Created in 1944 at the Bretton Woodsconference to prevent the kinds of chainreaction in the economic system thatcaused world currencies to collapse like inthe Great Depression of the 1930s

)

1048707 In the beginning 29member countries1048707 Today184 membercountries1048707 Staff of about 2680persons1048707 Two-thirds areeconomists in 139countries1048707 Headquarters inWashington DC

The IMF in short IMF is a forum of national economic policiesinternational monetary and financial systems whichinvolves active dialogue with each member country Total quotas of $312 billion outstanding loans of$71 billion to 82 countries (According to the reportof August 31 2005) Five largest shareholdersUnited States Japan Germany France UnitedKingdom China Russia and Saudi Arabia have their ownseats on the Board 16 other Executive Directors are elected for twoyearterms by groups of countries known asldquoConstituenciesrdquo

Purposes of IMFhellip

Promote international monetary cooperationexchange stability and orderly exchangearrangements Foster economic growth and high levels ofemployment Temporary financial assistance to countries tohelp the balance of payments adjustments

Monitoring economic and financial developmentsand policies in member countries and at theglobal level giving policy advice to its membersbased on its more than fifty years of experience Lending to member countries with balance ofpayments problems supporting adjustment andreform policies aimed at correcting the underlyingproblems Providing the governments and central banks ofits member countries with technical assistanceand training in its areas of expertise

IMF looks at the performance of the economy as

a whole (macroeconomic performance) Focuses also on the financial sector policiesEx regulation and supervision of banks and otherfinancial institutions Pays attention to structural policies that affectmacroeconomic performanceEx labor market policies (affect employment andwage behavior)

In September 2000 the IMFrsquos then managingdirector Horst Koehler set out some majorpriorities for the work of the IMF Promoting sustained non-inflationary

economicgrowth Being in the center of competence Focusing on its core macroeconomic and

financialareas of responsibility Working in a complementary fashion with

otherinstitutions established Being an open institution

IMFs main ressources suscriptions (quotas) Countries pay 25 percent of their quota subscriptions inSpecial Drawing Rights (SDRs) or major currencies IMF can call on the remainder payable in the membersown currency to be made available for lending as

needed Quotas Determine the amount of financing that each

country canreceive from the IMF Are the main determinant of

countries voting power in the IMF -Broadly reflect members relative size in the world

economy The United States of America the worlds largesteconomy contributes most to the IMF 175 percent oftotal quotas

The IMF offers financial assistance Three implemented facilities --Stand-by Agreement --EFF (Extended Fund Facility PRGF (Poverty reduction and Growth Facility)

The IMF offers technical assistance to transitional economies

The former Soviet Republics

South Korea in the 1997 financial crisis

The structural adjustment is undemocratic and inhumane Causing social problems Foreign corporations and investors takeadvantage of local cheap labor but have no

regard for the environment The gap between the rich and the poor is

gettingbigger Example of Argentina The IMF has become a tool of the USA

The widening trade gap between the developed and developing countries the general dissatisfaction of the developing countries with the GATT and the need for a new organization for international economics cooperation in the field of trade and aid designed to reduce the trade gap of developing countries encouraged the establishment of the United Nations Conference on trade and development(UNCTAD) in 1964 as a permanent organ of the UN general Assembly

FUNCTIONShellip The principal functions of UNCTAD are

1) To promote international trade with a view to accelerating economics development

2) To formulate principles of and policies on international trade and related problems of economics development

3) To negotiate multinational trade agreements4) To negotiate multinational trade agreements

UNCTAD 1964UNCTAD 1964

The context of North-South and East-West tensions

The link between trade and development

1st UNCTAD Ministerial Conference in Geneva

bull Permanent secretariat established Research on trade and development issues

bull Consensus-building through intergovernmental machinery

bull Technical cooperation on all the topics of UNCTAD work

UNCTAD 1964UNCTAD 1964

The context of North-South and East-West tensions

The link between trade and development

1st UNCTAD Ministerial Conference in Geneva

bull Permanent secretariat established Research on trade and development issues

bull Consensus-building through intergovernmental machinery

bull Technical cooperation on all the topics of UNCTAD work

bull Intergovernmental machinery linked to UN General Assembly and ECOSOC

bull Secretariat part of the UN Secretariat (part of same budget)

bull Development-oriented and independent secretariat

bull Political role (ldquosoft lawrdquo) bull Automatic membership bull Wide participation of non-governmental

stakeholders

INTERNATIONAL ECONOMIC ENVIRONMENT

NATIONAL DEVELOPMENT GOALS

SUPPLY-SIDE

PRODUCTIVE

CAPACITY

POLICIES

TRADE

SUPPORT

SERVICES

POLICIES

TRADE POLICYAND

NEGOTIATION

The Ministerial Conference (every 4 years) reports to the UN General Assembly and ECOSOC

Executive body the Trade and Development Board one high level annual session reports to the UN General Assembly and Ecosoc

Three annual Commissions on Trade in goods and services and commodities Investment technology and related financial issues Enterprise business facilitation and development

Several Expert Meetings on specific issues

UNCTAD secretariat 400 staffUNCTAD secretariat 400 staff

Annual Regular budget US $ 57 Annual Regular budget US $ 57

millionmillion

Extra-budgetary funds US$ 35 Extra-budgetary funds US$ 35

million (2005)million (2005)

No field officesNo field offices

GENERAL AGREEMENT ON TARIFFS AND GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)TRADE (GATT)

Was signed in 1947bullIt is a multilateral trade agreement bullRegulating trade among about 150 countriesbullAccording to its preamble purpose of GATT is ldquosubstantial reduction of tariffs and other trade barriers and elimination of preferences on a reciprocal and mutually advantageous basisrdquo

GATT functioned de facto as an organization conducting eight rounds of talks addressing various trade issues and resolving international trade disputes

The Uruguay Round completed on December 15 1993 after 7 yrs of negotiations resulted in an agreement among 117 countries (including US) to reduce trade barriers and to create more comprehensive and enforceable world trade rules

The Final Act embodying the results of Uruguay Round was signed in April 1994

This agreement created the World Trade Organization (WTO) which came into being on January 1 1995

GATT was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO)

The Bretton Woods Conference (1944) had introduced the idea for an organization to regulate trade as part of a larger plan for economic recovery after World War II As governments negotiated the ITO 23 negotiating states began parallel negotiations for the GATT

Once the ITO failed in 1950 only the GATT agreement was left

GATT can be divided into three phases

the first phase from 1947 until the Torquay Round largely concerned with which all commodities would be covered by the agreement and freezing existing tariff levels

the second phase encompassing three rounds from 1959 to 1979 focused on reducing tariffs

the third phase consisting only of the Uruguay Round from 1986 to 1994 extended the agreement fully to new areas such as intellectual property services capital and agriculture Out of this round the WTO was born

RoundsRoundsGATT held a total of 8 rounds Geneva Round - 1947 The first round

took place in 1947 in Geneva 23 countries participated The main focus of the round was tariff concessions around 45000 in total

Annecy Round ndash 1950 The second round took place in 1949 in Annecy France 13 countries participated The main focus of the talks was more tariff reductions around 5000 in total

Torquay Round ndash 1951 The third round occurred in Torquay England in 1951 38 countries participated 8700 tariff concessions were made

Geneva Round - 1955-1956 The fourth round returned to Geneva in 1955 and lasted until May 1956 26 countries participated $25 billion in tariffs were eliminated or reduced

Dillon Round - 1960-1962 The fifth round occurred once more in Geneva and lasted from 1960 to 1962 The talks were named after US Treasury Secretary and former Under Secretary of State Douglas Dillon who first proposed the talks 26 countries participated Along with reducing over $49 billion in tariffs it also yielded discussion relating to the creation of the European Economic Community(EEC)

Kennedy Round - 1964-1967 The sixth round was the last to take place in Geneva from 1964 until 1967 and was named after the late US President Kennedy 66 countries participated Concessions were made on $40 billion worth of tariffs

Tokyo Round - 1973-1979 Reduced tariffs and established new regulations aimed at controlling the proliferation of non-tariff barriers and voluntary export restrictions 102 countries participated Concessions were made on $190 billion worth

Uruguay Round - 1986-1993 The Uruguay Round began in 1986 125 countries participated It was the most ambitious round to date hoping to expand the competence of the GATT to important new areas such as services capital intellectual property textiles and agriculture

The Dunkel Draft Text or Dunkel Package or Dunkel Draft Act embodying the results of Uruguay Round was released on 20th December 1991

The Uruguay Round concluded on 15th Dec 1993 and as many as 125 countries including India signed the Final Act on April 15th 1994 at Marrakesh (Morocco)

Thus the General Agreement on Tariffs and Trade (GATT) also known as the Dunkel Agreement finally emerged as the World Trade Organization (WTO) in 1995

Why GATT converted to WTO GATT rules discriminated against

developing countries under the garb of clauses such as ldquoescape clausesrdquo ldquosafeguard rulesrdquo ldquovoluntary export restraintsrdquo ldquoorderly agreementsrdquo

lsquoAgriculturersquo was treated as a special case thus escaping GATT rules

Though developed countries removed majority of tariff barriers yet some others still remained affecting the interests of developing countries

US and EEC had concluded several bilateral discriminatory and restrictive arrangements outside GATT rules

ldquoSafeguardsrdquo rules under GATT undermined the effective working of GATT

Customs union and free trade areas permitted under GATT had been distorted and abused

Though GATT was a mandatory body it lacked enforcing mechanism

Last but not the least with the emergence of more and more new developing countries it was felt that GATT rules devised half a century ago had outlined their utility

)

1048707 In the beginning 29member countries1048707 Today184 membercountries1048707 Staff of about 2680persons1048707 Two-thirds areeconomists in 139countries1048707 Headquarters inWashington DC

The IMF in short IMF is a forum of national economic policiesinternational monetary and financial systems whichinvolves active dialogue with each member country Total quotas of $312 billion outstanding loans of$71 billion to 82 countries (According to the reportof August 31 2005) Five largest shareholdersUnited States Japan Germany France UnitedKingdom China Russia and Saudi Arabia have their ownseats on the Board 16 other Executive Directors are elected for twoyearterms by groups of countries known asldquoConstituenciesrdquo

Purposes of IMFhellip

Promote international monetary cooperationexchange stability and orderly exchangearrangements Foster economic growth and high levels ofemployment Temporary financial assistance to countries tohelp the balance of payments adjustments

Monitoring economic and financial developmentsand policies in member countries and at theglobal level giving policy advice to its membersbased on its more than fifty years of experience Lending to member countries with balance ofpayments problems supporting adjustment andreform policies aimed at correcting the underlyingproblems Providing the governments and central banks ofits member countries with technical assistanceand training in its areas of expertise

IMF looks at the performance of the economy as

a whole (macroeconomic performance) Focuses also on the financial sector policiesEx regulation and supervision of banks and otherfinancial institutions Pays attention to structural policies that affectmacroeconomic performanceEx labor market policies (affect employment andwage behavior)

In September 2000 the IMFrsquos then managingdirector Horst Koehler set out some majorpriorities for the work of the IMF Promoting sustained non-inflationary

economicgrowth Being in the center of competence Focusing on its core macroeconomic and

financialareas of responsibility Working in a complementary fashion with

otherinstitutions established Being an open institution

IMFs main ressources suscriptions (quotas) Countries pay 25 percent of their quota subscriptions inSpecial Drawing Rights (SDRs) or major currencies IMF can call on the remainder payable in the membersown currency to be made available for lending as

needed Quotas Determine the amount of financing that each

country canreceive from the IMF Are the main determinant of

countries voting power in the IMF -Broadly reflect members relative size in the world

economy The United States of America the worlds largesteconomy contributes most to the IMF 175 percent oftotal quotas

The IMF offers financial assistance Three implemented facilities --Stand-by Agreement --EFF (Extended Fund Facility PRGF (Poverty reduction and Growth Facility)

The IMF offers technical assistance to transitional economies

The former Soviet Republics

South Korea in the 1997 financial crisis

The structural adjustment is undemocratic and inhumane Causing social problems Foreign corporations and investors takeadvantage of local cheap labor but have no

regard for the environment The gap between the rich and the poor is

gettingbigger Example of Argentina The IMF has become a tool of the USA

The widening trade gap between the developed and developing countries the general dissatisfaction of the developing countries with the GATT and the need for a new organization for international economics cooperation in the field of trade and aid designed to reduce the trade gap of developing countries encouraged the establishment of the United Nations Conference on trade and development(UNCTAD) in 1964 as a permanent organ of the UN general Assembly

FUNCTIONShellip The principal functions of UNCTAD are

1) To promote international trade with a view to accelerating economics development

2) To formulate principles of and policies on international trade and related problems of economics development

3) To negotiate multinational trade agreements4) To negotiate multinational trade agreements

UNCTAD 1964UNCTAD 1964

The context of North-South and East-West tensions

The link between trade and development

1st UNCTAD Ministerial Conference in Geneva

bull Permanent secretariat established Research on trade and development issues

bull Consensus-building through intergovernmental machinery

bull Technical cooperation on all the topics of UNCTAD work

UNCTAD 1964UNCTAD 1964

The context of North-South and East-West tensions

The link between trade and development

1st UNCTAD Ministerial Conference in Geneva

bull Permanent secretariat established Research on trade and development issues

bull Consensus-building through intergovernmental machinery

bull Technical cooperation on all the topics of UNCTAD work

bull Intergovernmental machinery linked to UN General Assembly and ECOSOC

bull Secretariat part of the UN Secretariat (part of same budget)

bull Development-oriented and independent secretariat

bull Political role (ldquosoft lawrdquo) bull Automatic membership bull Wide participation of non-governmental

stakeholders

INTERNATIONAL ECONOMIC ENVIRONMENT

NATIONAL DEVELOPMENT GOALS

SUPPLY-SIDE

PRODUCTIVE

CAPACITY

POLICIES

TRADE

SUPPORT

SERVICES

POLICIES

TRADE POLICYAND

NEGOTIATION

The Ministerial Conference (every 4 years) reports to the UN General Assembly and ECOSOC

Executive body the Trade and Development Board one high level annual session reports to the UN General Assembly and Ecosoc

Three annual Commissions on Trade in goods and services and commodities Investment technology and related financial issues Enterprise business facilitation and development

Several Expert Meetings on specific issues

UNCTAD secretariat 400 staffUNCTAD secretariat 400 staff

Annual Regular budget US $ 57 Annual Regular budget US $ 57

millionmillion

Extra-budgetary funds US$ 35 Extra-budgetary funds US$ 35

million (2005)million (2005)

No field officesNo field offices

GENERAL AGREEMENT ON TARIFFS AND GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)TRADE (GATT)

Was signed in 1947bullIt is a multilateral trade agreement bullRegulating trade among about 150 countriesbullAccording to its preamble purpose of GATT is ldquosubstantial reduction of tariffs and other trade barriers and elimination of preferences on a reciprocal and mutually advantageous basisrdquo

GATT functioned de facto as an organization conducting eight rounds of talks addressing various trade issues and resolving international trade disputes

The Uruguay Round completed on December 15 1993 after 7 yrs of negotiations resulted in an agreement among 117 countries (including US) to reduce trade barriers and to create more comprehensive and enforceable world trade rules

The Final Act embodying the results of Uruguay Round was signed in April 1994

This agreement created the World Trade Organization (WTO) which came into being on January 1 1995

GATT was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO)

The Bretton Woods Conference (1944) had introduced the idea for an organization to regulate trade as part of a larger plan for economic recovery after World War II As governments negotiated the ITO 23 negotiating states began parallel negotiations for the GATT

Once the ITO failed in 1950 only the GATT agreement was left

GATT can be divided into three phases

the first phase from 1947 until the Torquay Round largely concerned with which all commodities would be covered by the agreement and freezing existing tariff levels

the second phase encompassing three rounds from 1959 to 1979 focused on reducing tariffs

the third phase consisting only of the Uruguay Round from 1986 to 1994 extended the agreement fully to new areas such as intellectual property services capital and agriculture Out of this round the WTO was born

RoundsRoundsGATT held a total of 8 rounds Geneva Round - 1947 The first round

took place in 1947 in Geneva 23 countries participated The main focus of the round was tariff concessions around 45000 in total

Annecy Round ndash 1950 The second round took place in 1949 in Annecy France 13 countries participated The main focus of the talks was more tariff reductions around 5000 in total

Torquay Round ndash 1951 The third round occurred in Torquay England in 1951 38 countries participated 8700 tariff concessions were made

Geneva Round - 1955-1956 The fourth round returned to Geneva in 1955 and lasted until May 1956 26 countries participated $25 billion in tariffs were eliminated or reduced

Dillon Round - 1960-1962 The fifth round occurred once more in Geneva and lasted from 1960 to 1962 The talks were named after US Treasury Secretary and former Under Secretary of State Douglas Dillon who first proposed the talks 26 countries participated Along with reducing over $49 billion in tariffs it also yielded discussion relating to the creation of the European Economic Community(EEC)

