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GATT, WTO AND GATT TRADE ROUNDSPRESENTED BY: MONISHA

GATT & WTO

General Agreement on Tariffs and Trade

During great depression of 1930s the international trade was badly affected and various countries imposed import restrictions for safeguarding their economies.It resulted in sharp decline in world trade

1n 1945, USA put forward many proposals for extending international trade and employment.On October 30th, 1947; 23 countries at Geneva signed an agreement related to tariffs imposed on trade.

BACKGROUND

The General Agreement on Tariffs and Trade (GATT) was first signed in 1947.

Was designedTo provide an international forum That encouraged free trade between member statesBy regulating and reducing tariffs on traded goodsProviding a common mechanism for resolving trade disputes.

GATT ???Was the outcome of the failure of negotiating governments to create the ITO The Bretton Woods Conference introduced the idea for an organization to regulate trade as part of a larger plan for economic recovery after World War IIAs governments negotiated the ITO, 15 negotiating states began parallel negotiations for the GATT as a way to attain early tariff reductions Once the ITO failed in 1950, only the GATT agreement was left. A Treaty, not an Organization

ObjectiveThe GATT's main objective was the Reduction of Barriers to International Trade

This was achieved through the Reduction ofTariff barriersQuantitative RestrictionsSubsidies on trade through a series of agreements

ROUNDS OF GATT NEGOTIATIONBetween 1947 and the last year of GATT there were 8 rounds of negotiations between the participating countries.The first 6 rounds were related to curtailing tariff rates. 7th round included the non tariff obstacles.The 8th round was entirely different from the previous rounds because it included a number of new subjects for consideration. This 8th round was known as URUGUAY ROUND.The discussions at this round only gave birth to WORLD TRADE ORGANISATION (WTO).

FROM GATT TO WTOFollowing the UR agreement, GATT was converted from a provisional agreement into a formal international organization called World Trade Organization (WTO), with effect from January 1, 1995GATTWTOGATT was ad hoc and provisionalWTO and its agreements are permanentGATT had contracting partiesWTO has membersGATT system allowed existing domestic legislation to continue even if it violated a GATT agreementWTO does not permit thisGATT system was less powerful, dispute settlement system was slow and less efficient, its ruling could easily blockedWTO is more powerful than GATT, dispute settlement mechanism is faster and more efficient, very difficult to block the rulings.

What Is the WTO?

One Opinion

World Trade Organization: HistoryWhat GATT (and WTO) DoesRules for trade policyForum for negotiationOf both trade policies (tariffs) and rulesNegotiations take place in Negotiating RoundsDecisions made at occasional meetings of trade ministers: Ministerial Meetings(US trade minister is United States Trade Representative, Susan Schwab)

WTO TodayEstablished Jan 1, 1995Members: 149Most recent: Saudi Arabia December 2005Including: China (as of 2001)Not including: Russia, Iran, Iraq, N. KoreaVietnam in process of being admittedHeadquarters: Geneva, Switzerland (also home of ILO, WIPO, and others)

World Trade Organization: Today

WTOs Three PartsGATT (Still exists, as largest part of WTO)GATS = General Agreement on Trade in ServicesTRIPs Agreement = Trade Related Aspects of Intellectual Property Rights

The World Trade Organization (WTO) deals with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible.

WTO is an organization for liberalizing trade, a forum for governments to negotiate trade agreements and a place for them to settle trade disputes

At the heartof the system known as the multilateral trading system are the WTOs agreements, negotiated and signed by a large majority of the worlds trading nations, and ratified in their parliaments.

The WTO has larger membership than GATT, with the numbers being 153. India is one of the founder members of GATT

Non discriminationFree Trade: Promote free trade between nations through negotiations. Stability in the trading system: Member countries are committed not to raise tariff and non tariffs barriers arbitrarily.Promotion of Fair Competition: WTO provides for transparent, fair and undistorted competition. It discourages unfair competitive practices such as export subsidies and dumping.

