wto, gatt,gats
TRANSCRIPT
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Presented By,Arun Prakash (27064)
Kirubakaran (27020)
Saravanan (27110)
Siddhaarthan (27115)
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FACT FILE
Created by : Uruguay Round negotiations (1986-94)
Membership :153 countries (on 23 July 2008)
Budget : 196 million Swiss francs for 2011
2011 Secretariat Staff : 640
Head : Director-General, Pascal Lamy
Established: 1 January 1995
Location : Geneva, Switzerland
WTO History:
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WTO History:
General Agreement on Tariffs and Trade was negotiated
during the UN Conference on Trade and Employment.
GATT was signed in 1947 and lasted until 1993, when it was
replaced by the World Trade Organization in 1995.
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Key functions
Implementation of WTO Agreements.
Forum for negotiations and for settling disputes.
Providing assistance to least developed countries for
transition to adjust to WTO rules. The WTO is also a centre of economic research and provides
analysis of global trade.
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Major Principles of WTO Framework of Trade
Policies
Non-Discrimination
Most Favored Nation
National treatment policy
Reciprocity-Mutual Benefit with trade.
Binding and enforceable commitments
Transparency
Safety valves.
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Organizational structure of WTO
Ministerial Conference
General Committee(Dispute Settlement and Trade policy
review) Council for Trade in Goods
Council for Trade-Related Aspects of Intellectual Property Rights
Council for Trade in Services
Trade Negotiations Committee
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Basic Rules of WTO
Some of the basic premises under which WTO law were founded
on are:
1. Non- Discrimination
2. Market Access3. Protection against unfair trades
4. Trading and competing interests and values
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Non Discrimination
The two principles of non-discrimination in WTO law are:
1. Most Favored Nation treatment obligation
2. National treatment obligation
Market Access
The rules of WTO looks at 3 areas of regarding market access concerning:
1. Custom duties
2. Quantitative restrictions
3. Non-tariff barriers
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Protection Against Unfair Trade
There are no direct regulations regarding unfair trading, but rules
regarding specific trade practices are available. They are:
1. Dumping
2. Subsidies
Trade and Competing Interest and Values
Apart from above WTO law also provides general rules regarding
1. Competing Non-Economic Interest and Values
2. Competing Economic Interest and Values
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Scope of Developing countries with regards
to WTO
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Developing countries & WTO
Recognition of interests and needs of developing countries
Special and differential treatment of developing countries General prohibition of export subsidies does not apply to developing country
members whose per capita income is below $1000 per annum
Lesser demands for reducing tariffs of export subsidies for agricultural products
of developing countries (average of 24%) than the developed nations (average of24%)
Longer implementation periods for Developing
country members regarding WTO agreements
Providing technical support to developingnation by developed nation or through the
WTO secretariat
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Differential Treatment for Least-Developed
Nation members
Additional differential treatment is provided by the WTO law to the least-
developed nation members in the form of:
1. Increased trade opportunities
2. Support for Economic development
3. Longer Implementation periods
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WTO Dispute Settlement System
The aim of the dispute settlement mechanism is to secure a positive
solution to a dispute. A solution mutually acceptable to the parties to a
dispute and consistent with the covered agreements is clearly to be
preferred.
Settling disputes is the responsibility of the Dispute Settlement Body,
which consists of all WTO members.
The Dispute Settlement Body has the sole authority
to establish panels ofexperts to accept or reject the panels findings or the results of an appeal.
It monitors the implementation of the rulings and recommendations
to authorize retaliation when a country does not comply with a ruling.
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Dispute Settlement
Since 1995, 427 disputes have been brought to WTO and only
88 have been resolved.
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WTO & US
US as respondent (113 cases)
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WTO & US
US as complainant (98 cases)
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WTO & US
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Developing Country Members
The most active users of the dispute settlement system
among developing country Members are Brazil, India, Mexico,
Thailand and Chile.
DSU requires the WTO Secretariat to make available qualified
legal experts to help any developing country Member which
so requests.
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India as Complainant & Respondent
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FUTURE ROLE OF WTO
WTO an imperfect body from a business point of view
Trade policy decisions - Now simulated by Game Theory
Changing nature of trade
Possible formation of new trade blocs
Consequences of failure
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DDA STALLED
Uni/Bilateral setting to Multilateral setting
Changing nature of WTO
Changing equation between poor and small
Evolution of negotiation into sticky areas
Exploitation of imprecision in Formula + Flexibility approach
Difficulty in valuing the final package
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CASE FOR COMPLETION
Insurance policy against future protectionism
Reform of farm trade
New Market Access
Reinforcing of WTO system
Opportunity Cost of failure ?
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MOVING TO FINAL DEAL
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General Agreement on Trade in Services
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GATS is one of the treaties of WTO aimed at extending its multilateral
trading system to the service sector for its member nations
GATS defines Trade in services as any of these four modes of supply
Cross border supply (mode1)
Consumption abroad (mode 2)
Commercial Presence (mode 3)
Movement of natural persons ( mode 4)
All other general obligations mentioned below also apply to the members
Most Favored Nation
Transparency
Market Access
National Treatment
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Queries?