targets objective and strategies on india gain(1)

8/12/2019 Targets Objective and Strategies on India Gain(1)

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Targets objective and strategies onIndia gain/loss from being a

member at WTO


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FLOW OF CONTENT

Introduction

Information

Formation of the WTO

Objectives of the WTO

Functions of the WTO

The WTO agreements and policies

Pros and Cons of the WTO

The WTO policies for India and its impact on theIndian economy

Conclusion


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The World Trade Organization (WTO) is an organization that intends to supervise

and liberalize international trade. The WTO is the only global international

organization dealing with the rules of trade between nations.

At its heart are the WTO agreements, negotiated and signed by the bulk of

worlds trading nations and ratified in their parliaments. The goal is to helpproducers of goods and services, exporters and importers conduct their business.

The WTO superseded and replaced the GATT which was a provisional,

multilateral agreement governing

international trade from 1947 until Jan 1, 1995.

The WTO has larger membership than GATT,

the number of members stand at 153.

India is one the founding members of the WTO.

INTRODUCTION


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INFORMATION

Established: 1st January 1995.

Created By: Uruguay Round negotiations (1986-1994)

Headquarter: Geneva, Switzerland

Membership: 153 member states (till 2008)

Secretariat Staff: 625

Head: Pascal Lamy (Director-General)

Budget: 196 million Swiss francs (approx)

Mr. Pascal Lamy

WTO headquarters: Geneva


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FORMATION OF THE WTO

The GATT was the only multilateral instrument governing international trade from 1948until the WTO was established in 1995. The GATT managed to operate for almost half a

century as a semi institutionalized multilateral treaty regime on a provisional basis.

Seven rounds of negotiations occurred under the GATT

The Tokyo round during the 70s was the first major attempt to tackle trade barriers that

do not take the form of tariffs and to improve the system but the agreements were not

accepted by all the member nations of GATT.

These agreements and policies were amended in

URUGUAY ROUND leading to acceptance by themember nations and formation of WTO.

This final act concluding the Uruguay round and

officially establishing the WTO regime was signed in

1994 at Marrakesh, Morroco and hence known as

Marrakesh Agreement.


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OBJECTIVE OF THE WTO

To implement the new world trade system as visualized in the agreement

To promote world trade in a manner that benefits every country

To ensure developing countries secure a better balance in sharing of theadvantages resulting from the expansion of international trade corresponding to

their developmental needs

To enhance competitiveness among all trading nations as to benefit customers

To increase the level of production and productivity

with a view of ensuring level of employment in the world

To demolish all hurdles in to an open world tradingsystem and usher in international economic renaissance


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FUNCTIONS OF WTO

The main function is to ensure that trade flows as

smoothly, predictably and freely as possible.

Administering trade agreements- WTO agreements covergoods, services, intellectual property.

Acting as a forum for trade negotiations

Settling trade disputes-Importantly WTO set procedures tosettle disputes

Reviewing national trade policies

Assisting developing countries in trade policy issues,

through technical assistance and training programmes.


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FUNCTIONS OF WTO

Negotiating the reduction or elimination of obstacles totrade (import tariffs, other barriers to trade) and agreeingon rules governing the conduct of international trade.

Assisting the process of accession of some 30 countries whoare not yet members of the organization.

Co-operating with other international organizations- IMFand The World Bank.

World Trade Organization coordinates with its secretariat,which employees 500 + staff including Economists,Statisticians, Lawyers and other experts in related area ofconcern.


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WTO: AGREEMENTS & POLICIES

The WTOs agreements are the result of negotiations betweenthe members. The current set were the outcome of the 198694

Uruguay Round negotiations which included a major revision of

the original General Agreement on Tariffs and Trade (GATT).

The WTO oversees about 60 different agreements which have

the status of international legal texts.

They deal with: agriculture, textiles and clothing, banking,

telecommunications, government purchases,

industrial standards, product safety

and more.


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WTO: AGREEMENTS & POLICIES

Goods It all began with trade in goods. From 1947 to 1994, GATT

was the forum for negotiating lower customs duty rates andother trade barriers

Services

These principles appear in the new GeneralAgreement on Trade in Services (GATS).

Intellectual property

The WTOs intellectual property agreement amounts

to rules for trade and investment in ideas andcreativity.

Dispute settlement

The system encourages countries to settle theirdifferences through consultation.


