A CRITICAL APPRAISAL ON PERFORMANCE OF WTO

1

A PROJECT ON

A CRITICAL APPRAISAL ON PERFORMANCE OF WTO

IN THE SUBJECT

ECONOMICS OF GLOBAL TRADE & FINANCE

SUBMITTED BY

NAME: SOUMEET D. SARKAR

ROLL NO.: 041

DIVISIONS: A

M.Com. Part - I in Advance Accountancy

UNDER THE GUIDANCE OF

PROF. JOSE AUGUSTINE

TO

UNIVERSITY OF MUMBAI FOR

MASTER OF COMMERCE PROGRAMME (SEMESTER - I)

YEAR: 2013-14

SVKM’S

NARSEE MONJEE COLLEGE OF COMMERCE &ECONOMICS

VILE PARLE (W), MUMBAI – 400056.

2

EVALUATION CERTIFICATE

This is to certify that the undersigned have assessed and evaluated the

project on ―A CRITICAL APPRAISAL ON PERFORMANCE OF WTO‖

submitted by student of M.Com. – Part - I (Semester – I) for the academic

year 2013-14. This project is original to the best of our knowledge and has

been accepted for Internal Assessment.

Name & Signature of Internal Examiner

Name & Signature of External Examiner

PRINCIPAL

Shri. Sunil B. Mantri

3

DECLARATION BY THE STUDENT

I, student of M.Com. (Part – I) Roll No.:041 hereby declare that the project

titled ―A CRITICAL APPRAISAL ON PERFORMANCE OF WTO‖ for

the subject ECONOMICS OF GLOBAL TRADE AND FINANCE

submitted by me for Semester – I of the academic year 2013-14, is based on

actual work carried out by me under the guidance and supervision of

PROF. JOSE AUGUSTINE. I further state that this work is original and not

submitted anywhere else for any examination.

Place: MUMBAI.

Date:

(SOUMEET D. SARKAR)

Name & Signature of Student

4

ACKNOWLEDGEMENT

It is indeed a great pleasure and proud privilege to present this project

work.

I thank my project guide and M-COM co-ordinator of SVKM‘S NARSEE

MONJEE COLLEGE OF COMMERCE AND ECONOMICS, VILE PARLE

(WEST). Their co-operation and guidance have helped me to complete this

project.

I would sincerely like to thank the principal of our college Shri. Sunil B.

Mantri for his support and guidance.

I would also like to thank the college library and its staff for patiently

listening and guiding me and finally. I would like to thank my family and

friends who supported me in this project.

THANK YOU.

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CONTENT

Sr. No. PARTICULARS Page No.

CHAPTER I – INTRODUCTION

1.1 Meaning & Definition 6

CHAPTER II –World Trade Organization (WTO)

2.1 Functions of WTO 7

2.2 Principals of WTO 9

2.3 Objective of WTO 12

2.4 Benefits of WTO 14

2.5 Structure of WTO 17

CHAPTER III – AGREEMENTS OF WTO

3.1 Definition & Meaning 20

3.2 Tariff Cuts 21

3.3 Agriculture 22

3.4 Services 24

3.5 Intelluctual Property 27

3.6 Anti-Dumping Agreement 30

CHAPTER IV – CONCLUSION

4.1 Conclusion 34

4.2 Members & Observers of WTO 35

4.3 Biblography 41

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INTRODUCTION:-

The World Trade Organization was founded on 1st Janaury 1995 to replace the General

Agreement on Tariffs and Trade (GATT). This multilateral organization aims to lower

tariffs and non-tariff barriers so as to increase international trade. The 159 member states

meet in ministerial sessions at least once every two years. The World Trade Organization

(WTO) is an international, multilateral organization, which sets the rules for the global

trading system and resolves disputes between its member states, all of whom are

signatories to its about 60 agreements.

WTO headquarters are located in Geneva, Switzerland. Pascal Lamy is the current

Director-General. As of now, there are 159 members in the organization, with. All WTO

members are required to grant one another most favoured nation status, such that ( with

some exceptions ) trade concessions granted by a WTO member to another country must

be granted to all WTO members. Since its inception in 1995, the WTO has been a

major target for protests by the anti-globalization movement.

The WTO was born out of negotiations, and everything the WTO does is the result of

negotiations. The bulk of the WTO‘s current work comes from the 1986–94 negotiations

called the Uruguay Round and earlier negotiations under the General Agreement on

Tariffs and Trade (GATT). The WTO is currently the host to new negotiations, under

the ‗Doha Development Agenda‘ launched in 2001.

Where countries have faced trade barriers and wanted them lowered, the negotiations

have helped to open markets for trade. But the WTO is not just about opening markets,

and in some circumstances its rules support maintaining trade barriers - for example, to

protect consumers or prevent the spread of disease.

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

trading nations. These documents provide the legal ground rules for international

commerce. They are essentially contracts, binding governments to keep their trade

policies within agreed limits. Although negotiated and signed by governments, the goal is

to help producers of goods and services, exporters, and importers conduct their business,

while allowing governments to meet social and environmental objectives.

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The systems overriding purpose is to help trade flow as freely as possible - so long as

there are no undesirable side effects - because this is important for economic

development and well-being. That partly means removing obstacles. It also means

ensuring that individuals, companies and governments know what the trade rules are

around the world, and giving them the confidence that there will be no sudden changes

of policy. In other words, the rules have to be transparent and predictable.

Trade relations often involve conflicting interests. Agreements, including those

painstakingly negotiated in the WTO system, often need interpreting. The most

harmonious way to settle these differences is through some neutral procedure based on

an agreed legal foundation. That is the purpose behind the dispute settlement process

written into the WTO agreements.

FUNCTIONS OF WTO:-

While the WTO is driven by its member states, it could not function without its

Secretariat to coordinate the activities. The Secretariat employs over 600 staff, and its

experts - lawyers, economists, statisticians and communications experts - assist WTO

members on a daily basis to ensure, among other things, that negotiations progress

smoothly, and that the rules of international trade are correctly applied and enforced. The

former GATT was not really an organisation; it was merely a legal arrangement. On the

other hand, the WTO is a new international organisation set up as a permanent body. It

is designed to play the role of a watchdog in the spheres of trade in goods, trade in

services, foreign investment, intellectual property rights, etc. Article III has set out the

following functions of WTO:-

Trade Negotiations:-

The WTO agreements cover goods, services and intellectual property. They spell out the

principles of liberalization, and the permitted exceptions. They include individual

countries commitments to lower customs tariffs and other trade barriers, and to open and

keep open services markets. They set procedures for settling disputes. These agreements

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are not static; they are renegotiated from time to time and new agreements can be added

to the package. Many are now being negotiated under the Doha Development Agenda,

launched by WTO trade ministers in Doha, Qatar, in November 2001.

