Presentation on

World Trade Organization (WTO)

Presented by :- Group No. 4
Abhishek Choudhary Sanjay Singh Rajpurohit Mitesh Sharma Anand Kumawat Nikhil K Mehta Rahul Srivastava Omprakash Suthar

Introduction
The WTO is a rules-based, member-driven organization all decisions are made by the member governments, and the rules are the outcome of negotiations among members It came into existence on 1 January 1995 It is the successor of GATT (General Agreements on Tariffs and Trade) which was started in 1947

Cont
The last and largest GATT round, was the Uruguay Round which lasted from 1986 to 1994 and led to the WTOs creation Whereas GATT had mainly dealt with trade in goods, the WTO and its agreements now cover trade in services, and in traded inventions, creations and designs (intellectual property) The meeting of WTO held once in every two year and secretariat is based in Geneva

World Trade Organization

Location: Geneva, Switzerland Created by: Uruguay Round negotiations (1986-94) Membership: 153 countries on 23 July 2008 Budget: 189 million Swiss francs for 2009 Secretariat staff: 625 Head: Pascal Lamy (Director-General)

Difference between GATT and WTO

The GATT has no basic constitution whereas WTO has permanent institution with its own Full-fledged secretariat located in Geneva GATT was applied on a provisional basis and the WTO commitment was full, enduring and permanent GATT rules applied to trade in merchandise goods, wherever the WTO rules were applied on trade in services, goods and on TRIPs

Cont
The WTO dispute settlement system is more convenient, faster, more automatic whereas GATT system was more susceptible in blockages WTO has a global status similar to IMF, IBRD wherever GATT was established on provisional basis

WTO Objectives
To raise the standard of living and to ensure full employment To develop an integrated, viable and durable multi-lateral trading system To promote sustainable development in member countries by the optimal use of resources To help the developing countries to get a share in the growth of International Trade

Cont
To reduce tariffs and other trade barriers among member countries and to eliminate discriminatory treatment in International Trade relation To ensure linkages between trade policies, environmental policies and sustainable development

Structure of WTO
Ministerial Conference (MC) Committee on Budget, finance and Administration

Committee on Trade and Development

Committee on BOP Restrictions

General Council (GC) Dispute Settlement Body Council for trade in goods Council for trade in services Trade Policy Review Mechanism (TPRM)

Council for TRIPS

Features
WTO has a legal personality which is based on Multi-Lateral Trade Its ultimate aim of WTO is to establish a rule basis of Global Free Trade It is wider than GATT because it is not only covers trade related to goods but also includes services and property rights All member-countries are committed to the agreements which it passes

Cont
It is a full Fledged International Organization The decision making under WTO is carried out by consensus It is an open ended institution and it can take on board any subject area which the member government think should be brought under multilateral discipline

Functions
To establish co-ordination with other wings of the UNO such as IMF, IBRD and its affiliated agencies To act as watch dog of International Trade To maintain data base relating to its members To solve Trade disputes under WTO dispute settlement court To act as a Consultant for World Trade

Cont
To facilitate the management of the Multilateral Trade Agreement (MTAs) and the Plurilateral Trade Agreement (PTAs) for the fulfillment of their obligation The above agreements are negotiated by the members of the forum To administer the understanding of rules and procedures governing in settlement of disputes To administer TPRM

Major Trade Agreements (MTAs) (Under WTO)

Agreement on Agriculture General Agreement on Trade in Services Agreement on Trade Related Intellectual Properties (TRIPs) Agreement on Textiles and Clothing (Multi-Fibre Agreement) Agreement on Manufactured goods

Achievements
Promptness of setting disputes among the member nations It plays a significant role in globalization and market orientation of the economies It has taken several steps on access to a very strong financial system and access to investment

Cont
By following the rules of WTO, BOP (Balance of Payment) situations of many member nations has improved WTO has increased demand for technical assistance TPRM of WTO has been enforcing discipline amongst the member countries It has contributed towards information and technology agreements, transparency in government procurement and trade facilitation

WTO and India

In 1994, India has joined WTO as a Founder Member, and number of issues have risen having their impact on its interest. There are four major provisions relating to agriculture and that are:
Reduction in domestic support Market access Trade Related Intellectual Property Rights (TRIPs) Disbanding Public Distribution System

Cont
The issues were as follows:
In the area of agriculture the Tariff rate quota should be make more transparent, equitable and non-discriminatory In the area of senetary products, measures should be taken for International setting To protect small scale industries and other domestic industries A Multi-National Corporation should be encouraged in rural market

Challenges and Limitations

WTO is facing problem in making the new multilateral system truly global in scope and application The trade reforms are still incomplete in many countries Some developing countries appear to be going in reverse direction It is also facing an important issue like balancing of trade and environmental concerns

Cont
The WTO has opened up the world economy more rapidly in areas that benefited the developed world Without consensus, there is no possibility that it could be brought into the agenda of the WTO The interest of International trade, which are primarily the interest of multi-national corporations, takes precedence over local concerns