WTO AND GATT PRESENTED BYKetan ParmarRudrik Achrya Pratik BhattDabhi YogeshDevang Patel

INTRODUCTION The World Trade Organization (WTO) deals with

the rules of trade between nations at a global or near-global level.

It’s an organization for liberalizing trade. Above all, it’s a negotiating forum:-WTO is

a place where member governments go, to try to sort out the trade problems they face with each other.

It’s a set of rules:- These documents provide the legal ground-rules for international commerce. They are essentially contracts, binding governments to keep their trade policies within agreed limits.

And it helps to settle disputes :- Settle the differences is through some neutral procedure based on an agreed legal foundation.

HISTORY organization that intends to supervise and

liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade (GATT), which commenced in 1948

The organization is currently endeavoring to persist with a trade negotiation called the Doha Development Agenda (or Doha Round), which was launched in 2001 to enhance equitable participation of poorer countries which represent a majority of the world's population

OBJECTIVES

Raising standards of living Ensuring full employment• Realizing these aims consistently with

sustainable development and environmental protection

Ensuring that developing countries, especially the least developed countries (LDCs), secure a proper share in the growth of international trade.

FUNCTIONS It oversees the implementation,

administration and operation of the covered agreements.

It provides a forum for negotiations and for settling disputes.

The WTO is also a center of economic research and analysis: regular assessments of the global trade picture in its annual publications and research reports on specific topics are produced by the organization

WTO is the assistance of developing, least-developed and low-income countries in transition to adjust to WTO rules and disciplines through technical cooperation and training.

WTO Location: Geneva, Switzerland Established: 1 January 1995 Created by: Uruguay Round negotiations (1986–94) Membership: 150 countries (since 11 January 2007) Budget: 175 million Swiss francs for 2006 Secretariat staff: 635 Head: Pascal Lamy (director-general) Functions: Administering WTO trade agreements Forum for trade negotiations Handling trade disputes Monitoring national trade policies Technical assistance and training for developing

country

PRINCIPLES OF THE TRADING SYSTEM Non-Discrimination It has two major components: the

most favoured nation (MFN) rule, and the national treatment policy. Both are embedded in the main WTO rules on goods, services, and intellectual property, but their precise scope and nature differ across these areas

Reciprocity. It reflects both a desire to limit the scope of

free-riding that may arise because of the MFN rule, and a desire to obtain better access to foreign markets

Binding and enforceable commitments. The tariff commitments made by WTO

members in a multilateral trade negotiation

Transparency. The WTO members are required to publish

their trade regulations, to maintain institutions allowing for the review of administrative decisions affecting trade

Safety valves "fair competition"; and provisions permitting

intervention in trade for economic reasons In specific circumstances, governments are able to restrict trade. There are three types of provisions in this direction: articles allowing for the use of trade measures to attain noneconomic objectives; articles aimed at ensuring.]

ORGANIZATIONAL STRUCTURE Council for Trade in Goods Council for Trade-Related Aspects of

Intellectual Property Rights Council for Trade in Services Trade Negotiations Committee Decision-making

CRITICISM OF THE WORLD TRADE ORGANIZATION 1 Developing countries 2 Labour and environment 3 Decision making Developing countries Rich countries are able to maintain high import

duties and quotas in certain products, blocking imports from developing countries (e.g. clothing);

The increase in non-tariff barriers such as anti-dumping measures allowed against developing countries;

The maintenance of high protection of agriculture in developed countries while developing ones are pressed to open their markets;

LABOUR AND ENVIRONMENT Other critics claim that the issues of labor

and environment are steadfastly ignored. Steve Charnovitz, former Director of the Global Environment and Trade Study (GETS), believes that the WTO "should begin to address the link between trade and labor and environmental concerns." He also argues that "in the absence of proper environmental regulation and resource management, increased trade might cause so much adverse damage that the gains from trade would be less than the environmental costs."

DECISION MAKING Other critics have characterized the decision making in

the WTO as over-simplified, ineffective, unrepresentative and non-inclusive; more active participants, representing more diverse interests and objectives, have complicated WTO decision-making, and the process of "consensus-building" has broken down.

However, Dr Raoul Marc Jennar argues that a consultative parliamentary assembly would be ineffective for the following reasons:

It does not resolve the problem of "informal meetings" whereby industrialized countries negotiate the most important decisions;

It does not reduce the de facto inequality which exists between countries with regards to an effective and efficient participation to all activities within all WTO bodies;

GATT  The General Agreement on Trade and Tariff

(GATT) came into existence in 1947 .It sought substantial reduction in tariff and

other barriers to trade and to eliminate discriminatory treatment in international commerce.

 Original intention behind the GATT was to create a third institution to supervise international trade, other two being the World Bank and IMF.