Kennedy Round - 1964-1967 The sixth round was the last to take place in Geneva from 1964 until 1967 and was named after the late US President Kennedy 66 countries participated Concessions were made on $40 billion worth of tariffs

Tokyo Round - 1973-1979 Reduced tariffs and established new regulations aimed at controlling the proliferation of non-tariff barriers and voluntary export restrictions 102 countries participated Concessions were made on $190 billion worth

Uruguay Round - 1986-1993 The Uruguay Round began in 1986 125 countries participated It was the most ambitious round to date hoping to expand the competence of the GATT to important new areas such as services capital intellectual property textiles and agriculture

The Dunkel Draft Text or Dunkel Package or Dunkel Draft Act embodying the results of Uruguay Round was released on 20th December 1991

The Uruguay Round concluded on 15th Dec 1993 and as many as 125 countries including India signed the Final Act on April 15th 1994 at Marrakesh (Morocco)

Thus the General Agreement on Tariffs and Trade (GATT) also known as the Dunkel Agreement finally emerged as the World Trade Organization (WTO) in 1995

Why GATT converted to WTO GATT rules discriminated against

developing countries under the garb of clauses such as ldquoescape clausesrdquo ldquosafeguard rulesrdquo ldquovoluntary export restraintsrdquo ldquoorderly agreementsrdquo

lsquoAgriculturersquo was treated as a special case thus escaping GATT rules

Though developed countries removed majority of tariff barriers yet some others still remained affecting the interests of developing countries

US and EEC had concluded several bilateral discriminatory and restrictive arrangements outside GATT rules

ldquoSafeguardsrdquo rules under GATT undermined the effective working of GATT

Customs union and free trade areas permitted under GATT had been distorted and abused

Though GATT was a mandatory body it lacked enforcing mechanism

Last but not the least with the emergence of more and more new developing countries it was felt that GATT rules devised half a century ago had outlined their utility

The IMF in short IMF is a forum of national economic policiesinternational monetary and financial systems whichinvolves active dialogue with each member country Total quotas of $312 billion outstanding loans of$71 billion to 82 countries (According to the reportof August 31 2005) Five largest shareholdersUnited States Japan Germany France UnitedKingdom China Russia and Saudi Arabia have their ownseats on the Board 16 other Executive Directors are elected for twoyearterms by groups of countries known asldquoConstituenciesrdquo

Purposes of IMFhellip

Promote international monetary cooperationexchange stability and orderly exchangearrangements Foster economic growth and high levels ofemployment Temporary financial assistance to countries tohelp the balance of payments adjustments

Monitoring economic and financial developmentsand policies in member countries and at theglobal level giving policy advice to its membersbased on its more than fifty years of experience Lending to member countries with balance ofpayments problems supporting adjustment andreform policies aimed at correcting the underlyingproblems Providing the governments and central banks ofits member countries with technical assistanceand training in its areas of expertise

IMF looks at the performance of the economy as

a whole (macroeconomic performance) Focuses also on the financial sector policiesEx regulation and supervision of banks and otherfinancial institutions Pays attention to structural policies that affectmacroeconomic performanceEx labor market policies (affect employment andwage behavior)

In September 2000 the IMFrsquos then managingdirector Horst Koehler set out some majorpriorities for the work of the IMF Promoting sustained non-inflationary

economicgrowth Being in the center of competence Focusing on its core macroeconomic and

financialareas of responsibility Working in a complementary fashion with

otherinstitutions established Being an open institution

IMFs main ressources suscriptions (quotas) Countries pay 25 percent of their quota subscriptions inSpecial Drawing Rights (SDRs) or major currencies IMF can call on the remainder payable in the membersown currency to be made available for lending as

needed Quotas Determine the amount of financing that each

country canreceive from the IMF Are the main determinant of

countries voting power in the IMF -Broadly reflect members relative size in the world

economy The United States of America the worlds largesteconomy contributes most to the IMF 175 percent oftotal quotas

The IMF offers financial assistance Three implemented facilities --Stand-by Agreement --EFF (Extended Fund Facility PRGF (Poverty reduction and Growth Facility)

The IMF offers technical assistance to transitional economies

The former Soviet Republics

South Korea in the 1997 financial crisis

The structural adjustment is undemocratic and inhumane Causing social problems Foreign corporations and investors takeadvantage of local cheap labor but have no

regard for the environment The gap between the rich and the poor is

gettingbigger Example of Argentina The IMF has become a tool of the USA

The widening trade gap between the developed and developing countries the general dissatisfaction of the developing countries with the GATT and the need for a new organization for international economics cooperation in the field of trade and aid designed to reduce the trade gap of developing countries encouraged the establishment of the United Nations Conference on trade and development(UNCTAD) in 1964 as a permanent organ of the UN general Assembly

FUNCTIONShellip The principal functions of UNCTAD are

1) To promote international trade with a view to accelerating economics development

2) To formulate principles of and policies on international trade and related problems of economics development

3) To negotiate multinational trade agreements4) To negotiate multinational trade agreements

UNCTAD 1964UNCTAD 1964

The context of North-South and East-West tensions

The link between trade and development

1st UNCTAD Ministerial Conference in Geneva

bull Permanent secretariat established Research on trade and development issues

bull Consensus-building through intergovernmental machinery

bull Technical cooperation on all the topics of UNCTAD work

UNCTAD 1964UNCTAD 1964

The context of North-South and East-West tensions

The link between trade and development

1st UNCTAD Ministerial Conference in Geneva

bull Permanent secretariat established Research on trade and development issues

bull Consensus-building through intergovernmental machinery

bull Technical cooperation on all the topics of UNCTAD work

bull Intergovernmental machinery linked to UN General Assembly and ECOSOC

bull Secretariat part of the UN Secretariat (part of same budget)

bull Development-oriented and independent secretariat

bull Political role (ldquosoft lawrdquo) bull Automatic membership bull Wide participation of non-governmental

stakeholders

INTERNATIONAL ECONOMIC ENVIRONMENT

NATIONAL DEVELOPMENT GOALS

SUPPLY-SIDE

PRODUCTIVE

CAPACITY

POLICIES

TRADE

SUPPORT

SERVICES

POLICIES

TRADE POLICYAND

NEGOTIATION

The Ministerial Conference (every 4 years) reports to the UN General Assembly and ECOSOC

Executive body the Trade and Development Board one high level annual session reports to the UN General Assembly and Ecosoc

Three annual Commissions on Trade in goods and services and commodities Investment technology and related financial issues Enterprise business facilitation and development

Several Expert Meetings on specific issues

UNCTAD secretariat 400 staffUNCTAD secretariat 400 staff

Annual Regular budget US $ 57 Annual Regular budget US $ 57

millionmillion

Extra-budgetary funds US$ 35 Extra-budgetary funds US$ 35

million (2005)million (2005)

No field officesNo field offices

GENERAL AGREEMENT ON TARIFFS AND GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)TRADE (GATT)

Was signed in 1947bullIt is a multilateral trade agreement bullRegulating trade among about 150 countriesbullAccording to its preamble purpose of GATT is ldquosubstantial reduction of tariffs and other trade barriers and elimination of preferences on a reciprocal and mutually advantageous basisrdquo

GATT functioned de facto as an organization conducting eight rounds of talks addressing various trade issues and resolving international trade disputes

The Uruguay Round completed on December 15 1993 after 7 yrs of negotiations resulted in an agreement among 117 countries (including US) to reduce trade barriers and to create more comprehensive and enforceable world trade rules

The Final Act embodying the results of Uruguay Round was signed in April 1994

This agreement created the World Trade Organization (WTO) which came into being on January 1 1995

GATT was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO)

The Bretton Woods Conference (1944) had introduced the idea for an organization to regulate trade as part of a larger plan for economic recovery after World War II As governments negotiated the ITO 23 negotiating states began parallel negotiations for the GATT

Once the ITO failed in 1950 only the GATT agreement was left

GATT can be divided into three phases

the first phase from 1947 until the Torquay Round largely concerned with which all commodities would be covered by the agreement and freezing existing tariff levels

the second phase encompassing three rounds from 1959 to 1979 focused on reducing tariffs

the third phase consisting only of the Uruguay Round from 1986 to 1994 extended the agreement fully to new areas such as intellectual property services capital and agriculture Out of this round the WTO was born

RoundsRoundsGATT held a total of 8 rounds Geneva Round - 1947 The first round

took place in 1947 in Geneva 23 countries participated The main focus of the round was tariff concessions around 45000 in total

Annecy Round ndash 1950 The second round took place in 1949 in Annecy France 13 countries participated The main focus of the talks was more tariff reductions around 5000 in total

Torquay Round ndash 1951 The third round occurred in Torquay England in 1951 38 countries participated 8700 tariff concessions were made

Geneva Round - 1955-1956 The fourth round returned to Geneva in 1955 and lasted until May 1956 26 countries participated $25 billion in tariffs were eliminated or reduced

Dillon Round - 1960-1962 The fifth round occurred once more in Geneva and lasted from 1960 to 1962 The talks were named after US Treasury Secretary and former Under Secretary of State Douglas Dillon who first proposed the talks 26 countries participated Along with reducing over $49 billion in tariffs it also yielded discussion relating to the creation of the European Economic Community(EEC)

Kennedy Round - 1964-1967 The sixth round was the last to take place in Geneva from 1964 until 1967 and was named after the late US President Kennedy 66 countries participated Concessions were made on $40 billion worth of tariffs

Tokyo Round - 1973-1979 Reduced tariffs and established new regulations aimed at controlling the proliferation of non-tariff barriers and voluntary export restrictions 102 countries participated Concessions were made on $190 billion worth

Uruguay Round - 1986-1993 The Uruguay Round began in 1986 125 countries participated It was the most ambitious round to date hoping to expand the competence of the GATT to important new areas such as services capital intellectual property textiles and agriculture

The Dunkel Draft Text or Dunkel Package or Dunkel Draft Act embodying the results of Uruguay Round was released on 20th December 1991

The Uruguay Round concluded on 15th Dec 1993 and as many as 125 countries including India signed the Final Act on April 15th 1994 at Marrakesh (Morocco)

Thus the General Agreement on Tariffs and Trade (GATT) also known as the Dunkel Agreement finally emerged as the World Trade Organization (WTO) in 1995

Why GATT converted to WTO GATT rules discriminated against

developing countries under the garb of clauses such as ldquoescape clausesrdquo ldquosafeguard rulesrdquo ldquovoluntary export restraintsrdquo ldquoorderly agreementsrdquo

lsquoAgriculturersquo was treated as a special case thus escaping GATT rules

Though developed countries removed majority of tariff barriers yet some others still remained affecting the interests of developing countries

US and EEC had concluded several bilateral discriminatory and restrictive arrangements outside GATT rules

ldquoSafeguardsrdquo rules under GATT undermined the effective working of GATT

Customs union and free trade areas permitted under GATT had been distorted and abused

Though GATT was a mandatory body it lacked enforcing mechanism

Last but not the least with the emergence of more and more new developing countries it was felt that GATT rules devised half a century ago had outlined their utility

Purposes of IMFhellip

Promote international monetary cooperationexchange stability and orderly exchangearrangements Foster economic growth and high levels ofemployment Temporary financial assistance to countries tohelp the balance of payments adjustments

Monitoring economic and financial developmentsand policies in member countries and at theglobal level giving policy advice to its membersbased on its more than fifty years of experience Lending to member countries with balance ofpayments problems supporting adjustment andreform policies aimed at correcting the underlyingproblems Providing the governments and central banks ofits member countries with technical assistanceand training in its areas of expertise

IMF looks at the performance of the economy as

a whole (macroeconomic performance) Focuses also on the financial sector policiesEx regulation and supervision of banks and otherfinancial institutions Pays attention to structural policies that affectmacroeconomic performanceEx labor market policies (affect employment andwage behavior)

In September 2000 the IMFrsquos then managingdirector Horst Koehler set out some majorpriorities for the work of the IMF Promoting sustained non-inflationary

economicgrowth Being in the center of competence Focusing on its core macroeconomic and

financialareas of responsibility Working in a complementary fashion with

otherinstitutions established Being an open institution

IMFs main ressources suscriptions (quotas) Countries pay 25 percent of their quota subscriptions inSpecial Drawing Rights (SDRs) or major currencies IMF can call on the remainder payable in the membersown currency to be made available for lending as

needed Quotas Determine the amount of financing that each

country canreceive from the IMF Are the main determinant of

countries voting power in the IMF -Broadly reflect members relative size in the world

economy The United States of America the worlds largesteconomy contributes most to the IMF 175 percent oftotal quotas

The IMF offers financial assistance Three implemented facilities --Stand-by Agreement --EFF (Extended Fund Facility PRGF (Poverty reduction and Growth Facility)

The IMF offers technical assistance to transitional economies

The former Soviet Republics

South Korea in the 1997 financial crisis

The structural adjustment is undemocratic and inhumane Causing social problems Foreign corporations and investors takeadvantage of local cheap labor but have no

regard for the environment The gap between the rich and the poor is

gettingbigger Example of Argentina The IMF has become a tool of the USA

The widening trade gap between the developed and developing countries the general dissatisfaction of the developing countries with the GATT and the need for a new organization for international economics cooperation in the field of trade and aid designed to reduce the trade gap of developing countries encouraged the establishment of the United Nations Conference on trade and development(UNCTAD) in 1964 as a permanent organ of the UN general Assembly

FUNCTIONShellip The principal functions of UNCTAD are

1) To promote international trade with a view to accelerating economics development

2) To formulate principles of and policies on international trade and related problems of economics development

3) To negotiate multinational trade agreements4) To negotiate multinational trade agreements

UNCTAD 1964UNCTAD 1964

The context of North-South and East-West tensions

The link between trade and development

1st UNCTAD Ministerial Conference in Geneva

bull Permanent secretariat established Research on trade and development issues

bull Consensus-building through intergovernmental machinery

bull Technical cooperation on all the topics of UNCTAD work

UNCTAD 1964UNCTAD 1964

The context of North-South and East-West tensions

The link between trade and development

1st UNCTAD Ministerial Conference in Geneva

bull Permanent secretariat established Research on trade and development issues

bull Consensus-building through intergovernmental machinery

bull Technical cooperation on all the topics of UNCTAD work

bull Intergovernmental machinery linked to UN General Assembly and ECOSOC

bull Secretariat part of the UN Secretariat (part of same budget)

bull Development-oriented and independent secretariat

bull Political role (ldquosoft lawrdquo) bull Automatic membership bull Wide participation of non-governmental

stakeholders

INTERNATIONAL ECONOMIC ENVIRONMENT

NATIONAL DEVELOPMENT GOALS

SUPPLY-SIDE

PRODUCTIVE

CAPACITY

POLICIES

TRADE

SUPPORT

SERVICES

POLICIES

TRADE POLICYAND

NEGOTIATION

The Ministerial Conference (every 4 years) reports to the UN General Assembly and ECOSOC

Executive body the Trade and Development Board one high level annual session reports to the UN General Assembly and Ecosoc

Three annual Commissions on Trade in goods and services and commodities Investment technology and related financial issues Enterprise business facilitation and development

Several Expert Meetings on specific issues

UNCTAD secretariat 400 staffUNCTAD secretariat 400 staff

Annual Regular budget US $ 57 Annual Regular budget US $ 57

millionmillion

Extra-budgetary funds US$ 35 Extra-budgetary funds US$ 35

million (2005)million (2005)

No field officesNo field offices

GENERAL AGREEMENT ON TARIFFS AND GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)TRADE (GATT)

Was signed in 1947bullIt is a multilateral trade agreement bullRegulating trade among about 150 countriesbullAccording to its preamble purpose of GATT is ldquosubstantial reduction of tariffs and other trade barriers and elimination of preferences on a reciprocal and mutually advantageous basisrdquo

GATT functioned de facto as an organization conducting eight rounds of talks addressing various trade issues and resolving international trade disputes

The Uruguay Round completed on December 15 1993 after 7 yrs of negotiations resulted in an agreement among 117 countries (including US) to reduce trade barriers and to create more comprehensive and enforceable world trade rules

The Final Act embodying the results of Uruguay Round was signed in April 1994

This agreement created the World Trade Organization (WTO) which came into being on January 1 1995

GATT was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO)

The Bretton Woods Conference (1944) had introduced the idea for an organization to regulate trade as part of a larger plan for economic recovery after World War II As governments negotiated the ITO 23 negotiating states began parallel negotiations for the GATT

Once the ITO failed in 1950 only the GATT agreement was left

GATT can be divided into three phases

the first phase from 1947 until the Torquay Round largely concerned with which all commodities would be covered by the agreement and freezing existing tariff levels

the second phase encompassing three rounds from 1959 to 1979 focused on reducing tariffs

the third phase consisting only of the Uruguay Round from 1986 to 1994 extended the agreement fully to new areas such as intellectual property services capital and agriculture Out of this round the WTO was born

RoundsRoundsGATT held a total of 8 rounds Geneva Round - 1947 The first round

took place in 1947 in Geneva 23 countries participated The main focus of the round was tariff concessions around 45000 in total

