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8/9/2019 WTO IBM.module 4-2 Ppt
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MSM/SRK/IBM/10MSM/SRK/IBM/10
WTO: A FACT FILE
Location : Geneva, Switzerland.Location : Geneva, Switzerland.
Established : January 1, 1995.Established : January 1, 1995.
Created by : Uruguay Round of NegotiationsCreated by : Uruguay Round of Negotiations Membership :153 countries (23Membership :153 countries (23--77--2008)2008)
Secretarial staff : 625Secretarial staff : 625
Budget : 189Million Swiss Francs (2009)Budget : 189Million Swiss Francs (2009) Director General: PascalDirector General: Pascal LamyLamy
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FUNCTIONSOF WTOFUNCTIONSOF WTO
Administering WTO trade agreementsAdministering WTO trade agreements
Forum for trade negotiationsForum for trade negotiations
Handling trade disputesHandling trade disputes Monitoring national trade policiesMonitoring national trade policies
Technical assistance and training forTechnical assistance and training for
developing countriesdeveloping countries
Cooperation with other internationalCooperation with other internationalorganizationsorganizations
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GATT Negotiating RoundsGATT Negotiating Rounds
Geneva 1947 23Geneva 1947 23
Annecy 1949 13Annecy 1949 13
TorquayTorquay 19501950--51 3851 38
Geneva 1956 26Geneva 1956 26
Dillon 1960Dillon 1960--62 4562 45
Kennedy 1964Kennedy 1964--67 6267 62
Tokyo 1973Tokyo 1973--79 9979 99
Uruguay 1986Uruguay 1986--94 11794 117
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Umbrella organization for:Umbrella organization for:
GATTGATT
ServicesServices Intellectual propertyIntellectual property
Responsibility for trade arbitration:Responsibility for trade arbitration:
World Trade Organization
154 Rue de Lausanne, Geneva
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Organisation structure of WTOOrganisation structure of WTO
Ministerial ConferenceMinisterial Conference
General CouncilGeneral Council
Disputes Settlement BodyDisputes Settlement Body DirectorDirector Trade PolicyTrade Policy
GeneralGeneral Review BodyReview BodyCommitteesCommittees
Councils for Trade inCouncils for Trade in
CouncilCouncil CouncilCouncil CouncilCouncil CommitteeCommittee CommitteeCommitteeCommitteeCommittee
ForFor forfor forfor TradeTrade on Tradeon Trade on Balanceon Balance on Budgeton Budget
Trade inTrade in Trade inTrade in RelatedRelated andand of Paymentof Payment Finance andFinance andGoodsGoods ServicesServices Aspects ofAspects of DevelopmentDevelopment RestrictionsRestrictions
intellectualintellectualrightsrights Secretariat andSecretariat and
staff of the WTOstaff of the WTO
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The WTO todayThe WTO today
153 members by153 members by
Represents 90% ofworld tradeRepresents 90% ofworld trade
9 of10 disputes satisfactorily settled9 of10 disputes satisfactorily settled Tariff reduction from 40% to less thanTariff reduction from 40% to less than
5%5%
Trade volume of manufactured goods hasTrade volume of manufactured goods hasincreased 20 timesincreased 20 times
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WTO atworkWTO atwork
More than 360 disputes brought to WTOMore than 360 disputes brought to WTObetween 1995 and 2009between 1995 and 2009
196 handled by GATT during its 50 year history196 handled by GATT during its 50 year history
US, India and EU are the biggest usersUS, India and EU are the biggest users Liberalization of Telecom and financial sectorsLiberalization of Telecom and financial sectors
Democratic mode of operation with a voice toDemocratic mode of operation with a voice to
all membersall members Reports adopted unless specifically rejected.Reports adopted unless specifically rejected.
After appeal, fail to comply can result inAfter appeal, fail to comply can result incompensation to injured country or trade sanctions.compensation to injured country or trade sanctions.
8/9/2019 WTO IBM.module 4-2 Ppt
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WTO in SeattleWTO in Seattle
Millennium round was aimed at furtherMillennium round was aimed at furtherreduction of trade barriers in agriculturereduction of trade barriers in agricultureand servicesand services
WTO meeting disrupted byWTO meeting disrupted by Human rights groupsHuman rights groups
Trade unionsTrade unions
EnvironmentalistsEnvironmentalists Anti globalization groupsAnti globalization groups
No agreementwas reachedNo agreementwas reached
8/9/2019 WTO IBM.module 4-2 Ppt
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Doha agendaDoha agenda --WTOWTO
Cutting tariffs on industrial goods andCutting tariffs on industrial goods andservicesservices
Phasing out subsidiesPhasing out subsidies
Reducing antidumping lawsReducing antidumping laws
WTO regulation on intellectual propertyWTO regulation on intellectual property
should not prevent members fromshould not prevent members fromprotecting public healthprotecting public health TRIPS agreementTRIPS agreement
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Antidumping actionsAntidumping actions
Four sectors account for 70 percent of allFour sectors account for 70 percent of allantidumping actions reported to WTOantidumping actions reported to WTO
Metal industriesMetal industries ChemicalsChemicals
PlasticsPlastics
Machinery and electrical equipmentMachinery and electrical equipment
Actions often initiated by politicians in theActions often initiated by politicians in thevarious countries to please strong lobbyingvarious countries to please strong lobbyinggroups in exchange for votesgroups in exchange for votes
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Protectionism in agricultureProtectionism in agriculture
Recent focus of WTO on agriculturalRecent focus of WTO on agriculturalsubsidessubsides These are 3 to 5 times higher than nonThese are 3 to 5 times higher than non--
agricultural subsidiesagricultural subsidies Advanced nations are the strongestAdvanced nations are the strongest
defenders of this systemdefenders of this system
Combination of high tariffs and subsidesCombination of high tariffs and subsides
on agricultural producton agricultural product Raises price to the consumerRaises price to the consumer Reduces volume of agricultural tradeReduces volume of agricultural trade Encourages overproduction of subsidizedEncourages overproduction of subsidized
productsproducts
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Protection of intellectual propertyProtection of intellectual property
Trade related Aspects ofIntellectualTrade related Aspects ofIntellectualproperty (TRIPS)property (TRIPS)
WTO members allowed to grant and enforceWTO members allowed to grant and enforcepatents and copyrightspatents and copyrights
This encourages innovationThis encourages innovation
Reduces piracy rates in drugs, softwareReduces piracy rates in drugs, software
musicmusic
Expected to boost global economic ratesExpected to boost global economic ratesand social and economic welfare aroundand social and economic welfare around
the worldthe world
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Managerial implicationsManagerial implications Trade barriers act as a constraint on firmTrade barriers act as a constraint on firm
strategystrategy
May be useful to establish moreMay be useful to establish more
production activities in the protectedproduction activities in the protectedcountrycountry
Business gains from governments effortsBusiness gains from governments efforts
to open protected markets are more thanto open protected markets are more thangains from governments efforts to protectgains from governments efforts to protectdomestic industries/firmsdomestic industries/firms