WTOGATT and

What is it ?

An Introduction

Objectives & Functions

WTO

Some Agreements

Organizational Structure

TRIPs & TRIMs

India & WTO

Difference - GATT & WTO

1

Bibliography

GATT

23

4 5

6

GATT

General Agreement on Tariffs and Trade

Established in 1947, signed by 23 nations

Promote international trade

Platform for discussion on international trade

issues

Promote multilateral trade among member

nations

Members increased to 124 by 1994, 1 member 1

vote

Controlled by the council of representatives

GATT

Expand international trade

Remove tariff & non-tariff barriers

Increase level of production and productivity

Optimum utilization of world’s resources

Enhance the standard of living of people

Promote multilateral trade

Objectives

Foreign Trade is to be conducted in Non-Discriminatory manner

Discouragement to Quantitative restrictions

Resolving trade related agreements through consultations

Principles

GATT WTO

Less powerfulNarrow scope

Irregular

More powerfulWider scope

Regular

WTO

It is a new globally recognized

trade organization with the new

name succeeding GATT on

renewed agreements and

having a new vision and strong

enforcement power to promote

international trade

World Trade Organization

Established on January 1st 1995

Result of 8th round of GATT

negotiations

(Uruguay Round)

Consists of –

Council for Goods

Council for Services

Council for Intellectual Property

Rights

Estimated to add US$ 2800 bn to

global income by 2014

…….continued

Fact File Location – Geneva, Switzerland

Membership – 157 countries (24 August 2012)

Established – 01 January 1995

Created by – Uruguay Round negotiations (1986-

94)

Budget – 196 million Swiss Francs (2012), India -

1.668%

Secretariat staff – 646 (Women – 55% & Men –

45%)

Head – Pascal Lamy (Director General)

Geneva - Switzerland

Geneva - Switzerland

Geneva - Switzerland

WTOGeneva

(Switzerland)

Member Nations

Observer Nations

WTO Member and Observer

Nations

Member Nations Observer Nations

Objectives

Implement the world trade agreements

Promote the multilateral trade

Abolition of tariff and non-tariff barriers

Optimum utilization of resources

Enhance standard of living of people

Objectives

Functions

Implementing the WTO agreements

Cooperating with the IMF and World Bank

Settling the trade related disputes

Reviewing the trade related economic policies

Providing technical assistance

Acting as forum for trade liberalization

Functions

Things WTO can do…..

1Cut the living costs & raise living standards…..

2Settle disputes & reduce trade tensions …..

India’s Neem, Haldi, Tulsi patent controversy

Disputes…..

Disputes…..

3Stimulate economic growth & employment ….

4Cut the cost of doing business internationally ….Less paperwork

Simplification of customs clearance

Standardization of customs procedure

Centralized databases of information

Removal of red tape

Reducing the cost of cross-border trade

5Being effective without the headlines ….

Directors

Director General – Pascal Lamy

Deputy Directors

Alejandro Jara

(Legal Affairs Division)

Harsha Vardhana Singh

(Trade in Services Division)

Valentine Rugwabiza

(Trade Policies Review Division)

Rufus Yerxa

(Intellectual Property Division)

Organizational Structure

Some Agreement

s

Trade in agriculture Improvement in market access

Reduction in Domestic Subsidies

Trade in textile and clothing Reduction in Tariff on Textiles and Clothing

Elimination of MFA

Safeguard Mechanism

Dispute settlement

Anti-dumping agreements

Some Agreements

TRIMs Ensure free flow of investment all over the world

Abolishing protection to domestic investment

Main features – Offer fair treatment & facilities to foreign

investors as available to domestic investors

Remove restrictions on repatriation

of dividend, interest and royalty by MNCs

Allow 100% equity participation in certain cases

No restriction on foreign investment regarding area

Trade Related Intellectual Property Rights

What is it ?

TRIPs

"Intellectual property rights are the rights given to persons over the

creations of their minds. They usually give the creator an exclusive right

over the use of his/her creation for a certain period of time."

Intellectual

Property

Rights

Geographical Indications

Industrial Designs

PatentsTrademarks

Copyrights

Under TRIPs life of patents has been

fixed as follows

General patents – 20 years

Copyrights – 50 years

Trademarks – 7 years

Industrial designs – 10 years

Medicines – 10 years

"The intellectual

property rights which

are patented can be

used by the

manufacturers/consu

mers by paying

royalty to patent

holders."

Sanitary and Phyto-sanitary

How do you ensure that your country’s consumers are being

supplied with food that is safe to eat — “safe” by the standards

you consider appropriate?

Sanitary and Phyto-sanitary

And at the same time, how can you ensure that strict health and safety regulations are not being used as an excuse for protecting

domestic producers?

Sanitary and phyto-sanitary measures deal with food safety

and animal and plant health

Aims to ensure that a country’s consumers are being supplied

with food that is safe to eat — by acceptable standards —

while

also ensuring that strict health and safety regulations are not

being used as an excuse to shield domestic producers from

competition

Examples – Cinnamon and Aflatoxin

Doha Conference

4th ministerial meeting – Doha, November 2001

Attended 144 member nations

Conflict of interests of developed & developing

nations

Raising of new issues by developed nations

Exemption of essential medicines & drugs from patent duties

Allowing poor countries to continue PDS

Reduction & elimination of tariffs in non-agricultural goods

Reduction & abolition of export subsidies in phases

Formation of a 9 member committee to deal with TRIPs issues

Doha Conference

India and WTO

Increase in foreign trade

Increase in agricultural exports

Increase in inflow of foreign investment

Improvement in services

Inflow of better technology

Restrict dumping

Promotion to research because of patents

Advantages

Disadvantage to agricultural sector

Loss to domestic industries

Patent of Indian herbs by foreign companies

Effect on prices

Increased litigation cost

Loss to regional groupings

Disadvantages to service sector

Disadvantages

Texmati and Kasmati v/s Basmati

Neem, Haldi, Tulsi patent controversy

Anti-dumping measures on batteries from

Bangladesh

EC imposing increased import duties on Indian rice

Turkey’s safeguard measures on imports of cotton

yarn

Disputes……

Difference(GATT & WTO)

GATT WTOMain focus - trade in goods Focus - trade in goods & services

Less powerful, slow & inefficient dispute

settlement system

More powerful, strong, fast & efficient

dispute settlement system

No pre-decided regular time of holding

sessions

Ministerial meet held after every 2 years

Small secretariat managed by a Director

General

Large secretariat & huge organizational

Setup

TRIP & TRIMs were not given much

emphasis

Laid special emphasis on TRIPs and TRIMs

Discussions - not time bound, long

discussions among the member nation

(Uruguay Round – almost 8 years)

Discussion is held in a time bound manner

(8th ministerial conference in 2011 – 3

days)

Challenges

Opposition from Developed Nations

Developed nations to pay – costly labor & environmental

cost

Jobs shifting from developed to developing nations

Danger from Regional Trade Groupings

NAFTA, EFTA, EEC, ASEAN, BRICS posing a challenge

Lesser transportation cost on trade through regional

groupings

Growth of bilateral & regionl trade agreements

Challenges

Video… Why

WTO.. ???

Bibliography

www.wto.org

Any Queries

??? ?