 India signatory to GATT 1947 along with twenty two other countries

 Eight rounds of negotiations had taken place during five decades of its existence

 

URUGUAY ROUND Held in September 1986 in Pantadel Este in

Uruguay. The major highlights were:   Expansion in the sphere of activities from

international trade to services, investment and information.

Liberalization of trade in Agriculture and Textile goods.

Patents & Subsidies Tariff cut- Developing countries have to cut

tariffs by 24% over next 10 years while developed countries by 36% for 6 years.

Establishment of WTO

1986 AGENDA The 15 original Uruguay Round subjects:- Tariffs Non-tariff barriers Natural resource products Textiles and clothing Agriculture Tropical products GATT articles Tokyo Round codes Anti-dumping Subsidies Intellectual property Investment measure

THE URUGUAY ROUND — KEY DATES Sep 86 Punta del Este: launch Dec 88 Montreal: ministerial mid-term review Apr 89 Geneva: mid-term review completed Dec 90 Brussels: “closing” ministerial meeting ends in

deadlock Dec 91 Geneva: first draft of Final Act completed Nov 92 Washington: US and EC achieve “Blair House”

breakthrough on agriculture Jul 93 Tokyo: Quad achieve market access breakthrough

at G7 summit Dec 93 Geneva: most negotiations end (some market

access talks remain) Apr 94 Marrakesh: agreements signed Jan 95 Geneva: WTO created, agreements take effect

TIME LINEYear Place/Name Subject Covered Countries1947 Geneva Tariffs 231949 Annecy Tariffs 131951 Torquay Tariffs 381956 Geneva Tariffs 261960-1961 Dillon Round Tariffs 261964-1967 Kennedy Round Tariffs & Anti-

dumping measures62

1973-1979 Tokyo Round Tariffs, non-Tariffs measures, “Framework measures”

102

1986-1994 Uruguay Round Tariffs, non-tariffs measures, rules, services, intellectual property, dispute settlement, textiles, agriculture, creation of WTO.

123

1994 Onwards Doha Round Agricultural Products & subsidy issue

151

17

GATT & WTO:DIFFERENCE Although it was in place for over forty years, the GATT was a

provisional agreement from a legal point of view. The WTO and its agreements are mandatory and permanent.

The GATT was a set of rules for conducting international trade with no solid institutional basis (only an ad-hoc provisional secretariat). The WTO is an intergovernmental organization, and has its own secretariat.

The GATT deals only with trade in goods. The WTO covers trade in services (under the General Agreement on Trade of Services, GATS), trade related aspects of intellectual property (under the TRIPS) and continues dealing with trade in goods through the so called "GATT 1994" which is an updated version of the old text "GATT 1947".

A large number of agreements adopted under the GATT were "plurilateral", and therefore selective agreements. But WTO agreements are multilateral and all member states are concerned.

     

AGREEMENTS MADE BY WTO Start with broad principles: the General

Agreement on Tariffs and Trade (GATT) (for goods), and the General Agreement on Trade in Services (GATS). (The third area, Trade-Related Aspects of Intellectual Property Rights (TRIPS).

 Tariffs Agriculture Standards & Safety Textiles Services Intellectual property Anti-Dumping, Subsidies, etc. Non-Tariff Barriers. Plurilaterals

HOW LONG TO SETTLE A DISPUTE 60 days- Consultations, mediation, etc 45 days - Panel set up and panellists appointed 6 months - Final panel report to parties 3 weeks- Final panel report to WTO members 60 days- Dispute Settlement Body adopts report (if

no appeal) Total = 1 - year(without appeal) 60-90 days- Appeals report 30 days- Dispute Settlement Body adopts appeals

report Total = 1y 3m- (with appeal)

DOHA ROUND The work programme lists 21 subjects. The original deadline

of 1 January 2005 was missed. So was the next unofficial target of the end of 2006.

General Agreement on Tariffs and Trade (GATT) Agriculture Sanitary and phytosanitary (SPS) measures Textiles and clothing Technical barriers to trade Trade-related investment measures (TRIMs) Anti-dumping Customs valuation Rules of origin Subsidies and countervailing measures Trade-related aspects of intellectual property rights

(TRIPS) Cross-cutting issues Outstanding implementation issues

IMPACT OF THE WTO ON THE INTERNATIONAL MARKETING The Internationalization process of a firm. Distribution Decisions in the International

Marketing. Product decision in the International Marketing. Pricing decision in the International Marketing. Communication decision in the International

Marketing  

INTERNATIONALIZATION PROCESS

DISTRIBUTION DECISION

PRICING DECISION

COMMUNICATION DECISION

PRODUCT DECISION

CONCLUSION WTO’s work can help countries achieve the

Millennium Development This Report has Provide a better

Understanding of why Courtiers Have Chosen to Co operate with a One another in Trade matters down the years

A Report has a reviewed Has a Rich history of a change & Institutional Adaption in a Multilateral Trading System

THANK YOU