25-06-2013, 04:55 PM
WORLD TRADE ORGANIZATION(WTO)
WORLD TRADE.pptx (Size: 860.4 KB / Downloads: 28)
“GATT”- General Agreement on Tariffs and Trade
Great depression of 1930’s resulted in sharp decline in world trade.
1n 1945, USA put forward many proposals for extending international trade and employment.
On October 30th, 1947; 23 countries at Geneva signed an agreement related to tariffs imposed on trade.
According to its preamble, its purpose was the "substantial reduction of tariffs and other trade barriers and the elimination of preferences, on a reciprocal and mutually advantageous basis."
PRINCIPLES ADOPTED BY GATT
A contracting party’s trade policies must treat all GATT members equally.
No member country shall discriminate between the members of GATT in the conduct of international trade.
Members of GATT agree to apply the principle of ‘most favored nation’ to all import and export duties.
National Treatment : Foreign goods, services, or investment are to be treated “no less favorably” within a nation’s domestic markets than competing products or services produced locally.
WHAT IS THE WTO?
The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations.
The goal is to help producers of goods and services, exporters, and importers conduct their business.
The WTO is run by its member governments. All major decisions are made by the membership as a whole, either by ministers (who usually meet at least once every two years) or by their ambassadors or delegates .
FUNCTIONS OF WTO
Trade negotiations:- They set procedures for settling disputes. Many are now being negotiated under the Doha Development Agenda, in November 2001.
Implementation and monitoring :- WTO agreements require governments to make their trade policies transparent by notifying the WTO about laws in force and measures adopted.
Dispute settlement:-The WTO’s procedure for resolving trade quarrels under the Dispute Settlement Understanding is vital for enforcing the rules and therefore for ensuring that trade flows smoothly.
WTO AGREEMENTS
Agreement on agriculture:- This provide a framework for the long-term reform of agriculture trade and domestic policies over the years to come.
Agreement on trade in textile and cloths:- This provides for phasing out the import quotes on textile and clothing in force under the multi- febric Arrangement since 1974 over a span of 10 years. As a result of this agreement , quotes on texttile and clothing have now abolished.
Agreement on market acccess:-The member nation will cut traiffs on industries and farm goods by an average of about 37 percent.The USA and the european Union will cut traiff between them by one-half.
CRITICISMS OF WTO
It undermines representative democracy.
Member nations are prevented from protecting the environment.
The WTO is controlled by the larger nations.
The WTO represents the interests of large corporations and wealthy citizens.
Anarchists usually capture the legal protest.
Activists say India taking the initiative to push the Doha Round betrays the interests of farmers.
Current issues related to India & WTO
India is 19th largest exporter in the world (1.7% share in 2011-12) and 12th largest importer in the world (2.5% share in 2011-12).
Rich nations want India and other emerging economies to be part of the four major sectoral pacts – trade facilitation (TF), information technology (IT), environmental goods and international services agreement.
India may impose anti-dumping duty of up to $ O.78 per kg on a Chinese chemical (Meta-Phenylene Diamine) that is used for photography and medical applications so as to protect domestic players.
US files dispute against India on solar panel products.