GATS&

Presented bySAKSHI SAXENA

ASU2013010200124B.Tech (Bio)

Ivth Sem

PHCU-902

The Story So Far...

Globalization started blossoming in the 1890’s. By the end of the 19th century, trade was very free.

The Story So Far...

Globalization then began failing at the end of World War I, at the beginning of the 20th century.

The Story So Far...

Economic pressure pushed countries to impose trade barriers to divert national demand away from imports and toward domestically produced goods.

Several organisations were formed and treaties were then signed, one of which is GATT

GATTThe General Agreement on Tariffs and Trade

(GATT) was first signed in 1947.

Was designed To provide an international forum That encouraged free trade between member

states By regulating and reducing tariffs on traded

goods Providing a common mechanism for resolving

trade disputes.

Objectives of GATT

According to the Preamble of GATT,main objective was the “Reduction of Barriers to International Trade”

Trade barriers

Tariff

Change in monetary value

Non tariff

Quality and quantity of products and services

To expand International trade by liberating trade and build an International trading system

To ensure orderly and equitable expansion of world trade and contribute to the prosperity of US.

Objectives of GATT

To expand International trade by liberating trade and build an International trading system

To ensure orderly and equitable expansion of world trade and contribute to the prosperity of US.

Reduce foreign export subsides, tariff and non-tariff barrier and internal supports.

Cuts costs by 50 – 100% on important electronic items

Objectives of GATT

To expand International trade by liberating trade and build an International trading system

To ensure orderly and equitable expansion of world trade and contribute to the prosperity of US.

Reduce foreign export subsides, tariff and non-tariff barrier and internal supports.

Cuts costs by 50 – 100% on important electronic items

To strengthen and clarify rules for agricultural trade.

Better utilization of resource of the world.

Objectives of GATT

Trade rounds

GATT

Place : DOHANovember 2001Current trade-negotiation round of

the world trade organization

Issues: agricultureAccess to patented medicinesSpecial and diff erential treatmentImplementation issues

The most recent round

INDIA

India was one of the 23 founding contracting parties to the general

agreement on tariff s and trade (GATT) that was concluded in october 1947.

India has often led groups of less developed countries in subsequent

rounds of multilateral trade negotiations (mtns) under the auspices

of the gatt.

GATT AND INDIA

•I t w a s o n l y a f t e r t h e G AT T t r a d e r o u n d s t h a t i n d i a n d r u g s i n d u s t r y w a s a l l o w e d t o p a t e n t i t s p r o d u c t .•B u t t h e p r i c e o f t h e p a t e n t w a s v e r y e x p e n s i v e .•G a t t s t r e n g t h e n e d i n d i a ' s p h a r m a s e c t o r.•I m p r o v e d r e s e a r c h b a s e .

GATT and Indian Pharma Industry

THE MAIN OBJECTIVE OF THE GATT TREATY IS TO REFORM WORLD

TRADE.

GATT AND INDIAN AGRI SECTOR IS DIVIDED INTO 3 MAIN PHASES

MARKET ACCESS.DOMESTIC SUPPORT.

EXPORT COMPETITION.

GATT and India’s Agriculture Sector

GATT and Indian Agriculture

1. Market access.

In th is a l l the gatt members were asked replace a l l the trade barr iers and to a l low indian suppl ies into their country.

Tariff s reduced by 24% to 36%.

GATT and Indian Agriculture

2. Domestic support.

Develop countr ies a lso supported india to grow their domest ic consumption.

India has a bigdomest ic market .

GATT and Indian Agriculture

3. Export competition .

Indian agriculture industry has a lways been strong.

India used to export to many developing and under developed countr ies .

India only had competit ion whenit comes to sales indeveloped countr ies .

GATS

General Agreement onTrade in services

The creat ion o f the GATS was one o f the landmark ach ievements o f the GATT URUGUAY ROUND , whose resu l ts entered in to force in january 1995 .Al l WTO members , some 140 economies at present , are at the same t ime members o f the GATS and, to vary ing degrees .

Objectives of GATS

• Creating a credible and rel iable system of international trade rules ;• Ensuring fair and equitable treatment of a l l part ic ipants (principle of non-discrimination);•Stimulating economic act iv i ty through guaranteed pol icy bindings ;•Promoting trade and development through progressive l iberal izat ion.

Introduction

Bus iness se r v i cesCommun ica t i onCons t ruc t i onDis t r i bu t i onEduca t i onEnv i r onmen t a l se r v i ces

GATS: Sectoral Coverageand exceptions

Health-Related Services Financial Services Tourism Recreation, Culture & Sport Transport Other Services

** “services supplied in the exercise of governmental authority”: These are services that are supplied neither on a commercial basis nor in competition with other suppliers. Example :social security schemes and any other public service, such as health or education, that is provided at non-market conditions.

**Air Transport Services

Exceptions

Modes of service trade

1. Mode1: cross-border trade: –Trade takes place from the terr i tory of country a

into that of b

Example : The purchase of insurance or computer software by a consumer from a producer located abroad .

Modes of service trade

Mode2: consumption abroad Services consumed by nat ionals of a country A in

terr i tory of country B.Example :Tourism, educat ion or health services ..

Modes of service trade

Mode 3: commercial presence A service suppl ier of country a crosses the border to

establ ish and provide a service in country b.

Example: Domest ic subsidiar ies of foreign insurance companies or hotel Chains.

Modes of service trade

Mode 4: movement of natural persons

Temporary movement from country a to country b to supply a service.

Example . Accountants , doctors or teachersteachers

Obligations of GATS

General Specific

1. Most Favoured Nation (MFN) Treatment

This requires equal and consistent treatment of all foreign trading partners. It means:

•Providing equal opportunities in that sector for all foreign service providers. •mutual exclusive treatment for all service providers

2. Transparency

GATS Members are required, to publish all measures of general application

And establish national enquiry points mandated to respond to other Member's information requests.

Specific Obligations

1. National Treatment

It requires equal treatment for foreign providers and domestic providers.

Once a foreign supplier has been allowed to supply a service in one’s country there should be no discrimination in treatment between the foreign and domestic providers.

2.Market Access: Market access is a negotiated commitment in specified sectors.

It may be made subject to various types of limitations that are enumerated in Article XVI(2).

For example, limitations may be imposed on the number of services suppliers, service operations or employees in the sector; the value of transactions; the legal form of the service supplier; or the participation of foreign capital.

•WWW.WTO.ORG•WWW.UNESCO.ORG•WWW.WHO.INT•WWW.CITIZEN.ORG•WWW.GATT .ORG•WWW.CIESIN.ORG