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m WTO
m GATT
m Objectives of GATT
m Rounds of GATT
m WTO & GATT comparison
m Introduction of WTO
m Structure of WTO
m Objectives of WTO
m WTO & India
m Dispute settlement Body
m Achievements of WTO
m Pending issues
m WTO & Development Opportunities
m Global trade opportunities
m Recent Developments
m References


There are a number of ways of looking at the WTO0

It¶s an organization for liberalizing trade.
It¶s a forum for governments to negotiate trade agreements.
It¶s a place for them to settle trade disputes. It operates a
system of trade rules.
O 
ŒThe GATT , the predecessor of WTO, was born in 1948.

ŒThe GATT was a loose system of International

agreement.

ŒIt did not crystallize as an institutional framework.

ŒThe primary objective of GATT was to expand

international trade by liberalizing trade so as to bring
about all round economic prosperity.
 `
O 

ΠRaising standard of living.

ŒEnsuring full employment and a large steadily growing

volume of real income and effective demand.

ŒDeveloping full use of resources of the world.

ŒExpansion of production and international trade.

O   


à
    

 
      


  
April 1947 7 months 23 Tariffs Signing of
GATT, 45,000
 tariff concessions
affecting $10

billion of trade

April 1949 5 months 13 Tariffs Countries

exchanged some
 5,000 tariff
concessions

September 8 months 38 Tariffs Countries


  exchanged some
1950 8,700 tariff
concessions,
cutting the 1948
tariff levels by
25%
 Tariffs, $2.5 billion in tariff
Vanuary 1956 5 months 26 admission of
  Vapan reductions

Tariffs Tariff concessions

September 11 26 worth $4.9 billion of
 
 1960 months world trade

Tariffs, Anti- Tariff concessions

 May 1964 37 62 dumping worth $40 billion of
world trade
months
Tariffs, non- Tariff reductions worth


September 74 102 tariff more than $300 billion
1973 months measures, dollars achieved
"framework"
agreements

Tariffs, non- The round led to the

  September 87 123 tariff measures, creation of WTO, and
1986 months rules, services,
intellectual
extended the range of
trade negotiations, leading
property, to major reductions in
dispute tariffs (about 40%) and
settlement, agricultural subsidies, an
textiles, agreement to allow full
agriculture, access for textiles and
creation of clothing from developing
WTO, etc countries, and an
extension of intellectual
property rights.



` 
O   

GATT was ad hoc and
provisional
GATT had contracting parties
GATT system allowed existing
domestic legislation to continue
even if it violated a GATT
agreement.
GATT was less powerful,
dispute settlement system was
slow and less efficient. Its ruling
could be easily blocked.

WTO and its agreements are
permanent.
WTO has member countries
WTO does not permit this.
WTO is more powerful, dispute
settlement mechanism is fast
and more efficient. It is very
difficult to block the rulings.


`

mThe WTO has 153 members, representing more than 95% of
total world trade.
mThe WTO is governed by a ministerial conference, meeting
every two years;,
ma general council which implements the conference's policy
decisions and is responsible for day-to-day administration;
mDirector-general, who is appointed by the ministerial
conference.
mThe WTO's headquarters is at the Geneva, Switzerland
 `
To help developing countries benefit fully from the
global trading system
ŒTo set and enforce rules for international trade
ŒTo increase the transparency of decision-making processes
ŒTo facilitate trade without any discriminations
ŒTo resolve trade disputes
ŒTo provide forum for negotiating and monitoring the
international trade
ŒTo cooperate with other major international economic
institutions involved in global economic management
ŒThe main overall objective of WTO is to promote and
ensure the international trade in the member countries with
the mantra of Liberalization, Privatization and Globalization
   


India seeks to :
o Protect its food & livelihood security by having
sufficient flexibility for domestic policy measures
o Protect domestic produces from surge in imports
o Substantial reduction in export subsidies and
domestic support to agriculture in developed
countries for greater market access
o Negotiation on trade in services are crucial to India
   


What India should do?
 India should not be seen as a spoiler in
Negotiations.
 Should give constructive leadership to protect the
interests of developing and Lest Developed
Countries.
 Should vigorously pursue liberalization of trade in
services.

 
 


 Disputes can arise if a member country resiles on its

promise.
 Permanent and structured dispute settlement system.
 Dispute Settlement Body consists of all WTO members.
 DSB establishes a Panel of experts to consider dispute.
 Panel/ Appellate report is to be accepted by DSB. Rejection
in case of consensus against the Report.
 After final verdict of DSB, the losing country announces
changes in its trade policy. If not, the complainant country
can impose limited trade sanctions preferably in the sector of
dispute .
  
