world trade organization (wto) (1)

7/30/2019 World Trade Organization (Wto) (1)

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WORLD TRADEORGANIZATION(WTO)


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Brief History

Formation-January 1, 1995

Headquarters-Centre William Rappard, Geneva,Switzerland

Membership-159 member statesOfficial languages-English, French, Spanish

Director-General-Pascal Lamy

Budget-196 million Swiss francs (approx. 209 million

USD) in 2011. Staff-640


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ABOUT

The WORLD TRADE ORGANISATION(WTO) came intoeffect on janurary 1,1995 with the support of 85founder members. India was one of them.

It is the third pillar of worldwide economic

dimensions along with the IMF and The World Bank.Now the membership has increased to 128 by 2001.

GATT replaced by the WTO. The WTO has takencharge of monitoring and administering the newglobal trade rules agreed in the Uruguay Round.

The WTO is an international trade organisation,having set of rules and principles which weremutually designed and agreed upon to promoteinternational trade in general and to reduce tariff


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Barriers and to remove import restrictions inparticular

It is a new trade organisation with global

recognition and succeeded GATT on renewedagreements


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GATT replaced by the WTO While the GATT functioned well enough, the leading

members wished to replace it with a world-widetrade-regulating body like the WTO for a number ofreasons.

The GATT rules applied to trade only in merchandisegoods. In addition to goods, the WTO covers trade inservices and trade-related aspects of intellectualproperty (through the agreement on Trade-relatedAspects of Intellectual Property Rights-TRIPs).

While GATT was a multilateral instrument, by the 1980s

many new agreements of a plurilateral, andtherefore selective nature had been added. Theagreements which constitute the WTO are almost allmultilateral and, thus, involve commitments for theentire membership.


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The WTO dispute settlement system is faster, moreautomatic, and thus much less susceptible toblockages, than the old GATT system.


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Structure


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OBJECTIVES International Economic Relations should be conducted

with a view to raise standards of living, ensure fullemployment and a large and steadily growing volumeof real income and effective demand

Expanding the production of trade in goods andservices

While allowing for the optimal use of the worldsresources in accordance with the objectives ofsustainable development, seeking both to preserve theenvironment and to enhance the means of doing so ina manner consistent with the respective needs andconcerns at different levels of economic development


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Cont There is recognition of the less advantageous position

of less developing and least developed countries ininternational trade and economic welfare

There is a need for positive efforts by the international

community so as to ensure that they secure a share inthe growth of international trade as per theirdevelopmental needs

The objectives are to be secured by means ofreciprocal and mutually beneficial agreements whichwill be directed towards the substantial reduction oftariff and non-tariff barriers and elimination ofdiscriminatory treatment in international trade relations.


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FUNCTIONWTO may provide a forum for furthernegotiations concerning multilateral traderelations as may be decided by the WTOMinisterial Conference

In case such negotiation takes place than WTOcan also provide the framework for putting theresults into operation

WTO are to administer the arrangements inAnnexure II and III for the settlement of disputesthat may arise between members and for thereview of trade polices


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contWTO is to coordinate with IMF and IBRD for

achieving greater coherence in global policymaking

WTO is a forum for trade negotiation and

liberalisation on a rule based system having thepower to assess the trade policies of its membersin accordance with the terms of commitmentsunder WTO

It has the power to review negotiations, examineworld trade developments and address thechallenges to world economy


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SCOPE Scope of WTO is to provide a common

institutional framework for conduct of traderelations within its members in matters related tothe Agreement and associated legal

instruments referred as MTAs, Plurilateral TradeAgreements and GATT 1994

Regarding environmental issues the preamblerecognises a link between trade and

environment but only to the extent asrecognised in various Agreements coveredunder WTO or GATT


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cont The members have autonomy in regard to

environment but they need to respect therequirements of WTO and other agreementshaving bearing on issues regarding environment

The cases brought before the Dispute SettlementMechanisms of WTO in which the preamble wassubject to interpretations has reaffirmed theimportance of the coherent, universal and

international character of WTO to facilitate,administer and operate and further theobjectives of Agreements concluded under theWTO and GATT 1994.


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Uruguay Round

The round was launched in Punta del Este,Uruguay in September 1986, followed bynegotiations in Geneva, Brussels, Washington,D.C., and Tokyo, with the 20 agreements finallybeing signed in Marrakeshthe MarrakeshAgreementin April 1994.