Annecy Round ndash 1950 The second round took place in 1949 in Annecy France 13 countries participated The main focus of the talks was more tariff reductions around 5000 in total

Torquay Round ndash 1951 The third round occurred in Torquay England in 1951 38 countries participated 8700 tariff concessions were made

Geneva Round - 1955-1956 The fourth round returned to Geneva in 1955 and lasted until May 1956 26 countries participated $25 billion in tariffs were eliminated or reduced

Dillon Round - 1960-1962 The fifth round occurred once more in Geneva and lasted from 1960 to 1962 The talks were named after US Treasury Secretary and former Under Secretary of State Douglas Dillon who first proposed the talks 26 countries participated Along with reducing over $49 billion in tariffs it also yielded discussion relating to the creation of the European Economic Community(EEC)

Kennedy Round - 1964-1967 The sixth round was the last to take place in Geneva from 1964 until 1967 and was named after the late US President Kennedy 66 countries participated Concessions were made on $40 billion worth of tariffs

Tokyo Round - 1973-1979 Reduced tariffs and established new regulations aimed at controlling the proliferation of non-tariff barriers and voluntary export restrictions 102 countries participated Concessions were made on $190 billion worth

Uruguay Round - 1986-1993 The Uruguay Round began in 1986 125 countries participated It was the most ambitious round to date hoping to expand the competence of the GATT to important new areas such as services capital intellectual property textiles and agriculture

The Dunkel Draft Text or Dunkel Package or Dunkel Draft Act embodying the results of Uruguay Round was released on 20th December 1991

The Uruguay Round concluded on 15th Dec 1993 and as many as 125 countries including India signed the Final Act on April 15th 1994 at Marrakesh (Morocco)

Thus the General Agreement on Tariffs and Trade (GATT) also known as the Dunkel Agreement finally emerged as the World Trade Organization (WTO) in 1995

Why GATT converted to WTO GATT rules discriminated against

developing countries under the garb of clauses such as ldquoescape clausesrdquo ldquosafeguard rulesrdquo ldquovoluntary export restraintsrdquo ldquoorderly agreementsrdquo

lsquoAgriculturersquo was treated as a special case thus escaping GATT rules

Though developed countries removed majority of tariff barriers yet some others still remained affecting the interests of developing countries

US and EEC had concluded several bilateral discriminatory and restrictive arrangements outside GATT rules

ldquoSafeguardsrdquo rules under GATT undermined the effective working of GATT

Customs union and free trade areas permitted under GATT had been distorted and abused

Though GATT was a mandatory body it lacked enforcing mechanism

Last but not the least with the emergence of more and more new developing countries it was felt that GATT rules devised half a century ago had outlined their utility

Monitoring economic and financial developmentsand policies in member countries and at theglobal level giving policy advice to its membersbased on its more than fifty years of experience Lending to member countries with balance ofpayments problems supporting adjustment andreform policies aimed at correcting the underlyingproblems Providing the governments and central banks ofits member countries with technical assistanceand training in its areas of expertise

IMF looks at the performance of the economy as

a whole (macroeconomic performance) Focuses also on the financial sector policiesEx regulation and supervision of banks and otherfinancial institutions Pays attention to structural policies that affectmacroeconomic performanceEx labor market policies (affect employment andwage behavior)

In September 2000 the IMFrsquos then managingdirector Horst Koehler set out some majorpriorities for the work of the IMF Promoting sustained non-inflationary

economicgrowth Being in the center of competence Focusing on its core macroeconomic and

financialareas of responsibility Working in a complementary fashion with

otherinstitutions established Being an open institution

IMFs main ressources suscriptions (quotas) Countries pay 25 percent of their quota subscriptions inSpecial Drawing Rights (SDRs) or major currencies IMF can call on the remainder payable in the membersown currency to be made available for lending as

needed Quotas Determine the amount of financing that each

country canreceive from the IMF Are the main determinant of

countries voting power in the IMF -Broadly reflect members relative size in the world

economy The United States of America the worlds largesteconomy contributes most to the IMF 175 percent oftotal quotas

The IMF offers financial assistance Three implemented facilities --Stand-by Agreement --EFF (Extended Fund Facility PRGF (Poverty reduction and Growth Facility)

The IMF offers technical assistance to transitional economies

The former Soviet Republics

South Korea in the 1997 financial crisis

The structural adjustment is undemocratic and inhumane Causing social problems Foreign corporations and investors takeadvantage of local cheap labor but have no

regard for the environment The gap between the rich and the poor is

gettingbigger Example of Argentina The IMF has become a tool of the USA

The widening trade gap between the developed and developing countries the general dissatisfaction of the developing countries with the GATT and the need for a new organization for international economics cooperation in the field of trade and aid designed to reduce the trade gap of developing countries encouraged the establishment of the United Nations Conference on trade and development(UNCTAD) in 1964 as a permanent organ of the UN general Assembly

FUNCTIONShellip The principal functions of UNCTAD are

1) To promote international trade with a view to accelerating economics development

2) To formulate principles of and policies on international trade and related problems of economics development

3) To negotiate multinational trade agreements4) To negotiate multinational trade agreements

UNCTAD 1964UNCTAD 1964

The context of North-South and East-West tensions

The link between trade and development

1st UNCTAD Ministerial Conference in Geneva

bull Permanent secretariat established Research on trade and development issues

bull Consensus-building through intergovernmental machinery

bull Technical cooperation on all the topics of UNCTAD work

UNCTAD 1964UNCTAD 1964

The context of North-South and East-West tensions

The link between trade and development

1st UNCTAD Ministerial Conference in Geneva

bull Permanent secretariat established Research on trade and development issues

bull Consensus-building through intergovernmental machinery

bull Technical cooperation on all the topics of UNCTAD work

bull Intergovernmental machinery linked to UN General Assembly and ECOSOC

bull Secretariat part of the UN Secretariat (part of same budget)

bull Development-oriented and independent secretariat

bull Political role (ldquosoft lawrdquo) bull Automatic membership bull Wide participation of non-governmental

stakeholders

INTERNATIONAL ECONOMIC ENVIRONMENT

NATIONAL DEVELOPMENT GOALS

SUPPLY-SIDE

PRODUCTIVE

CAPACITY

POLICIES

TRADE

SUPPORT

SERVICES

POLICIES

TRADE POLICYAND

NEGOTIATION

The Ministerial Conference (every 4 years) reports to the UN General Assembly and ECOSOC

Executive body the Trade and Development Board one high level annual session reports to the UN General Assembly and Ecosoc

Three annual Commissions on Trade in goods and services and commodities Investment technology and related financial issues Enterprise business facilitation and development

Several Expert Meetings on specific issues

UNCTAD secretariat 400 staffUNCTAD secretariat 400 staff

Annual Regular budget US $ 57 Annual Regular budget US $ 57

millionmillion

Extra-budgetary funds US$ 35 Extra-budgetary funds US$ 35

million (2005)million (2005)

No field officesNo field offices

GENERAL AGREEMENT ON TARIFFS AND GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)TRADE (GATT)

Was signed in 1947bullIt is a multilateral trade agreement bullRegulating trade among about 150 countriesbullAccording to its preamble purpose of GATT is ldquosubstantial reduction of tariffs and other trade barriers and elimination of preferences on a reciprocal and mutually advantageous basisrdquo

GATT functioned de facto as an organization conducting eight rounds of talks addressing various trade issues and resolving international trade disputes

The Uruguay Round completed on December 15 1993 after 7 yrs of negotiations resulted in an agreement among 117 countries (including US) to reduce trade barriers and to create more comprehensive and enforceable world trade rules

The Final Act embodying the results of Uruguay Round was signed in April 1994

This agreement created the World Trade Organization (WTO) which came into being on January 1 1995

GATT was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO)

The Bretton Woods Conference (1944) had introduced the idea for an organization to regulate trade as part of a larger plan for economic recovery after World War II As governments negotiated the ITO 23 negotiating states began parallel negotiations for the GATT

Once the ITO failed in 1950 only the GATT agreement was left

GATT can be divided into three phases

the first phase from 1947 until the Torquay Round largely concerned with which all commodities would be covered by the agreement and freezing existing tariff levels

the second phase encompassing three rounds from 1959 to 1979 focused on reducing tariffs

the third phase consisting only of the Uruguay Round from 1986 to 1994 extended the agreement fully to new areas such as intellectual property services capital and agriculture Out of this round the WTO was born

RoundsRoundsGATT held a total of 8 rounds Geneva Round - 1947 The first round

took place in 1947 in Geneva 23 countries participated The main focus of the round was tariff concessions around 45000 in total

Annecy Round ndash 1950 The second round took place in 1949 in Annecy France 13 countries participated The main focus of the talks was more tariff reductions around 5000 in total

Torquay Round ndash 1951 The third round occurred in Torquay England in 1951 38 countries participated 8700 tariff concessions were made

Geneva Round - 1955-1956 The fourth round returned to Geneva in 1955 and lasted until May 1956 26 countries participated $25 billion in tariffs were eliminated or reduced

Dillon Round - 1960-1962 The fifth round occurred once more in Geneva and lasted from 1960 to 1962 The talks were named after US Treasury Secretary and former Under Secretary of State Douglas Dillon who first proposed the talks 26 countries participated Along with reducing over $49 billion in tariffs it also yielded discussion relating to the creation of the European Economic Community(EEC)

Kennedy Round - 1964-1967 The sixth round was the last to take place in Geneva from 1964 until 1967 and was named after the late US President Kennedy 66 countries participated Concessions were made on $40 billion worth of tariffs

Tokyo Round - 1973-1979 Reduced tariffs and established new regulations aimed at controlling the proliferation of non-tariff barriers and voluntary export restrictions 102 countries participated Concessions were made on $190 billion worth

Uruguay Round - 1986-1993 The Uruguay Round began in 1986 125 countries participated It was the most ambitious round to date hoping to expand the competence of the GATT to important new areas such as services capital intellectual property textiles and agriculture

The Dunkel Draft Text or Dunkel Package or Dunkel Draft Act embodying the results of Uruguay Round was released on 20th December 1991

The Uruguay Round concluded on 15th Dec 1993 and as many as 125 countries including India signed the Final Act on April 15th 1994 at Marrakesh (Morocco)

Thus the General Agreement on Tariffs and Trade (GATT) also known as the Dunkel Agreement finally emerged as the World Trade Organization (WTO) in 1995

Why GATT converted to WTO GATT rules discriminated against

developing countries under the garb of clauses such as ldquoescape clausesrdquo ldquosafeguard rulesrdquo ldquovoluntary export restraintsrdquo ldquoorderly agreementsrdquo

lsquoAgriculturersquo was treated as a special case thus escaping GATT rules

Though developed countries removed majority of tariff barriers yet some others still remained affecting the interests of developing countries

US and EEC had concluded several bilateral discriminatory and restrictive arrangements outside GATT rules

ldquoSafeguardsrdquo rules under GATT undermined the effective working of GATT

Customs union and free trade areas permitted under GATT had been distorted and abused

Though GATT was a mandatory body it lacked enforcing mechanism

Last but not the least with the emergence of more and more new developing countries it was felt that GATT rules devised half a century ago had outlined their utility

IMF looks at the performance of the economy as

a whole (macroeconomic performance) Focuses also on the financial sector policiesEx regulation and supervision of banks and otherfinancial institutions Pays attention to structural policies that affectmacroeconomic performanceEx labor market policies (affect employment andwage behavior)

In September 2000 the IMFrsquos then managingdirector Horst Koehler set out some majorpriorities for the work of the IMF Promoting sustained non-inflationary

economicgrowth Being in the center of competence Focusing on its core macroeconomic and

financialareas of responsibility Working in a complementary fashion with

otherinstitutions established Being an open institution

IMFs main ressources suscriptions (quotas) Countries pay 25 percent of their quota subscriptions inSpecial Drawing Rights (SDRs) or major currencies IMF can call on the remainder payable in the membersown currency to be made available for lending as

needed Quotas Determine the amount of financing that each

country canreceive from the IMF Are the main determinant of

countries voting power in the IMF -Broadly reflect members relative size in the world

economy The United States of America the worlds largesteconomy contributes most to the IMF 175 percent oftotal quotas

The IMF offers financial assistance Three implemented facilities --Stand-by Agreement --EFF (Extended Fund Facility PRGF (Poverty reduction and Growth Facility)

The IMF offers technical assistance to transitional economies

The former Soviet Republics

South Korea in the 1997 financial crisis

The structural adjustment is undemocratic and inhumane Causing social problems Foreign corporations and investors takeadvantage of local cheap labor but have no

regard for the environment The gap between the rich and the poor is

gettingbigger Example of Argentina The IMF has become a tool of the USA

The widening trade gap between the developed and developing countries the general dissatisfaction of the developing countries with the GATT and the need for a new organization for international economics cooperation in the field of trade and aid designed to reduce the trade gap of developing countries encouraged the establishment of the United Nations Conference on trade and development(UNCTAD) in 1964 as a permanent organ of the UN general Assembly

FUNCTIONShellip The principal functions of UNCTAD are

1) To promote international trade with a view to accelerating economics development

2) To formulate principles of and policies on international trade and related problems of economics development

3) To negotiate multinational trade agreements4) To negotiate multinational trade agreements

UNCTAD 1964UNCTAD 1964

The context of North-South and East-West tensions

The link between trade and development

1st UNCTAD Ministerial Conference in Geneva

bull Permanent secretariat established Research on trade and development issues

bull Consensus-building through intergovernmental machinery

bull Technical cooperation on all the topics of UNCTAD work

UNCTAD 1964UNCTAD 1964

The context of North-South and East-West tensions

The link between trade and development

1st UNCTAD Ministerial Conference in Geneva

bull Permanent secretariat established Research on trade and development issues

bull Consensus-building through intergovernmental machinery

bull Technical cooperation on all the topics of UNCTAD work

bull Intergovernmental machinery linked to UN General Assembly and ECOSOC

bull Secretariat part of the UN Secretariat (part of same budget)

bull Development-oriented and independent secretariat

bull Political role (ldquosoft lawrdquo) bull Automatic membership bull Wide participation of non-governmental

stakeholders

INTERNATIONAL ECONOMIC ENVIRONMENT

NATIONAL DEVELOPMENT GOALS

SUPPLY-SIDE

PRODUCTIVE

CAPACITY

POLICIES

TRADE

SUPPORT

SERVICES

POLICIES

TRADE POLICYAND

NEGOTIATION

The Ministerial Conference (every 4 years) reports to the UN General Assembly and ECOSOC

Executive body the Trade and Development Board one high level annual session reports to the UN General Assembly and Ecosoc

Three annual Commissions on Trade in goods and services and commodities Investment technology and related financial issues Enterprise business facilitation and development

Several Expert Meetings on specific issues

UNCTAD secretariat 400 staffUNCTAD secretariat 400 staff

Annual Regular budget US $ 57 Annual Regular budget US $ 57

millionmillion

Extra-budgetary funds US$ 35 Extra-budgetary funds US$ 35

million (2005)million (2005)

No field officesNo field offices

GENERAL AGREEMENT ON TARIFFS AND GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)TRADE (GATT)

Was signed in 1947bullIt is a multilateral trade agreement bullRegulating trade among about 150 countriesbullAccording to its preamble purpose of GATT is ldquosubstantial reduction of tariffs and other trade barriers and elimination of preferences on a reciprocal and mutually advantageous basisrdquo

GATT functioned de facto as an organization conducting eight rounds of talks addressing various trade issues and resolving international trade disputes

The Uruguay Round completed on December 15 1993 after 7 yrs of negotiations resulted in an agreement among 117 countries (including US) to reduce trade barriers and to create more comprehensive and enforceable world trade rules

The Final Act embodying the results of Uruguay Round was signed in April 1994

This agreement created the World Trade Organization (WTO) which came into being on January 1 1995

GATT was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO)

The Bretton Woods Conference (1944) had introduced the idea for an organization to regulate trade as part of a larger plan for economic recovery after World War II As governments negotiated the ITO 23 negotiating states began parallel negotiations for the GATT

Once the ITO failed in 1950 only the GATT agreement was left

GATT can be divided into three phases

the first phase from 1947 until the Torquay Round largely concerned with which all commodities would be covered by the agreement and freezing existing tariff levels

the second phase encompassing three rounds from 1959 to 1979 focused on reducing tariffs

the third phase consisting only of the Uruguay Round from 1986 to 1994 extended the agreement fully to new areas such as intellectual property services capital and agriculture Out of this round the WTO was born

RoundsRoundsGATT held a total of 8 rounds Geneva Round - 1947 The first round

took place in 1947 in Geneva 23 countries participated The main focus of the round was tariff concessions around 45000 in total

Annecy Round ndash 1950 The second round took place in 1949 in Annecy France 13 countries participated The main focus of the talks was more tariff reductions around 5000 in total

Torquay Round ndash 1951 The third round occurred in Torquay England in 1951 38 countries participated 8700 tariff concessions were made

