource sizesthereby causing distortions in implementing various decisions
Non-tariff barriers being created by developed nations.
Poor implementation of Doha Development Agenda
Dismantling of MFA (Multi Fiber Agreement) and its likely impact oncountries like India
-
8/2/2019 WTO final(1)
18/21
How does WTO help India?
Extra time
Trading opportunities
Safeguarding the interest
Means of helping to deal with committments
-
8/2/2019 WTO final(1)
19/21
What should India do?
The most important things for India to address are speed up internalreforms in building up world-class infrastructure like roads, ports andelectricity supply.
India's ranking in recent Global Competitiveness report is not veryencouraging due to infrastructure problems, poor governance, poor legalsystem and poor market access provided by India.
Our tariffs are still high compared to Developed countries and there will bepressure to reduce them further and faster.
India has solid strength, at least for mid term (5-7 years) in services sectorprimarily in IT sector.
India would do well to reorganize its Protective Agricultural policy in nameof rural poverty and Food security and try to capitalize on globalization of
agriculture markets.
-
8/2/2019 WTO final(1)
20/21
India must improve legal and administrative infrastructure, improve tradefacilitation through cutting down bureaucracy and delays and further ease itsfinancial markets.
India has to downsize non-plan expenditure in Subsidies and Governmentsalaries and perquisites like pensions and administrative expenditures.
Corruption will also have to be checked by bringing in fast remedial publicgrievance system, legal system and information dissemination by using e-governance.
The petroleum sector has to be boosted to tap crude oil and gas resourceswithin Indian boundaries and entering into multinational contracts to sourceoil reserves.
It wont be a bad idea if Indian textile and garment Industry go multinationalsetting their foot in western Europe, North Africa, Mexico and other suchstrategically located areas for large US and European markets.
-
8/2/2019 WTO final(1)
21/21
Thank You