Principles of WTO

WTO AND INDIAIndia is a founder member of the General Agreement on Tariffs and Trade (GATT) 1947 and its successor, the World Trade Organization (WTO), which came into effect on 1.1.95 after the conclusion of the Uruguay Round (UR) of Multilateral Trade Negotiations.Indias participation in an increasingly rule based system in the governance of international trade is to ensure more stability and predictability, which ultimately would lead to more trade and prosperity for itself and the 134 other nations which now comprise the WTO. India automatically avails national treatment for its exports to all WTO Members.

PRESENTED BY: Sruthi kURUGUAY AND DUNKEL PROPOSAL, FUNCTIONS OF WTO, PRICIPLES OF GATT AND OBJECTIVES OF GATT

Uruguay round (UR) is the name by which the eighth round of the multilateral trade negotiation (MTNS) held under the auspices of the GATT is popularly known because it was launched in Punta del Este in Uruguay, a developing country in September 1986Uruguay round & dunkel proposal

UR could not concluded in December 1990 as was scheduled because of some complexities of issues.

when the negotiations dragged on, Arther Dunkel, the then director general of GATT , presented a draft Act embodying what he thought was the result of the Uruguay round. This is came to be popularly known as Dunkel draft.

The UR sought to broaden the scope of MTN far wider by including new areas such as : Trade in serviceTrade related aspects of intellectual propertyTrade related investment measures. The Uruguay round took up 3 basic subject for discussion. reducing specific trade barriers and improving market access strengthening GATT disciplineProblem of liberalization of trade in service,TRIPs,TRIMs

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It facilitates the implementation , administration and operation and further the objectives of the multi lateral trade agreement and shall also provide the frame work for implementation, administration and operation of plurilateral trade agreement.

It provide the forum for negotiation among its members concerning their multilateral trade relation in matter dealt with under the agreement.

Functions of WTO

The WTO shall administer the understanding on rules and procedures governing the settlement of disputes

It review trade review mechanism.

It cooperate, as appropriate with IMF,IBRD and its affiliated agencies.

Principles of GATT Non discrimination

Prohibition of quantitative restrictions

Consultation

Objectives of GATT Raising standard of living

Ensuring full employment and large and steadily growing volume of real income and effective demand.

Developing full use of the resources of the world

Expansion of production and international trade.

Business EnvironmentPRESENTATIONPRESENTED BY: AJESH A P

TOPIC: ROLES OF WTO, DIFFERENCE BETWEEN GATT & WTO AND GATS

DIFFERNCE BETWEEN GATT AND WTOGATTWTO* GATT was ad hoc and provisional* WTO and its agreements are permanent.*GATT had contracting parties* WTO has members.* GATT system allowed existing domestic legislation to continue even if it violated a GATT agreement.* WTO does not permit this.* GATT was less powerful, dispute settlement system was slow and less efficient, its ruling could be easily blocked.* WTO is more powerful than GATT, dispute settlement mechanism is faster and more efficient, very difficult to block the rulings.

GATS The General Agreement on Trade in Services (GATS) which extends multilateral rules and disciplines to services is regarded as a landmark achievement of the UR, although it achieved only little in terms of immediate liberalization. The GATS defines services as the supply of a service from the territory of one member (country) into the territory of any other member; in the territory of one member to the service consumer of any other member; by a service supplier of one member, through commercial presence in the territory of any other member; or by a service supplier of one member, through presence of natural persons of a member in the territory of any other member.