Geneva Round - 1955-1956 The fourth round returned to Geneva in 1955 and lasted until May 1956 26 countries participated $25 billion in tariffs were eliminated or reduced

Dillon Round - 1960-1962 The fifth round occurred once more in Geneva and lasted from 1960 to 1962 The talks were named after US Treasury Secretary and former Under Secretary of State Douglas Dillon who first proposed the talks 26 countries participated Along with reducing over $49 billion in tariffs it also yielded discussion relating to the creation of the European Economic Community(EEC)

Kennedy Round - 1964-1967 The sixth round was the last to take place in Geneva from 1964 until 1967 and was named after the late US President Kennedy 66 countries participated Concessions were made on $40 billion worth of tariffs

Tokyo Round - 1973-1979 Reduced tariffs and established new regulations aimed at controlling the proliferation of non-tariff barriers and voluntary export restrictions 102 countries participated Concessions were made on $190 billion worth

Uruguay Round - 1986-1993 The Uruguay Round began in 1986 125 countries participated It was the most ambitious round to date hoping to expand the competence of the GATT to important new areas such as services capital intellectual property textiles and agriculture

The Dunkel Draft Text or Dunkel Package or Dunkel Draft Act embodying the results of Uruguay Round was released on 20th December 1991

The Uruguay Round concluded on 15th Dec 1993 and as many as 125 countries including India signed the Final Act on April 15th 1994 at Marrakesh (Morocco)

Thus the General Agreement on Tariffs and Trade (GATT) also known as the Dunkel Agreement finally emerged as the World Trade Organization (WTO) in 1995

Why GATT converted to WTO GATT rules discriminated against

developing countries under the garb of clauses such as ldquoescape clausesrdquo ldquosafeguard rulesrdquo ldquovoluntary export restraintsrdquo ldquoorderly agreementsrdquo

lsquoAgriculturersquo was treated as a special case thus escaping GATT rules

Though developed countries removed majority of tariff barriers yet some others still remained affecting the interests of developing countries

US and EEC had concluded several bilateral discriminatory and restrictive arrangements outside GATT rules

ldquoSafeguardsrdquo rules under GATT undermined the effective working of GATT

Customs union and free trade areas permitted under GATT had been distorted and abused

Though GATT was a mandatory body it lacked enforcing mechanism

Last but not the least with the emergence of more and more new developing countries it was felt that GATT rules devised half a century ago had outlined their utility

In September 2000 the IMFrsquos then managingdirector Horst Koehler set out some majorpriorities for the work of the IMF Promoting sustained non-inflationary

economicgrowth Being in the center of competence Focusing on its core macroeconomic and

financialareas of responsibility Working in a complementary fashion with

otherinstitutions established Being an open institution

IMFs main ressources suscriptions (quotas) Countries pay 25 percent of their quota subscriptions inSpecial Drawing Rights (SDRs) or major currencies IMF can call on the remainder payable in the membersown currency to be made available for lending as

needed Quotas Determine the amount of financing that each

country canreceive from the IMF Are the main determinant of

countries voting power in the IMF -Broadly reflect members relative size in the world

economy The United States of America the worlds largesteconomy contributes most to the IMF 175 percent oftotal quotas

The IMF offers financial assistance Three implemented facilities --Stand-by Agreement --EFF (Extended Fund Facility PRGF (Poverty reduction and Growth Facility)

The IMF offers technical assistance to transitional economies

The former Soviet Republics

South Korea in the 1997 financial crisis

The structural adjustment is undemocratic and inhumane Causing social problems Foreign corporations and investors takeadvantage of local cheap labor but have no

regard for the environment The gap between the rich and the poor is

gettingbigger Example of Argentina The IMF has become a tool of the USA

The widening trade gap between the developed and developing countries the general dissatisfaction of the developing countries with the GATT and the need for a new organization for international economics cooperation in the field of trade and aid designed to reduce the trade gap of developing countries encouraged the establishment of the United Nations Conference on trade and development(UNCTAD) in 1964 as a permanent organ of the UN general Assembly

FUNCTIONShellip The principal functions of UNCTAD are

1) To promote international trade with a view to accelerating economics development

2) To formulate principles of and policies on international trade and related problems of economics development

3) To negotiate multinational trade agreements4) To negotiate multinational trade agreements

UNCTAD 1964UNCTAD 1964

The context of North-South and East-West tensions

The link between trade and development

1st UNCTAD Ministerial Conference in Geneva

bull Permanent secretariat established Research on trade and development issues

bull Consensus-building through intergovernmental machinery

bull Technical cooperation on all the topics of UNCTAD work

UNCTAD 1964UNCTAD 1964

The context of North-South and East-West tensions

The link between trade and development

1st UNCTAD Ministerial Conference in Geneva

bull Permanent secretariat established Research on trade and development issues

bull Consensus-building through intergovernmental machinery

bull Technical cooperation on all the topics of UNCTAD work

bull Intergovernmental machinery linked to UN General Assembly and ECOSOC

bull Secretariat part of the UN Secretariat (part of same budget)

bull Development-oriented and independent secretariat

bull Political role (ldquosoft lawrdquo) bull Automatic membership bull Wide participation of non-governmental

stakeholders

INTERNATIONAL ECONOMIC ENVIRONMENT

NATIONAL DEVELOPMENT GOALS

SUPPLY-SIDE

PRODUCTIVE

CAPACITY

POLICIES

TRADE

SUPPORT

SERVICES

POLICIES

TRADE POLICYAND

NEGOTIATION

The Ministerial Conference (every 4 years) reports to the UN General Assembly and ECOSOC

Executive body the Trade and Development Board one high level annual session reports to the UN General Assembly and Ecosoc

Three annual Commissions on Trade in goods and services and commodities Investment technology and related financial issues Enterprise business facilitation and development

Several Expert Meetings on specific issues

UNCTAD secretariat 400 staffUNCTAD secretariat 400 staff

Annual Regular budget US $ 57 Annual Regular budget US $ 57

millionmillion

Extra-budgetary funds US$ 35 Extra-budgetary funds US$ 35

million (2005)million (2005)

No field officesNo field offices

GENERAL AGREEMENT ON TARIFFS AND GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)TRADE (GATT)

Was signed in 1947bullIt is a multilateral trade agreement bullRegulating trade among about 150 countriesbullAccording to its preamble purpose of GATT is ldquosubstantial reduction of tariffs and other trade barriers and elimination of preferences on a reciprocal and mutually advantageous basisrdquo

GATT functioned de facto as an organization conducting eight rounds of talks addressing various trade issues and resolving international trade disputes

The Uruguay Round completed on December 15 1993 after 7 yrs of negotiations resulted in an agreement among 117 countries (including US) to reduce trade barriers and to create more comprehensive and enforceable world trade rules

The Final Act embodying the results of Uruguay Round was signed in April 1994

This agreement created the World Trade Organization (WTO) which came into being on January 1 1995

GATT was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO)

The Bretton Woods Conference (1944) had introduced the idea for an organization to regulate trade as part of a larger plan for economic recovery after World War II As governments negotiated the ITO 23 negotiating states began parallel negotiations for the GATT

Once the ITO failed in 1950 only the GATT agreement was left

GATT can be divided into three phases

the first phase from 1947 until the Torquay Round largely concerned with which all commodities would be covered by the agreement and freezing existing tariff levels

the second phase encompassing three rounds from 1959 to 1979 focused on reducing tariffs

the third phase consisting only of the Uruguay Round from 1986 to 1994 extended the agreement fully to new areas such as intellectual property services capital and agriculture Out of this round the WTO was born

RoundsRoundsGATT held a total of 8 rounds Geneva Round - 1947 The first round

took place in 1947 in Geneva 23 countries participated The main focus of the round was tariff concessions around 45000 in total

Annecy Round ndash 1950 The second round took place in 1949 in Annecy France 13 countries participated The main focus of the talks was more tariff reductions around 5000 in total

Torquay Round ndash 1951 The third round occurred in Torquay England in 1951 38 countries participated 8700 tariff concessions were made

Geneva Round - 1955-1956 The fourth round returned to Geneva in 1955 and lasted until May 1956 26 countries participated $25 billion in tariffs were eliminated or reduced

Dillon Round - 1960-1962 The fifth round occurred once more in Geneva and lasted from 1960 to 1962 The talks were named after US Treasury Secretary and former Under Secretary of State Douglas Dillon who first proposed the talks 26 countries participated Along with reducing over $49 billion in tariffs it also yielded discussion relating to the creation of the European Economic Community(EEC)

Kennedy Round - 1964-1967 The sixth round was the last to take place in Geneva from 1964 until 1967 and was named after the late US President Kennedy 66 countries participated Concessions were made on $40 billion worth of tariffs

Tokyo Round - 1973-1979 Reduced tariffs and established new regulations aimed at controlling the proliferation of non-tariff barriers and voluntary export restrictions 102 countries participated Concessions were made on $190 billion worth

Uruguay Round - 1986-1993 The Uruguay Round began in 1986 125 countries participated It was the most ambitious round to date hoping to expand the competence of the GATT to important new areas such as services capital intellectual property textiles and agriculture

The Dunkel Draft Text or Dunkel Package or Dunkel Draft Act embodying the results of Uruguay Round was released on 20th December 1991

The Uruguay Round concluded on 15th Dec 1993 and as many as 125 countries including India signed the Final Act on April 15th 1994 at Marrakesh (Morocco)

Thus the General Agreement on Tariffs and Trade (GATT) also known as the Dunkel Agreement finally emerged as the World Trade Organization (WTO) in 1995

Why GATT converted to WTO GATT rules discriminated against

developing countries under the garb of clauses such as ldquoescape clausesrdquo ldquosafeguard rulesrdquo ldquovoluntary export restraintsrdquo ldquoorderly agreementsrdquo

lsquoAgriculturersquo was treated as a special case thus escaping GATT rules

Though developed countries removed majority of tariff barriers yet some others still remained affecting the interests of developing countries

US and EEC had concluded several bilateral discriminatory and restrictive arrangements outside GATT rules

ldquoSafeguardsrdquo rules under GATT undermined the effective working of GATT

Customs union and free trade areas permitted under GATT had been distorted and abused

Though GATT was a mandatory body it lacked enforcing mechanism

Last but not the least with the emergence of more and more new developing countries it was felt that GATT rules devised half a century ago had outlined their utility

IMFs main ressources suscriptions (quotas) Countries pay 25 percent of their quota subscriptions inSpecial Drawing Rights (SDRs) or major currencies IMF can call on the remainder payable in the membersown currency to be made available for lending as

needed Quotas Determine the amount of financing that each

country canreceive from the IMF Are the main determinant of

countries voting power in the IMF -Broadly reflect members relative size in the world

economy The United States of America the worlds largesteconomy contributes most to the IMF 175 percent oftotal quotas

The IMF offers financial assistance Three implemented facilities --Stand-by Agreement --EFF (Extended Fund Facility PRGF (Poverty reduction and Growth Facility)

The IMF offers technical assistance to transitional economies

The former Soviet Republics

South Korea in the 1997 financial crisis

The structural adjustment is undemocratic and inhumane Causing social problems Foreign corporations and investors takeadvantage of local cheap labor but have no

regard for the environment The gap between the rich and the poor is

gettingbigger Example of Argentina The IMF has become a tool of the USA

The widening trade gap between the developed and developing countries the general dissatisfaction of the developing countries with the GATT and the need for a new organization for international economics cooperation in the field of trade and aid designed to reduce the trade gap of developing countries encouraged the establishment of the United Nations Conference on trade and development(UNCTAD) in 1964 as a permanent organ of the UN general Assembly

FUNCTIONShellip The principal functions of UNCTAD are

1) To promote international trade with a view to accelerating economics development

2) To formulate principles of and policies on international trade and related problems of economics development

3) To negotiate multinational trade agreements4) To negotiate multinational trade agreements

UNCTAD 1964UNCTAD 1964

The context of North-South and East-West tensions

The link between trade and development

1st UNCTAD Ministerial Conference in Geneva

bull Permanent secretariat established Research on trade and development issues

bull Consensus-building through intergovernmental machinery

bull Technical cooperation on all the topics of UNCTAD work

UNCTAD 1964UNCTAD 1964

The context of North-South and East-West tensions

The link between trade and development

1st UNCTAD Ministerial Conference in Geneva

bull Permanent secretariat established Research on trade and development issues

bull Consensus-building through intergovernmental machinery

bull Technical cooperation on all the topics of UNCTAD work

bull Intergovernmental machinery linked to UN General Assembly and ECOSOC

bull Secretariat part of the UN Secretariat (part of same budget)

bull Development-oriented and independent secretariat

bull Political role (ldquosoft lawrdquo) bull Automatic membership bull Wide participation of non-governmental

stakeholders

INTERNATIONAL ECONOMIC ENVIRONMENT

NATIONAL DEVELOPMENT GOALS

SUPPLY-SIDE

PRODUCTIVE

CAPACITY

POLICIES

TRADE

SUPPORT

SERVICES

POLICIES

TRADE POLICYAND

NEGOTIATION

The Ministerial Conference (every 4 years) reports to the UN General Assembly and ECOSOC

Executive body the Trade and Development Board one high level annual session reports to the UN General Assembly and Ecosoc

Three annual Commissions on Trade in goods and services and commodities Investment technology and related financial issues Enterprise business facilitation and development

Several Expert Meetings on specific issues

UNCTAD secretariat 400 staffUNCTAD secretariat 400 staff

Annual Regular budget US $ 57 Annual Regular budget US $ 57

millionmillion

Extra-budgetary funds US$ 35 Extra-budgetary funds US$ 35

million (2005)million (2005)

No field officesNo field offices

GENERAL AGREEMENT ON TARIFFS AND GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)TRADE (GATT)

Was signed in 1947bullIt is a multilateral trade agreement bullRegulating trade among about 150 countriesbullAccording to its preamble purpose of GATT is ldquosubstantial reduction of tariffs and other trade barriers and elimination of preferences on a reciprocal and mutually advantageous basisrdquo

GATT functioned de facto as an organization conducting eight rounds of talks addressing various trade issues and resolving international trade disputes

The Uruguay Round completed on December 15 1993 after 7 yrs of negotiations resulted in an agreement among 117 countries (including US) to reduce trade barriers and to create more comprehensive and enforceable world trade rules

The Final Act embodying the results of Uruguay Round was signed in April 1994

This agreement created the World Trade Organization (WTO) which came into being on January 1 1995

GATT was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO)

The Bretton Woods Conference (1944) had introduced the idea for an organization to regulate trade as part of a larger plan for economic recovery after World War II As governments negotiated the ITO 23 negotiating states began parallel negotiations for the GATT

Once the ITO failed in 1950 only the GATT agreement was left

GATT can be divided into three phases

the first phase from 1947 until the Torquay Round largely concerned with which all commodities would be covered by the agreement and freezing existing tariff levels

the second phase encompassing three rounds from 1959 to 1979 focused on reducing tariffs

the third phase consisting only of the Uruguay Round from 1986 to 1994 extended the agreement fully to new areas such as intellectual property services capital and agriculture Out of this round the WTO was born

RoundsRoundsGATT held a total of 8 rounds Geneva Round - 1947 The first round

took place in 1947 in Geneva 23 countries participated The main focus of the round was tariff concessions around 45000 in total

Annecy Round ndash 1950 The second round took place in 1949 in Annecy France 13 countries participated The main focus of the talks was more tariff reductions around 5000 in total

Torquay Round ndash 1951 The third round occurred in Torquay England in 1951 38 countries participated 8700 tariff concessions were made

Geneva Round - 1955-1956 The fourth round returned to Geneva in 1955 and lasted until May 1956 26 countries participated $25 billion in tariffs were eliminated or reduced

Dillon Round - 1960-1962 The fifth round occurred once more in Geneva and lasted from 1960 to 1962 The talks were named after US Treasury Secretary and former Under Secretary of State Douglas Dillon who first proposed the talks 26 countries participated Along with reducing over $49 billion in tariffs it also yielded discussion relating to the creation of the European Economic Community(EEC)

Kennedy Round - 1964-1967 The sixth round was the last to take place in Geneva from 1964 until 1967 and was named after the late US President Kennedy 66 countries participated Concessions were made on $40 billion worth of tariffs

Tokyo Round - 1973-1979 Reduced tariffs and established new regulations aimed at controlling the proliferation of non-tariff barriers and voluntary export restrictions 102 countries participated Concessions were made on $190 billion worth

Uruguay Round - 1986-1993 The Uruguay Round began in 1986 125 countries participated It was the most ambitious round to date hoping to expand the competence of the GATT to important new areas such as services capital intellectual property textiles and agriculture

The Dunkel Draft Text or Dunkel Package or Dunkel Draft Act embodying the results of Uruguay Round was released on 20th December 1991

The Uruguay Round concluded on 15th Dec 1993 and as many as 125 countries including India signed the Final Act on April 15th 1994 at Marrakesh (Morocco)

Thus the General Agreement on Tariffs and Trade (GATT) also known as the Dunkel Agreement finally emerged as the World Trade Organization (WTO) in 1995

