New_World Trade Organisation (WTO)

8/8/2019 New_World Trade Organisation (WTO)

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WORLD TRADE

ORGANISATION (WTO)

PRESENTED BY -

NEHA RAJE:

PAVAN HEGDE: 26 SACHIN JAIN:

VAIBHAV KOTHARE: 3

SHRADDHA GOJE:



F 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



INTRODUCTION TO WTO

The World Trade Organisation (WTO) was a successor to theGeneral Agreement on Trade and Tariffs (GATT)

Came into existence in January 1995 after the Uruguay round of 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



The goal is to help producers of goods and services, exporters, and

importers conduct their business.

The WTO has 153 members

The forum for Government to negotiate trade agreement.

Facilitate the implementation, administration and operation of

Multilateral Trade Agreements

Rules and Procedures Governing Dispute Settlement



F 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



WHY WAS IT NECESSARY TO F ORM WTO

Trade creates the wealth necessary for economic development,

creation of employment opportunities and the alleviation 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)



SCOPE OF WTO

In addition to national trade policies, such as antidumping

duties, the WTO also supervises domestic policies that affect

trade in goods or services particularly, a government¶s use of

taxes, regulations, and standards to correct market failure

Using government subsidies as a first-best instrument to

address market failure is covered by several WTO agreements

Using government subsidies to promote equity and social

justice within a country is also covered by WTO rules



The legislative clout of the WTO comes not only through the

indirect application of its rules but also in the dynamic way inwhich 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 other treaties

WTO has also gained legislative clout through the maneuver of

directing governments to confer rights on foreign nationalsthat owing to a sense of fairness will likely also be conferred

on domestic persons



The TRIPS Agreement, in effect,

turned the traditional national

treatment principle on its head byinducing a political dynamic in

which domestic persons would

inevitably gain the same rights that

were being extended to foreign

nationals

The TRIPS Agreement fomented

one of modern history¶s greatest

transfers of wealth from the publicdomain into private hands



OBJECTIVES OF WTO

The main objectives of the World

Trade Organization (WTO) :

to raise the standards of living of the member countries

to ensure their full employment,

and to expand their production

trade of goods and services



OTHER OBJECTIVES

To create a knowledge base on various matter concerning

various National and International Trade Laws and Protocols,

and their National and International implications and

ramifications

Carry out R&D & the building up of a clearing-house of cases

on all matters of WTO agreements which are of national

concern

Increasing awareness amongst Domestic Industry, business,

agriculture, service and other sectors on the impacts of trade

laws arising out of WTO agreement and other treaties as

member of WTO



Exploit all potential provisions of WTO agreement available tothe developing nations and advising and counseling them on

all such issues of national importance

To assist the Government in negotiating with the InternationalCommunity in the perspective of the WTO regime and to help

strengthen the position of developing countries in these

regards in all possible ways

To develop a base of expertise amongst the members of the

Institute on Intellectual Property Rights, TRIPS, Anti-dumping

laws, EXIM Policy matters etc through training programs



To co-ordinate efforts with the Government in creating a level playing field for all countries

Identify areas of non-fulfillment of the WTO agreement which

concern developing countries interest and suggest line of action and remedies

Discussions on making the domestic trade and export and

import policies more WTO compatible and suggest initiatives

to be taken in this respect at various levels to ensure high

growth of the economy



OBLIGATIONS OF WTO

Trade Related Obligations:

MFN TR EATME NT

-countries cannot normally discriminate between their trading partners

National treatment: Treating foreigners and locals equally

- Imported and locally-produced goods should

be treated equally Freer trade: gradually, through negotiation



RECOGNIZING THE LEGITIMACY OF

SANITARY PROTECTION

SPS (Sanitary and Phytosanitary Measures)

- How do you ensure that your country¶s consumers are beingsupplied with food that is safe to eat ?

- Member countries are encouraged to use international

standards, guidelines and recommendations where they exist



RECOGNIZING THE LEGITIMACY OF IPRS

TRIPS (Trade related intellectual property rights)

Patents

Copyright

Trademarks

Geographical indications



DISCOURAGING |UNF AIR} 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 the actionscountries can take to counter the effects of subsidies



SETTLING 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.



CRITICISMS OF WTO

WTO trading rules are still in effect and help provide a solid

framework for global commerce however, WTO was biased

towards developed countries

WTO is accused of widening the sociological gap between

rich and poor it claims to be fixing

Global trade negotiations have become much more complex &

complicated WTO decision-making, and the process of

"consensus-building" has broken down

GATT decision making process worked ± no compulsion to

adhere rules



Putting the interests of business especially big multinationals

above those of workers, the environment 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 increasingly turned to bilateral and

regional negotiations

The maintenance of high protection of agriculture in

developed countries while developing ones are pressed to open

their markets

TRIP agreement limits developing countries from utilizing

some technology that originates from abroad in their local

systems



Critics claim that the issues of labor and environment are

easily ignored



THANK YOU

New_World Trade Organisation (WTO)

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