WTO IBM.module 4-2 Ppt

8/9/2019 WTO IBM.module 4-2 Ppt

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MSM/SRK/IBM/10MSM/SRK/IBM/10

WTO: A FACT FILE

Location : Geneva, Switzerland.Location : Geneva, Switzerland.

Established : January 1, 1995.Established : January 1, 1995.

Created by : Uruguay Round of NegotiationsCreated by : Uruguay Round of Negotiations Membership :153 countries (23Membership :153 countries (23--77--2008)2008)

Secretarial staff : 625Secretarial staff : 625

Budget : 189Million Swiss Francs (2009)Budget : 189Million Swiss Francs (2009) Director General: PascalDirector General: Pascal LamyLamy


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FUNCTIONSOF WTOFUNCTIONSOF WTO

Administering WTO trade agreementsAdministering WTO trade agreements

Forum for trade negotiationsForum for trade negotiations

Handling trade disputesHandling trade disputes Monitoring national trade policiesMonitoring national trade policies

Technical assistance and training forTechnical assistance and training for

developing countriesdeveloping countries

Cooperation with other internationalCooperation with other internationalorganizationsorganizations


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GATT Negotiating RoundsGATT Negotiating Rounds

Geneva 1947 23Geneva 1947 23

Annecy 1949 13Annecy 1949 13

TorquayTorquay 19501950--51 3851 38

Geneva 1956 26Geneva 1956 26

Dillon 1960Dillon 1960--62 4562 45

Kennedy 1964Kennedy 1964--67 6267 62

Tokyo 1973Tokyo 1973--79 9979 99

Uruguay 1986Uruguay 1986--94 11794 117


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Umbrella organization for:Umbrella organization for:

GATTGATT

ServicesServices Intellectual propertyIntellectual property

Responsibility for trade arbitration:Responsibility for trade arbitration:

World Trade Organization

154 Rue de Lausanne, Geneva


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Organisation structure of WTOOrganisation structure of WTO

Ministerial ConferenceMinisterial Conference

General CouncilGeneral Council

Disputes Settlement BodyDisputes Settlement Body DirectorDirector Trade PolicyTrade Policy

GeneralGeneral Review BodyReview BodyCommitteesCommittees

Councils for Trade inCouncils for Trade in

CouncilCouncil CouncilCouncil CouncilCouncil CommitteeCommittee CommitteeCommitteeCommitteeCommittee

ForFor forfor forfor TradeTrade on Tradeon Trade on Balanceon Balance on Budgeton Budget

Trade inTrade in Trade inTrade in RelatedRelated andand of Paymentof Payment Finance andFinance andGoodsGoods ServicesServices Aspects ofAspects of DevelopmentDevelopment RestrictionsRestrictions

intellectualintellectualrightsrights Secretariat andSecretariat and

staff of the WTOstaff of the WTO


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The WTO todayThe WTO today

153 members by153 members by

Represents 90% ofworld tradeRepresents 90% ofworld trade

9 of10 disputes satisfactorily settled9 of10 disputes satisfactorily settled Tariff reduction from 40% to less thanTariff reduction from 40% to less than

5%5%

Trade volume of manufactured goods hasTrade volume of manufactured goods hasincreased 20 timesincreased 20 times


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WTO atworkWTO atwork

More than 360 disputes brought to WTOMore than 360 disputes brought to WTObetween 1995 and 2009between 1995 and 2009

196 handled by GATT during its 50 year history196 handled by GATT during its 50 year history

US, India and EU are the biggest usersUS, India and EU are the biggest users Liberalization of Telecom and financial sectorsLiberalization of Telecom and financial sectors

Democratic mode of operation with a voice toDemocratic mode of operation with a voice to

all membersall members Reports adopted unless specifically rejected.Reports adopted unless specifically rejected.

After appeal, fail to comply can result inAfter appeal, fail to comply can result incompensation to injured country or trade sanctions.compensation to injured country or trade sanctions.


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WTO in SeattleWTO in Seattle

Millennium round was aimed at furtherMillennium round was aimed at furtherreduction of trade barriers in agriculturereduction of trade barriers in agricultureand servicesand services

WTO meeting disrupted byWTO meeting disrupted by Human rights groupsHuman rights groups

Trade unionsTrade unions

EnvironmentalistsEnvironmentalists Anti globalization groupsAnti globalization groups

No agreementwas reachedNo agreementwas reached


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Doha agendaDoha agenda --WTOWTO

Cutting tariffs on industrial goods andCutting tariffs on industrial goods andservicesservices

Phasing out subsidiesPhasing out subsidies

Reducing antidumping lawsReducing antidumping laws

WTO regulation on intellectual propertyWTO regulation on intellectual property

should not prevent members fromshould not prevent members fromprotecting public healthprotecting public health TRIPS agreementTRIPS agreement


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Antidumping actionsAntidumping actions

Four sectors account for 70 percent of allFour sectors account for 70 percent of allantidumping actions reported to WTOantidumping actions reported to WTO

Metal industriesMetal industries ChemicalsChemicals

PlasticsPlastics

Machinery and electrical equipmentMachinery and electrical equipment

Actions often initiated by politicians in theActions often initiated by politicians in thevarious countries to please strong lobbyingvarious countries to please strong lobbyinggroups in exchange for votesgroups in exchange for votes


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Protectionism in agricultureProtectionism in agriculture

Recent focus of WTO on agriculturalRecent focus of WTO on agriculturalsubsidessubsides These are 3 to 5 times higher than nonThese are 3 to 5 times higher than non--

agricultural subsidiesagricultural subsidies Advanced nations are the strongestAdvanced nations are the strongest

defenders of this systemdefenders of this system

Combination of high tariffs and subsidesCombination of high tariffs and subsides

on agricultural producton agricultural product Raises price to the consumerRaises price to the consumer Reduces volume of agricultural tradeReduces volume of agricultural trade Encourages overproduction of subsidizedEncourages overproduction of subsidized

productsproducts


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Protection of intellectual propertyProtection of intellectual property

Trade related Aspects ofIntellectualTrade related Aspects ofIntellectualproperty (TRIPS)property (TRIPS)

WTO members allowed to grant and enforceWTO members allowed to grant and enforcepatents and copyrightspatents and copyrights

This encourages innovationThis encourages innovation

Reduces piracy rates in drugs, softwareReduces piracy rates in drugs, software

musicmusic

Expected to boost global economic ratesExpected to boost global economic ratesand social and economic welfare aroundand social and economic welfare around

the worldthe world


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Managerial implicationsManagerial implications Trade barriers act as a constraint on firmTrade barriers act as a constraint on firm

strategystrategy

May be useful to establish moreMay be useful to establish more

production activities in the protectedproduction activities in the protectedcountrycountry

Business gains from governments effortsBusiness gains from governments efforts

to open protected markets are more thanto open protected markets are more thangains from governments efforts to protectgains from governments efforts to protectdomestic industries/firmsdomestic industries/firms

WTO IBM.module 4-2 Ppt

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