Implementation and Monitoring:-

WTO agreements require governments to make their trade policies transparent by

notifying the WTO about laws in force and measures adopted. Various WTO councils

and committees seek to ensure that these requirements are being followed and that WTO

agreements are being properly implemented. All WTO members must undergo periodic

scrutiny of their trade policies and practices, each review containing reports by the

country concerned and the WTO Secretariat.

Dispute Settlement:-

The WTO‘s procedure for resolving trade quarrels under the Dispute Settlement

Understanding is vital for enforcing the rules and therefore for ensuring that trade flows

smoothly. Countries bring disputes to the WTO if they think their rights under the

agreements are being infringed. Judgements by specially appointed independent experts

are based on interpretations of the agreements and individual countries commitments.

Building Trade Capacity:-

WTO agreements contain special provision for developing countries, including longer time

periods to implement agreements and commitments, measures to increase their trading

opportunities, and support to help them build their trade capacity, to handle disputes and

to implement technical standards. The WTO organizes hundreds of technical co-operation

missions to developing countries annually. It also holds numerous courses each year in

Geneva for government officials. Aid for Trade aims to help developing countries

develop the skills and infrastructure needed to expand their trade.

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Outreach:-

The WTO maintains regular dialogue with non-governmental organizations, parliamentarians,

other international organizations, the media and the general public on various aspects of

the WTO and the ongoing Doha negotiations, with the aim of enhancing cooperation and

increasing awareness of WTO activities.

PRINCIPLES OF WTO:-

The WTO agreements are lengthy and complex because they are legal texts covering a

wide range of activities. But a number of simple, fundamental principles run throughout

all of these documents. These principles are the foundation of the multilateral trading

system.

Non-discrimination:-

Under the WTO agreements, countries cannot normally discriminate between their

trading partners, grant someone a special favor (such as a lower customs duty rate for

one of their products). If you do the same you have to do that for all other WTO

members. This principle is known as Most Favoured Nation (MFN) treatment. It is so

important that it is the first article of the World Trade Organisation (WTO),

which governs trade in goods. MFN is also a priority in the General Agreement on

Trade in Services (GATS) and the Agreement on Trade-Related Aspects of Intellectual

Property Rights (TRIPS); although in each agreement the principle is handled slightly

differently. Together, those three agreements cover all three main areas of trade handled

by the WTO. Some exceptions are allowed, for example, countries can set up a free

trade agreement that applies only to goods traded within the group discriminating against

goods from outside. Or they can give developing countries special access to their

markets. Or a country can raise barriers against products that are considered to be traded

unfairly from specific countries. And in services, countries are allowed, in limited

circumstances, to discriminate. But the agreements only permit these exceptions under

strict conditions. In general, MFN means that every time a country lowers a trade barrier

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or opens up a market, it has to do so for the same goods or services from all its

trading partners – whether rich or poor, weak or strong.

Imported and locally – produced goods should be treated equally - at least after the

foreign goods have entered the market. The same should apply to foreign and domestic

services, and to foreign and local trademarks, copyrights and patents. This principle of

―national treatment‖ (giving others the same treatment as one‘s own nationals) is also

found in all the three main WTO agreements (GATT, GATS and TRIPS), although once

again the principle is handled slightly differently in each of these. National treatment

only applies once a product, service or item of intellectual property has entered the

market. Therefore, charging customs duty on an import is not a violation of national

treatment even if locally – produced products are not charged an equivalent tax.

More Open:-

Lowering trade barriers is one of the most obvious ways of encouraging trade; these

barriers include customs duties (or tariffs) and measures such as import bans or quotas

that restrict quantities selectively. From time to time other issues such as red tape and

exchange rate policies have also been discussed. The WTO agreements allow countries to

introduce changes gradually, through ―progressive liberalization‖. Developing countries are

usually given longer time to fulfill their obligations.

Predictable and Transparent:-

Sometimes, promising not to raise a trade barrier can be as important as lowering one,

because the promise gives businesses a clearer view of their future opportunities. With

stability and predictability, investment is encouraged, jobs are created and consumers can

fully enjoy the benefits of competition - choice and lower prices. The multi-lateral trading

system is an attempt by governments to make the business environment stable and

predictable. In the WTO, when countries agree to open their markets for goods or

services, they bind their commitments. For goods, these bindings amount to ceilings on

customs tariff rates. Sometimes countries tax imports at rates that are lower than the

bound rates. Frequently this is the case in developing countries. In developed countries

the rates actually charged and the bound rates tend to be the same. A country can

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change its bindings, but only after negotiating with its trading partners, which could

mean compensating them for loss of trade. One of the achievements of the Uruguay

Round of multi-lateral trade talks was to increase the amount of trade under binding

commitments. In agriculture, 100% of products now have bound tariffs. The result of all

this:- a substantially higher degree of market security for traders and investors. The

system tries to improve predictability and stability in other ways as well. One way is to

discourage the use of quotas and other measures used to set limits on quantities of

imports - administering quotas can lead to more red tape and accusations of unfair play.

Another is to make countries trade rules as clear and public (transparent) as possible.

Many WTO agreements require governments to disclose their policies and practices

publicly within the country or by notifying the WTO. The regular surveillance of

national trade policies through the Trade Policy Review Mechanism provides a further

means of encouraging transparency both domestically and at the multi-lateral level.

More Competitive:-

The WTO is sometimes described as a free trade institution, but that is not entirely

accurate. The system does allow tariffs and, in limited circumstances, other forms of

protection. More accurately, it is a system of rules dedicated to open, fair and

undistorted competition. The rules on non-discrimination - MFN and national treatment -

are designed to secure fair conditions of trade. The issues are complex, and the rules try

to establish what is fair or unfair, and how governments can respond, in particular by

charging additional import duties calculated to compensate for damage caused by unfair

trade. Many of the other WTO agreements aim to support fair competition in agriculture,

intellectual property, services, for example, the agreement on government procurement (a

―pluri-lateral‖ agreement because it is signed by only a few WTO members) extends

competition rules to purchases by thousands of government entities in many countries.

More Beneficial for Less Developed Countries:-

Giving them more time to adjust, greater flexibility and special privileges; over three-

quarters of WTO members are developing countries and countries in transition to market

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economies. The WTO agreements give them transition periods to adjust to the more

unfamiliar and perhaps difficult WTO provisions.

Protect the Environment:-

The WTO‘s agreements permit members to take measures to protect not only the

environment but also public health, animal health and plant health. However, these

measures must be applied in the same way to both national and foreign businesses. In

other words, members must not use environmental protection measures as a means of

disguising protectionist policies.

OBJECTIVES OF WTO:-

1. To create a knowledge base on various matter concerning various National and

International Trade Laws and Protocols, and their National and International

implications and ramifications.

