IAS OUR DREAM

Presents QUICK FACTS on GATT, WTO

GATT • General Agreeement on Tariffs and Trade(GATT) formed

in 1947 after WWII

• 23 non communist nations took part initially

• Planned to hav International Trade Org (failed due to

differences)

• Came into being in Jan 1948

• By 1988, 96 nations joined

• Objectives Achieved

Tariff

reduction

Removal of

non-tariff

barriers

through

rounds of

negotiations• Between 1947-86 seven rounds took place

• 1986-Uruguay rounds (Director General: Arthur Dunkel)---

concluded in 1994 decision to form WTO

WTO • Came into force on Jan 1,1995 after Dunkel Draft approval

thru Final Act at Marrrakesh,Uruguay.

• Incorporated all org. treaties of GATT

• New Areas---Services,intellectual property,trade related

investment

• Functions of WTO

To make int. trade free as more as possible thru transperancy n

predictabilityForum for trade negotiationsNeutral agency for settlement of trade disputes

India’s point of view

wrt to WTO

WTO AGREEMENT

provides for review at the

ministerial level at leat once

every two years

Level of tariff reduction n export subsidies agreed to are generally in

consonance with the reforms accepted by us as recommended in

CHELLIAH Committee reportMulti fibre Agreement (MFA) governed the WTO’s trade in

textile n clothing imposed many quotas by developed countries.

IT was abolished in Jan 2005 which benefited INDIATRIPS caused major concern for developing countries like INDIA

because Indian Patents Act 1970 varied widely with requirements of

TRIPS .TRIMS (Trade related investment measures)----

not to discriminate against foreign capital,which

shud b given national treatment

this takes away India’s discretion not to allow

certain foreign investments (soft drinks,potato

chips) n this INFRINGES on the nation’s

ECONOMIC SOVEREIGNITY.

Attempts were made by the US to intro issues lik LABOUR

STANDARDS (imposing dutieson developing countries products

on grounds of CHEAP LABOUR. & environmental protection in

the review meeting held in SEATTLE.

• Singapore (1st review meeting—1996)

• Geneva (2nd 1998)

• Seattle,USA (1999 abondoned due to protest by interest

groups belonging to both dev.eloped n developing countires)

TRIPS

Caused major concern for

INDIA(see how--------

The World Trade Organization and intellectual-property law

The Agreement on Trade-Related Aspects of Intellectual Property Rights (commonly known as TRIPS) has contributed greatly to the expansion of intellectual-property law. Negotiated as part of the Uruguay Round (1986–94) of the General Agreement on Tariffs and Trade (GATT), the TRIPS Agreement obligates members of the World Trade Organization (WTO) to establish and enforce minimum levels of copyright, patent, and trademark protection within their jurisdictions. Countries that fail to do so are subject to various WTO-administered trade sanctions.

The leaders of some developing countries contend that the TRIPS Agreement reflects and perpetuates a form of Western imperialism. Noting that most owners of intellectual property (e.g., the copyrights on popular movies and music, the patents on pharmaceutical products, and the trademarks of multinational food and clothing companies) reside in developed countries, these officials argue that strengthening intellectual-property rights unfairly raises the prices paid by consumers in the developing world. Accordingly, developing countries generally have been slow to implement TRIPS. Some economists, however, maintain that the long-term effect of the agreement will be to benefit developing countries by stimulating local innovation and encouraging foreign investment. Despite the existence of TRIPS, global rates of piracy of software, music, movies, and electronic games remain high, in part because many countries in Africa and Latin America have not met the deadlines imposed by the agreement for revamping their intellectual-property laws. Other countries, particularly in Asia, have formally complied with the agreement by passing new laws but have not effectively enforced them.

Currently whats in NEWS regarding India and WTO

India gives EU another chance to settle drug seizure case

India has decided to hold one last round of consultation with the European Union on the steps it is taking to stop the wrongful

confiscation of pharmaceutical consignments from India at European ports before asking the World Trade Organisation (WTO) to set up a dispute settlement panel to resolve the issue.

Preparations for filing a case against the EU, however, continues as India wants the issue to be settled as soon as possible, a government official has said.

DO U KNOW

WTO Currently

WTO rules against China's restrictions

Judges at the World Trade Organisation have handed down a landmark ruling - most of China's curbs on foreign books, films and DVDs are illegal.

The ruling, which is now final, affects distribution in China of foreign films for theatrical release, DVDs, music, books and journals. China has said it "regrets" the WTO's decision.

China allows up to 70 foreign films a year to be shown in local cinemas. Foreign distributors regarded the process as restrictive. Jonathan Bithrey reports.

WTO talks: No compromise on Indian interestsIndia on Tuesday insisted that services must take top priority in world trade talks. “We

have our interests and there is no question of agreeing only to those sectors where the

developed countries are interested,” Commerce and Industry Minister Anand Sharma

said in Rajya Sabha.

He was replying to a calling-attention motion on the status of the World Trade

Organisation (WTO). Sharma said in the present round of negotiations “services will be

an integral part.”

He assured the House that “there is no question of coming under pressure when it

comes to trade policy. India will come under only one pressure, the pressure of its

interest, the pressure of its people and the pressure of its farmers. There is no question

of we being pro-US.”

Developed countries will have to make deep cuts in their subsidies, and this is still

being negotiated, he said, adding there cannot be any agreement while

REPUTATION AT STAKE: Seizures violate international patent pact

SUPER 301

Section 310 of the 1974 Trade Act (P.L. 93-618, as amended) is commonly

referred to as Super 301.

As enacted, Super 301 required the USTR for 1989 and 1990 to issue a report

on its trade priorities and to identify priority foreign countries that practiced

unfair trade and priority practices that had the greatest effect on restricting U.S.

exports. The USTR then would initiate a Section 301 investigation against the

priority countries to obtain elimination of the practices that impeded U.S.

exports, in the expectation that doing so would substantially expand U.S.

exports.