IMPLICATIONS OF WTO ON INDIA

Presented by:Shivani Gautam Shray Jali Vishal Chaudhary

Roadmap

Structure Of WTO Why do we need WTO India and WTO Effect on

Agriculture Textiles IT & ITes Telecom Sector

IPR and TRIPS in India Sanitary and PhytoSanitary Measures/Technical Barriers To Trade Our Recommendations

Tariff Reforms

Why Do We Need WTO?

International peace:- by helping the trade to flow smoothly and dealing with disputes over trade issues Risk reduction:- Confidence to nations to do more and more trade, thereby stimulating economic growth

India in WTO

Founder member Ensured more stability and predictability MFN status and national treatment for its exports India is expected to snatch most of the business deals that are presently catering the developed nations which includes major service based industries like telecom, financial services, infrastructure services such as transport and power

GDP share
Primary Secondary Tertiary

27.5 13.3

28.6
16.6

31.1

36.6

40.6

49.3

21.6

23.7

27.2 26.7

59.2

54.8

46.3

39.2

32.2

24

1950-51

1960-61

1970-71

1980-81

1990-91

2001-02

Agriculture

Reduction in domestic subsidies

Amber

box, Green box and Blue box Total Aggregate Measurement of Support (AMS) is negative so not required to undertake reduction commitments in any of its product

Reduction in export subsidies

No

direct subsidies except marketing and transport subsidies

Tariff binding and progressive reduction of tariffs

Primary

agricultural products 100%

Textiles

The textile sector remained outside the GATT disciplines for many decades 1974: MFA ATC : negotiated during the Uruguay Round
Accounted

for about 36% of total exports from

India Largest net foreign exchange earner for the country

Anti-dumping probes against India

European Union
Unbleached Cotton Fabrics (UCF) Cotton Type Bedliner Polyester Texturised Filament Yarn (PTFY)

Turkey

Polyester Texturised Yarn (PTY)

South Africa
Printed and dyed bed linen Acrylic fibre blankets

IT & ITes

Key contributor to the Services Sector accounting for 5.8% of Indias overall GDP
[Source: PWC report for CII]

The increase in availability and reduction in tariffs has prompted many developed nations to go for business with India especially in IT and ITeS industry Software exports from the Rajiv Gandhi Chandigarh Technology Park rose from Rs.504 crore in 2007-08 to Rs.750 crore last year.

Telecom

The WTO Agreement on Basic Telecommunications provided for liberalization of trade Indias approach was primarily defensive MFN exemptions: for different accounting rates into Pakistan, Bangladesh, Nepal and Bhutan 1998 25% FDI 2001 49% FDI 2003 74% FDI but mgmt. control with Indian operators

Mobile tariffs in India

0.25 0.23 0.22 0.2 0.19 0.17 0.16 0.15 0.11 0.1 0.11 0.11 0.09

0.05 0.05

0.05 0.04 0.03 0.02

Argentina

Belgium

Italy

France

Philippines

Malayasia

Thailand

Hong Kong

Pakistan

Taiwan

China

Brazil

India

UK

IPR

Seven types
Copyrights Trademarks

Geographical

indications Industrial designs Patents Integrated circuits Trade secrets

TRIPS in India

Indias patent policy allowed very little scope for patents in agriculture Protecting some of the geographical indications of interest to India e.g. Basmati rice, Darjeeling tea, Mysore Dosa

Exclusive Marketing Rights for the producers of patented drugs and agrochemicals

Sanitary and Phytosanitary Measures and Technical barriers to trade (SPS/TBT)

Protects human, animal and plant life and health including from pests and diseases of food
Size, shape, weight and packaging material requirements including labeling and handling safety Peanuts, Marine products, Mushrooms in EU

Our recommendations

Building up world-class infrastructure like roads, ports and electricity supply Strength in IT and ITes sector should be tapped and further strengthened
Reorganize its Protective Agricultural policy Textile industry modernization