2. Carry out research and development and the building up of a clearing-house of

cases on all matters of WTO agreements which are of national concern including

safeguards and redressal mechanisms and suggesting alternative formulation in

national interest which could form subject matters of future consultation or pre-

negotiations of WTO agreement.

3. Increasing awareness amongst domestic industry, business, agriculture, service and

other sectors on the impacts of trade laws arising out of WTO agreement and

other treaties as member of WTO.

4. Co-operating with industry associates, bodies set up by Government of India and

Export Promotion Council on various issues related to tariff, non-tariff and tactical

barriers and undertake drive for awareness campaign by jointly or severally

holding conferences, seminars, group discussions and other mode of awareness and

campaign as also to develop linkages with overseas organizations in order to

create a common perception and approach to the resolution of multilateral trade

issues.

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5. Exploit all potential provisions of WTO agreement available to the developing

nations and advising and counseling the Government of India on all such issues

of national importance.

6. To assist the Government in negotiating with the International Community in the

perspective of the WTO regime and to help strengthen the Indian position in

these regards in all possible ways.

7. To co-ordinate efforts with the Government in creating a level playing field

particularly for the accounting professionals in India specially in view of the

implementation of the WTO regime on GATS through the most effective means

possible including the organization of seminars, publication of articles and

monographs, and presentation before the Government.

8. Identify areas of non-fulfillment of the WTO agreement which concern Indian

interest and suggest line of action and remedies open for fulfillment of these

obligations.

9. Initiate discussions on making the domestic trade and export and import policies

more WTO compatible and suggest initiatives to be taken in this respect at

various levels to ensure high growth in export and economy including the

development of various modes of synergy and effective regulation of trade laws

which are functionally divided between Commerce, Finance, Foreign and Product

related Ministries.

10. To study the impact and threat perception of WTO agreement on the growing

service sector industries including all those covered under 'business services' of

GATS agreement in general and knowledge, accountancy and consulting services,

transport, communication, medical, education, insurance, banking in particular and

suggest policy issues, develop research and education programs aimed at educating

members of ICAI.

11. To develop a base of expertise amongst the members of the Institute on

Intellectual Property Rights, TRIPS, Anti-dumping laws, EXIM Policy matters etc.,

through seminars, training programs and such other methods as may be considered

effective.

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OTHER OBJECTIVES:-

i. To implement the new world trade system as visualised in the Agreement;

ii. To promote World Trade in a manner that benefits every country;

iii. To ensure that developing countries secure a better balance in the sharing of the

advantages resulting from the expansion of international trade corresponding to

their developmental needs;

iv. To demolish all hurdles to an open world trading system and usher in

international economic renaissance because the world trade is an effective

instrument to foster economic growth;

v. To enhance competitiveness among all trading partners so as to benefit consumers

and help in global integration;

vi. To increase the level of production and productivity with a view to ensuring level

of employment in the world;

vii. To expand and utilize world resources to the best;

viii. To improve the level of living for the global population and speed up economic

development of the member nations.

BENEFITS OF WTO:-

1. Helps promote peace within nations:- Peace is partly an outcome of two of the

most fundamental principle of the trading system; helping trade flow smoothly and

providing countries with a constructive and fair outlet for dealing with disputes

over trade issues. Peace creates international confidence and co-operation that the

WTO creates and reinforces.

2. Disputes are handled constructively:- As trade expands in volume, in the

numbers of products traded and in the number of countries and company trading,

there is a greater chance that disputes will arise. WTO helps resolve these

disputes peacefully and constructively. If this could be left to the member states,

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the dispute may lead to serious conflict, but lot of trade tension is reduced by

organizations such as WTO.

3. Rules make life easier for all:- WTO system is based on rules rather than

power and this makes life easier for all trading nations. WTO reduces some

inequalities giving smaller countries more voice, and at the same time freeing the

major powers from the complexity of having to negotiate trade agreements with

each of the member states.

4. Free trade cuts the cost of living:- Protectionism is expensive, it raises prices,

WTO lowers trade barriers through negotiation and applies the principle of non-

discrimination. The result is reduced costs of production ( because imports used in

production are cheaper ) and reduced prices of finished goods and services, and

ultimately a lower cost of living.

5. It provides more choice of products and qualities:- It gives consumer more

choice and a broader range of qualities to choose from.

6. Trade raises income:- Through WTO trade barriers are lowered and this

increases imports and exports thus earning the country foreign exchange thus

raising the country's income.

7. Trade stimulates economic growth:- With upward trend economic growth, jobs

can be created and this can be enhanced by WTO through careful policy making

and powers of freer trade.

8. Basic principles make life more efficient:- The basic principles make the system

economically more efficient and they cut costs. Many benefits of the trading

system are as a result of essential principle at the heart of the WTO system and

they make life simpler for the enterprises directly involved in international trade

and for the producers of goods/services. Such principles include; non-

discrimination, transparency, increased certainty about trading conditions etc.

together they make trading simpler, cutting company costs and increasing

confidence in the future and this in turn means more job opportunities and better

goods and services for consumers.

9. Governments are shielded from lobbying:- WTO system shields the government

from narrow interest. Government is better placed to defend themselves against

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lobbying from narrow interest groups by focusing on trade-offs that are made in

the interests of everyone in the economy.

10. The system encourages good governance:- The WTO system encourages good

government. The WTO rules discourage a range of unwise policies and the

commitment made to liberalize a sector of trade becomes difficult to reverse.

These rules reduce opportunities for corruption.

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STRUCTURE OF WTO:-

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Highest Level:- Ministerial Conference

The topmost decision-making body of the WTO is the Ministerial Conference, which has

to meet at least every two years. It brings together all members of the WTO, all of

which are countries or customs unions. The Ministerial Conference can take decisions on

all matters under any of the multilateral trade agreements.

Second Level:- General Council

The daily work of the ministerial conference is handled by three groups:-

1. The General Council:- It is the WTO‘s highest – level decision - making body in

Geneva, meeting regularly to carry out the functions of the WTO. It has

representatives (usually ambassadors or equivalent) from all member governments

and has the authority to act on behalf of the ministerial conference which only

meets about every two years. The council acts on behalf of the Ministerial

Council on all of the WTO affairs. The current chairperson is Mr. Shahid Bashir

from Pakistan.

2. The Dispute Settlement Body:- Made up of all member governments, usually

represented by ambassadors or equivalent. The current chairperson is Mr. Jonathan

FRIED from Canada.

3. The Trade Policy Review Body (TPRB):- The WTO General Council meets as

the Trade Policy Review Body to undertake trade policy reviews of members

under the TRPM. The TPRB is thus open to all WTO members. The current

chairperson is Mr. Joakim REITER from Sweden.

