world trade ion (wto)

8/8/2019 World Trade ion (WTO)

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orld trade( )rganisation WTOPresented by:

Pavan Hegde:

Neha Raje:

Sachin Jain:

Vaibhav Kothare:

Shraddha Goje:


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low of the presentation Introduction to WTO & its functions

Why was it necessary to form WTO

Scope

Objectives

What are obligations of WTO

Criticism of WTO


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ntroduction to wto The World Trade Organisation (WTO) was a successor to the

General Agreement on Trade and Tariffs (GATT)

Came into existence in January 1995 after the Uruguay roundof the GATT

The WTO is the only global international organization

responsible for administering international trade

agreements and declarations and handles:

trade disputes

monitors national trade policies,

operates as the forum for global trade negotiations


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The goal is to help producers of goods and services,

exporters and importers conduct their business.

The WTO has 153 members

Facilitate the implementation, administration and operation of

Multilateral Trade Agreements


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Trade Policy Review Mechanism Concern on Non-trade

issues such as Food Security, environment, health, etc

Governed by a Ministerial Conference, which meets every two

years, General Council, Director General.

Treaties are built upon the principle

trade should be as uninhibited as possible

a country should treat all its trading partners equally

and avoid discriminating between domestic andforeign products, services or people.

More beneficial for less developed countries


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unctions of wto 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


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hy was it necessary to form WTO Trade creates the wealth necessary for economic

development, creation of employment opportunities and thealleviation of suffering

Loopholes in GATT

Saturation of home markets , trade restrictions & barriers to

entry in foreign markets

Problems faced by developing countries

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)


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cope of wto In addition to national trade policies, such as

antidumping duties, the WTO also supervisesdomestic policies that affect trade in goods or servicesparticularly, a governments use of taxes, regulations,

and standards to correct market failure

Using government subsidies as a first-best instrument toaddress market failure is covered by several WTO

agreements

Using government subsidies to promote equity andsocial justice within a country is also covered by WTOrules


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The legislative clout of the WTO comes not only throughthe indirect application of its rules but also in thedynamic way in which the WTO interpenetrates other

regimes. Two forms of interaction are: is the enforcement of non-trade law and the other

is the incorporation of WTO rules into othertreaties

WTO has also gained legislative clout through themaneuver of directing governments to confer rightson foreign nationals that owing to a sense of fairnesswill likely also be conferred on domestic persons

The impact of WTO rules increased during theorganizations first ten years as a result oftechnological developments


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The TRIPS Agreement, ineffect, turned the traditionalnational treatment principle

on its head by inducing apolitical dynamic in whichdomestic persons wouldinevitably gain the samerights that were being

extended to foreign nationals

The TRIPS Agreementfomented one of modern

historys greatest transfers ofwealth from the publicdomain into private hands


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bjectives of WTO The main objectives of the World

Trade Organization (WTO) :

to raise the standards ofliving of the member

countries to ensure their full

employment, and toexpand their production

trade of goods andservices


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ther objectives To create a knowledge base on various matter

concerning various National and International TradeLaws and Protocols, and their National andInternational implications and ramifications

Carry out R&D & the building up of a clearing-house ofcases on all matters of WTO agreements which are ofnational concern

Increasing awareness amongst Domestic Industry,business, agriculture, service and other sectors on theimpacts of trade laws arising out of WTO agreementand other treaties as member of WTO


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Cooperating with industry associates, bodies set up byGovt. of India and Export Promotion Council & also todevelop linkages with overseas organizations in order

to create a common perception and approach to theresolution of multilateral trade issues

Exploit all potential provisions of WTO agreementavailable to the developing nations and advising andcounseling the Government of India on all such issuesof national importance

To assist the Government in negotiating with the

International Community in the perspective of theWTO regime and to help strengthen the position ofdeveloping countries in these regards in all possibleways


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To co-ordinate efforts with the Government in creating alevel playing field for all countries especially with India

Identify areas of non-fulfillment of the WTO agreementwhich concern developing countries interest andsuggest line of action and remedies open forfulfillment of these obligations

Discussions on making the domestic trade and exportand import policies more WTO compatible andsuggest initiatives to be taken in this respect atvarious levels

To study the impact and threat perception of WTOagreement on the growing service sector industriesincluding all those covered under 'business services'

of GATS agreement


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To develop a base of expertise amongst the members ofthe Institute on Intellectual Property Rights, TRIPS,

Anti-dumping laws, EXIM Policy matters etc


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Obligations of wto

Trade Related Obligations:

MFN TREATMENT-countries cannot normally discriminate between

their trading partners

National treatment: Treating foreigners and localsequally

- Imported and locally-produced goods should be treated equally Freer trade: gradually, through negotiation


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ECOGNIZING THE LEGITIMACY OFANITARY PROTECTION SPS (Sanitary and Phytosanitary Measures)

- How do you ensure that your countrys consumers arebeing supplied with food that is safe to eat ?

- Member countries are encouraged to use internationalstandards, guidelines and recommendations where theyexist


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IPRs TRIPS (Trade related intellectual property rights)

- Patents

- Copyright

- Trademarks

- Geographical indications


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iscouraging unfair practices Export subsidies and dumping products at below cost to

gain market share

It doesn't pass judgment. Its focus is on how

governments can or cannot react to dumping

It disciplines the use of subsidies, and it regulates theactions countries can take to counter the effects of

subsidies


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ettling disputes Dispute settlement is regarded by WTO as the central pillar of

the multilateral trading system

Agreements, including those painstakingly negotiated in the

WTO system, often need interpreting.

The purpose behind the dispute settlement process is:

The most harmonious way to settle differences through some

neutral procedure based on an agreed legal foundation.


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riticisms of wto WTO trading rules are still in effect and help provide a

solid framework for global commerce however, WTOwas biased towards developed countries

WTO is accused of widening the sociological gapbetween rich and poor it claims to be fixing

Global trade negotiations have become much more

complex & complicated WTO decision-making, andthe process of "consensus-building" has broken down


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Putting the interests of business -especially bigmultinationals - above those of workers, theenvironment and poor nations lead to the rise of G20

Frustrated by the lack of progress at the global level,U.S., the Europeans, and Japan have increasinglyturned to bilateral and regional negotiations

The maintenance of high protection of agriculture indeveloped countries while developing ones arepressed to open their markets

TRIP agreement limits developing countries from utilizingsome technology that originates from abroad in theirlocal systems


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Critics claim that the issues of labor and environment areeasily ignored

GATT decision making process worked no compulsionto adhere rules


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Thank you

world trade ion (wto)

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