In short, the GATS covers four modes of international delivery of services.1. Cross-border supply (transborder data flows, transportation services)2. Commercial presence (provision of services abroad through FDI or representative offices)3. Consumption abroad (tourism)4. Movement of personnel (entry and temporary stay of foreign consultants)

Rules of WTO WTO agreements include goods, services and intellectual property. It has an object of reducing tariffs to zero. It enables liberalization and allows limited exemption regarding duties. It establishes a system to resolve disputes and ensures transparency regarding the trade policy of government. The present WTO system based on the Uruguay Round Agreement, which are as follows:

1. Binding and Cutting of TariffTariff on AgricultureMore bindings

2. Agriculture Rules and PoliciesMarket AccessDomestic supportExport Subsidies

3. Standard and SafetyFood, Animal and Plant ProductsTechnical Regulations and Standards

4. Textiles

5. Services General obligations and DisciplinesTransparencyRegulationRecognitionInternational Payment and Transfer

6.Trade Related Intellectual Property Rights

CopyrightTrademarkGeographical indicationsIndustrial designsPatentsLayout design for Integrated CircuitUndisclosed Information And Trade SecretsCurbing anti- competitive licensing contractsTransition arrangements

7. Anti-Dumping Measures and Countervailing DutiesSubsidies and Countervailing Measures

8. Safeguards: Emergency Protection from Imports Surge.

9. Non Tariff BarrierImport Licensingfor the Valuation of Goods at CustomsPreshipment inspectionRules of OriginInvestment Measures (TRIMS)Trade Policy Review

10. PlurilateralsFair trade in Civil AircraftGovernment ProcurementDairy and Bovine meat Agreements: Ended in 1997

ORGANISATION OF WTO, IMPACT ON WTO IN INDIA AND ADVANTAGES AND BENEFITS OF WTOPRESENTED BY: AJITH KUMAR

Organisation of WTOThe WTO run by its member governments. All major decisions are made by membership as a whole, either by ministers(who meet once ever two years) or by their ambassadors or delegates (who regularly in Geneva) decisions are generally taken by consensus. WTO is a member driven-consensus based organisation.

Highest authority : the ministerial conference WTO belongs to its members. The countries make their decision through various councils and committees whose membership consists of all WTO members.Second level General council in three guisesDay to day work in between the ministerial conferences is handled by three bodies

The General CouncilThe Dispute Settlement BodyThe Trade Policy Review Body

Third level: council for each broad area of trade and moreThe Council for Trade in Goods(Goods Council)The council for trade in service (service council)The council for Trade-Related Aspects of Intellectual Property Rights(TRIPS council)

Fourth level: Down to the Nitty-gritty

Benefits of WTO. Peace is partly an outcome of two of the most fundamental principles of the trading system: helping trade to flow smoothly, and providingcountries with a constructive and fair outlet for dealing with disputes over trade issues. It is also an outcome of the international confidence and cooperation that the system creates and reinforces.

The system allows disputes to be handledconstructivelyAs trade expands in volume, in the numbers of products traded, and in the numbers of countries and companies trading, there is a greater chance that disputes will arise. The WTO system helps resolve these disputes peacefully and constructively

A system based on rules rather than powermakes life easier for allDecisions in the WTO are made by consensus. The WTO agreements were negotiated by all members, were approved by consensus and were ratified in all members parliaments. The agreements apply to everyone. Rich and poor countries alike have an equal right to challenge each other in the WTOs dispute settlement procedures.

Freer trade cuts the cost of living Protectionism is expensive: it raises prices. The WTOs global system lowers trade barriers throughnegotiation and applies the principle of non discrimination. The result is reduced costs of production (because imports used in production arecheaper) and reduced prices of finished goods and services, and ultimately a lower cost of living.

It gives consumers more choice, and a broader range of qualities to choose from The wider choice isnt simply a question of consumers buying foreign finished products. Imports are used as materials, components and equipment for local production. This expands the range of final products and services that are made by domestic producers, and it increases the range of technologies they can use

Trade raises incomesLowering trade barriers allows trade to increase, which adds to incomes, national incomes and personal incomes.

Trade stimulates economic growth,and that can be good news for employmentThis is a difficult subject to tackle in simple terms. There is strong evidence that trade boosts economic growth, and that economic growth means more jobs. It is also true that some jobs are lost even when trade is expanding.

The basic principles make the systemeconomically more efficient, and they cut costsTrade allows a division of labour between countries. It allows resources to be used more appropriately and effectively for production. But the WTOs trading system offers more than that. It helps to increase efficiency and to cut costs even more because of important principles enshrined in the system.