Third Level:- Councils for Trade

The Councils for Trade work under the General Council. There are three councils:-

1. Council for Trade in Goods:- The workings of the General Agreement on

Tariffs and Trade (GATT) which covers international trade in goods, are the

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responsibility of the Council for Trade in Goods. It is made up of representatives

from all WTO member countries. The current chairperson is Dr. Tom MBOYA

OKEYO from Kenya.

2. Council for Trade-Related Aspects of Intellectual Property Rights:- Information

on intellectual property in the WTO, news and official records of the activities of

the TRIPS Council, and details of the WTO‘s work with other international

organizations in the field. The current chairperson is Amb. Alfredo Suescum from

Panama.

3. Council for Trade in Services:- The Council for Trade in Services operates

under the guidance of the General Council and is responsible for overseeing the

functioning of the General Agreement on Trade in Services (GATS). It is open to

all WTO members, and can create subsidiary bodies as required. The current

chairperson is Dr. Abdolazeez AL-OTAIBI from Kingdom of Saudi Arabia.

Apart from these three councils, FIVE other bodies report to the General Council reporting on

issues:-

COMMITTEE CHAIRPERSON

TRADE & DEVELOPMENT

Mrs. Marion WILLIAMS

(Barbados)

TRADE & ENVIRONMENT

Mr. Krisda PIAMPONGSANT

(Thailand)

BALANCE OF PAYMENTS

RESTRICTION

Mr. Md. Abdul HANNAN

(Bangladesh)

REGIONAL TRADE AGREEMENTS

Amb. Francisco LIMA MENA

(El Salvador)

BUDGET, FINANCE &

ADMINISTRATION

Mr. Michael STONE

(Hong Kong, China)

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AGREEMENTS OF WTO:-

The WTO agreements cover goods, services and intellectual property. They spell out the

principles of liberalization and the permitted exceptions. They include individual countries

commitments to lower customs tariffs and other trade barriers, and to open and keep

open services markets. They set procedures for settling disputes. They prescribe special

treatment for developing countries. They require governments to make their trade policies

transparent by notifying the WTO about laws in force and measures adopted, and

through regular reports by the secretariat on countries trade policies.

These agreements are often called the WTO‘s trade rules, and the WTO is often

described as ―rules-based‖, a system based on rules. But it is important to remember that

the rules are actually agreements that governments negotiated. These agreements are not

static; they are renegotiated from time to time and new agreements can be added to the

package. Many are now being negotiated under the Doha Development Agenda, launched

by WTO trade ministers in Doha and Qatar.

Agreements starts with three broad principles:-

1. GENERAL AGREEMENT ON TARIFFS & TRADE (GATT)

2. GENERAL AGREEMENT ON TRADE IN SERVICES (GATS)

3. TRADE-RELATED ASPECTS OF INTELLECTUAL PROPERTY RIGHTS

(TRIPS)

Then comes extra agreements and annexes dealing with special requirements of specific

sectors or issues. Finally, there are the detailed and lengthy schedules of commitments

made by individual countries allowing specific foreign products or service-providers

access to their markets. Underpinning these are dispute settlement, which is based on the

agreements and commitments, and trade policy reviews, an exercise in transparency.

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UMBRELLA AGREEMENT ESTABLISHING WTO

GOODS SERVICES INTELLECTUAL

PROPERTY

BASIC

PRINCIPLES

GATT GATS TRIPS

ADDITIONAL

DETAILS

Others goods

agreements & annexes

Services annexes -

MARKET

ACCESS

COMMITMENTS

Countries schedules of

commitments

Countries schedules of

commitments

-

DISPUTE

SETTLEMENT

DISPUTE SETTLEMENT

TRANSPARENCY TRADE POLICY REVIEWS

I. TARIFFS CUTS:- Developed countries tariff cuts were for the most part phased

in over five years from 1 January 1995. The result is a 40% cut in their tariffs

on industrial products, from an average of 6.3% to 3.8%. The value of imported

industrial products that receive duty-free treatment in developed countries will

jump from 20% to 44%. There will also be fewer products charged high duty

rates. The proportion of imports into developed countries from all sources facing

tariffs rates of more than 15% will decline from 7% to 5%. The proportion of

developing country exports facing tariffs above 15% in industrial countries will

fall from 9% to 5%.

On 26 March 1997, 40 countries accounting for more than 92% of world trade

in information technology products, agreed to eliminate import duties and other

charges on these products by 2000 (by 2005 in a handful of cases). As with

other tariff commitments, each participating country is applying its commitments

equally to exports from all WTO members (i.e. on a most favoured nation basis),

even from members that did not make commitments.

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Developed countries increased the number of imports whose tariff rates are bound

(committed and difficult to increase) from 78% of product lines to 99%. For

developing countries, the increase was considerable:- from 21% to 73%.

Economies in transition from central planning increased their bindings from 73%

to 98%. This all means a substantially higher degree of market security for

traders and investors.

II. AGRICULTURE:- The original GATT did apply to agricultural trade, but it

contained loopholes. For example, it allowed countries to use some non-tariff

measures such as import quotas and to subsidize. Agricultural trade became highly

distorted, especially with the use of export subsidies which would not normally

have been allowed for industrial products. The Uruguay Round produced the first

multilateral agreement dedicated to the sector. It was a significant first step

towards order, fair competition and a less distorted sector. It was implemented

over a six year period (and is still being implemented by developing countries

under their 10-year period), that began in 1995. The Uruguay Round agreement

included a commitment to continue the reform through new negotiations. These

were launched in 2000, as required by the Agriculture Agreement. The objective

of the Agriculture Agreement is to reform trade in the sector and to make

policies more market-oriented. This would improve predictability and security for

importing and exporting countries alike. The features of Agreement on Agriculture

are:-

a. Market Access:- This includes tariffication, tariff reduction and access

opportunities. Tariffication means that all non-tariff barriers such as quotas,

variable levies, minimum import prices, discretionary licensing, state trading

measures, voluntary restraint agreements, etc. need to be abolished and

converted into an equivalent tariff. Ordinary tariffs including those resulting

from their tariffication are to be reduced by an average of 36% with

minimum rate of reduction of 15% for each tariff item over a 6 year

period. Developing countries are required to reduce tariffs by 24% in 10

years. Developing countries as were maintaining Quantitative Restrictions

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due to balance of payment problems, were allowed to offer ceiling

bindings instead of tariffication;

b. Domestic Support:- For domestic support policies, subject to reduction

commitments, the total support given in 1986-88, measured by the total

Aggregate Measurement of Support (AMS) should be reduced by 20% in

developed countries (13.3% in developing countries). Reduction commitments

refer to total levels of support and not to individual commodities. Policies

which amount to domestic support both under the product specific and

non-product specific categories at less than 5% of the value of production

for developed countries and less than 10% for developing countries are

also excluded from any reduction commitments. Polices which have no or

at most minimal trade distorting effects on production are excluded from

any reduction commitments (Green Box). The list of exempted green box

policies includes such policies which provide services or benefits to

agriculture or the rural community, public stock holding for food security

purposes, domestic food aid and certain de-coupled payments to producers

including direct payments to production limiting programmes, provided

certain conditions are met.;

c. Export Subsidies:- The agreement contains provisions regarding members

commitment to reduce Export Subsidies. Developed countries are required

to reduce their export subsidy expenditure by 36% and volume by 21% in

6 years, in equal installment (from 1986-1990 levels). For developing

countries the percentage cuts are 24% and 14% respectively in equal

annual installment over 10 years. The agreement also specifies that for

products not subject to export subsidy reduction commitments, no such

subsidies can be granted in the future.