Why GATT converted to WTO GATT rules discriminated against

developing countries under the garb of clauses such as ldquoescape clausesrdquo ldquosafeguard rulesrdquo ldquovoluntary export restraintsrdquo ldquoorderly agreementsrdquo

lsquoAgriculturersquo was treated as a special case thus escaping GATT rules

Though developed countries removed majority of tariff barriers yet some others still remained affecting the interests of developing countries

US and EEC had concluded several bilateral discriminatory and restrictive arrangements outside GATT rules

ldquoSafeguardsrdquo rules under GATT undermined the effective working of GATT

Customs union and free trade areas permitted under GATT had been distorted and abused

Though GATT was a mandatory body it lacked enforcing mechanism

Last but not the least with the emergence of more and more new developing countries it was felt that GATT rules devised half a century ago had outlined their utility

The IMF offers financial assistance Three implemented facilities --Stand-by Agreement --EFF (Extended Fund Facility PRGF (Poverty reduction and Growth Facility)

The IMF offers technical assistance to transitional economies

The former Soviet Republics

South Korea in the 1997 financial crisis

The structural adjustment is undemocratic and inhumane Causing social problems Foreign corporations and investors takeadvantage of local cheap labor but have no

regard for the environment The gap between the rich and the poor is

gettingbigger Example of Argentina The IMF has become a tool of the USA

The widening trade gap between the developed and developing countries the general dissatisfaction of the developing countries with the GATT and the need for a new organization for international economics cooperation in the field of trade and aid designed to reduce the trade gap of developing countries encouraged the establishment of the United Nations Conference on trade and development(UNCTAD) in 1964 as a permanent organ of the UN general Assembly

FUNCTIONShellip The principal functions of UNCTAD are

1) To promote international trade with a view to accelerating economics development

2) To formulate principles of and policies on international trade and related problems of economics development

3) To negotiate multinational trade agreements4) To negotiate multinational trade agreements

UNCTAD 1964UNCTAD 1964

The context of North-South and East-West tensions

The link between trade and development

1st UNCTAD Ministerial Conference in Geneva

bull Permanent secretariat established Research on trade and development issues

bull Consensus-building through intergovernmental machinery

bull Technical cooperation on all the topics of UNCTAD work

UNCTAD 1964UNCTAD 1964

The context of North-South and East-West tensions

The link between trade and development

1st UNCTAD Ministerial Conference in Geneva

bull Permanent secretariat established Research on trade and development issues

bull Consensus-building through intergovernmental machinery

bull Technical cooperation on all the topics of UNCTAD work

bull Intergovernmental machinery linked to UN General Assembly and ECOSOC

bull Secretariat part of the UN Secretariat (part of same budget)

bull Development-oriented and independent secretariat

bull Political role (ldquosoft lawrdquo) bull Automatic membership bull Wide participation of non-governmental

stakeholders

INTERNATIONAL ECONOMIC ENVIRONMENT

NATIONAL DEVELOPMENT GOALS

SUPPLY-SIDE

PRODUCTIVE

CAPACITY

POLICIES

TRADE

SUPPORT

SERVICES

POLICIES

TRADE POLICYAND

NEGOTIATION

The Ministerial Conference (every 4 years) reports to the UN General Assembly and ECOSOC

Executive body the Trade and Development Board one high level annual session reports to the UN General Assembly and Ecosoc

Three annual Commissions on Trade in goods and services and commodities Investment technology and related financial issues Enterprise business facilitation and development

Several Expert Meetings on specific issues

UNCTAD secretariat 400 staffUNCTAD secretariat 400 staff

Annual Regular budget US $ 57 Annual Regular budget US $ 57

millionmillion

Extra-budgetary funds US$ 35 Extra-budgetary funds US$ 35

million (2005)million (2005)

No field officesNo field offices

GENERAL AGREEMENT ON TARIFFS AND GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)TRADE (GATT)

Was signed in 1947bullIt is a multilateral trade agreement bullRegulating trade among about 150 countriesbullAccording to its preamble purpose of GATT is ldquosubstantial reduction of tariffs and other trade barriers and elimination of preferences on a reciprocal and mutually advantageous basisrdquo

GATT functioned de facto as an organization conducting eight rounds of talks addressing various trade issues and resolving international trade disputes

The Uruguay Round completed on December 15 1993 after 7 yrs of negotiations resulted in an agreement among 117 countries (including US) to reduce trade barriers and to create more comprehensive and enforceable world trade rules

The Final Act embodying the results of Uruguay Round was signed in April 1994

This agreement created the World Trade Organization (WTO) which came into being on January 1 1995

GATT was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO)

The Bretton Woods Conference (1944) had introduced the idea for an organization to regulate trade as part of a larger plan for economic recovery after World War II As governments negotiated the ITO 23 negotiating states began parallel negotiations for the GATT

Once the ITO failed in 1950 only the GATT agreement was left

GATT can be divided into three phases

the first phase from 1947 until the Torquay Round largely concerned with which all commodities would be covered by the agreement and freezing existing tariff levels

the second phase encompassing three rounds from 1959 to 1979 focused on reducing tariffs

the third phase consisting only of the Uruguay Round from 1986 to 1994 extended the agreement fully to new areas such as intellectual property services capital and agriculture Out of this round the WTO was born

RoundsRoundsGATT held a total of 8 rounds Geneva Round - 1947 The first round

took place in 1947 in Geneva 23 countries participated The main focus of the round was tariff concessions around 45000 in total

Annecy Round ndash 1950 The second round took place in 1949 in Annecy France 13 countries participated The main focus of the talks was more tariff reductions around 5000 in total

Torquay Round ndash 1951 The third round occurred in Torquay England in 1951 38 countries participated 8700 tariff concessions were made

Geneva Round - 1955-1956 The fourth round returned to Geneva in 1955 and lasted until May 1956 26 countries participated $25 billion in tariffs were eliminated or reduced

Dillon Round - 1960-1962 The fifth round occurred once more in Geneva and lasted from 1960 to 1962 The talks were named after US Treasury Secretary and former Under Secretary of State Douglas Dillon who first proposed the talks 26 countries participated Along with reducing over $49 billion in tariffs it also yielded discussion relating to the creation of the European Economic Community(EEC)

Kennedy Round - 1964-1967 The sixth round was the last to take place in Geneva from 1964 until 1967 and was named after the late US President Kennedy 66 countries participated Concessions were made on $40 billion worth of tariffs

Tokyo Round - 1973-1979 Reduced tariffs and established new regulations aimed at controlling the proliferation of non-tariff barriers and voluntary export restrictions 102 countries participated Concessions were made on $190 billion worth

Uruguay Round - 1986-1993 The Uruguay Round began in 1986 125 countries participated It was the most ambitious round to date hoping to expand the competence of the GATT to important new areas such as services capital intellectual property textiles and agriculture

The Dunkel Draft Text or Dunkel Package or Dunkel Draft Act embodying the results of Uruguay Round was released on 20th December 1991

The Uruguay Round concluded on 15th Dec 1993 and as many as 125 countries including India signed the Final Act on April 15th 1994 at Marrakesh (Morocco)

Thus the General Agreement on Tariffs and Trade (GATT) also known as the Dunkel Agreement finally emerged as the World Trade Organization (WTO) in 1995

Why GATT converted to WTO GATT rules discriminated against

developing countries under the garb of clauses such as ldquoescape clausesrdquo ldquosafeguard rulesrdquo ldquovoluntary export restraintsrdquo ldquoorderly agreementsrdquo

lsquoAgriculturersquo was treated as a special case thus escaping GATT rules

Though developed countries removed majority of tariff barriers yet some others still remained affecting the interests of developing countries

US and EEC had concluded several bilateral discriminatory and restrictive arrangements outside GATT rules

ldquoSafeguardsrdquo rules under GATT undermined the effective working of GATT

Customs union and free trade areas permitted under GATT had been distorted and abused

Though GATT was a mandatory body it lacked enforcing mechanism

Last but not the least with the emergence of more and more new developing countries it was felt that GATT rules devised half a century ago had outlined their utility

The IMF offers technical assistance to transitional economies

The former Soviet Republics

South Korea in the 1997 financial crisis

The structural adjustment is undemocratic and inhumane Causing social problems Foreign corporations and investors takeadvantage of local cheap labor but have no

regard for the environment The gap between the rich and the poor is

gettingbigger Example of Argentina The IMF has become a tool of the USA

The widening trade gap between the developed and developing countries the general dissatisfaction of the developing countries with the GATT and the need for a new organization for international economics cooperation in the field of trade and aid designed to reduce the trade gap of developing countries encouraged the establishment of the United Nations Conference on trade and development(UNCTAD) in 1964 as a permanent organ of the UN general Assembly

FUNCTIONShellip The principal functions of UNCTAD are

1) To promote international trade with a view to accelerating economics development

2) To formulate principles of and policies on international trade and related problems of economics development

3) To negotiate multinational trade agreements4) To negotiate multinational trade agreements

UNCTAD 1964UNCTAD 1964

The context of North-South and East-West tensions

The link between trade and development

1st UNCTAD Ministerial Conference in Geneva

bull Permanent secretariat established Research on trade and development issues

bull Consensus-building through intergovernmental machinery

bull Technical cooperation on all the topics of UNCTAD work

UNCTAD 1964UNCTAD 1964

The context of North-South and East-West tensions

The link between trade and development

1st UNCTAD Ministerial Conference in Geneva

bull Permanent secretariat established Research on trade and development issues

bull Consensus-building through intergovernmental machinery

bull Technical cooperation on all the topics of UNCTAD work

bull Intergovernmental machinery linked to UN General Assembly and ECOSOC

bull Secretariat part of the UN Secretariat (part of same budget)

bull Development-oriented and independent secretariat

bull Political role (ldquosoft lawrdquo) bull Automatic membership bull Wide participation of non-governmental

stakeholders

INTERNATIONAL ECONOMIC ENVIRONMENT

NATIONAL DEVELOPMENT GOALS

SUPPLY-SIDE

PRODUCTIVE

CAPACITY

POLICIES

TRADE

SUPPORT

SERVICES

POLICIES

TRADE POLICYAND

NEGOTIATION

The Ministerial Conference (every 4 years) reports to the UN General Assembly and ECOSOC

Executive body the Trade and Development Board one high level annual session reports to the UN General Assembly and Ecosoc

Three annual Commissions on Trade in goods and services and commodities Investment technology and related financial issues Enterprise business facilitation and development

Several Expert Meetings on specific issues

UNCTAD secretariat 400 staffUNCTAD secretariat 400 staff

Annual Regular budget US $ 57 Annual Regular budget US $ 57

millionmillion

Extra-budgetary funds US$ 35 Extra-budgetary funds US$ 35

million (2005)million (2005)

No field officesNo field offices

GENERAL AGREEMENT ON TARIFFS AND GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)TRADE (GATT)

Was signed in 1947bullIt is a multilateral trade agreement bullRegulating trade among about 150 countriesbullAccording to its preamble purpose of GATT is ldquosubstantial reduction of tariffs and other trade barriers and elimination of preferences on a reciprocal and mutually advantageous basisrdquo

GATT functioned de facto as an organization conducting eight rounds of talks addressing various trade issues and resolving international trade disputes

The Uruguay Round completed on December 15 1993 after 7 yrs of negotiations resulted in an agreement among 117 countries (including US) to reduce trade barriers and to create more comprehensive and enforceable world trade rules

The Final Act embodying the results of Uruguay Round was signed in April 1994

This agreement created the World Trade Organization (WTO) which came into being on January 1 1995

GATT was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO)

The Bretton Woods Conference (1944) had introduced the idea for an organization to regulate trade as part of a larger plan for economic recovery after World War II As governments negotiated the ITO 23 negotiating states began parallel negotiations for the GATT

Once the ITO failed in 1950 only the GATT agreement was left

GATT can be divided into three phases

the first phase from 1947 until the Torquay Round largely concerned with which all commodities would be covered by the agreement and freezing existing tariff levels

the second phase encompassing three rounds from 1959 to 1979 focused on reducing tariffs

the third phase consisting only of the Uruguay Round from 1986 to 1994 extended the agreement fully to new areas such as intellectual property services capital and agriculture Out of this round the WTO was born

RoundsRoundsGATT held a total of 8 rounds Geneva Round - 1947 The first round

took place in 1947 in Geneva 23 countries participated The main focus of the round was tariff concessions around 45000 in total

Annecy Round ndash 1950 The second round took place in 1949 in Annecy France 13 countries participated The main focus of the talks was more tariff reductions around 5000 in total

Torquay Round ndash 1951 The third round occurred in Torquay England in 1951 38 countries participated 8700 tariff concessions were made

Geneva Round - 1955-1956 The fourth round returned to Geneva in 1955 and lasted until May 1956 26 countries participated $25 billion in tariffs were eliminated or reduced

Dillon Round - 1960-1962 The fifth round occurred once more in Geneva and lasted from 1960 to 1962 The talks were named after US Treasury Secretary and former Under Secretary of State Douglas Dillon who first proposed the talks 26 countries participated Along with reducing over $49 billion in tariffs it also yielded discussion relating to the creation of the European Economic Community(EEC)

Kennedy Round - 1964-1967 The sixth round was the last to take place in Geneva from 1964 until 1967 and was named after the late US President Kennedy 66 countries participated Concessions were made on $40 billion worth of tariffs

Tokyo Round - 1973-1979 Reduced tariffs and established new regulations aimed at controlling the proliferation of non-tariff barriers and voluntary export restrictions 102 countries participated Concessions were made on $190 billion worth

Uruguay Round - 1986-1993 The Uruguay Round began in 1986 125 countries participated It was the most ambitious round to date hoping to expand the competence of the GATT to important new areas such as services capital intellectual property textiles and agriculture

The Dunkel Draft Text or Dunkel Package or Dunkel Draft Act embodying the results of Uruguay Round was released on 20th December 1991

The Uruguay Round concluded on 15th Dec 1993 and as many as 125 countries including India signed the Final Act on April 15th 1994 at Marrakesh (Morocco)

Thus the General Agreement on Tariffs and Trade (GATT) also known as the Dunkel Agreement finally emerged as the World Trade Organization (WTO) in 1995

Why GATT converted to WTO GATT rules discriminated against

developing countries under the garb of clauses such as ldquoescape clausesrdquo ldquosafeguard rulesrdquo ldquovoluntary export restraintsrdquo ldquoorderly agreementsrdquo

lsquoAgriculturersquo was treated as a special case thus escaping GATT rules

Though developed countries removed majority of tariff barriers yet some others still remained affecting the interests of developing countries

US and EEC had concluded several bilateral discriminatory and restrictive arrangements outside GATT rules

ldquoSafeguardsrdquo rules under GATT undermined the effective working of GATT

Customs union and free trade areas permitted under GATT had been distorted and abused

Though GATT was a mandatory body it lacked enforcing mechanism

Last but not the least with the emergence of more and more new developing countries it was felt that GATT rules devised half a century ago had outlined their utility

The structural adjustment is undemocratic and inhumane Causing social problems Foreign corporations and investors takeadvantage of local cheap labor but have no

regard for the environment The gap between the rich and the poor is

gettingbigger Example of Argentina The IMF has become a tool of the USA

The widening trade gap between the developed and developing countries the general dissatisfaction of the developing countries with the GATT and the need for a new organization for international economics cooperation in the field of trade and aid designed to reduce the trade gap of developing countries encouraged the establishment of the United Nations Conference on trade and development(UNCTAD) in 1964 as a permanent organ of the UN general Assembly

FUNCTIONShellip The principal functions of UNCTAD are

1) To promote international trade with a view to accelerating economics development

2) To formulate principles of and policies on international trade and related problems of economics development

3) To negotiate multinational trade agreements4) To negotiate multinational trade agreements

UNCTAD 1964UNCTAD 1964

The context of North-South and East-West tensions

The link between trade and development

1st UNCTAD Ministerial Conference in Geneva

bull Permanent secretariat established Research on trade and development issues

bull Consensus-building through intergovernmental machinery

bull Technical cooperation on all the topics of UNCTAD work

UNCTAD 1964UNCTAD 1964

The context of North-South and East-West tensions

The link between trade and development

1st UNCTAD Ministerial Conference in Geneva

bull Permanent secretariat established Research on trade and development issues

bull Consensus-building through intergovernmental machinery

bull Technical cooperation on all the topics of UNCTAD work

bull Intergovernmental machinery linked to UN General Assembly and ECOSOC

bull Secretariat part of the UN Secretariat (part of same budget)

bull Development-oriented and independent secretariat

bull Political role (ldquosoft lawrdquo) bull Automatic membership bull Wide participation of non-governmental

stakeholders

INTERNATIONAL ECONOMIC ENVIRONMENT

NATIONAL DEVELOPMENT GOALS

SUPPLY-SIDE

PRODUCTIVE

CAPACITY

POLICIES

TRADE

SUPPORT

SERVICES

POLICIES

TRADE POLICYAND

NEGOTIATION

The Ministerial Conference (every 4 years) reports to the UN General Assembly and ECOSOC

