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