INTERNATIONAL TRADE ORGANISATION

After World War II,U.S. developed two innovations:-

THE GATT AND THE ITO

ITO

GATT WTO

OUTCOME OF FAILURE

OR

THE SUCCESS STORY

GATT ???

GATT…A Treaty, Not An Organization

“An International Agreement to reduce trade barriers among Member Countries.”

FEATURES

1.)

FOUNDATION

GATT’s Foundation was laid on To Create ITO…which never came into being

FOUNDATION AND ROUNDS

ROUNDS

GENEVA(1947)ANNECY(1949)

TORQUAY(1951)

SWITZERLAND(1955)DILLON

ROUND(1960)

KENNEDY ROUND

(1964-67)

TOKYO(JAPAN)(1973-79)

URUGUAY ROUND

(1986-94)

RULES OF GATT

1.) Protection From Foreign Competition.2.) Reduction In Restrictions3.) Most Favored Nation4.) National Treatment Rule5.) Principles Of Non Discrimination, Reciprocity, and Transparency6.) Tariff And Non Tariff Meaasures7.) Conciliation Of Disputes8.) Waivers In Exceptional Cases

PROVISIONS OF GATT

1.) Schedules Of Tariff Concessions

2.) General Elimination Of Quantitative Restrictions

3.) Exceptions

4.) Settlement Of Disputes

Broadened Scope Of MTN’s(Multilateral Trade Negotiations) By:-

1.) Trade In Services

2.) Trade Related Aspects Of Intellectual Property(TRIPS)

3.) Trade Related Investment Measures(TRIMS)

9

WHAT CAUSED GATT TO SETTLE DOWN?

1.)Trade In Merchandise Goods Only

2.)Multilateral Instrument

3.)No Institutional Foundation

4.)Provisional Basis

5.)Slow Dispute Settlement System

6.)Temporary Agreement

7.)Negligence Of Some Sectors Such As Agriculture, textile Clothing

STILL SURVIVED…..

1.)Continual Reduction In Tariffs

2.)High Rates Of Trade Growth

3.)After Even Bring DoubtfulAnd Temporary Survived For Half A Century(47 Years)

4.)In Absence Of Creation Of Ito…trade Flourished

IT PROVED TO BE…A SUCCESS

GATT… to WHO…

Unlike the GATT, it is a legal entity.

Unlike IMF and World Bank it is not an agent of the United Nations.

Unlike the IMF and the World Bank there is no weighted voting, but all the WTO members have equal rights.

Unlike the GATT, the agreements under the WTO are permanent and binding to the member countries.

04/10/2023

Unlike the GATT, the WTO dispute settlement system is based on dilatory but automatic mechanism it is also quicker and binding on the members.

As such the WTO is a powerful body. Unlike the GATT, the WTO’s approach is rule based and time bound.

Unlike the GATT, the WTO has a wider coverage. It covers trade in goods as well as services.

Unlike the GATT, the WTO has a focus on trade related aspects of intellectual property rights and several other issues of agreements.

Above all the WTO is huge organizational body with a large secretariat.