Executive body the Trade and Development Board one high level annual session reports to the UN General Assembly and Ecosoc

Three annual Commissions on Trade in goods and services and commodities Investment technology and related financial issues Enterprise business facilitation and development

Several Expert Meetings on specific issues

UNCTAD secretariat 400 staffUNCTAD secretariat 400 staff

Annual Regular budget US $ 57 Annual Regular budget US $ 57

millionmillion

Extra-budgetary funds US$ 35 Extra-budgetary funds US$ 35

million (2005)million (2005)

No field officesNo field offices

GENERAL AGREEMENT ON TARIFFS AND GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)TRADE (GATT)

Was signed in 1947bullIt is a multilateral trade agreement bullRegulating trade among about 150 countriesbullAccording to its preamble purpose of GATT is ldquosubstantial reduction of tariffs and other trade barriers and elimination of preferences on a reciprocal and mutually advantageous basisrdquo

GATT functioned de facto as an organization conducting eight rounds of talks addressing various trade issues and resolving international trade disputes

The Uruguay Round completed on December 15 1993 after 7 yrs of negotiations resulted in an agreement among 117 countries (including US) to reduce trade barriers and to create more comprehensive and enforceable world trade rules

The Final Act embodying the results of Uruguay Round was signed in April 1994

This agreement created the World Trade Organization (WTO) which came into being on January 1 1995

GATT was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO)

The Bretton Woods Conference (1944) had introduced the idea for an organization to regulate trade as part of a larger plan for economic recovery after World War II As governments negotiated the ITO 23 negotiating states began parallel negotiations for the GATT

Once the ITO failed in 1950 only the GATT agreement was left

GATT can be divided into three phases

the first phase from 1947 until the Torquay Round largely concerned with which all commodities would be covered by the agreement and freezing existing tariff levels

the second phase encompassing three rounds from 1959 to 1979 focused on reducing tariffs

the third phase consisting only of the Uruguay Round from 1986 to 1994 extended the agreement fully to new areas such as intellectual property services capital and agriculture Out of this round the WTO was born

RoundsRoundsGATT held a total of 8 rounds Geneva Round - 1947 The first round

took place in 1947 in Geneva 23 countries participated The main focus of the round was tariff concessions around 45000 in total

Annecy Round ndash 1950 The second round took place in 1949 in Annecy France 13 countries participated The main focus of the talks was more tariff reductions around 5000 in total

Torquay Round ndash 1951 The third round occurred in Torquay England in 1951 38 countries participated 8700 tariff concessions were made

Geneva Round - 1955-1956 The fourth round returned to Geneva in 1955 and lasted until May 1956 26 countries participated $25 billion in tariffs were eliminated or reduced

Dillon Round - 1960-1962 The fifth round occurred once more in Geneva and lasted from 1960 to 1962 The talks were named after US Treasury Secretary and former Under Secretary of State Douglas Dillon who first proposed the talks 26 countries participated Along with reducing over $49 billion in tariffs it also yielded discussion relating to the creation of the European Economic Community(EEC)

Kennedy Round - 1964-1967 The sixth round was the last to take place in Geneva from 1964 until 1967 and was named after the late US President Kennedy 66 countries participated Concessions were made on $40 billion worth of tariffs

Tokyo Round - 1973-1979 Reduced tariffs and established new regulations aimed at controlling the proliferation of non-tariff barriers and voluntary export restrictions 102 countries participated Concessions were made on $190 billion worth

Uruguay Round - 1986-1993 The Uruguay Round began in 1986 125 countries participated It was the most ambitious round to date hoping to expand the competence of the GATT to important new areas such as services capital intellectual property textiles and agriculture

The Dunkel Draft Text or Dunkel Package or Dunkel Draft Act embodying the results of Uruguay Round was released on 20th December 1991

The Uruguay Round concluded on 15th Dec 1993 and as many as 125 countries including India signed the Final Act on April 15th 1994 at Marrakesh (Morocco)

Thus the General Agreement on Tariffs and Trade (GATT) also known as the Dunkel Agreement finally emerged as the World Trade Organization (WTO) in 1995

Why GATT converted to WTO GATT rules discriminated against

developing countries under the garb of clauses such as ldquoescape clausesrdquo ldquosafeguard rulesrdquo ldquovoluntary export restraintsrdquo ldquoorderly agreementsrdquo

lsquoAgriculturersquo was treated as a special case thus escaping GATT rules

Though developed countries removed majority of tariff barriers yet some others still remained affecting the interests of developing countries

US and EEC had concluded several bilateral discriminatory and restrictive arrangements outside GATT rules

ldquoSafeguardsrdquo rules under GATT undermined the effective working of GATT

Customs union and free trade areas permitted under GATT had been distorted and abused

Though GATT was a mandatory body it lacked enforcing mechanism

Last but not the least with the emergence of more and more new developing countries it was felt that GATT rules devised half a century ago had outlined their utility

The widening trade gap between the developed and developing countries the general dissatisfaction of the developing countries with the GATT and the need for a new organization for international economics cooperation in the field of trade and aid designed to reduce the trade gap of developing countries encouraged the establishment of the United Nations Conference on trade and development(UNCTAD) in 1964 as a permanent organ of the UN general Assembly

FUNCTIONShellip The principal functions of UNCTAD are

1) To promote international trade with a view to accelerating economics development

2) To formulate principles of and policies on international trade and related problems of economics development

3) To negotiate multinational trade agreements4) To negotiate multinational trade agreements

UNCTAD 1964UNCTAD 1964

The context of North-South and East-West tensions

The link between trade and development

1st UNCTAD Ministerial Conference in Geneva

bull Permanent secretariat established Research on trade and development issues

bull Consensus-building through intergovernmental machinery

bull Technical cooperation on all the topics of UNCTAD work

UNCTAD 1964UNCTAD 1964

The context of North-South and East-West tensions

The link between trade and development

1st UNCTAD Ministerial Conference in Geneva

bull Permanent secretariat established Research on trade and development issues

bull Consensus-building through intergovernmental machinery

bull Technical cooperation on all the topics of UNCTAD work

bull Intergovernmental machinery linked to UN General Assembly and ECOSOC

bull Secretariat part of the UN Secretariat (part of same budget)

bull Development-oriented and independent secretariat

bull Political role (ldquosoft lawrdquo) bull Automatic membership bull Wide participation of non-governmental

stakeholders

INTERNATIONAL ECONOMIC ENVIRONMENT

NATIONAL DEVELOPMENT GOALS

SUPPLY-SIDE

PRODUCTIVE

CAPACITY

POLICIES

TRADE

SUPPORT

SERVICES

POLICIES

TRADE POLICYAND

NEGOTIATION

The Ministerial Conference (every 4 years) reports to the UN General Assembly and ECOSOC

Executive body the Trade and Development Board one high level annual session reports to the UN General Assembly and Ecosoc

Three annual Commissions on Trade in goods and services and commodities Investment technology and related financial issues Enterprise business facilitation and development

Several Expert Meetings on specific issues

UNCTAD secretariat 400 staffUNCTAD secretariat 400 staff

Annual Regular budget US $ 57 Annual Regular budget US $ 57

millionmillion

Extra-budgetary funds US$ 35 Extra-budgetary funds US$ 35

million (2005)million (2005)

No field officesNo field offices

GENERAL AGREEMENT ON TARIFFS AND GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)TRADE (GATT)

Was signed in 1947bullIt is a multilateral trade agreement bullRegulating trade among about 150 countriesbullAccording to its preamble purpose of GATT is ldquosubstantial reduction of tariffs and other trade barriers and elimination of preferences on a reciprocal and mutually advantageous basisrdquo

GATT functioned de facto as an organization conducting eight rounds of talks addressing various trade issues and resolving international trade disputes

The Uruguay Round completed on December 15 1993 after 7 yrs of negotiations resulted in an agreement among 117 countries (including US) to reduce trade barriers and to create more comprehensive and enforceable world trade rules

The Final Act embodying the results of Uruguay Round was signed in April 1994

This agreement created the World Trade Organization (WTO) which came into being on January 1 1995

GATT was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO)

The Bretton Woods Conference (1944) had introduced the idea for an organization to regulate trade as part of a larger plan for economic recovery after World War II As governments negotiated the ITO 23 negotiating states began parallel negotiations for the GATT

Once the ITO failed in 1950 only the GATT agreement was left

GATT can be divided into three phases

the first phase from 1947 until the Torquay Round largely concerned with which all commodities would be covered by the agreement and freezing existing tariff levels

the second phase encompassing three rounds from 1959 to 1979 focused on reducing tariffs

the third phase consisting only of the Uruguay Round from 1986 to 1994 extended the agreement fully to new areas such as intellectual property services capital and agriculture Out of this round the WTO was born

RoundsRoundsGATT held a total of 8 rounds Geneva Round - 1947 The first round

took place in 1947 in Geneva 23 countries participated The main focus of the round was tariff concessions around 45000 in total

Annecy Round ndash 1950 The second round took place in 1949 in Annecy France 13 countries participated The main focus of the talks was more tariff reductions around 5000 in total

Torquay Round ndash 1951 The third round occurred in Torquay England in 1951 38 countries participated 8700 tariff concessions were made

Geneva Round - 1955-1956 The fourth round returned to Geneva in 1955 and lasted until May 1956 26 countries participated $25 billion in tariffs were eliminated or reduced

Dillon Round - 1960-1962 The fifth round occurred once more in Geneva and lasted from 1960 to 1962 The talks were named after US Treasury Secretary and former Under Secretary of State Douglas Dillon who first proposed the talks 26 countries participated Along with reducing over $49 billion in tariffs it also yielded discussion relating to the creation of the European Economic Community(EEC)

Kennedy Round - 1964-1967 The sixth round was the last to take place in Geneva from 1964 until 1967 and was named after the late US President Kennedy 66 countries participated Concessions were made on $40 billion worth of tariffs

Tokyo Round - 1973-1979 Reduced tariffs and established new regulations aimed at controlling the proliferation of non-tariff barriers and voluntary export restrictions 102 countries participated Concessions were made on $190 billion worth

Uruguay Round - 1986-1993 The Uruguay Round began in 1986 125 countries participated It was the most ambitious round to date hoping to expand the competence of the GATT to important new areas such as services capital intellectual property textiles and agriculture

The Dunkel Draft Text or Dunkel Package or Dunkel Draft Act embodying the results of Uruguay Round was released on 20th December 1991

The Uruguay Round concluded on 15th Dec 1993 and as many as 125 countries including India signed the Final Act on April 15th 1994 at Marrakesh (Morocco)

Thus the General Agreement on Tariffs and Trade (GATT) also known as the Dunkel Agreement finally emerged as the World Trade Organization (WTO) in 1995

Why GATT converted to WTO GATT rules discriminated against

developing countries under the garb of clauses such as ldquoescape clausesrdquo ldquosafeguard rulesrdquo ldquovoluntary export restraintsrdquo ldquoorderly agreementsrdquo

lsquoAgriculturersquo was treated as a special case thus escaping GATT rules

Though developed countries removed majority of tariff barriers yet some others still remained affecting the interests of developing countries

US and EEC had concluded several bilateral discriminatory and restrictive arrangements outside GATT rules

ldquoSafeguardsrdquo rules under GATT undermined the effective working of GATT

Customs union and free trade areas permitted under GATT had been distorted and abused

Though GATT was a mandatory body it lacked enforcing mechanism

Last but not the least with the emergence of more and more new developing countries it was felt that GATT rules devised half a century ago had outlined their utility

FUNCTIONShellip The principal functions of UNCTAD are

1) To promote international trade with a view to accelerating economics development

2) To formulate principles of and policies on international trade and related problems of economics development

3) To negotiate multinational trade agreements4) To negotiate multinational trade agreements

UNCTAD 1964UNCTAD 1964

The context of North-South and East-West tensions

The link between trade and development

1st UNCTAD Ministerial Conference in Geneva

bull Permanent secretariat established Research on trade and development issues

bull Consensus-building through intergovernmental machinery

bull Technical cooperation on all the topics of UNCTAD work

UNCTAD 1964UNCTAD 1964

The context of North-South and East-West tensions

The link between trade and development

1st UNCTAD Ministerial Conference in Geneva

bull Permanent secretariat established Research on trade and development issues

bull Consensus-building through intergovernmental machinery

bull Technical cooperation on all the topics of UNCTAD work

bull Intergovernmental machinery linked to UN General Assembly and ECOSOC

bull Secretariat part of the UN Secretariat (part of same budget)

bull Development-oriented and independent secretariat

bull Political role (ldquosoft lawrdquo) bull Automatic membership bull Wide participation of non-governmental

stakeholders

INTERNATIONAL ECONOMIC ENVIRONMENT

NATIONAL DEVELOPMENT GOALS

SUPPLY-SIDE

PRODUCTIVE

CAPACITY

POLICIES

TRADE

SUPPORT

SERVICES

POLICIES

TRADE POLICYAND

NEGOTIATION

The Ministerial Conference (every 4 years) reports to the UN General Assembly and ECOSOC

Executive body the Trade and Development Board one high level annual session reports to the UN General Assembly and Ecosoc

Three annual Commissions on Trade in goods and services and commodities Investment technology and related financial issues Enterprise business facilitation and development

Several Expert Meetings on specific issues

UNCTAD secretariat 400 staffUNCTAD secretariat 400 staff

Annual Regular budget US $ 57 Annual Regular budget US $ 57

millionmillion

Extra-budgetary funds US$ 35 Extra-budgetary funds US$ 35

million (2005)million (2005)

No field officesNo field offices

GENERAL AGREEMENT ON TARIFFS AND GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)TRADE (GATT)

Was signed in 1947bullIt is a multilateral trade agreement bullRegulating trade among about 150 countriesbullAccording to its preamble purpose of GATT is ldquosubstantial reduction of tariffs and other trade barriers and elimination of preferences on a reciprocal and mutually advantageous basisrdquo

GATT functioned de facto as an organization conducting eight rounds of talks addressing various trade issues and resolving international trade disputes

The Uruguay Round completed on December 15 1993 after 7 yrs of negotiations resulted in an agreement among 117 countries (including US) to reduce trade barriers and to create more comprehensive and enforceable world trade rules

The Final Act embodying the results of Uruguay Round was signed in April 1994

This agreement created the World Trade Organization (WTO) which came into being on January 1 1995

GATT was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO)

The Bretton Woods Conference (1944) had introduced the idea for an organization to regulate trade as part of a larger plan for economic recovery after World War II As governments negotiated the ITO 23 negotiating states began parallel negotiations for the GATT

Once the ITO failed in 1950 only the GATT agreement was left

GATT can be divided into three phases

the first phase from 1947 until the Torquay Round largely concerned with which all commodities would be covered by the agreement and freezing existing tariff levels

the second phase encompassing three rounds from 1959 to 1979 focused on reducing tariffs

the third phase consisting only of the Uruguay Round from 1986 to 1994 extended the agreement fully to new areas such as intellectual property services capital and agriculture Out of this round the WTO was born

RoundsRoundsGATT held a total of 8 rounds Geneva Round - 1947 The first round

took place in 1947 in Geneva 23 countries participated The main focus of the round was tariff concessions around 45000 in total

Annecy Round ndash 1950 The second round took place in 1949 in Annecy France 13 countries participated The main focus of the talks was more tariff reductions around 5000 in total

Torquay Round ndash 1951 The third round occurred in Torquay England in 1951 38 countries participated 8700 tariff concessions were made

Geneva Round - 1955-1956 The fourth round returned to Geneva in 1955 and lasted until May 1956 26 countries participated $25 billion in tariffs were eliminated or reduced

Dillon Round - 1960-1962 The fifth round occurred once more in Geneva and lasted from 1960 to 1962 The talks were named after US Treasury Secretary and former Under Secretary of State Douglas Dillon who first proposed the talks 26 countries participated Along with reducing over $49 billion in tariffs it also yielded discussion relating to the creation of the European Economic Community(EEC)

Kennedy Round - 1964-1967 The sixth round was the last to take place in Geneva from 1964 until 1967 and was named after the late US President Kennedy 66 countries participated Concessions were made on $40 billion worth of tariffs

Tokyo Round - 1973-1979 Reduced tariffs and established new regulations aimed at controlling the proliferation of non-tariff barriers and voluntary export restrictions 102 countries participated Concessions were made on $190 billion worth

Uruguay Round - 1986-1993 The Uruguay Round began in 1986 125 countries participated It was the most ambitious round to date hoping to expand the competence of the GATT to important new areas such as services capital intellectual property textiles and agriculture

The Dunkel Draft Text or Dunkel Package or Dunkel Draft Act embodying the results of Uruguay Round was released on 20th December 1991

The Uruguay Round concluded on 15th Dec 1993 and as many as 125 countries including India signed the Final Act on April 15th 1994 at Marrakesh (Morocco)

Thus the General Agreement on Tariffs and Trade (GATT) also known as the Dunkel Agreement finally emerged as the World Trade Organization (WTO) in 1995