The agreement does allow governments to support their rural economies, but

preferably through policies that cause less distortion to trade. It also allows some

flexibility in the way commitments are implemented. Developing countries do not

have to cut their subsidies or lower their tariffs as much as developed countries,

and they are given extra time to complete their obligations. Least-developed

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countries don‘t have to do this at all. Special provisions deal with the interests of

countries that rely on imports for their food supplies, and the concerns of least-

developed economies. Peace provisions within the agreement aim to reduce the

likelihood of disputes or challenges on agricultural subsidies over a period of nine

years, until the end of 2003.

III. SERVICES:- The General Agreement on Trade in Services (GATS) is the first

and only set of multilateral rules governing international trade in services.

Negotiated in the Uruguay Round, it was developed in response to the huge

growth of the services economy over the past 30 years and the greater potential

for trading services brought about by the communications revolution. The General

Agreement on Trade in Services has three elements:-

a. the main text containing general obligations and disciplines;

b. annexes dealing with rules for specific sectors;

c. individual countries specific commitments to provide access to their

markets, including indications of where countries are temporarily not

applying the most favoured nation principle of non-discrimination.

Prior to the Uruguay Round, services were considered to offer less potential for

trade expansion than goods, thanks to existence of technical, institutional and

regulatory barriers. However, the development of new transmission technologies

facilitating the supply of services (e.g. satellite communication, electronic banking,

tele-education), the opening of monopolies in many countries (e.g. voice

telephony), and gradual liberalization of hitherto regulated sectors like transport,

banking and insurance combined with changes in consumer preferences, enhanced

the ―tradeability‖ of services. These developments increased international services

flows and created a similar need for multilateral disciplines – as in the area of

goods. Thus, the main purpose for the creation of the General Agreement on

Trade in Services (GATS) was to create a credible and reliable system of

international trade rules, which ensured fair and equitable treatment of all

countries on the principles of non-discrimination. It aims at stimulating trade and

development by seeking to create a predictable policy environment wherein the

25

member countries voluntarily undertake to bind their policy regimes relating to

trade in services.

IMPORTANCE OF GATS:-

a. Economic performance:- Presence of an efficient services infrastructure is

a precondition for economic success. Services such as tele-communications,

banking, insurance and transport, supply strategically important inputs for

all sectors, both in goods and services.

b. Development:- Access to world class services help exporters and producers

in developing countries to capitalize on their competitive strength, whatever

goods and services they are selling.

c. Consumer Choice:- There is strong evidence in many services, e.g:-

Telecom, that liberalization leads to lower prices, better quality and wider

choice for consumers.

d. Technology Transfer:- Services liberalization encourages, foreign direct

investment (FDI). Such FDI generally brings with it new skills and

technologies that spill over into the wider economy in various ways.

The GATS covers all internationally traded services with two exceptions:-

a. services provided to the public in the exercise of governmental authority;

b. in the air transport sector, traffic rights and all services directly related to

the exercise of traffic rights .

The WTO Secretariat has divided all services into the following 12 sectors:-

1. Business services (including professional and computer services),

2. Communication services,

3. Construction and Engineering services,

4. Distribution services (e.g. Commission agents, wholesale & retail trade and

franchising),

5. Education services,

6. Environment services,

7. Finance (including insurance and banking) services,

8. Health services,

9. Tourism and Travel services,

26

10. Recreation, Cultural and Sporting Services,

11. Transportation Services, and

12. Other services not elsewhere classified.

The GATS agreement covers four modes of supply for the delivery of services in

cross-border trade:-

MODE CRITERIA SUPPLIER

PRESENCE

MODE 1: Cross-border

supply

Services delivered within

the territory of the member,

from the territory of another

member

Service supplier not present

within the territory of the

member

MODE 2: Consumption

abroad

Service delivered outside

the territory of the member,

in the territory of another

member, to a service

consumer of the member

Service supplier not present

within the territory of the

member

MODE 3: Commercial

presence

Service delivered within the

territory of the member,

through the commercial

presence of the supplier

Service supplier present

within the territory of the

member

MODE 4: Presence of a

natural person

Service delivered within the

territory of the member,

with supplier present as a

natural person

Service supplier present

within the territory of the

member

27

IV. INTELLUCTUAL PROPERTY:- The Agreement on Trade Related Aspects of

Intellectual Property Rights (TRIPS) is an international agreement administered by

the World Trade Organization (WTO) that sets down minimum standards for

many forms of intellectual property (IP) regulation as applied to nationals of other

WTO Members. It was negotiated at the end of the Uruguay Round of the

General Agreement on Tariffs and Trade (GATT) in 1994. The TRIPS agreement

introduced intellectual property law into the international trading system for the

first time and remains the most comprehensive international agreement on

intellectual property to date. In 2001, developing countries, concerned that

developed countries were insisting on an overly narrow reading of TRIPS,

initiated a round of talks that resulted in the Doha Declaration. The Doha

declaration is a WTO statement that clarifies the scope of TRIPS, stating for

example that TRIPS can and should be interpreted in light of the goal "to

promote access to medicines for all". Specifically, TRIPS requires WTO members

to provide copyright rights, covering content producers including performers,

producers of sound recordings and broadcasting organizations; geographical

indications, including appellations of origin; industrial designs; integrated circuit

layout-designs; patents; new plant varieties; trademarks; trade dress; and

undisclosed or confidential information. TRIPS also specifies enforcement

procedures, remedies, and dispute resolution procedures. Protection and

enforcement of all intellectual property rights shall meet the objectives to

contribute to the promotion of technological innovation and to the transfer and

dissemination of technology, to the mutual advantage of producers and users of

technological knowledge and in a manner conducive to social and economic

welfare, and to a balance of rights and obligations. The agreement covers five

broad issues:-

a. how basic principles of the trading system and other international

intellectual property agreements should be applied,

b. how to give adequate protection to intellectual property rights,

c. how countries should enforce those rights adequately in their own

territories,

28

d. how to settle disputes on intellectual property between members of the

WTO, and

e. special transitional arrangements during the period when the new system is

being introduced.