The Uruguay Round was the 8th round ofmultilateral trade negotiations (MTN) conducted

within the framework of the General Agreementon Tariffs and Trade (GATT), spanning from 1986 to1994 and embracing 123 countries as "contractingparties".


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The Round transformed the GATT into the World TradeOrganization. The Round came into effect in 1995 andhas been implemented over the period to 2000 (2004in the case of developing country contracting parties)

under the administrative direction of the newlycreated World Trade Organization (WTO).

The Uruguay Round Agreement on Agriculture,administered by the WTO, brings agricultural trademore fully under the GATT. It provides for convertingquantitative restrictions to tariffs and for a phasedreduction of tariffs. The agreement also imposes rulesand disciplines on agricultural export subsidies,domestic subsidies, and sanitary and phytosanitary(SPS) measures.


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The Doha Round

The Doha Round is the latest round of tradenegotiations among the WTO membership. Its aim is toachieve major reform of the international tradingsystem through the introduction of lower trade barriers

and revised trade rules. The work programme coversabout 20 areas of trade. The Round is also knownsemi-officially as the Doha Development Agenda as afundamental objective is to improve the tradingprospects of developing countries.

The Round was officially launched at the WTOs Fourth

Ministerial Conference in Doha, Qatar, in November2001.


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The Doha Ministerial Declaration provided themandate for the negotiations, including onagriculture, services and an intellectual propertytopic, which began earlier.

In Doha, ministers also approved a decision onhow to address the problems developingcountries face in implementing the current WTO

agreements.


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WTO Agreement

Multilateral Agreements on trade in goods

General Agreement on trade in services.

Agreement on trade-related Aspects of

intellectual Property Rights. Understandings on rules and Procedures

governing the settlement of disputes.

Plurilateral Trade Agreements.

Trade Policy Review Mechanism.


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Tariffs and Non-Tariffs Barriers

TARIFF BARRIERS:-Its mainly refer to barriers on imports through highimport duty.

Non-tariff barriers:-

Nontariff barriers generally refer to quota-barriers,implying quantitative restrictions on imports (orrestrictions on the quantum of imports).


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Bilateral and Multilateral Trade

AgreementsBILATERAL TRADE AGREEMENTS:-

It refer to trade agreements of one country with theother or these are trade agreements between any

two countries of the world.

MULTILATERAL TRADE AGREEMENTS:-

It refer to trade agreements of one country with

many countries of the world or these are tradeagreements among many countries


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EXIM POLICY Its contains policies in the sphere of foreign trade

i.e. with respect to export and import from thecountry and more especially export promotionmeasures , policies and procedure related there

to. Export means selling abroad and import as

bringing into India , any goods and services.


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Objectives

Accelerate the countrys transition to a globallyoriented vibrant economy with a view to derivemaximum benefit from the expanding global

market opportunities. Stimulating sustained economic growth.

Enhancing the technological strength andefficiency.

Encouraging the attainment of internationallyaccepted standards of quality.

Providing consumers with good quality productsat reasonable prices.


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WORLDBANK


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Brief History

Type-International organization

Legal status-Treaty

Purpose/focus-Crediting

Location-Washington, D.C., U.S.

Membership-188 countries (IBRD) 172 countries(IDA)

President-Jim Yong Kim

Main organ-Board of Directors

Parent organization-World Bank Group


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ABOUT Established-1945 under the Bretton Woods

Agreement of 1944.

Main purpose of the conference was finalisation

of the Article of Association of IMF andestablishment of an institution for thereconstruction of the war shattered worldeconomies. The conference has given birth to

World Bank and IBRD. The World Bank or IBRD was established to provide

long term assistance for the reconstruction anddevelopment of the economies of the member


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countries, while IMF was established to provide shortterm assistance to correct the balance of paymentdisequilibrium.


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Organisation Structure

Board of governors

Executive directors

President Acts as Chairman of theExecutive Directors

Activitiesestimation-

Directorgeneral

estimates theutilities of theloans granted

Director-general

reports to the

president

Finance

deptt

Operation

deptt

Staffdeptt

Lawdeptt

secretariat

Foreignaffairsdeptt

Economic

researchdeptt


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Functions To assist in the reconstruction and development

of territories of its members by facilitating theinvestment of capital for productive purpose andthe encouragement of the development of

productive facilities and resources in developingcountries.

To promote private foreign investment by meansof guarantees on participation in loans and other

investment made by private investment throughproviding finance for productive purpose out ofits own resources or from borrowed funds.