The system shields governments from narrowinterestsThe GATT-WTO system which evolved in the second half of the 20th Century helps governments take a more balanced view of trade policy. Governments are better placed to defend themselves against lobbying from narrow interest groups by focusing on trade-offs that are made in the interests of everyone in the economy

The system encourages good governmentUnder WTO rules, once a commitment has been made to liberalize a sector of trade, it is difficult to reverse. The rules also discourage a range of unwise policies. For businesses, that means greater certainty and clarity about trading conditions. For governments it can often mean good discipline

IMPACT OF WTO ON INDIA Impact on agricultureImpact on pharmaceuticalsImpact on information technologyImpact on textiles and clothingImpact on liquor companiesImpact on service sector

HOW TO JOIN IN WTO,TRIPS AND TRIMSPRESENTED BY: ARUN KRISHNAN

TRIPS (Trade Related Intellectual Property Rights Agreement)The agreement requires member countries to provide patent protection to all products or processes in all fields. The protection is granted subject to the following three conditions:The product or process is a new one.It contains an inventive step.It is capable of industrial application for 20 years from the grant of the patent

TRIPS agreement covers the following seven intellectual properties:PatentsCopyright and other related RightsGeographical IndicationsIndustrial DesignsTrade marksLayout design of integrated circuitsUndisclosed information including trade secrets

TRIPS AGREEMENTIn becoming Members of the WTO, countries undertake to adhere to the 18 specific agreements annexed to the Agreement establishing the WTO. Of these agreements, Trade-Related Aspects of Intellectual Property Rights (TRIPS) is expected to have the greatest impact on the pharmaceutical sector and access to medicines. The TRIPS Agreement has been in force since 1995 and is to date the most comprehensive multilateral agreement on intellectual property. The TRIPS Agreement introduced global minimum standards for protecting and enforcing nearly all forms of intellectual property rights (IPR), including those for patents.International conventions prior to TRIPS did not specify minimum standards for patents.

At the time that negotiations began, over 40 countries in the world did not grant patent.The TRIPS Agreement now requires all WTO members, with few exceptions, to adapt their laws to the minimum standards of IPR protection for pharmaceutical products.TRIPS Agreement also introduced detailed obligations for the enforcement of intellectual property rights. TRIPS also contains provisions that allow a degree of flexibility and sufficient room for countries to accommodate their own patent and intellectual property systems and developmental needsIt allows countries to have a certain amount of freedom in modifying their regulations and, various options exist for them in formulating their national legislation to ensure a proper balance between the goal of providing incentives for future inventions of new drugs and the goal of affordable access to existing medicines.

TRIMS (Trade Related Investment Measures)TRIMS refers to certain conditions or restrictions imposed by a government in respect of foreign investment in the country.

In the late 1980's, there was a significant increase in foreign direct investment throughout the world.

TRIMS are widely employed by developing countries. The Agreement on TRIMs provides that no contracting party shall apply any TRIM which is inconsistent with the WTO articles

SEMINAR ONBUSINESS ENVIRONMENTTOPIC: LAWS WITH REGARDS TO TRADE Presentation By, ABHIJITH M.B

The Companies Act, 1956 The Companies Act 1956 is an Act of the Parliament of India, enacted in 1956.

The Companies Act 1956 is administered by the Government of India through the Ministry of Corporate Affairs and the Offices of Registrar of Companies, Official Liquidators, Public Trustee, Company Law Board, Director of Inspection, etc.

Since its commencement, it has been amended many times, in which amendment of 1988, 1990, 1996, 2000 and 2011 are notable.

Nature and Scope of the Act

Like most of Indian acts, it also extends to the whole India except State of Jammu and Kashmir (S. 3).

This Act is general in nature and not subrogative.

If a special Legislation applies on a Company, then the Company has to, in addition to Companies Act, must comply the special Legislation.