Why GATT converted to WTO GATT rules discriminated against

developing countries under the garb of clauses such as ldquoescape clausesrdquo ldquosafeguard rulesrdquo ldquovoluntary export restraintsrdquo ldquoorderly agreementsrdquo

lsquoAgriculturersquo was treated as a special case thus escaping GATT rules

Though developed countries removed majority of tariff barriers yet some others still remained affecting the interests of developing countries

US and EEC had concluded several bilateral discriminatory and restrictive arrangements outside GATT rules

ldquoSafeguardsrdquo rules under GATT undermined the effective working of GATT

Customs union and free trade areas permitted under GATT had been distorted and abused

Though GATT was a mandatory body it lacked enforcing mechanism

Last but not the least with the emergence of more and more new developing countries it was felt that GATT rules devised half a century ago had outlined their utility

UNCTAD 1964UNCTAD 1964

The context of North-South and East-West tensions

The link between trade and development

1st UNCTAD Ministerial Conference in Geneva

bull Permanent secretariat established Research on trade and development issues

bull Consensus-building through intergovernmental machinery

bull Technical cooperation on all the topics of UNCTAD work

UNCTAD 1964UNCTAD 1964

The context of North-South and East-West tensions

The link between trade and development

1st UNCTAD Ministerial Conference in Geneva

bull Permanent secretariat established Research on trade and development issues

bull Consensus-building through intergovernmental machinery

bull Technical cooperation on all the topics of UNCTAD work

bull Intergovernmental machinery linked to UN General Assembly and ECOSOC

bull Secretariat part of the UN Secretariat (part of same budget)

bull Development-oriented and independent secretariat

bull Political role (ldquosoft lawrdquo) bull Automatic membership bull Wide participation of non-governmental

stakeholders

INTERNATIONAL ECONOMIC ENVIRONMENT

NATIONAL DEVELOPMENT GOALS

SUPPLY-SIDE

PRODUCTIVE

CAPACITY

POLICIES

TRADE

SUPPORT

SERVICES

POLICIES

TRADE POLICYAND

NEGOTIATION

The Ministerial Conference (every 4 years) reports to the UN General Assembly and ECOSOC

Executive body the Trade and Development Board one high level annual session reports to the UN General Assembly and Ecosoc

Three annual Commissions on Trade in goods and services and commodities Investment technology and related financial issues Enterprise business facilitation and development

Several Expert Meetings on specific issues

UNCTAD secretariat 400 staffUNCTAD secretariat 400 staff

Annual Regular budget US $ 57 Annual Regular budget US $ 57

millionmillion

Extra-budgetary funds US$ 35 Extra-budgetary funds US$ 35

million (2005)million (2005)

No field officesNo field offices

GENERAL AGREEMENT ON TARIFFS AND GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)TRADE (GATT)

Was signed in 1947bullIt is a multilateral trade agreement bullRegulating trade among about 150 countriesbullAccording to its preamble purpose of GATT is ldquosubstantial reduction of tariffs and other trade barriers and elimination of preferences on a reciprocal and mutually advantageous basisrdquo

GATT functioned de facto as an organization conducting eight rounds of talks addressing various trade issues and resolving international trade disputes

The Uruguay Round completed on December 15 1993 after 7 yrs of negotiations resulted in an agreement among 117 countries (including US) to reduce trade barriers and to create more comprehensive and enforceable world trade rules

The Final Act embodying the results of Uruguay Round was signed in April 1994

This agreement created the World Trade Organization (WTO) which came into being on January 1 1995

GATT was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO)

The Bretton Woods Conference (1944) had introduced the idea for an organization to regulate trade as part of a larger plan for economic recovery after World War II As governments negotiated the ITO 23 negotiating states began parallel negotiations for the GATT

Once the ITO failed in 1950 only the GATT agreement was left

GATT can be divided into three phases

the first phase from 1947 until the Torquay Round largely concerned with which all commodities would be covered by the agreement and freezing existing tariff levels

the second phase encompassing three rounds from 1959 to 1979 focused on reducing tariffs

the third phase consisting only of the Uruguay Round from 1986 to 1994 extended the agreement fully to new areas such as intellectual property services capital and agriculture Out of this round the WTO was born

RoundsRoundsGATT held a total of 8 rounds Geneva Round - 1947 The first round

took place in 1947 in Geneva 23 countries participated The main focus of the round was tariff concessions around 45000 in total

Annecy Round ndash 1950 The second round took place in 1949 in Annecy France 13 countries participated The main focus of the talks was more tariff reductions around 5000 in total

Torquay Round ndash 1951 The third round occurred in Torquay England in 1951 38 countries participated 8700 tariff concessions were made

Geneva Round - 1955-1956 The fourth round returned to Geneva in 1955 and lasted until May 1956 26 countries participated $25 billion in tariffs were eliminated or reduced

Dillon Round - 1960-1962 The fifth round occurred once more in Geneva and lasted from 1960 to 1962 The talks were named after US Treasury Secretary and former Under Secretary of State Douglas Dillon who first proposed the talks 26 countries participated Along with reducing over $49 billion in tariffs it also yielded discussion relating to the creation of the European Economic Community(EEC)

Kennedy Round - 1964-1967 The sixth round was the last to take place in Geneva from 1964 until 1967 and was named after the late US President Kennedy 66 countries participated Concessions were made on $40 billion worth of tariffs

Tokyo Round - 1973-1979 Reduced tariffs and established new regulations aimed at controlling the proliferation of non-tariff barriers and voluntary export restrictions 102 countries participated Concessions were made on $190 billion worth

Uruguay Round - 1986-1993 The Uruguay Round began in 1986 125 countries participated It was the most ambitious round to date hoping to expand the competence of the GATT to important new areas such as services capital intellectual property textiles and agriculture

The Dunkel Draft Text or Dunkel Package or Dunkel Draft Act embodying the results of Uruguay Round was released on 20th December 1991

The Uruguay Round concluded on 15th Dec 1993 and as many as 125 countries including India signed the Final Act on April 15th 1994 at Marrakesh (Morocco)

Thus the General Agreement on Tariffs and Trade (GATT) also known as the Dunkel Agreement finally emerged as the World Trade Organization (WTO) in 1995

Why GATT converted to WTO GATT rules discriminated against

developing countries under the garb of clauses such as ldquoescape clausesrdquo ldquosafeguard rulesrdquo ldquovoluntary export restraintsrdquo ldquoorderly agreementsrdquo

lsquoAgriculturersquo was treated as a special case thus escaping GATT rules

Though developed countries removed majority of tariff barriers yet some others still remained affecting the interests of developing countries

US and EEC had concluded several bilateral discriminatory and restrictive arrangements outside GATT rules

ldquoSafeguardsrdquo rules under GATT undermined the effective working of GATT

Customs union and free trade areas permitted under GATT had been distorted and abused

Though GATT was a mandatory body it lacked enforcing mechanism

Last but not the least with the emergence of more and more new developing countries it was felt that GATT rules devised half a century ago had outlined their utility

bull Intergovernmental machinery linked to UN General Assembly and ECOSOC

bull Secretariat part of the UN Secretariat (part of same budget)

bull Development-oriented and independent secretariat

bull Political role (ldquosoft lawrdquo) bull Automatic membership bull Wide participation of non-governmental

stakeholders

INTERNATIONAL ECONOMIC ENVIRONMENT

NATIONAL DEVELOPMENT GOALS

SUPPLY-SIDE

PRODUCTIVE

CAPACITY

POLICIES

TRADE

SUPPORT

SERVICES

POLICIES

TRADE POLICYAND

NEGOTIATION

The Ministerial Conference (every 4 years) reports to the UN General Assembly and ECOSOC

Executive body the Trade and Development Board one high level annual session reports to the UN General Assembly and Ecosoc

Three annual Commissions on Trade in goods and services and commodities Investment technology and related financial issues Enterprise business facilitation and development

Several Expert Meetings on specific issues

UNCTAD secretariat 400 staffUNCTAD secretariat 400 staff

Annual Regular budget US $ 57 Annual Regular budget US $ 57

millionmillion

Extra-budgetary funds US$ 35 Extra-budgetary funds US$ 35

million (2005)million (2005)

No field officesNo field offices

GENERAL AGREEMENT ON TARIFFS AND GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)TRADE (GATT)

Was signed in 1947bullIt is a multilateral trade agreement bullRegulating trade among about 150 countriesbullAccording to its preamble purpose of GATT is ldquosubstantial reduction of tariffs and other trade barriers and elimination of preferences on a reciprocal and mutually advantageous basisrdquo

GATT functioned de facto as an organization conducting eight rounds of talks addressing various trade issues and resolving international trade disputes

The Uruguay Round completed on December 15 1993 after 7 yrs of negotiations resulted in an agreement among 117 countries (including US) to reduce trade barriers and to create more comprehensive and enforceable world trade rules

The Final Act embodying the results of Uruguay Round was signed in April 1994

This agreement created the World Trade Organization (WTO) which came into being on January 1 1995

GATT was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO)

The Bretton Woods Conference (1944) had introduced the idea for an organization to regulate trade as part of a larger plan for economic recovery after World War II As governments negotiated the ITO 23 negotiating states began parallel negotiations for the GATT

Once the ITO failed in 1950 only the GATT agreement was left

GATT can be divided into three phases

the first phase from 1947 until the Torquay Round largely concerned with which all commodities would be covered by the agreement and freezing existing tariff levels

the second phase encompassing three rounds from 1959 to 1979 focused on reducing tariffs

the third phase consisting only of the Uruguay Round from 1986 to 1994 extended the agreement fully to new areas such as intellectual property services capital and agriculture Out of this round the WTO was born

RoundsRoundsGATT held a total of 8 rounds Geneva Round - 1947 The first round

took place in 1947 in Geneva 23 countries participated The main focus of the round was tariff concessions around 45000 in total

Annecy Round ndash 1950 The second round took place in 1949 in Annecy France 13 countries participated The main focus of the talks was more tariff reductions around 5000 in total

Torquay Round ndash 1951 The third round occurred in Torquay England in 1951 38 countries participated 8700 tariff concessions were made

Geneva Round - 1955-1956 The fourth round returned to Geneva in 1955 and lasted until May 1956 26 countries participated $25 billion in tariffs were eliminated or reduced

Dillon Round - 1960-1962 The fifth round occurred once more in Geneva and lasted from 1960 to 1962 The talks were named after US Treasury Secretary and former Under Secretary of State Douglas Dillon who first proposed the talks 26 countries participated Along with reducing over $49 billion in tariffs it also yielded discussion relating to the creation of the European Economic Community(EEC)

Kennedy Round - 1964-1967 The sixth round was the last to take place in Geneva from 1964 until 1967 and was named after the late US President Kennedy 66 countries participated Concessions were made on $40 billion worth of tariffs

Tokyo Round - 1973-1979 Reduced tariffs and established new regulations aimed at controlling the proliferation of non-tariff barriers and voluntary export restrictions 102 countries participated Concessions were made on $190 billion worth

Uruguay Round - 1986-1993 The Uruguay Round began in 1986 125 countries participated It was the most ambitious round to date hoping to expand the competence of the GATT to important new areas such as services capital intellectual property textiles and agriculture

The Dunkel Draft Text or Dunkel Package or Dunkel Draft Act embodying the results of Uruguay Round was released on 20th December 1991

The Uruguay Round concluded on 15th Dec 1993 and as many as 125 countries including India signed the Final Act on April 15th 1994 at Marrakesh (Morocco)

Thus the General Agreement on Tariffs and Trade (GATT) also known as the Dunkel Agreement finally emerged as the World Trade Organization (WTO) in 1995

Why GATT converted to WTO GATT rules discriminated against

developing countries under the garb of clauses such as ldquoescape clausesrdquo ldquosafeguard rulesrdquo ldquovoluntary export restraintsrdquo ldquoorderly agreementsrdquo

lsquoAgriculturersquo was treated as a special case thus escaping GATT rules

Though developed countries removed majority of tariff barriers yet some others still remained affecting the interests of developing countries

US and EEC had concluded several bilateral discriminatory and restrictive arrangements outside GATT rules

ldquoSafeguardsrdquo rules under GATT undermined the effective working of GATT

Customs union and free trade areas permitted under GATT had been distorted and abused

Though GATT was a mandatory body it lacked enforcing mechanism

Last but not the least with the emergence of more and more new developing countries it was felt that GATT rules devised half a century ago had outlined their utility

INTERNATIONAL ECONOMIC ENVIRONMENT

NATIONAL DEVELOPMENT GOALS

SUPPLY-SIDE

PRODUCTIVE

CAPACITY

POLICIES

TRADE

SUPPORT

SERVICES

POLICIES

TRADE POLICYAND

NEGOTIATION

The Ministerial Conference (every 4 years) reports to the UN General Assembly and ECOSOC

Executive body the Trade and Development Board one high level annual session reports to the UN General Assembly and Ecosoc

Three annual Commissions on Trade in goods and services and commodities Investment technology and related financial issues Enterprise business facilitation and development

Several Expert Meetings on specific issues

UNCTAD secretariat 400 staffUNCTAD secretariat 400 staff

Annual Regular budget US $ 57 Annual Regular budget US $ 57

millionmillion

Extra-budgetary funds US$ 35 Extra-budgetary funds US$ 35

million (2005)million (2005)

No field officesNo field offices

GENERAL AGREEMENT ON TARIFFS AND GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)TRADE (GATT)

Was signed in 1947bullIt is a multilateral trade agreement bullRegulating trade among about 150 countriesbullAccording to its preamble purpose of GATT is ldquosubstantial reduction of tariffs and other trade barriers and elimination of preferences on a reciprocal and mutually advantageous basisrdquo

GATT functioned de facto as an organization conducting eight rounds of talks addressing various trade issues and resolving international trade disputes

The Uruguay Round completed on December 15 1993 after 7 yrs of negotiations resulted in an agreement among 117 countries (including US) to reduce trade barriers and to create more comprehensive and enforceable world trade rules

The Final Act embodying the results of Uruguay Round was signed in April 1994

This agreement created the World Trade Organization (WTO) which came into being on January 1 1995

GATT was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO)

The Bretton Woods Conference (1944) had introduced the idea for an organization to regulate trade as part of a larger plan for economic recovery after World War II As governments negotiated the ITO 23 negotiating states began parallel negotiations for the GATT

Once the ITO failed in 1950 only the GATT agreement was left

GATT can be divided into three phases

the first phase from 1947 until the Torquay Round largely concerned with which all commodities would be covered by the agreement and freezing existing tariff levels

the second phase encompassing three rounds from 1959 to 1979 focused on reducing tariffs

the third phase consisting only of the Uruguay Round from 1986 to 1994 extended the agreement fully to new areas such as intellectual property services capital and agriculture Out of this round the WTO was born

RoundsRoundsGATT held a total of 8 rounds Geneva Round - 1947 The first round

took place in 1947 in Geneva 23 countries participated The main focus of the round was tariff concessions around 45000 in total

Annecy Round ndash 1950 The second round took place in 1949 in Annecy France 13 countries participated The main focus of the talks was more tariff reductions around 5000 in total

Torquay Round ndash 1951 The third round occurred in Torquay England in 1951 38 countries participated 8700 tariff concessions were made

Geneva Round - 1955-1956 The fourth round returned to Geneva in 1955 and lasted until May 1956 26 countries participated $25 billion in tariffs were eliminated or reduced

Dillon Round - 1960-1962 The fifth round occurred once more in Geneva and lasted from 1960 to 1962 The talks were named after US Treasury Secretary and former Under Secretary of State Douglas Dillon who first proposed the talks 26 countries participated Along with reducing over $49 billion in tariffs it also yielded discussion relating to the creation of the European Economic Community(EEC)

Kennedy Round - 1964-1967 The sixth round was the last to take place in Geneva from 1964 until 1967 and was named after the late US President Kennedy 66 countries participated Concessions were made on $40 billion worth of tariffs

Tokyo Round - 1973-1979 Reduced tariffs and established new regulations aimed at controlling the proliferation of non-tariff barriers and voluntary export restrictions 102 countries participated Concessions were made on $190 billion worth

Uruguay Round - 1986-1993 The Uruguay Round began in 1986 125 countries participated It was the most ambitious round to date hoping to expand the competence of the GATT to important new areas such as services capital intellectual property textiles and agriculture

The Dunkel Draft Text or Dunkel Package or Dunkel Draft Act embodying the results of Uruguay Round was released on 20th December 1991

The Uruguay Round concluded on 15th Dec 1993 and as many as 125 countries including India signed the Final Act on April 15th 1994 at Marrakesh (Morocco)

Thus the General Agreement on Tariffs and Trade (GATT) also known as the Dunkel Agreement finally emerged as the World Trade Organization (WTO) in 1995

Why GATT converted to WTO GATT rules discriminated against

developing countries under the garb of clauses such as ldquoescape clausesrdquo ldquosafeguard rulesrdquo ldquovoluntary export restraintsrdquo ldquoorderly agreementsrdquo

lsquoAgriculturersquo was treated as a special case thus escaping GATT rules

Though developed countries removed majority of tariff barriers yet some others still remained affecting the interests of developing countries