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To promote the long-range balanced growth ofinternational trade and the maintenance ofequilibrium in BOP(balance of payment) ofmember countries by encouraging international

investment for the development of theirproductive resources, thereby assisting in raisingproductivity , the standard of living and conditionsof workers in their territories.

To arrange the loans or guarantees by it inrelation to international loans through otherchannel, so that more useful and urgent small andlarge product are dealt with firmly.


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LOANS

The prime objective of the bank is to grant loansby the bank for overall and integrateddevelopment of the members countries.

The purpose of providing loans is reconstruction ofthe bank. Bank has also taken steps to ensure thatthe amount of loan is spent for its actual purpose.

The bank grants loans as follows:

1. Power sector - 30% of the total loans

2. Transport sector - 30% of the total loans

3. Agriculture, forestry sector etc- 40% of the totalloans


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MEMBERSHIP All member of the IMF are also the members of the WORLD

BANK.

Any country can join as a member of the IBRD by signing inthe charter of the bank as it subscriber. It had 185

members in 2007. Bank has the authority to suspend any member, if the

country concerned fails to discharge its responsibilities tothe IBRD. Similarly, every member is free to resign from themembership but it has to pay back all loans with interest

on due dates. The member is also required to pay back all loans with

interest on due dates. The member is also required to payits share of the loss on demand if the bank incurs afinancial loss in the year in which a member resigns.


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CAPITAL STRUCTURE

The world bank or IBRD started with an authorisedcapital of US $ 10 billion divided into 100000shares of us $ 100000 each.

The member countries contribute their sharecapital to the bank as follows:

1. 2% of the share in the form of gold and USdollars.

2. 18%of the share capital in the own of owncurrency.

3. 80% of the share capital is payable at therequest to the bank.


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ACTIVITIES

To provide the external financing required for all

meritorious projects of reconstruction anddevelopment

To provide a catalyst by which production may begenerally stimulated and private investmentencouraged.

The bank should encourage necessary action by themember governments to ensure that the banks loans

will actually prove productive. Bank must play an active rather than a passive role to

initiate and develop plans to the end that the banks

resources are used not only prudently from the stand


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point of its investors but wisely from thestandpoint of the world.


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Other activities

Training

Technical Assistance

1. Engineering-related

2. Institution-related Inter-organisational co-operation

Economic and social research

Operation Evaluation

Settlement of investment Dispute


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India And The World Bank

India is the founder member of the bank. India is oneof the largest receiver of assistance since 1949

Total sanctioned loans received by india-13.8billion till

march 2008 The bank disbursed US$ 2.7 billion to India during the

fiscal year

India is helped by the World Bank in its plannedeconomic development through granting loans,

conducting field surveys etc.

India development forum has replaced the Aid Indiaconsortium of 12 developed countries at the instance


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Of the World Bank since 1995.

India has gained much more as a

member of the World Bank but lessersupport from IDA


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Affiliates to the World Bank

The Bank has 4 affiliate:-

International Development Association (IDA)

International Finance Corporation(IFC)

The Multinational Investment guaranteeAgency(MIGA)

The International Centre for Settlement ofInvestment Disputes(ICSID)


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IDA Established-1960 as an affiliate of the World Bank.

President of the World bank-Head of the IDA

Members-All the members of the World bank are

the members of the IDA. It had 167 members inJune, 2007

Objectives-1- to provide finance on a soft loanbasis to less developed countries.

2-assistance for poverty alleviation in the poorcountries

3-development finance on easy terms tounderdeveloped and developing countries.


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IFC Established- July 1956 in order to provide finance

to private sector of developing countries.

Members-The member of the World Bank areeligible to become the members of the IFC.

Purpose-further economic development byencouraging the growth of the productive privateenterprises.

Objective-1-seeking to bring together investment

which is not available on reasonable terms.2-to help in creating conditions conducive to theflow of private capital, domestic and foreign, intoproductive investment.


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MIGA Established-1988.

It is a joint venture of the World Bank and IFC.

Authorised capital-$1.08 billion

Objective:-1-To encourage the flow of directforeign investment

2-To provide insurance cover against political risks toinvestors, promotional and advisory services.

3-to establish credibility among investors.4-to insure only few investments, expansions ofexisting investment, privatisation and financialrestructuring.


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ICSID

Established:-1966

Members:-155 till date

Its helps in encouraging foreign investment by

providing international facilities for conciliation andarbitration of investment disputes.

It also conduct research and publishing activities inthe areas of arbitration law foreign investment law.


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THANK YOU!!!!

world trade organization (wto) (1)

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