Intellectual property rights included in TRIPS are:-

1. Copyrights & related rights:- Copyright is a right given by the law to

creators of literary, dramatic, musical and artistic works and producers of

cinematograph films and sound recordings. It is a bundle of rights

including, inter-alia, rights of reproduction, communication to the public,

adaptation and translation of the work. There could be slight variations in

the composition of the rights depending on the work.

2. Trademark:- Trademark is a distinctive sign which identifies certain goods

or services as those produced or provided by a specific person or

enterprise. Its origin dates back to ancient times, when craftsmen

reproduced their signatures or marks on their artistic or utilitarian products.

Over the years these marks evolved into today's system of trademark

registration and protection. The system helps consumers identify and

purchase a product or service because its nature and quality, indicated by

its unique trademark, meets their needs. A trademark provides protection to

the owner of the mark by ensuring the exclusive right to use it to identify

goods or services or to authorize another to use it in return for a payment.

The period of protection varies, but a trademark can be renewed

indefinitely beyond the time limit on payment of additional fees. Trademark

protection is enforced by the courts, which in most systems have the

authority to block trademark infringement.

3. Geographical Indications:- Geographical Indications of goods are defined

as that aspect of intellectual property which refers to the geographical

indication referring to a country or to a place situated therein as being the

country or place of origin of that product. Typically, such a name conveys

an assurance of quality and distinctiveness which is essentially attributable

29

to the fact of its origin in that defined geographical locality, region or

country.

4. Industrial Designs:- Industrial designs are an element of intellectual

property. Industrial designs refer to creative activity, which result in the

ornamental or formal appearance of a product. Design rights refer to a

novel or original design that is accorded to the proprietor of a validly

registered design. But it does not include any mode or principle or

construction or anything which is in substance a mere mechanical device.

5. Patents:- A Patent is an exclusive right granted by a country to the

inventor to make, use, manufacture and market the invention that satisfies

the conditions of novelty, innovativeness and usefulness. Patents shall be

granted for any inventions, whether products or processes, in all field of

technology, provided they are new, involve an inventive step and are

capable of industrial application. No discrimination in respect to place of

invention. Exception available for diagnostic, therapeutic and surgical

methods of treatment for humans or animals, as well as plants and animals

and essentially biological processes for the production thereof.

6. Protection of undisclosed information:- A trade secret or undisclosed

information is any information that has been intentionally treated as secret

and is capable of commercial application with an economic interest. It

protects information that confers a competitive advantage to those who

possess such information, provided such information is not readily available

with or discernible by the competitors. They include technical data, internal

processes, methodologies, survey methods used by professional pollsters,

recipes, a new invention for which a patent application has not yet been

filed, list of customers, process of manufacture, techniques, formulae,

drawings, training material, source code, etc. Trade secrets can be used to

protect valuable know-how that gives an enterprise a competitive advantage

over its competitors.

30

V. ANTI-DUMPING AGREEMENT:- If a company exports a product at a price

that is lower than the price it normally charges in its own home market, or sells

at a price that does not meet its full cost of production, it is said to be

"dumping" the product. It is a sub part of the various forms of price

discrimination and is classified as third degree price discrimination. Opinions differ

as to whether or not such practice constitutes unfair competition, but many

governments take action against dumping to protect domestic industry. The WTO

agreement does not pass judgment. Its focus is on how governments can or

cannot react to dumping — it disciplines anti-dumping actions, and it is often

called the "anti-dumping agreement". The legal definitions are more precise, but

broadly speaking, the WTO agreement allows governments to act against dumping

where there is genuine injury to the competing domestic industry. To do so, the

government has to show that dumping is taking place, calculate the extent of

dumping (how much lower the export price is compared to the exporter‘s home

market price), and show that the dumping is causing injury or threatening to

cause injury. There are many different ways of calculating whether a particular

product is being dumped heavily or only lightly. The agreement narrows down the

range of possible options. It provides three methods to calculate a product‘s

―normal value‖. The main one is based on the price in the exporter‘s domestic

market. When this cannot be used, two alternatives are available - the price

charged by the exporter in another country, or a calculation based on the

combination of the exporter‘s production costs, other expenses and normal profit

margins and the agreement also specifies how a fair comparison can be made

between the export price and what would be a normal price. According to

footnote 2 Anti-Dumping Agreement, domestic sales of the like product are

sufficient to base normal value on if they account for 5 percent or more of the

sales of the product under consideration to the importing country market. This is

often called the 5 percent or home market viability test. This test is applied

globally by comparing quantity sold of like product on the domestic market with

quantity sold to importing market. Normal value cannot be based on the price in

the exporter‘s domestic market when there are no domestic sales. For example, if

31

the products are sold only for foreign market, the normal value will have to be

determined on another basis. Besides, the products may be sold on both markets

but the quantity sold on the domestic market is small compared to quantity sold

on foreign market. This situation often happens in countries with small home

market (Hong Kong, Singapore for example). Large market, however, may face

the same situation while the like products are sold in significant on both markets,

some types of products are sold in larger quantity on foreign market while other

types are vice versa. This is because of differences in consumer tastes ,

maintenance, etc.. This leads to some exported types of products are sold in small

quantities on the domestic market. Calculating the extent of dumping on a product

is not enough. Anti-dumping measures can only be applied if the dumping is

hurting the industry in the importing country. Therefore, a detailed investigation

has to be conducted according to specified rules first. The investigation must

evaluate all relevant economic factors that have a bearing on the state of the

industry in question. If the investigation shows dumping is taking place and

domestic industry is being hurt, the exporting company can undertake to raise its

price to an agreed level in order to avoid anti-dumping import duty. Anti-dumping

investigations are to end immediately in cases where the authorities determine that

the margin of dumping is insignificantly small (defined as less than 2% of the

export price of the product). Other conditions are also set. For example, the

investigations also have to end if the volume of dumped imports is negligible (i.e.

if the volume from one country is less than 3% of total imports of that product –

although investigations can proceed if several countries, each supplying less than

3% of the imports, together account for 7% or more of total imports). The

agreement says member countries must inform the Committee on Anti-Dumping

Practices about all preliminary and final anti-dumping actions, promptly and in

detail. They must also report on all investigations twice a year. When differences

arise, members are encouraged to consult each other. They can also use the

WTO‘s dispute settlement procedure. This agreement does two things:-

a) it disciplines the use of subsidies, and

b) it regulates the actions countries can take to counter the effects of subsidies.

32

The agreement defines two categories of subsidies:-

1. Prohibited Subsidies:- Subsidies that require recipients to meet certain

export targets, or to use domestic goods instead of imported goods. They

are prohibited because they are specifically designed to distort international

trade, and are therefore likely to hurt other countries trade. They can be

challenged in the WTO dispute settlement procedure where they are

handled under an accelerated timetable. If the dispute settlement procedure

confirms that the subsidy is prohibited, it must be withdrawn immediately.

