Post on 17-Jan-2016
description
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
??? ?