wto

GATT AND TRIPS AGREEMENT AND WTO

PRESENTED BYMANOJ KUMAR

AMITY UNIVERSITY

GATT

• The general agreement on tariffs and trade (GATT) was originally created by the Bretton Woods Conferences as a part of economics of world after world war –II in 1947.

• It was came into force in January 1948 after Geneva Conference.

• In starting about 23 countries was involved in GATT.• They thought to organized ITO (International Trade

Organization) but after discussion it was not success and GATT was came in force in 1948.

OBJECTIVE• Raising standards of living.• Ensuring full employment.• A large and steadily growing volume of real income and

effective demand.• Developing the full use of the resource of the world.• Expanding the production and exchange of goods.• to provide industries and business enterprises from

different countries a secure, stable and predictable environment in which they can trade with one another under conditions of fair and equitable competition.

• to promote through increased trade, greater investment, production and employment.

PRINCIPLE OF GATT1- TRADE WITHOUT DISCRIMINATION-

• This principle involve the provision of most favored nation (MFN) means each contracting parties give any other contracting parties the same benefits as those gives to another parties.

• It also involve the national treatment means the imported product treatment is preferment similar to the national product with similar tax and regulation.

2-PROTECTION ONLY THROUGH TARIFF-

• Protection should be given to domestic industries only through the customs tariffs and not through other commercial measures .

• The aim of this rules ,the extent of protection clear and to make competition possible.

3- A STABLE BASIS OF TRADE-

• The contracting countries provide a stable predictable basis for trade.

• The binding of tariffs means that these can not be increased unilaterally. So that this provision is made for the renegotiation of bound tariffs.

4- CONSULTATIONS

• A basic principle of GATT is that members countries should consult one another on trade matters and problems.

• They can call on GATT for a fair settlement of cases in which they feel that their rights under GATT are being with held or compromised by other members.

LIMITATION

• Benefitted mainly for industrialized world.

• Unfavorable for developing countries.

• No specialization for intellectual properties.

• No legal body included.

Impact on developing countries-• The role of GATT in integrating developing countries is

open multilateral trading system.• The GATT provide the trading system and programmatic

support through certain rules helped in both ways expand and diversify their trade.

• The developing countries have become full partners in the systems means they actively participate in the Uruguay Round.

• The free trade has become the backbone of economic prosperity and development of the developing countries.

• So that the GATT provide the good impact on developing countries.

TRIPPS AGREEMENT• Trade related intellectual properties agreement was

signed in Marrakesh, Morocco, on 15,april 1994. OBJECTIVE-• To protection and enforcement of intellectual property

right of persons.• To promotion of technological innovation.• To transfer and dissemination of technology.• To mutual advantage of producers and users of

technological knowledge and easy to social and economic welfare.

• To become of right and obligations.

PRINCIPLE OF TRIPS-

• The principles of TRIPS is that the members formulating or amending their laws and regulation.

• Adopt measures necessary to protect public health and nutritions.

• Promotes the public interest in sectors of vital importance to their socio-economic and technological development with the provision of TRIPS Agreement.

TRIPS COVERAGE AREA

• Copyright and related Rights.• Trademark and related Rights.• Geographical indication related.• Industrial designs related.• Patent related.• Layout designs of integrated circuits.• Protection of undisclosed information. • Control of licensing authority.

WTO (WORLD TRADE ORGANISATION)• WTO was established on January 1,1995.• WTO is the result of Uruguary Round of GATT.• Organization created by the Marrakesh Agreement• WTO is completely replacement of GATT predecessor

and has a very different characters.• WTO is an international organization that established

rules for international trades.• It also resolves disputes between the members which are

all signatories to its set of trade agreement.• 76 Governments became members of the WTO on its

first day. The present membership accounts for more than 90 per cent of world trade.