For example, all banking Companies in India has to comply Banking Regulation Act 1949, in addition to the Companies Act 1956.

Essential Commodities Act

The Essential Commodities Act is a law in India which was established to ensure the delivery of certain commodities or products, the supply of which if obstructed owing to hoarding/ black-marketing would affect the normal life of the people.

This includes foodstuff, drugs, fuel (petroleum products) etc

Fiscal Responsibility and Budget Management Act, 2003 The Fiscal Responsibility and Budget Management Act, 2003 (FRBMA) was enacted by the Parliament of India.

It institutionalize financial discipline, reduce India's fiscal deficit, improve macroeconomic management and the overall management of the public funds by moving towards a balanced budget.

To eliminate revenue deficit. of the country (building revenue surplus thereafter) and bring down the fiscal deficit to a manageable 3% of the GDP.

Objectives

The main objectives of the act were:

to introduce transparent fiscal management systems in the country

to introduce a more equitable and manageable distribution of the country's debts over the years

to aim for fiscal stability for India in the long runAdditionally, the act was expected to give necessary flexibility to Reserve Bank of India(RBI) for managing inflation in India

Foreign Exchange Management Act

The Foreign Exchange Management Act (FEMA) was an act passed in the winter session of Parliament in 1999 which replaced Foreign Exchange Regulation Act.

FEMA has brought a new management regime of Foreign Exchange consistent with the emerging framework of the World Trade Organization (WTO).

FEMA also brought with it the Prevention of Money Laundering Act 2002, which came into effect from 1 July 2005.

Features

Activities such as payments made to any person outside India or receipts from them, along with the deals in foreign exchange and foreign security is restricted.

- Restrictions are imposed on people living in India who carry out transactions in foreign exchange, foreign security or who own or hold immovable property abroad.FEMA restricts the transactions involving foreign exchange or foreign security and payments from outside the country to India

Deals in foreign exchange under the current account by an authorized person can be restricted by the Central Government, based on public interest.

RBI is empowered by this Act to subject the capital account transactions to a number of restrictions.

People living in India will be permitted to carry out transactions in foreign exchange, foreign security or to own or hold immovable property abroad if the currency, security or property was owned or acquired when he/she was living outside India, or when it was inherited to him/her by someone living outside India.

- Exporters are needed to furnish their export details to RBI.

Foreign Exchange Regulation Act

Foreign Exchange Regulation Act (FERA) was legislation passed by the Indian Parliament in 1973 by the government of Indira Gandhi.

The dealings in foreign exchange and securities and the transactions which had an indirect impact on the foreign exchange and the import and export of currency. FERA was repealed in 1999 by the government of Atal Bihari Vajpayee and replaced by the Foreign Exchange Management Act, which liberalised foreign exchange controls and restrictions on foreign investment.

Consisted of 81 sections.

OBJECTIVES:

To regulate certain payments.

To regulate dealings in foreign exchange and securities.

To regulate transactions, indirectly affecting foreign exchange.

To regulate the import and export of currency.

To conserve precious foreign exchange.

The proper utilization of foreign exchange so as to promote the economic development of the country.

Indian Contract Act 1872 Act was passed by British India and is based on the principles of English Common Law.

Applicable to the All the States of India except the State of Jammu & Kashmir. It determines the circumstances in which promise made by the parties to a contract shall be legally binding on them.

Each contract creates some right and duties upon the contracting parties.

Indian contract deals with the enforcement of these rights and duties upon the parties in India.

The Limited liability Partnership Act, 2008

Enacted by the Parliament of India to introduce and legally sanction the concept of Limited Liability Partnership in India.

A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liability.

One partner is not responsible or liable for another partner's misconduct or negligence.

Some partners have a form of limited liability similar to that of the shareholders of a corporation.

COFEPOSA COFEPOSA (the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act) is an Indian law passed in 1974 trying to retain foreign currency and prevent smuggling.

Smuggling is the clandestine transportation of goods or persons, such as out of a building, into a prison, or across an international border in violation of applicable laws or other regulations.

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