Otherwise, the complaining country can take counter measures. If domestic

producers are hurt by imports of subsidized products, countervailing duty

can be imposed.

2. Actionable Subsidies:- In this category the complaining country has to

show that the subsidy has an adverse effect on its interests. Otherwise the

subsidy is permitted. The agreement defines three types of damage they

can cause. One country‘s subsidies can hurt a domestic industry in an

importing country. They can hurt rival exporters from another country

when the two compete in third markets. And domestic subsidies in one

country can hurt exporters trying to compete in the subsidizing country‘s

domestic market. If the Dispute Settlement Body rules that the subsidy

does have an adverse effect, the subsidy must be withdrawn or its adverse

effect must be removed. Again, if domestic producers are hurt by imports

of subsidized products, countervailing duty can be imposed.

A WTO member may restrict imports of a product temporarily (take ―safeguard‖

actions) if its domestic industry is injured or threatened with injury caused by a

surge in imports. Here, the injury has to be serious. Safeguard measures were

always available under GATT (Article 19). The WTO agreement broke new

ground. It prohibits ―grey-area‖ measures, and it sets time limits (a ―sunset

clause‖) on all safeguard actions. The agreement says members must not seek,

take or maintain any voluntary export restraints, orderly marketing arrangements or

any other similar measures on the export or the import side. The bilateral

measures that were not modified to conform with the agreement were phased out

33

at the end of 1998. Industries or companies may request safeguard action by their

government. The WTO agreement sets out requirements for safeguard investigations

by national authorities. The emphasis is on transparency and on following

established rules and practices; avoiding arbitrary methods. The authorities

conducting investigations have to announce publicly when hearings are to take

place and provide other appropriate means for interested parties to present

evidence. The evidence must include arguments on whether a measure is in the

public interest. To some extent developing countries exports are shielded from

safeguard actions. An importing country can only apply a safeguard measure to a

product from a developing country if the developing country is supplying more

than 3% of the imports of that product, or if developing country members with

less than 3% import share collectively account for more than 9% of total imports

of the product concerned.

The WTO‘s Safeguards Committee oversees the operation of the agreement and is

responsible for the surveillance of members commitments. Governments have to

report each phase of a safeguard investigation and related decision making, and

the committee reviews these reports. The committee monitors and reports annually

to the Goods Council, on the general implementation of the agreement. A member

affected by a safeguard measure may ask the committee to make a finding on

whether the measure complies with the agreement‘s procedural requirements. At

the request of members, the committee may assist consultations or review

proposals for retaliatory action. It monitors the phase-out of the notified ―grey-

area‖ measures, and reviews all safeguard notifications.

34

CONCLUSION:-

The Uruguay Round and the establishment of the WTO changed the character of the

trading system. The World Trade Organization (WTO) deals with the global rules of

trade between nations. Its main function is to ensure that trade flows as smoothly,

predictably and freely as possible. At its heart are the WTO agreements, negotiated and

signed by the bulk of the world‘s trading nations and ratified in their parliaments. The

goal is to help producers of goods and services, exporters and importers conduct their

business. Its main aim is to – To create economic peace and stability in the world

through a multilateral system based on consenting member states, that have ratified the

rules of the WTO in their individual countries as well. The GATT was very much a

market access oriented institution. Its function was to harness the dynamics of reciprocity

for the global good. Negotiators could be left to follow mercantilist logic and the end

result would be beneficial to all contracting parties. This dynamic worked less well for

developing countries, where the burden of liberalization rested much more heavily on the

shoulders of governments. Even if they wanted to, their scope to use the GATT was

often limited because exporters had fewer incentives and were less powerful than in

industrial countries. The reciprocal, negotiation driven dynamic also worked much less

well for issues that were ―lumpy‖ and where the terms of the debate revolved around

what rules to adopt, not around how much of a marginal change was appropriate. Once

discussions center on rules, especially on disciplines for domestic policy and regulations,

it is more difficult to define intra issue compromises that make economic sense. Cross

issue linkage becomes necessary. WTO helped to cover up these loopholes. WTO‘s work

and performance on agreements like anti-dumping agreement, GATS, TRIP, agriculture,

etc. were explained earlier. Thus, WTO has worked on its founding and guiding

principles of open borders, the guarantee of most favoured nation principle and non-

discriminatory treatment by and among members and a commitment to transparency in

the conduct of its activities.

