WORLD TRADE ORGANISATIONWORLD TRADE ORGANISATION WORLD TRADE ORGANISATIONWORLD TRADE ORGANISATIONRAJENDRA K.KHETANRAJENDRA K.KHETAN

Vice PresidentVice President

WTO CELL ~FNCCIWTO CELL ~FNCCI

WTOWTOBRIEF HISTORY

International Trade Organization (ITO) after International Trade Organization (ITO) after WW-II thought of -1945WW-II thought of -1945

Diluted version of ITO –GATT*established Diluted version of ITO –GATT*established -1947/8 -1947/8 (*general agreement on tariff & trade)(*general agreement on tariff & trade)

Many rounds of GATT negotiation. The Many rounds of GATT negotiation. The Uruguay Round (1993) leads to World Trade Uruguay Round (1993) leads to World Trade Organization (WTO) With 125 Countries In Organization (WTO) With 125 Countries In -1994 at Marrakech-1994 at Marrakech

Important meetings

GATT roundsGATT rounds Kennedy round 1967Kennedy round 1967 Tokyo round 1979Tokyo round 1979 Uruguay round 1993Uruguay round 1993

Ministerial meetsMinisterial meetsSingapore 9-13 dec 1996Singapore 9-13 dec 1996Geneva 18-20 may 1998Geneva 18-20 may 1998Seattle 30 nov- 3 dec 1999Seattle 30 nov- 3 dec 1999Doha 8-12 nov 2001 ( 144Doha 8-12 nov 2001 ( 144 thth member entered ) member entered )Cancun sept 2003Cancun sept 2003

FUNDAMENTAL PHILOSOPHY

Rule based International trading SystemRule based International trading System

Member driven OrganizationMember driven Organization

Trade with global market access at competitive price of best quality Trade with global market access at competitive price of best quality productproduct

Harmonization of tariff - fusion with InfoTechHarmonization of tariff - fusion with InfoTech

Protection only through TariffProtection only through Tariff

Trade Liberalization – ‘MFN’ to all membersTrade Liberalization – ‘MFN’ to all members

Quantity and quota restrictedQuantity and quota restricted

General agreement on trade & services (GATS)General agreement on trade & services (GATS)

SUSTAINABLE DEVELOPMENT THROUGH GLOBALISATION

Integrating Nepalese economy to global Integrating Nepalese economy to global economyeconomy

Strengthening domestic policies and Strengthening domestic policies and institutions – gear up for ‘MFN’institutions – gear up for ‘MFN’

Credibility and stability of policies to the Credibility and stability of policies to the outsidersoutsiders

Extended and secured marketExtended and secured market

Enhancing capabilityEnhancing capability

STATUS OF ACCESSION EFFORTS

Under GATT  (1989)Under GATT  (1989) Application submittedApplication submitted Working Party establishedWorking Party established Memorandum submittedMemorandum submitted

Under WT0 (1995)Under WT0 (1995) Application submittedApplication submitted Working Party establishedWorking Party established Observer statusObserver status

STATUS OF ACCESSION EFFORTS

Memorandum submitted ('98)Memorandum submitted ('98)

Questions and replies ('99)Questions and replies ('99)

Initial Tariff offers ('00)Initial Tariff offers ('00)

Initial commitments in services ('00)Initial commitments in services ('00)

First Working Party meeting (May '00)First Working Party meeting (May '00)

Bilateral consultations (Sept '00)Bilateral consultations (Sept '00)

Additional questions and replies(Sept '02)Additional questions and replies(Sept '02)

STATUS OF ACCESSION EFFORTS (2002)

Revised tariff offersRevised tariff offers

Revised services commitmentRevised services commitment

Legislative action planLegislative action plan

Second Working Party and Bilateral Meeting held Second Working Party and Bilateral Meeting held in GENEVA, from 9 to 13 Sept. '02in GENEVA, from 9 to 13 Sept. '02

Second Working Party and Bilateral Meeting held Second Working Party and Bilateral Meeting held in GENEVA, from 9 to 13 Sept. '02in GENEVA, from 9 to 13 Sept. '02

