GATS & Presented by SAKSHI SAXENA ASU2013010200124 B.Tech (Bio) Ivth Sem PHCU-902
GATS&
Presented bySAKSHI SAXENA
ASU2013010200124B.Tech (Bio)
Ivth Sem
PHCU-902
The Story So Far...
Globalization started blossoming in the 1890’s. By the end of the 19th century, trade was very free.
The Story So Far...
Globalization then began failing at the end of World War I, at the beginning of the 20th century.
The Story So Far...
Economic pressure pushed countries to impose trade barriers to divert national demand away from imports and toward domestically produced goods.
Several organisations were formed and treaties were then signed, one of which is GATT
GATTThe General Agreement on Tariffs and Trade
(GATT) was first signed in 1947.
Was designed To provide an international forum That encouraged free trade between member
states By regulating and reducing tariffs on traded
goods Providing a common mechanism for resolving
trade disputes.
Objectives of GATT
According to the Preamble of GATT,main objective was the “Reduction of Barriers to International Trade”
Trade barriers Tariff
Change in monetary value
Non tariff
Quality and quantity of products and services
To expand International trade by liberating trade and build an International trading system
To ensure orderly and equitable expansion of world trade and contribute to the prosperity of US.
Objectives of GATT
To expand International trade by liberating trade and build an International trading system
To ensure orderly and equitable expansion of world trade and contribute to the prosperity of US.
Reduce foreign export subsides, tariff and non-tariff barrier and internal supports.
Cuts costs by 50 – 100% on important electronic items
Objectives of GATT
To expand International trade by liberating trade and build an International trading system
To ensure orderly and equitable expansion of world trade and contribute to the prosperity of US.
Reduce foreign export subsides, tariff and non-tariff barrier and internal supports.
Cuts costs by 50 – 100% on important electronic items
To strengthen and clarify rules for agricultural trade.
Better utilization of resource of the world.
Objectives of GATT
Trade rounds
GATT
Place : DOHANovember 2001Current trade-negotiation round of
the world trade organization
Issues: agricultureAccess to patented medicinesSpecial and differential treatmentImplementation issues
The most recent round
INDIA
India was one of the 23 founding contracting parties to the general
agreement on tariffs and trade (GATT) that was concluded in october 1947.
India has often led groups of less developed countries in subsequent
rounds of multilateral trade negotiations (mtns) under the auspices
of the gatt .
GATT AND INDIA
•I t w a s o n l y a f t e r t h e G AT T t r a d e r o u n d s t h a t i n d i a n d r u g s i n d u s t r y w a s a l l o w e d t o p a t e n t i t s p r o d u c t .•B u t t h e p r i c e o f t h e p a t e n t w a s v e r y e x p e n s i v e .•G a t t s t r e n g t h e n e d i n d i a ' s p h a r m a s e c t o r.•I m p r o v e d r e s e a r c h b a s e .
GATT and Indian Pharma Industry
THE MAIN OBJECTIVE OF THE GATT TREATY IS TO REFORM WORLD
TRADE.
GATT AND INDIAN AGRI SECTOR IS DIVIDED INTO 3 MAIN PHASES
MARKET ACCESS.DOMESTIC SUPPORT.
EXPORT COMPETITION.
GATT and India’s Agriculture Sector
GATT and Indian Agriculture
1. Market access.
In th is a l l the gatt members were asked replace a l l the trade barr iers and to a l low indian suppl ies into their country.
Tariffs reduced by 24% to 36%.
GATT and Indian Agriculture
2. Domestic support.
Develop countr ies a lso supported india to grow their domest ic consumption.
India has a b igdomest ic market .
GATT and Indian Agriculture
3. Export competition .
Indian agr iculture industry has a lways been strong.
India used to export to many developing and under developed countr ies .
India only had competi t ion whenit comes to sa les indeveloped countr ies .
GATS
General Agreement onTrade in services
The creat ion o f the GATS was one o f the landmark ach ievements o f the GATT URUGUAY ROUND , whose resu l ts entered in to force in j anuary 1995 .Al l WTO members , some 140 economies at present , are at the same t ime members o f the GATS and, to vary ing degrees .
Objectives of GATS• Creating a credible and rel iable system of international trade rules ;• Ensuring fair and equitable treatment of a l l participants (pr inciple of non-discr imination) ;•Stimulat ing economic act iv i ty through guaranteed pol icy bindings ;•Promoting trade and development through progressive l iberal izat ion.
Introduction
B us iness se r v i cesCommun ica t i onCons t ruc t i onDis t r i bu t i onE duca t i onE nv i r onmen t a l se r v i ces
GATS: Sectoral Coverageand exceptions
Health-Related Services Financial Services Tourism Recreation, Culture & Sport Transport Other Services
** “services supplied in the exercise of governmental authority”: These are services that are supplied neither on a commercial basis nor in competition with other suppliers. Example :social security schemes and any other public service, such as health or education, that is provided at non-market conditions.
**Air Transport Services
Exceptions
Modes of service trade
1. Mode1: cross-border trade: –Trade takes p lace from the terr i tory of country a
into that of b
Example : The purchase of insurance or computer software by a consumer from a producer located abroad .
Modes of service trade
Mode2: consumption abroad Services consumed by nat ionals of a country A in
terr itory of country B.Example :Tourism, educat ion or health services..
Modes of service trade
Mode 3: commercial presence A service suppl ier o f country a crosses the border to
establ ish and provide a service in country b .
Example: Domestic subsidiar ies of foreign insurance companies or hotel Chains.
Modes of service trade
Mode 4: movement of natural persons
Temporary movement from country a to country b to supply a service.
Example . Accountants , doctors or teachersteachers
Obligations of GATS
General Specific
1. Most Favoured Nation (MFN) Treatment
This requires equal and consistent treatment of all foreign trading partners. It means:
•Providing equal opportunities in that sector for all foreign service providers. •mutual exclusive treatment for all service providers
2. Transparency
GATS Members are required, to publish all measures of general application
And establish national enquiry points mandated to respond to other Member's information requests.
Specific Obligations
1. National Treatment It requires equal treatment for foreign providers and domestic providers.
Once a foreign supplier has been allowed to supply a service in one’s country there should be no discrimination in treatment between the foreign and domestic providers.
2.Market Access: Market access is a negotiated commitment in specified sectors.
It may be made subject to various types of limitations that are enumerated in Article XVI(2).
For example, limitations may be imposed on the number of services suppliers, service operations or employees in the sector; the value of transactions; the legal form of the service supplier; or the participation of foreign capital.
•WWW.WTO.ORG•WWW.UNESCO.ORG•WWW.WHO.INT•WWW.CITIZEN.ORG•WWW.GATT .ORG•WWW.CIESIN.ORG