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WTO AGREEMENTS: GATS

General Agreement on Trade in Services, is the first and the onlycomprehensive multilateral discipline covering international trade inServices.

WTO services are divided into 12 areas and sub divided into 164 areas:

Business Services, Communication Services, Construction and

Engineering Services, Distribution Services, Education Services, Environmental

Services, Financial Services, Health Services, Tourism and travel Services,

Recreation, cultural and sporting Services, Transport Services.

Modes of supply ofservices

ConsumptionAbroad

Cross -BorderSupply

CommercialPresence

Movement ofNatural persons

The important principles falling in this category are:

Most Favoured Nation principle (MFN)

Domestic Regulations

Transparency.


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WTO AGREEMENTS: TRIPS

It is the GATT Uruguay Round Agreement on Trade Related Intellectual Property.

It deals with the protection & enforcement of Trade-Related intellectual property

rights".

DEALS IN :

How to give adequate protection tointellectual property rights

How countries should enforce those rights adequately in their own territories

How to settle disputes on intellectual property between members of the WTO

Special transitional arrangements during the period when the new system is being

introduced.

Intellectual property comprises 2 distinct forms:

Literary & Artistic Works- Books, paintings, musical

compositions,

plays, operas, movies, radio/ TV programs, performances, & other

artistic works

Industrial Property- Patented objects, trade secrets,

geographical indications.


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WTO AGREEMENTS: TRIMS

Trade related Investment Measures does not provide any new language ,

but It concentrates on 2 major articles. Article III & Article IX which talks

about National Treatment and Trade Restrictions respectively.

DEALS IN :ARTICLE III

National treatment of imported

product, unless specified in otheragreements.

Subjects the purchase or use by

an enterprise of imported products to less

favorable conditions than the purchase or

use of domestic products.

ARTICLE XI

Prohibition of quantitative

restrictions on imports and exports.

Part of the general trend in

textiles and agriculture to phase

out the use of quantitative

restrictions.


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WTO AGREEMENTS: SANITARY ANDPHYTO-SANITARY (SPS) AGREEMENT

SPS agreement was negotiated during the Uruguay Round,

and entered into force with the establishment of the WTO

in1995.

The WTO sets constraints on member-

states policies relating to food safety

(bacterial contaminants, pesticides,

inspection and labeling) as well as animaland plant health (imported pests and

diseases).


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WTO AGREEMENTS: AOA

The most important agreement follows. The Agreement onAgriculture came into effect with the establishment of the

WTO at the beginning of 1995

The AoA has three central concepts, or "PILLARS":

Domestic support Market access

Export subsidies

Objective:

To reform trade in agriculture and to make policies more market

oriented


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A product is considered to be dumped if the export price is less than

the price charged for the same product in the exporting country, or it is

sold for less than its cost of production.

The WTO agreement on anti-dumping allows governments to actagainst dumping where there is genuine (material) injury to the

competing domestic industry.

WTO AGREEMENTS: ANTI-DUMPING PRACTICES

(ADP)


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WTO AGREEMENTS: ANTI-DUMPING PRACTICES

(ADP)

ANTI DUMPING: INCREASE OVER THE YEARS.


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After Marrakesh Agreement, India joined WTO since inception in 1995.

Developing countries like India availed of greater trade opportunities

and also challenged a certain policies of developed countries.

For India, exposure to volatile international market would affect not

only domestic prices but also incomes of poor. Aim to participate in WTO rule based system with greater stability,

transparency and predictability in governance of international trade.

THE WTO AND INDIA


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ARTICLES IN INDIAN EXPRESS: IMPACT OF WTOON INDIA

POSITIVE IMPACT ON INDIAN


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POSITIVE IMPACT ON INDIANECONOMY

Increase in export earnings

Agricultural exports

Export of textile and clothing

Multilateral rules and discipline

Growth to service exports

Foreign investment


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PROS Promotes free-trade

Raises world output levels via specialization

Establishes a standard rule by law and terms of trade for greater

efficiency

Updates all participating countries and banks to international

standards and efficiency in terms of trade and commerce.


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CONS

Industrialized countries benefit more than poor countries

Dont allow the participation of developing countries


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CONCLUSION

Although the stated aim of the WTO is to promote free

trade and stimulate economic growth, some believe

that globally free trade results in rich (both people and

countries) becoming richer awhile the poor gettingpoorer.

It will be able to help weak and poor

countries if it frames rules accordingly


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