  

60 days Consultations among countries in dispute

45 days Panel of experts established
6 months Panel Report submitted
60 days DSB adopts Panel report
_____ (if No Appeal by either party)
1 year In case of Appeal, Panel report referred to 7 member
Appellate Body
___________ Appellate Body¶s Report accepted by DSB.
1 year 3 mths (Rejection only by consensus)

30 days m


 
     !
 .

If not, the complainant country can impose

limited Trade Sanctions, preferably in the area
of Dispute.
   ` 


 !  : —    " #$ %&&'(
Bangladesh requests consultations with India on imposition of
Anti-
dumping duty on import of Lead Acid batteries by India.
European
communities also join. India modifies the import duty vide
custom
notification no 01/2005. Dispute settled.
  "#) *++,(
India requested consultations with turkey on against
imposition of
import restrictions on textile and clothing from India. Panel
report
asked Turkey to modify import restrictions. Turkey appeals
on legalalities.
Appellate report upheld Panel report but disagreed on legal
basis given by
the Panel. Turkey agrees to remove restrictions by Vune
2001 but does not.
India notifies DSB of Turkey¶s lack of notification. Further action to be taken.
 `



 m   

Œ WTO¶s trade liberalization measures are embodied in a variety
of agreements, No.60,which each country has to sign for
becoming member of WTO.


 # (
ΠTariffs on agricultural products are bound
ΠNon Tariff barriers such as Quotas for Import have been
converted to tariff (Tariffication) to give predictability to trade
in agriculture commodities.
ΠDeveloped countries have agreed to cut export subsidies by
36% (24% cut for developing countries).
 `



  -   
 )  
 #-)(

Applies to measures that affect trade in goods.
ΠNo country shall apply any measure that discriminates against
foreigners or foreign products (Principle of National
treatment). However, permits utilization of local resources
through µLocal Content Requirements¶.
Œ Discourages µtrade belonging requirements¶ of countries by
restricting import & pushing exports.
Œ Deadlines for implementation ±
ΠDeveloped Countries - 1996
Œ Developing Countries ± 1999 (extended)
ΠLDC - 2001 (extended)
 `



. 
 #    / .

0     
 (

 
!  
 0
ΠMember Countries can resort to anti dumping measures if they
can establish that goods are being dumped at price lower than
the price prevailing in the exporting country.
ΠExtension of Import Duty can be levied to prevent dumping.
 `





   -   !
1  
.
! -  #-.(
ΠEnjoins on the member countries to protect the rights of the
creators/invention of products or ideas.
ΠCopyrights, trademarks, geographical indications, Industrial
designs, patterns etc. are covered. e.g. Computer programs,
films, wires & spirits are protected.
  

      #( 0
ΠLays down obligations of member countries to provide access
to import of services on the basis of MFN principle.
ΠExclusions permitted but to be notified by respective Govts.
eg. Air Transport Services are excluded.


O 


 

1 1 
   0
ΠDeveloped countries yet to abolish export subsidies
as agricultural products.
à
    )   #à)("
ΠTariff reductions for various sectors is yet to be
firmed up. Negotiations are going on 14 sectors
(Automotive & parts, Chemicals, fish, textiles,
Clothes, etc).
ΠDeveloped countries want quick acceptance of tariff
reductions by developing countries as per NAMA.
Developing countries say that rapid tariff reductions
can de-stabilise their economy.


O 
 
ΠNo concrete proposal as yet mooted for ensuring free
movement of professionals. This is linked with
country¶s Immigration Laws.
 

  
! 
1  "
ΠAlthough a start has been made, but concrete
agreements are yet to be framed. E.g. Due to grant of
fisheries subsidy ($ 14-20 Billion p.a. ) trade in fish
has gone up manifold resulting in depletion of fish
stock.

 

 



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Œ On 9 Vuly 2009 ± WTO organises a workshop on

environmental private standards, certification and
labeling requirements.
Π6 September 2009 - WTO open its doors to the public
for the first time.
ΠIndia hosted an informal meeting of 35 countries,
representing various interest groups, in September for
ways to revive the Doha round of WTO negotiations
for further opening up of markets for goods and
services.
`
  


ΠIndia proposed that the forthcoming seventh Ministerial

Conference of the World Trade Organization (WTO) to held in
November, should address some systemic issues for improving
the functioning and efficiency of the WTO as a rules-based
system, and make the system more useful, relevant, vibrant
and user-friendly & submitted five proposals


`

Πwto.org
ΠWikipedia.org
ΠScribd.com