35

MEMBERS OF WTO:-

Currently WTO has 159 members. The list is as follows:-

MEMBER DATE OF JOINING MEMBER DATE OF JOINING

ALBANIA 8 SEPTEMBER 2000 LITHUANIA 31 MAY 2001

ANGOLA 23 NOVEMBER

1996

LUXEMBERG 1 JANUARY 1995

ANTIGUA &

BARBUDA

1 JANUARY 1995 MACAO, CHINA 1 JANUARY 1995

ARGENTINA 1 JANUARY 1995 MADAGASCAR 17 NOVEMBER

1995

ARMENIA 5 FEBRUARY 2003 MALAWI 31 MAY 1995

AUSTRALIA 1 JANUARY 1995 MALAYSIA 1 JANUARY 1995

AUSTRIA 1 JANUARY 1995 MALDIVES 31 MAY 1995

BAHRAIN 1 JANUARY 1995 MALI 31 MAY 1995

BANGLADESH 1 JANUARY 1995 MALTA 1 JANUARY 1995

BARBADOS 1 JANUARY 1995 MAURITANIA 31 MAY 1995

BELGIUM 1 JANUARY 1995 MAURITIUS 1 JANUARY 1995

BELIZE 1 JANUARY 1995 MEXICO 1 JANUARY 1995

BENIN 22 FEBRUARY 1996 MOLDOVA 26 JULY 2001

BOLIVIA 12 SEPTEMBER

1995

MONGOLIA 29 JANUARY 1997

BOTSWANA 31 MAY 1995 MONTENEGRO 29 APRIL 2012

BRAZIL 1 JANUARY 1995 MOROCCO 1 JANUARY 1995

BRUNEI

DARUSSALAM

1 JANUARY 1995 MOAZAMBIQUE 26 AUGUST 1995

BULGARIA 1 DECEMBER 1996 MYANMAR 1 JANUARY 1995

BURKINA FASO 3 JUNE 1995 NAMIBIA 1 JANUARY 1995

BURUNDI 23 JULY 1995 NEPAL 23 APRIL 2004

CAMBODIA 13 OCTOBER 2004 NETHERLANDS 1 JANUARY 1995

36

MEMBER DATE OF JOINING MEMBER DATE OF JOINING

CAMEROON 13 DECEMBER 1995 NEW ZEALAND 1 JANUARY 1995

CANADA 1 JANUARY 1995 NICARAGUA 3 SEPTEMBER 1995

CAPE VERDE 23 JULY 2008 NIGER 13 DECEMBER 1996

CENTRAL

AFRICAN

REPUBLIC

31 MAY 1995

NIGERIA 1 JANUARY 1995

CHAD 19 OCTOBER 1996 NORWAY 1 JANUARY 1995

CHILE 1 JANUARY 1995 OMAN 9 NOVEMBER 2000

CHINA 11 DECEMBER 2001 PAKISTAN 1 JANUARY 1995

COLOMBIA 30 APRIL 1995 PANAMA 6 SEPTEMBER 1997

CONGO 27 MARCH 1995 PAPUA NEW

GUINEA

9 JUNE 1996

COSTA RICA 1 JANUARY 1995 PARAGUAY 1 JANUARY 1995

COTE d‘LVOIRE 1 JANUARY 1995 PERU 1 JANUARY 1995

CROATIA 30 NOVEMBER

2000

PHILIPPINES 1 JANUARY 1995

CUBA 20 APRIL 1995 POLAND 1 JULY 1995

CYPRUS 30 JULY 1995 PORTUGAL 1 JANUARY 1995

CZECH REPUBLIC 1 JANUARY 1995 QATAR 13 JANUARY 1996

DEMOCRATIC

REPUBLIC OF

CONGO

1 JANUARY 1997 ROMANIA 1 JANUARY 1995

DENMARK 1 JANUARY 1995 RUSSIAN

FEDERATION

22 AUGUST 2012

DJIBOUTI 31 MAY 1995 RWANDA 22 MAY 1996

DOMINICA 1 JANUARY 1995 SAINT KITTS &

NEVIS

21 FEBRUARY 1996

- - - -

37

MEMBER DATE OF JOINING MEMBER DATE OF JOINING

DOMINICAN

REPUBLIC

9 MARCH 1995

SAINT LUCIA

1 JANUARY 1995

ECUADOR 21 JANUARY 1996 SAINT VINCENT &

the GRENADINES

1 JANUARY 1995

EGYPT 30 JUNE 1995 SAMOA 10 MAY 2012

EL SALVADOR 7 MAY 1995 SAUDI ARABIA 11 DECEMBER 2005

ESTONIA 13 NOVEMBER

1999

SENEGAL 1 JANUARY 1995

EUROPIAN UNION 1 JANUARY 1995 SIERRA LEONE 23 JULY 1995

FIJI 14 JANUARY 1996 SINGAPORE 1 JANUARY 1995

FINLAND 1 JANUARY 1995 SLOVAK

REPUBLIC

1 JANUARY 1995

FRANCE 1 JANUARY 1995 SLOVENIA 30 JULY 1995

GABON 1 JANUARY 1995 SOLOMON

ISLANDS

26 JULY 1996

The GAMBIA 23 OCTOBER 1996 SOUTH AFRICA 1 JANUARY 1995

GEORGIA 14 JUNE 2000 SPAIN 1 JANUARY 1995

GERMANY 1 JANUARY 1995 SRI LANKA 1 JANUARY 1995

GHANA 1 JANUARY 1995 SURINAME 1 JANUARY 1995

GREECE 1 JANUARY 1995 SWAZILAND 1 JANUARY 1995

GRENADA 22 FEBRUARY 1996 SWEDEN 1 JANUARY 1995

GUATEMALA 21 JULY 1995 SWITZERLAND 1 JULY 1995

GUINEA 25 OCTOBER 1995 CHINESE TAIPEI 1 JANUARY 2002

GUINEA-BISSAU 31 MAY 1995 TAJIKISTAN 2 MARCH 2013

GUYANA 1 JANUARY 1995 TANZANIA 1 JANUARY 1995

HAITI 30 JANUARY 1996 THAILAND 1 JANUARY 1995

LATVIA 10 FEBRUARY 1999 LIECHTENSEIN 1 SEPTEMBER 1995

LESOTHO 31 MAY 1995 - -

38

MEMBER DATE OF JOINING MEMBER DATE OF JOINING

HONDURAS

1 JANUARY 1995

THE FORMER

YUGOSLAV

REPUBLIC OF

MACEDONIA

4 APRIL 2003

HONG KONG,

CHINA

1 JANUARY 1995 TOGO 31 MAY 1995

HUNGARY 1 JANUARY 1995 TONGA 27 JULY 2007

ICELAND 1 JANUARY 1995 TRINIDAD &

TOBAGO

1 MARCH 1995

INDIA 1 JANUARY 1995 TUNISIA 29 MARCH 1995

INDONESIA 1 JANUARY 1995 TURKEY 26 MARCH 1995

IRELAND 1 JANUARY 1995 UGANDA 1 JANUARY 1995

ISRAEL 21 APRIL 1995 UKRAINE 16 MAY 2008

ITALY 1 JANUARY 1995 UNITED ARAB

EMIRATES

10 APRIL 1996

JAMAICA 9 MARCH 1995 UNITED KINGDOM 1 JANUARY 1995

JAPAN 1 JANUARY 1995 UNITED STATES of

AMERICA

1 JANUARY 1995

JORDAN 11 APRIL 2000 URUGUAY 1 JANUARY 1995

KENYA 1 JANUARY 1995 VANUATA 24 AUGUST 2012

KOREA 1 JANUARY 1995 VENEZUELA 1 JANUARY 1995

KUWAIT 1 JANUARY 1995 VIETNAM 11 JANUARY 2007

KYRGYZ

REPUBLIC

20 DECEMBER 1998 ZAMBIA 1 JANUARY 1995

LAO PEOPLE‘S

DEMOCRATIC

REPUBLIC

2 FEBRUARY 2013 ZIMBABWE 5 MARCH 1995

39

LIST OF OBSERVERS:-

1. AFGHANISTAN

2. ALGERIA

3. ANDORRA

4. AZERBAIJAN

5. BAHAMAS

6. BELARUS

7. BHUTAN

8. BOSNIA & HERZEGOVINA

9. COMOROS

10. EQUATORIAL GUINEA

11. ETHIOPIA

12. VATICAN

13. IRAN

14. IRAQ

15. KAZAKHSTAN

16. LEBANESE REPUBLIC

17. LIBERIA

18. LIBYA

19. SAO TOME & PRINCIPE

20. SERBIA

21. SEYCHELLES

22. SUDAN

23. SYRIAN ARAB REPUBLIC

24. UZBEKISTAN

25. YEMEN

40

MEMBERS

MEMBERS, dually present with EU

OBSERVERS

NON-MEMBERS

41

BIBLOGRAPHY:-

1. www.wto.org

2. www.commerce.nic.in

3. www.preservearticles.com

4. www.actionaid.org.uk

5. www.icai.org

6. www.en.wikipedia.org

7. INTERNATIONAL ECONOMICS, MISHRA & PURI

8. ECONOMICS of GLOBAL TRADE & FINANCE, KALKOTI &

RAJALAKSHMY