MADE BY:GROUP 3

ABHISHEK CHATURVEDIISHA SAXENAKULDEEP RUPNANISHUBHANSHU GUPTASURABHI SINHA

Introduction of WTO

World Trade Organization (WTO) was established on 1st January 1995.

It is the only global international organization dealing with the rules of trade between nations.

The WTO (World Trade Organization) is an association of 164 member countries, of the 195 countries in the world today. There are another 22 countries that have observer status, a step that precedes becoming a full-fledged member.

So almost all the countries in the world are members. There are all types of countries in the WTO, capitalist, socialist, very industrialized, developed countries and developing countries.

World Trade Organization (WTO)

Headquarters: Geneva, Switzerland

Founded: 1 January 1995

Created by: Uruguay Round negotiations (1986-94)

Director-General: Roberto Azevêdo

Staff: 640

The important objectives of WTO are:

1. To improve the standard of living of people in the member countries.

2. To ensure full employment and broad increase in effective demand.

3. To enlarge production and trade of goods.

4. To increase the trade of services.

5. To ensure optimum utilization of world resources.

6. To protect the environment.

7. To accept the concept of sustainable development.

WTO's main activities are:

— Negotiating the reduction or elimination of obstacles to trade (import tariffs, other barriers to trade) and agreeing on rules governing the conduct of international trade (e.g. antidumping, subsidies, product standards, etc.)

— Administering and monitoring the application of the WTO's agreed rules for trade in goods, trade in services, and trade-related intellectual property rights

— Monitoring and reviewing the trade policies of our members, as well as ensuring transparency of regional and bilateral trade agreements

— Settling disputes among our members regarding the interpretation and application of the agreements

— Building capacity of developing country government officials in international trade matters

— Assisting the process of accession of some 30 countries who are not yet members of the organization

— Conducting economic research and collecting and disseminating trade data in support of the WTO's other main activities.

Structure of WTO

India is one of the founding member of WTO . There has been several benefits for India along with few concerns by virtue of its participation in the multilateral trading system within WTO.Here goes some of the benefits :-

(a.) WTO has helped India to improve its export competitiveness.

(b.) Lower tariff barriers and market access has helped India to integrate and participate in the global economy in a more efficient manner.

(c.) Transfer & Exchange of Technology ,ideas etc. has been of tremendous help for India in pursuit of its growth and development.

(d.) Having market access has helped in reduction of cost and time which would have otherwise required for bilateral trade negotiations.

(e.) A well defined and structured dispute settlement mechanism also makes it easier to settle the trade disputes.

IMAPCT ON INDIAN ECONOMY

WTO also poses some serious challenges to the Indian agriculture.

Issue of permanent "Peace Clause" and formula to calculate food subsidy cap of 10% is yet to get clarified.

Poor farmers are bound to be at the receiving end who might be deprived of the subsidies which they receive from the government in the form of Minimum Support Price (MSP).

Since India has recently ratified the Trade Facilitation Agreement now they can't deny market access to the other countries.

It might prove detrimental to the farmers to a certain extent because once the foreign players enters the domestic market completely it would be a herculean task for the Indian farmers to compete with them owing to their lack of competence in terms of production, quality,technology, manufacturing cost etc.

Industry seeks foreign partners for trade pact1.India’s top industry bodies are attempting to build a coalition with counterparts in other nations with similar interests to give a fillip to the country’s proposal.2.Trade Facilitation in Services (TFS) Agreement at the World Trade Organisation (WTO)-level.

Japan threatens to drag India to WTO on steelWhat? Japan is threatening to take India to the WTOWhy? Indian trade restrictions that nearly halved Japan’s steel exports to India over the past yearIndian restrictions: India imposed duties of up to 20% on some hot-rolled flat steel products in September 2015, and set a floor price in February 2016 for steel product imports to deter countries such as China, Japan and South Korea from undercutting local mill.

India to put pressure on WTO to focus on food security issuesWhat: India has decided to increase pressure on the WTO to expedite negotiations on food security matters to ensure that these are not thrust to the background at the next Ministerial meet in Buenos Aires in December 2017.This is to protect farmers in developing countries and a permanent solution to the public stockholding programed for a while

RECENT ISSUE

Conclusion

It is the place where the member country comes and talks together and shares their grievance in order toresolve their problem related to International trade.

The countries make their decisions through various councils and committees, whose membership consistsof all WTO members.

The system helps promote peace, by handling Dispute of member countries. It provides free trade whichcuts the costs of living and provides more choice of products and qualities and stimulates economicgrowth.

www.wto.org

http://www.civilsdaily.com/story/wto-and-india/

http://www.yourarticlelibrary.com/trade-2/world-trade-organization-wto-objectives-and-

functions/23529/