OBJECTIVE-• To set and enforce rules for international trades.• To provide a forum for negotiating and monitoring

further trade liberalization.• To resolve trade disputes.• To increase the transparency of decision-making

processes.• To co-operate with other major international economic

institutions involve in global economic management.• To help developing countries benefits fully from the

global trading system.• Ensuring growth of real income and demand

SCOPE OF WTO-

• The WTO shall provide the common institutional framework for the conduct of trade relations among its Members in matters related to the agreements and associated legal instruments included in the Annexes to the Marrakesh Agreement.”

• Multilateral Trade Agreement

• Plurilateral Trade Agreements

FUNCTION OF WTO• Forum for trade negotiations.• Monitoring trade policy of countries.• Proving technical advises to member countries.• It shall provide the frame work for the implementation ,

administration and operation of the plurilateral trade agreement.

• Handling trade disputes.• WTO shall administer the understanding on rules and

procedures governing the settlement of disputes.• It shall co-operate as appropriate, with the International

Monetary Fund and the International Bank for Reconstruction and Development.

STRUCTURE OF WTO

Ministerial Conference

General Council DSB

GOOD COUNCIL

SERVICES COUNCIL

TRIPS COUNCIL

TPRB

Appellate Body

Dispute Settlement

Panels

CTD (Development)CTE (Environment)CRTA (Regionalism)

BOPBudget

WG (Accessions, Investment, competition, Government Procurement

Committees

Director-General

Secretariat

STATUS OF WTO• The WTO shall have a legal personality and shall legal

capacity as may be necessary for the exercise of its function.

• WTO shall be accorded by each of its members such as privileges and immunities as are necessary for the exercise of its function.

• The official of WTO and the representative of members shall similarly be accorded by each of its members are necessary for the independent exercise of their function in connection with the WTO.

• WTO may conclude a headquarter agreement.

MEMBERSHIP AND WITHDRAWAL-• Members

– Established by the Marrakesh Agreement – 153 Members.

– Members can be States or separate customs territory possessing full autonomy in the conduct of its external commercial relations

– Membership is delivered after an accession procedure (around 30 candidates)

WITHDRAWAL-

• Any member may be withdrawal from this agreement.• Such withdrawal shall apply both to this agreement and

the multilateral.• Shall take effect upon the expiration of six months from

the date on which written notice of withdrawal is received by director general of the WTO.

• Withdrawal from a plurilateral trade agreement shall be governed by the provisions of that agreement.

DISPUTE SETTLEMENT• The basic principle of the dispute settlement committee is-1-Equitable2-Fast3-Effective4-Mutually acceptable• There are some stages involved in dispute settlment-1- The first step conducted for 60 days.In this step if the

dispute is not solve then step –II is followed.2- In this step the committee is formed within 45 days.And this committee should submitted report with in 6

months.

• There is some steps involved in this steps as follows-• Before the first hearing• First hearing• Rebuttals• Expert• First draft• Interim report• Reviews• Final report• Report become ruling

ROLE OF WTO IN GLOBALIZATION-• WTO plays an important role in the principle of trade

withdrawal discrimination in the free market trade.• Most favored nation (MFN) treating other people equally

under the WTO agreement ,countries can not normally discriminate between their trading partner.

• National treatment treating the foreigners and local equally.

• Freer trade ,in this lowering trade barriers is one of the most obvious means of encouraging trade. The barriers concerned include customs duties and measures such as import bans that restrict quantities selectively.

• Predictability with suitability and predictability investment is encouraged , jobs are created and consumers can fully enjoy the benefits of competitions such as choice and lower prices.

• Promotion fair competition ,the WTO is sometimes describes as a “free trade” institution ,but it is not entirely accurate the system does not allow tariffs .

• More accurate it is a system of rules dedicated to open fair and undistorted competition.

• WTO contributes to development. On other hand , developing countries need flexibility in the time they take to implement the system’s agreement.

DIFFERENCE BETWEEN WTO AND GATT

GATT WTO

1- Provisional Agreement2- Contracting Parties

1- International Organization

2- Members

3- Restricted Coverage4- Goods

3- Broad Coverage 4- Goods, Services, TRIPs

5- Dispute Settlement 5- Dispute Settlement strengthened

wto

Education

plurilateral

international

real income

favored nation

related rights

developing

trips agreement

basic principle