APPROACH FOR CONCESSIONS AND COMMITMENTS

National constraints and capabilityNational constraints and capability

Interests of Nepalese ProducersInterests of Nepalese Producers

Goodwill of international communityGoodwill of international community

Commercial interest of WTO membersCommercial interest of WTO members

Compatibility with national objectivesCompatibility with national objectives

GOODWILL OF INTERNATIONAL COMMUNITY

WTO decisions in favor of LDCsWTO decisions in favor of LDCs

Third UN conference on LDCsThird UN conference on LDCs

Consensus on Quadrangle countriesConsensus on Quadrangle countries

Doha declaration Doha declaration

REVISED OFFER AND COMMITMENTS

Offered tariff bindings lowered both in Offered tariff bindings lowered both in

• AgricultureAgriculture

• Non-agricultureNon-agriculture

Services sector commitments widenedServices sector commitments widened

• 11 sectors / sub-sectors included in 11 sectors / sub-sectors included in offer for market accessoffer for market access

STRENGTHS & OPPORTUNITIES

Part of global family of trade and legislationPart of global family of trade and legislation

Global market accessGlobal market access

Completed most accession requirementsCompleted most accession requirements

Diversification of products and markets possibleDiversification of products and markets possible

Priority to LDCsPriority to LDCs

SAPTA / SAFTA / QUADRANGLE / REGIONALSAPTA / SAFTA / QUADRANGLE / REGIONAL

Inherent & Indigenous ProductsInherent & Indigenous Products

Dispute settlement mechanismDispute settlement mechanism

WEAKNESS & THREATS

Small economy / limited resourcesSmall economy / limited resources

Lack competitive & comparative edgeLack competitive & comparative edge

Lack of capital, technology & H.R.Lack of capital, technology & H.R.

Big players in competitionBig players in competition

Weak implementation & Traditional approachWeak implementation & Traditional approach

Global compactGlobal compact

Brain drainBrain drain

Opening of trade and investment boundariesOpening of trade and investment boundaries

Present drive

Awareness and campaignAwareness and campaign Building capacity viz.capital,technology and skillBuilding capacity viz.capital,technology and skill Political commitmentsPolitical commitments Administrative reformsAdministrative reforms System compatibilitySystem compatibility Radical changes for competitivenessRadical changes for competitiveness Cross society's supportCross society's support Horizontal & vertical diversificationHorizontal & vertical diversification

Potential Area

MODERN AGRI FARMINGMODERN AGRI FARMING INTELLECTUAL PROPERTIESINTELLECTUAL PROPERTIES BIO DIVERSITY BIO DIVERSITY (HERBS,FORESTRY,AYURVED,SPICES)(HERBS,FORESTRY,AYURVED,SPICES) TOURISM TOURISM

(FLORA,FAUNA,HEALTH,SPORTS,RELIGIOUS,EDUCATION,SAARC HUB)(FLORA,FAUNA,HEALTH,SPORTS,RELIGIOUS,EDUCATION,SAARC HUB)

FINANCIAL & OFFSHORE CENTERFINANCIAL & OFFSHORE CENTER SERVICE SECTOR & ‘SEZ’SERVICE SECTOR & ‘SEZ’ INFORMATION TECHNOLOGYINFORMATION TECHNOLOGY HUMAN RESOURCESHUMAN RESOURCES ENERGY POWERENERGY POWER GLOBAL LANDMARKS GLOBAL LANDMARKS (MT.EVEREST,LORD BUDHA, SITA)(MT.EVEREST,LORD BUDHA, SITA)

FUTURE COURSE

TRIPS (patent Copyrights, Trademark Designs, Geographical TRIPS (patent Copyrights, Trademark Designs, Geographical Indications) - new laws and implementation requiredIndications) - new laws and implementation required

Rule based transparent businessRule based transparent business

Agriculture - Protecting the rights of FarmersAgriculture - Protecting the rights of Farmers

Opening of the diverse, new & service sector Opening of the diverse, new & service sector

Technical assistance for enhancing competitive strengthTechnical assistance for enhancing competitive strength

Identification and development of thrust \ core sectorsIdentification and development of thrust \ core sectors

Competition Law & facilitating mechanismCompetition Law & facilitating mechanism

Investment friendly law & policyInvestment friendly law & policy

Transparency in govt. procurementsTransparency in govt. procurements

Safeguard measures – anti dumping \ counter veiling dutySafeguard measures – anti dumping \ counter veiling duty