World Trade Wto

8/4/2019 World Trade Wto

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World TradeOrganization

Bhavna Bhatia, 05Neha Gaonkar, 15

Robin Lobo , 25Vanessa Valdar,45

Manpreet Bhogal, 55Stefanie Collis


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Non-discrimination

Reciprocity

Transparency

Regionalization

Principles Of WTO


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India & WTO


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One of the founding Members in 1995.- Principal aim of Indias negotiating strategy in theWTO:

To protect the interests of farmers(agriculture).

To protect sensitive industrial sectors fromthe impact of tariff reductions or bindings(initially textiles & others).

Ensure that the interests of developing

countries are protected.


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Trade AgreementofWTO


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1.General Agreement on Tariffs and Trade

Origin and history

GATT and WTO

2. General Agreement on Trade in service Origin and History

The four mode of supply(Cross-border supplyConsumption abroad, Commercial presencePresence of a natural person


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3. Agreement on Trade Related Aspects ofIntellectual Property Rights (TRIPS)

History and originExamples


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The Agreement onAgriculture


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Agreement on Agriculture

Final Act of the Uruguay Round.

Signed : April 1994 at Marrakesh, Morocco.

Reason for establishment

Objectives


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Main features of AoA

Market Access

Domestic support

Export subsidies


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Market Access

The Agreement has two basic elements:

1) Tariffication of non tariff barriers:

2) Minimum level for imports of agricultural products by

member countries as a share of domestic consumption


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Domestic Support

Two main Objectives:

To identify acceptable measures that support farmers. To deny unacceptable, trade distorting support to the

farmers.

These provisions are aimed largely at the developedcountries where the levels of domestic agricultural supporthave risen to extremely high levels in recent decades.


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GREEN BOX

AMBER BOX

BLUE BOX

The Three Boxes


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Export Subsidies

Lists several types of subsidies to which reductioncommitments apply.

Non-existent in India as exporters of agricultural

commodities do not get direct subsidy.

Even exemption of Export profits from income tax underSection 80-HHC of the Income Tax Act is not among thelisted subsidies.


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Implicationson

India


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Short Term implications

No effects of AoA on India

Maintained QRs on import of 825 agri products as on1.4.1997.

In Trade Policy 2004-09 it has removed all QRs.

The MSP provided to commodities is less than the fixedexternal reference price determined under agreement.

Lag lead relationship between prices and produce


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Long term implications

To enjoy the gain from the application of Science& Technology itwould require:

Infrastructural support Improved technologies Provision of inputs at reasonable costs

Indian agriculture enjoys the advantage of cheap labour.

Domestic prices in India are considerably less with the exceptionsof a few commodities.

Imports to India would not be attractive in the case of rice, tea,sun flower oil and cotton.


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Long term implications

Improved export prospects

Farmers benefits

Results of decrease in export subsidies


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Criticism Reduced tariff protections for small farmers

Only beneficial for rich countries

No discipline for trade and non-trade distortingbarriers.

"the protection is better disguised, but the effect isthe same by Martin Khor .


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Doha Round


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4th ministerial conference held at Doha Qatar.

The Doha development round or Dohadevelopment agenda is the current tradenegotiation round of the world trade

organization which commenced in November2001.

Negotiations included on major issues such as

agriculture, industrialtariffs and non- tariffsbarriers, services and trade remedies.


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Subsequent ministerial meetings took placein Cancun, Mexico (2003), and Hong Kong (2005)

Related negotiations took place in Geneva,Switzerland (2004, 2006, 2008); Paris, France

(2005); and Potsdam, Germany (2007).


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Before Doha Trade in agriculture & Trade in services.

First WTO ministerial conference : Singapore,1996.

Established Four issues

Seattle, USA, and the Millennium Round

US terrorists attack on 11 September 2001


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DOHA 2001 Agricultural and manufacturing markets, as well as trade-

in-services (GATS) negotiations & expanded intellectual

property regulation (TRIPS)

To make trade rules fairer for developing countries.

By 2008, critics opined that the round would lead to a set

of laws that would be bad for development and interfere

with the domestic policies of the nations


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Cancun 2003- Collapse of negotiations

Geneva, 2004 Paris, 2005 Hong Kong, 2005 Geneva, 2006 Potsdam, 2007 Geneva, 2008- Collapse of negotiations


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Issues

Agriculture Access to patented medicines: Special and differential treatment: Implementation Issues


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Member since 1995. EU member = WTO members in their own right. 27 + 1

Till Nov. 2009 officially European Communities(legal). The European Commission (= EUs executive arm)

speaks for all EU member States at almost all WTOmeetings.

Most WTO materials refer to the EU

The UE and the WTO


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Trade Policy Reviews of the UE1) 1995

WTO rules are important: frictions; trade.

EU gains importance & influence in WTO.

2) 1997

Greater liberalization WTO implementation & EU Single Market.

3) 2000 Open market: industrialproducts: tariff decreased

AGRICULTURE& Textile: Barriers: higher tariffs & quotas inplace.

4) 2002

Key trade liberalization supporter.

Keeps markets open except:AGRICULTURE& Textile.


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5) 2004

NON-agricultural products.

Granted market access to developing countries under its

Generalized System of Preferences (GSP) scheme.

AGRICULTURE.

2005 - Textiles: restrictionsterminated.

6) 2007

- Improved economic situation, butcontinued reforms needed.- EU is worlds leading exporter & 2nd largest importer of goods.

Mostly Open Market. Services & AGRICULTURE.

7) 2009

- Continued reforms needed. + Services&AGRICULTURE: Robust recovery; Sustained ec. growth; Resources

Reallocation.


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Spain & WTO1995 - Founding Member.

I) Participation in coalitions (one voice):

1) European Union Issues: General2) Friends of Ambition Non-Agricultural Market Access

3)W52 sponsors Intellectual property (TRIPS)

II) 2010 - Offers EUR 350,000 to WTO developingcountries.

III) More: Indo-Spanish Joint Commission (not only WTOrelated).


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World Trade Wto

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