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WTO - Its Origin, Organization WTO - Its Origin, Organization & Operational Mechanism -& Operational Mechanism -

PART-1PART-1• Aftermath of world war-II & emergence of Aftermath of world war-II & emergence of GATT in 1948.GATT in 1948.

• Lowering of tariffs on goods only & Lowering of tariffs on goods only & modifications through several rounds with modifications through several rounds with provisions to deal with problems of provisions to deal with problems of developing countries.developing countries.

• Uruguay Round enlarged the scope including Uruguay Round enlarged the scope including other areas i.e. services, TRIPS, TRIMS other areas i.e. services, TRIPS, TRIMS Environment, Textiles etc.Environment, Textiles etc.

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• WTO set up to oversee URAS & a forum for WTO set up to oversee URAS & a forum for further liberalization & dispute settlement further liberalization & dispute settlement

- Single undertaking - Single undertaking

- Predicable & secured market access- Predicable & secured market access

- Transparent, measurable & binding tariffs - Transparent, measurable & binding tariffs

- MFN status- MFN status

- National Treatment- National Treatment

- Credible dispute settlement system- Credible dispute settlement system

- Review mechanism of Trade policies - Review mechanism of Trade policies

- continuing forum for trade liberalization - continuing forum for trade liberalization

- special & differential treatment to - special & differential treatment to developing & developing &

LDCsLDCs

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• India a founder member, pursuing India a founder member, pursuing Trade liberalization.Trade liberalization.

• India’s active role in creating India’s active role in creating awareness that multilateral trade awareness that multilateral trade negotiations must serve development negotiations must serve development goals of developing & LDCs.goals of developing & LDCs.

• India’s role in articulating, designing India’s role in articulating, designing & developing Doha Development & developing Doha Development AgendaAgenda

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OrganizationOrganization

• Umbrella Organization to oversee the Umbrella Organization to oversee the implementation of agreements under Uruguay implementation of agreements under Uruguay Round and thereafter.Round and thereafter.

• Apex body for decision making along with Apex body for decision making along with dispute settlement and compliance.dispute settlement and compliance.

• General Council performs delegated functions General Council performs delegated functions and is being assisted by several councils.and is being assisted by several councils.

• Unanimous Decision making like GATT and Unanimous Decision making like GATT and

decision making by majority in exceptional decision making by majority in exceptional cases. Each member has one vote Provision for cases. Each member has one vote Provision for special voting.special voting.

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• Located in Geneva & headed by Located in Geneva & headed by Director General who is appointed in Director General who is appointed in consultation with member countries.consultation with member countries.

• At present, it has 153 members and At present, it has 153 members and about 20 members in waitingabout 20 members in waiting

• Though inter-governmental, it Though inter-governmental, it informs the civil society & Private informs the civil society & Private sectorsector

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Evolution and Major Developments Evolution and Major Developments Ministerial Meetings – Singapore Ministerial Meetings – Singapore

(Dec 1996)(Dec 1996)

• Instead of focusing on Implementation Instead of focusing on Implementation problems, developing countries opposed problems, developing countries opposed inclusion of new areas such as labour clause, inclusion of new areas such as labour clause, trade & investment, trade & competition, trade & investment, trade & competition, trade facilitation & govt. procurement.trade facilitation & govt. procurement.

• Issue of E-commerce left for Plurilateral Issue of E-commerce left for Plurilateral agreement, labour clause for ILO.agreement, labour clause for ILO.

• Final Ministerial text was a compromise to Final Ministerial text was a compromise to avoid failure but dissension became avoid failure but dissension became apparent.apparent.

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22ndnd ministerial meeting – ministerial meeting – Geneva – (June 1998)Geneva – (June 1998)

• Celebration of golden jubileeCelebration of golden jubilee• General council to look into the General council to look into the

problems concerning implementation problems concerning implementation of URAof URA

• Commencement of negotiations on Commencement of negotiations on built-in agenda in URAbuilt-in agenda in URA

• The new subjects under study and The new subjects under study and analysis of WTOanalysis of WTO

• More ceremonial than substantive oneMore ceremonial than substantive one

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33rdrd Ministerial meeting- Ministerial meeting- Seattle, USA (1999)Seattle, USA (1999)

• Demonstrations resulting in law & order Demonstrations resulting in law & order problem & cancellation of inauguration.problem & cancellation of inauguration.

• Civil societies from Developed & developing Civil societies from Developed & developing countries opposed. Former wanted inclusion countries opposed. Former wanted inclusion of labour or social clause where as the latter of labour or social clause where as the latter opposed inclusion of Singapore issues and opposed inclusion of Singapore issues and non-solution to the implementation non-solution to the implementation problems of URA, conference was a disaster.problems of URA, conference was a disaster.

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44thth Ministerial Meeting – Ministerial Meeting – Doha, Qatar (2001)Doha, Qatar (2001)

• Agreement of public health and TRIPS was Agreement of public health and TRIPS was agreed before the meeting agreed before the meeting

• Problems associated with developing countries Problems associated with developing countries in implementation of URA were placed on front in implementation of URA were placed on front burner and agreed that decision on new issues burner and agreed that decision on new issues deferred for 5deferred for 5thth ministerial meeting. ministerial meeting.

• Doha Development Agenda was formulated Doha Development Agenda was formulated keeping developing countries’ interests in keeping developing countries’ interests in mind. mind.

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55thth Ministerial Meeting – Ministerial Meeting – Cancun, Mexico (2003)Cancun, Mexico (2003)

• Unbridgeable differences between Unbridgeable differences between developed & developing countries, LDCs on developed & developing countries, LDCs on issues such as agricultural subsidies, NAMA issues such as agricultural subsidies, NAMA issues, GATs etc.issues, GATs etc.

• Insistence of developed countries to include Insistence of developed countries to include even truncated Singapore issues which was even truncated Singapore issues which was not acceptable to developing countries.not acceptable to developing countries.

• Rise of G-20 & Collapse of Cancun.Rise of G-20 & Collapse of Cancun.

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66thth WTO Ministerial Meeting WTO Ministerial Meeting Hong Kong, Dec.2005Hong Kong, Dec.2005

a.a.Abolition of Export Subsidies by 2013.Abolition of Export Subsidies by 2013.b.b.Abolition of Cotton Export Subsidies by 2006 and free Abolition of Cotton Export Subsidies by 2006 and free

access to cotton growing countries to developed access to cotton growing countries to developed markets.markets.

CC .For NAMA Modalities to be agreed by April,2006 and .For NAMA Modalities to be agreed by April,2006 and Final Negotiations to be completed by July,2006Final Negotiations to be completed by July,2006

dd. For Services offers to be made by Feb.2006, revised . For Services offers to be made by Feb.2006, revised offer & acceptance by July,2006 & negotiations by 31 offer & acceptance by July,2006 & negotiations by 31 Oct.2006Oct.2006

ee. Entire Doha Development Agenda Negotiaions to be . Entire Doha Development Agenda Negotiaions to be completed by Dec.2006.completed by Dec.2006.

Hongkong hearlded a new phase of global cooperation Hongkong hearlded a new phase of global cooperation among developed and developing countries resulting among developed and developing countries resulting from July ,2005 framework of DDA which is more from July ,2005 framework of DDA which is more balanced and equitable to all WTO members.balanced and equitable to all WTO members.

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