Wto

• 1. World Trade Organization NISHANT PARMAR

2. Background

• Great Depression 1930s

• July 1944 Bretton Woods Conference for International Conference IMoney, Finance & Trade

• Creation of IMF & IBRD for overcoming short term BOP deficits without resorting to import restrictions

• November 1945 US dept of State proposed formation of ITO

3. GATT

• General Agreement of Trade & Tariffs signed before ITO could be formed by 23 countries Oct 1947, Geneva

• • Australia, Brazil, Burma, Canada, Ceylon, Cuba, Czechoslokia, France, India, Lebanon, Luxembourg, Netherlands,New Zealand, Norway, Pakistan, South Rhodesia, Syria, South Africa, UK, USA China, Lebanon & Syria later withdrew

• • 8 Rounds of Trade negotiations 1948-1994

• • Uruguay Round, Established the WTO 1 Jan 1995

4. History of Trade Negotiations

• Trade Rules & Concessions Jan 1, 1948

• ITO Ready in March 1948 but was dead by 1950 as US itself objected

• Kennedy Round of 1964-67 Important because of the Anti Dumping Agreement Signed

5.

• Tokyo Round 1973 79 (7 thRound)

• • NTBs Subsidies, Countervailing Measures, Technical barriers, Licensing Process, Govt procurement, civil aviation, anti dumping

• Uruguay Round held in Punta del este (Sept 1986)

• 4 yrs given to finalize the agreement due to disagreements between US & Europe on Agri issues extended beyond 1990

• Dec 1991, Arthur Dunkel Director general of GATT created Dunkel draft

• Signed by 123 nations on 15 April 1994 at marrakesh, Morocco

6. Uruguay Round (1986 1994)

• Trade Rules. Services, Intellectual property, dispute settlement, textiles, agriculture, creation of WTO.

• Covered all trades from tooth brush to pleasure boats, banking to telecommunication, genes of rice to AIDS treatments

• System of Rules for multi lateral trade negotiations (half a century old trading system)

• MOST FAVOURED NATION (MFN)

• • Importers from one country should be treated no less favorably than similar imported products from other country

• • Most favored unconditionally all concessions granted to all WTO members

• • Once negotiation completed- applicable to all

7. GATT v/s WTO

• WTO has structure

• Legally binding on ALL members

• Set up a dispute settlement procedure (DSP)

• Reneging from the agreement difficult

• Wider coverage not case by case/piece meal

• Oversees national trade policies

8. What does WTO do?

• Entirely based on negotiations

• Rules of Trade, Implementation of agreements, Surveillance, Disputes & Settlements

• Administer WTO trade agreements, ensure trade flows freely

• Government Measures informed to WTO thru notifications

9.

• Trade Policy Review

• Frequency of review depends on share of worlds trade

• • Quad USA, EU, Japan, Canada every 2 yrs

• • Next 16 every 4 yrs

• • Rest every 4 yrs

• • LDCs longer

• Cooperation with IMF & WB

10. WTO Organization & DSP 11. WTO Ministerials

• COUNTRY DURATION

• SingaporeDec 9 13, 1996

• GenevaMay 18 & 20, 1998

• SeattleNov 30 Dec 3, 1999

• DohaNov 9-14, 2001

• CancunSept 10-14, 2003

• Honk KongDec 2005

12. TRIPS

• Protection of rights of people or organizations that develop specific new knowledge that has economic utility

• Critical impacts on food, health, education, culture

• Patents ,copy rights (literary & artistic works), related rights (performers, producers of sound recordings, broadcasting)

• Undisclosed information( trade secrets & test data)

• Trademarks

• Geo Indications

• Industrial designs

• Integrated Circuits

13. TRIPS

• TRIPS simultaneously into existence with WTO in 1995

• Compliance for LDC Jan 1, 2005

• Problems& fears:

• • AIDS/Cancer/Cardiac Medicines

• • R&D developing country diseases tuberculosis, malaria, diarrhea

• • Oligopolies

• • Bio-piracy genetic resources of developing countries

• • Traditional knowledge (medicine/ therapy)

14. TRIPS

• Tech Development, Research, Financial Investment, production & mktg of agricultural products

• Genetically engineered seeds

• • Montaso

• India 824 Agri products made open

• Corresponding reductions by Quad yet to take place

• Avg Tariff rates 115% , Quad 350-900%

• G21 countries Brazil, China, India pressing for abolishment of farm export subsidies

15. WTO protests 16. http://www.youtube.com/watch?v=rhFvSRWYusc 17. Environment & Social issues

• Tuna Dolphin Case of Mexico

• Shrimps Turtles case of India

• 200 International Agreements

• • Montreal protocol - Ozone Layer

• • Basel Convention Trade/Transport of Hazardous Waste Across International barriers

• • CITIES convention on Int Trade in Endangered Species

• US Child Labor Deferente Act 1996

18. GATS

• Cross Border Transfers (Transportation, Transborder flow of data )

• Consumption Abroad (Tourism)

• Movt of Personnell

• Location Abroad (Subsidaries / FDI)

• Each Member to decide commitments

• • Which services (Banking & Tourism only)

• • How open the mkts will be( no of licencees)

• • Exceptions to National Treatment