Has Been a WTO Member Since 1st

8/14/2019 Has Been a WTO Member Since 1st

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India has been a WTO membersince 1st January 1995.

Pascal Lamy is the fifth Director

General of the WTO appointed on1st Sep 2005 for a four-year term.


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GENERAL AGREEMENTS ON TARIFFS &

TRADE (GATT)


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The General Agreement on tariffs & Trade(GATT) was an international body whichremained in existence for a period of 46years. It was negotiated in 1947 & cameinto force on 1st JANUARY 1948.

It started as a general agreement for tradeconcessions among 23 nations, including

INDIA & its membership increase to117countries as on 31st DECEMBER 1994.


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Four Principles were regarded as follows: 1. Trade should be carried on non-

discriminatory basis.

2. Domestic industry should only beprotected by means of custom tariffs 3. Aim of consultations should be

avoidance of damage to members interest.

4. GATT held to reduce tariffs & other tradebarriers.


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To follow unconditional (MFN) principles.To carry on trade on the principles of non

discrimination.

To grant protection to domestic industrythrough Tariffs only.To liberalize tariff & non- tariff measures

through multilateral negotiations.


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FIRST ROUND : Geneva in Switzerland in1947

SECOND ROUND : Annecy in France in 1949

THIRD ROUND : Torquay in Britain in 1950-51 FOURTH ROUND : Geneva in Switzerland

in1955-56.


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FIFTH ROUND : Geneva in Switzerland in1960-62 .

SIXTH ROUND : Geneva in 1964.

SEVENTH ROUND : Tokyo in 1973 andGeneva in 1979. EIGHTH ROUND : Uruguay in December

15,1993.


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Every country followed such agriculturetrade policies which were inconsistent withGATT rules.

The developed countries had abolished themajority of tariff barriers .The role of GATT was being backstabbed by

concluding bilateral .

The GATT was side-tracked due to theincreased use of subsidies.

The GATT was a mandatory body.


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The World Trade Organization (WTO) came into

effect on January 1, 1995 with the support of 85

founder members. India was one of them. It is third

pillar of worldwide economic dimensions along with

the IMF and the World Bank. Now the membershiphas increased to 128 by 2001.

The WTO is an international trade organization,

having set of rules and principles which were mutually

designed and agreed upon to promote international

trade in general and to reduce tariff barriers and toremove import restrictions in particular. It can be

called as World Trade System.


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The Preamble of WTO states that there is aneed for positive efforts designed to ensure

that developing countries, and especially the

least developed among them, secure a

share in the growth of international trade

commensurate with needs of their economicdevelopment.


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1. Ministry Conference2. General Council

3. Functional Councils under the General

Council

iv. Council for Trade in Goodsv. Council for Trade in Services

vi. Council for Trade-Related Aspects of

Intellectual Property Rights (TRIPs)

4. Committees and Management Bodiesa) Committee on Trade and Development

b) Committee on Balance of Payment

c) Committee on Budget, Finance and

Administration


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Trade in services like insurance , hotel,banking has been brought within thepurview of GATT for the first time. Thegeneral agreement on trade in servicesprovide a multilateral framework ofprinciples and services. In thetelecommunication sector the member isto establish , construct , transport networkand services make it available to the public.


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Trips agreement are related tointellectual property rights .Theseintellectual property Rights can be withregard to :

COPYRIGHTTRADEMARK PATENT


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Dispute Settlement System

Plurilateral Trade Agreement (PTA)

Trade Policy Review Mechanism (TPRM)


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Distinction between GATT and WTOGATT WTO

1. It is a set of rules andmultilateral agreement. Ithad no legal status.

2. The GATT frameworkincludes many importantside agreements.

3. It had a smell secretariatmanaged by a DirectorGeneral.

4. The rules of GATT wereapplied to trade in goodsonly.

5. Its dispute settlementsystem was dilatory and notbinding on the parties.

6. It was a forum where themember countries met aftera long period to discussand solve trade problems.

1. It is a permanent institution andhas legal status.

2. It administers a unified packageof agreements to which allmembers are committed.

3. It has a large secretariat and ahuge organisational set-up.4. It includes not only trade in

goods and services but alsotrade related aspects ofintellectual property rights.

5. Its dispute settlementmechanism is automatic, faster

and binding on the parties.6. It is a property established rule-

based world trade organisationwhere decisions on agreementsare time bound.


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Increase in foreign trade: India has traderelations with 149 countries. WTO has helped inremoving tariff and non-tariff barriers and this hasopened various new markets for India.

Increase in agricultural exports: WTO hasrecommended a cut in custom duties and restrictionson agricultural goods. It will also promote agri.Exports from India. In year 2004-05 our agri. Exportsare US$ 8,475 million and these are expected to

double in the next five year.


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ADVANTAGES TO INDIAADVANTAGES TO INDIAcontd.contd.

Increase in Inflow of ForeignInvestment: Barriers in foreign investmenthas been removed which has increasedforeign investment in India. Many MNCs haveset up their branches in India likeL.G.,Samsung,Sony, etc. It has improved thelevel of investment in the economy. Hence

employment has also increased.


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ADVANTAGES TO INDIAADVANTAGES TO INDIAcontd..contd..

Benefits for clothing and textileIndustry: WTO has removed restrictionswhich was applied by MFA(Multi-FiberArrangements). Hence exports of Indianclothes and textiles has increased.

Restricts Dumping: If a country dumps itsexcess production in other nation-to damage

its domestic industry, then the affectedcountry can lodge a complaint with WTO inthis regard.


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Patents of Indian Herbs by ForeignCompanies: Under TRIPs , patents can begranted to methods of agriculture andhorticulture , bio-technological process

including living organisms like plants andanimals. Patents have been granted for NEEM(as a pesticide) ,to a American company.Basmati Rice has been patented as Kasmati

and Texmati. Tulsi plant is underway topatenting. So, India will have to make heavypayments as royalty to patent holders forusing these herbs/foodgrains.


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Increase in Unemployment: WTO willencourage the free flow of imported goods andMNCs in developing countries. MNCs use capital

intensive technology which creates lessemployment opportunities.


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Has Been a WTO Member Since 1st

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