US and EEC had concluded several bilateral discriminatory and restrictive arrangements outside GATT rules

ldquoSafeguardsrdquo rules under GATT undermined the effective working of GATT

Customs union and free trade areas permitted under GATT had been distorted and abused

Though GATT was a mandatory body it lacked enforcing mechanism

Last but not the least with the emergence of more and more new developing countries it was felt that GATT rules devised half a century ago had outlined their utility

The Ministerial Conference (every 4 years) reports to the UN General Assembly and ECOSOC

Executive body the Trade and Development Board one high level annual session reports to the UN General Assembly and Ecosoc

Three annual Commissions on Trade in goods and services and commodities Investment technology and related financial issues Enterprise business facilitation and development

Several Expert Meetings on specific issues

UNCTAD secretariat 400 staffUNCTAD secretariat 400 staff

Annual Regular budget US $ 57 Annual Regular budget US $ 57

millionmillion

Extra-budgetary funds US$ 35 Extra-budgetary funds US$ 35

million (2005)million (2005)

No field officesNo field offices

GENERAL AGREEMENT ON TARIFFS AND GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)TRADE (GATT)

Was signed in 1947bullIt is a multilateral trade agreement bullRegulating trade among about 150 countriesbullAccording to its preamble purpose of GATT is ldquosubstantial reduction of tariffs and other trade barriers and elimination of preferences on a reciprocal and mutually advantageous basisrdquo

GATT functioned de facto as an organization conducting eight rounds of talks addressing various trade issues and resolving international trade disputes

The Uruguay Round completed on December 15 1993 after 7 yrs of negotiations resulted in an agreement among 117 countries (including US) to reduce trade barriers and to create more comprehensive and enforceable world trade rules

The Final Act embodying the results of Uruguay Round was signed in April 1994

This agreement created the World Trade Organization (WTO) which came into being on January 1 1995

GATT was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO)

The Bretton Woods Conference (1944) had introduced the idea for an organization to regulate trade as part of a larger plan for economic recovery after World War II As governments negotiated the ITO 23 negotiating states began parallel negotiations for the GATT

Once the ITO failed in 1950 only the GATT agreement was left

GATT can be divided into three phases

the first phase from 1947 until the Torquay Round largely concerned with which all commodities would be covered by the agreement and freezing existing tariff levels

the second phase encompassing three rounds from 1959 to 1979 focused on reducing tariffs

the third phase consisting only of the Uruguay Round from 1986 to 1994 extended the agreement fully to new areas such as intellectual property services capital and agriculture Out of this round the WTO was born

RoundsRoundsGATT held a total of 8 rounds Geneva Round - 1947 The first round

took place in 1947 in Geneva 23 countries participated The main focus of the round was tariff concessions around 45000 in total

Annecy Round ndash 1950 The second round took place in 1949 in Annecy France 13 countries participated The main focus of the talks was more tariff reductions around 5000 in total

Torquay Round ndash 1951 The third round occurred in Torquay England in 1951 38 countries participated 8700 tariff concessions were made

Geneva Round - 1955-1956 The fourth round returned to Geneva in 1955 and lasted until May 1956 26 countries participated $25 billion in tariffs were eliminated or reduced

Dillon Round - 1960-1962 The fifth round occurred once more in Geneva and lasted from 1960 to 1962 The talks were named after US Treasury Secretary and former Under Secretary of State Douglas Dillon who first proposed the talks 26 countries participated Along with reducing over $49 billion in tariffs it also yielded discussion relating to the creation of the European Economic Community(EEC)

Kennedy Round - 1964-1967 The sixth round was the last to take place in Geneva from 1964 until 1967 and was named after the late US President Kennedy 66 countries participated Concessions were made on $40 billion worth of tariffs

Tokyo Round - 1973-1979 Reduced tariffs and established new regulations aimed at controlling the proliferation of non-tariff barriers and voluntary export restrictions 102 countries participated Concessions were made on $190 billion worth

Uruguay Round - 1986-1993 The Uruguay Round began in 1986 125 countries participated It was the most ambitious round to date hoping to expand the competence of the GATT to important new areas such as services capital intellectual property textiles and agriculture

The Dunkel Draft Text or Dunkel Package or Dunkel Draft Act embodying the results of Uruguay Round was released on 20th December 1991

The Uruguay Round concluded on 15th Dec 1993 and as many as 125 countries including India signed the Final Act on April 15th 1994 at Marrakesh (Morocco)

Thus the General Agreement on Tariffs and Trade (GATT) also known as the Dunkel Agreement finally emerged as the World Trade Organization (WTO) in 1995

Why GATT converted to WTO GATT rules discriminated against

developing countries under the garb of clauses such as ldquoescape clausesrdquo ldquosafeguard rulesrdquo ldquovoluntary export restraintsrdquo ldquoorderly agreementsrdquo

lsquoAgriculturersquo was treated as a special case thus escaping GATT rules

Though developed countries removed majority of tariff barriers yet some others still remained affecting the interests of developing countries

US and EEC had concluded several bilateral discriminatory and restrictive arrangements outside GATT rules

ldquoSafeguardsrdquo rules under GATT undermined the effective working of GATT

Customs union and free trade areas permitted under GATT had been distorted and abused

Though GATT was a mandatory body it lacked enforcing mechanism

Last but not the least with the emergence of more and more new developing countries it was felt that GATT rules devised half a century ago had outlined their utility

UNCTAD secretariat 400 staffUNCTAD secretariat 400 staff

Annual Regular budget US $ 57 Annual Regular budget US $ 57

millionmillion

Extra-budgetary funds US$ 35 Extra-budgetary funds US$ 35

million (2005)million (2005)

No field officesNo field offices

GENERAL AGREEMENT ON TARIFFS AND GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)TRADE (GATT)

Was signed in 1947bullIt is a multilateral trade agreement bullRegulating trade among about 150 countriesbullAccording to its preamble purpose of GATT is ldquosubstantial reduction of tariffs and other trade barriers and elimination of preferences on a reciprocal and mutually advantageous basisrdquo

GATT functioned de facto as an organization conducting eight rounds of talks addressing various trade issues and resolving international trade disputes

The Uruguay Round completed on December 15 1993 after 7 yrs of negotiations resulted in an agreement among 117 countries (including US) to reduce trade barriers and to create more comprehensive and enforceable world trade rules

The Final Act embodying the results of Uruguay Round was signed in April 1994

This agreement created the World Trade Organization (WTO) which came into being on January 1 1995

GATT was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO)

The Bretton Woods Conference (1944) had introduced the idea for an organization to regulate trade as part of a larger plan for economic recovery after World War II As governments negotiated the ITO 23 negotiating states began parallel negotiations for the GATT

Once the ITO failed in 1950 only the GATT agreement was left

GATT can be divided into three phases

the first phase from 1947 until the Torquay Round largely concerned with which all commodities would be covered by the agreement and freezing existing tariff levels

the second phase encompassing three rounds from 1959 to 1979 focused on reducing tariffs

the third phase consisting only of the Uruguay Round from 1986 to 1994 extended the agreement fully to new areas such as intellectual property services capital and agriculture Out of this round the WTO was born

RoundsRoundsGATT held a total of 8 rounds Geneva Round - 1947 The first round

took place in 1947 in Geneva 23 countries participated The main focus of the round was tariff concessions around 45000 in total

Annecy Round ndash 1950 The second round took place in 1949 in Annecy France 13 countries participated The main focus of the talks was more tariff reductions around 5000 in total

Torquay Round ndash 1951 The third round occurred in Torquay England in 1951 38 countries participated 8700 tariff concessions were made

Geneva Round - 1955-1956 The fourth round returned to Geneva in 1955 and lasted until May 1956 26 countries participated $25 billion in tariffs were eliminated or reduced

Dillon Round - 1960-1962 The fifth round occurred once more in Geneva and lasted from 1960 to 1962 The talks were named after US Treasury Secretary and former Under Secretary of State Douglas Dillon who first proposed the talks 26 countries participated Along with reducing over $49 billion in tariffs it also yielded discussion relating to the creation of the European Economic Community(EEC)

Kennedy Round - 1964-1967 The sixth round was the last to take place in Geneva from 1964 until 1967 and was named after the late US President Kennedy 66 countries participated Concessions were made on $40 billion worth of tariffs

Tokyo Round - 1973-1979 Reduced tariffs and established new regulations aimed at controlling the proliferation of non-tariff barriers and voluntary export restrictions 102 countries participated Concessions were made on $190 billion worth

Uruguay Round - 1986-1993 The Uruguay Round began in 1986 125 countries participated It was the most ambitious round to date hoping to expand the competence of the GATT to important new areas such as services capital intellectual property textiles and agriculture

The Dunkel Draft Text or Dunkel Package or Dunkel Draft Act embodying the results of Uruguay Round was released on 20th December 1991

The Uruguay Round concluded on 15th Dec 1993 and as many as 125 countries including India signed the Final Act on April 15th 1994 at Marrakesh (Morocco)

Thus the General Agreement on Tariffs and Trade (GATT) also known as the Dunkel Agreement finally emerged as the World Trade Organization (WTO) in 1995

Why GATT converted to WTO GATT rules discriminated against

developing countries under the garb of clauses such as ldquoescape clausesrdquo ldquosafeguard rulesrdquo ldquovoluntary export restraintsrdquo ldquoorderly agreementsrdquo

lsquoAgriculturersquo was treated as a special case thus escaping GATT rules

Though developed countries removed majority of tariff barriers yet some others still remained affecting the interests of developing countries

US and EEC had concluded several bilateral discriminatory and restrictive arrangements outside GATT rules

ldquoSafeguardsrdquo rules under GATT undermined the effective working of GATT

Customs union and free trade areas permitted under GATT had been distorted and abused

Though GATT was a mandatory body it lacked enforcing mechanism

Last but not the least with the emergence of more and more new developing countries it was felt that GATT rules devised half a century ago had outlined their utility

GENERAL AGREEMENT ON TARIFFS AND GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)TRADE (GATT)

Was signed in 1947bullIt is a multilateral trade agreement bullRegulating trade among about 150 countriesbullAccording to its preamble purpose of GATT is ldquosubstantial reduction of tariffs and other trade barriers and elimination of preferences on a reciprocal and mutually advantageous basisrdquo

GATT functioned de facto as an organization conducting eight rounds of talks addressing various trade issues and resolving international trade disputes

The Uruguay Round completed on December 15 1993 after 7 yrs of negotiations resulted in an agreement among 117 countries (including US) to reduce trade barriers and to create more comprehensive and enforceable world trade rules

The Final Act embodying the results of Uruguay Round was signed in April 1994

This agreement created the World Trade Organization (WTO) which came into being on January 1 1995

GATT was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO)

The Bretton Woods Conference (1944) had introduced the idea for an organization to regulate trade as part of a larger plan for economic recovery after World War II As governments negotiated the ITO 23 negotiating states began parallel negotiations for the GATT

Once the ITO failed in 1950 only the GATT agreement was left

GATT can be divided into three phases

the first phase from 1947 until the Torquay Round largely concerned with which all commodities would be covered by the agreement and freezing existing tariff levels

the second phase encompassing three rounds from 1959 to 1979 focused on reducing tariffs

the third phase consisting only of the Uruguay Round from 1986 to 1994 extended the agreement fully to new areas such as intellectual property services capital and agriculture Out of this round the WTO was born

RoundsRoundsGATT held a total of 8 rounds Geneva Round - 1947 The first round

took place in 1947 in Geneva 23 countries participated The main focus of the round was tariff concessions around 45000 in total

Annecy Round ndash 1950 The second round took place in 1949 in Annecy France 13 countries participated The main focus of the talks was more tariff reductions around 5000 in total

Torquay Round ndash 1951 The third round occurred in Torquay England in 1951 38 countries participated 8700 tariff concessions were made

Geneva Round - 1955-1956 The fourth round returned to Geneva in 1955 and lasted until May 1956 26 countries participated $25 billion in tariffs were eliminated or reduced

Dillon Round - 1960-1962 The fifth round occurred once more in Geneva and lasted from 1960 to 1962 The talks were named after US Treasury Secretary and former Under Secretary of State Douglas Dillon who first proposed the talks 26 countries participated Along with reducing over $49 billion in tariffs it also yielded discussion relating to the creation of the European Economic Community(EEC)

Kennedy Round - 1964-1967 The sixth round was the last to take place in Geneva from 1964 until 1967 and was named after the late US President Kennedy 66 countries participated Concessions were made on $40 billion worth of tariffs

Tokyo Round - 1973-1979 Reduced tariffs and established new regulations aimed at controlling the proliferation of non-tariff barriers and voluntary export restrictions 102 countries participated Concessions were made on $190 billion worth

Uruguay Round - 1986-1993 The Uruguay Round began in 1986 125 countries participated It was the most ambitious round to date hoping to expand the competence of the GATT to important new areas such as services capital intellectual property textiles and agriculture

The Dunkel Draft Text or Dunkel Package or Dunkel Draft Act embodying the results of Uruguay Round was released on 20th December 1991

The Uruguay Round concluded on 15th Dec 1993 and as many as 125 countries including India signed the Final Act on April 15th 1994 at Marrakesh (Morocco)

Thus the General Agreement on Tariffs and Trade (GATT) also known as the Dunkel Agreement finally emerged as the World Trade Organization (WTO) in 1995

Why GATT converted to WTO GATT rules discriminated against

developing countries under the garb of clauses such as ldquoescape clausesrdquo ldquosafeguard rulesrdquo ldquovoluntary export restraintsrdquo ldquoorderly agreementsrdquo

lsquoAgriculturersquo was treated as a special case thus escaping GATT rules

Though developed countries removed majority of tariff barriers yet some others still remained affecting the interests of developing countries

US and EEC had concluded several bilateral discriminatory and restrictive arrangements outside GATT rules

ldquoSafeguardsrdquo rules under GATT undermined the effective working of GATT

Customs union and free trade areas permitted under GATT had been distorted and abused

Though GATT was a mandatory body it lacked enforcing mechanism

Last but not the least with the emergence of more and more new developing countries it was felt that GATT rules devised half a century ago had outlined their utility

GATT functioned de facto as an organization conducting eight rounds of talks addressing various trade issues and resolving international trade disputes

The Uruguay Round completed on December 15 1993 after 7 yrs of negotiations resulted in an agreement among 117 countries (including US) to reduce trade barriers and to create more comprehensive and enforceable world trade rules

The Final Act embodying the results of Uruguay Round was signed in April 1994

This agreement created the World Trade Organization (WTO) which came into being on January 1 1995

GATT was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO)

The Bretton Woods Conference (1944) had introduced the idea for an organization to regulate trade as part of a larger plan for economic recovery after World War II As governments negotiated the ITO 23 negotiating states began parallel negotiations for the GATT

Once the ITO failed in 1950 only the GATT agreement was left

GATT can be divided into three phases

the first phase from 1947 until the Torquay Round largely concerned with which all commodities would be covered by the agreement and freezing existing tariff levels

the second phase encompassing three rounds from 1959 to 1979 focused on reducing tariffs

the third phase consisting only of the Uruguay Round from 1986 to 1994 extended the agreement fully to new areas such as intellectual property services capital and agriculture Out of this round the WTO was born

RoundsRoundsGATT held a total of 8 rounds Geneva Round - 1947 The first round

took place in 1947 in Geneva 23 countries participated The main focus of the round was tariff concessions around 45000 in total

Annecy Round ndash 1950 The second round took place in 1949 in Annecy France 13 countries participated The main focus of the talks was more tariff reductions around 5000 in total

Torquay Round ndash 1951 The third round occurred in Torquay England in 1951 38 countries participated 8700 tariff concessions were made

Geneva Round - 1955-1956 The fourth round returned to Geneva in 1955 and lasted until May 1956 26 countries participated $25 billion in tariffs were eliminated or reduced

Dillon Round - 1960-1962 The fifth round occurred once more in Geneva and lasted from 1960 to 1962 The talks were named after US Treasury Secretary and former Under Secretary of State Douglas Dillon who first proposed the talks 26 countries participated Along with reducing over $49 billion in tariffs it also yielded discussion relating to the creation of the European Economic Community(EEC)

Kennedy Round - 1964-1967 The sixth round was the last to take place in Geneva from 1964 until 1967 and was named after the late US President Kennedy 66 countries participated Concessions were made on $40 billion worth of tariffs

Tokyo Round - 1973-1979 Reduced tariffs and established new regulations aimed at controlling the proliferation of non-tariff barriers and voluntary export restrictions 102 countries participated Concessions were made on $190 billion worth

Uruguay Round - 1986-1993 The Uruguay Round began in 1986 125 countries participated It was the most ambitious round to date hoping to expand the competence of the GATT to important new areas such as services capital intellectual property textiles and agriculture

The Dunkel Draft Text or Dunkel Package or Dunkel Draft Act embodying the results of Uruguay Round was released on 20th December 1991

The Uruguay Round concluded on 15th Dec 1993 and as many as 125 countries including India signed the Final Act on April 15th 1994 at Marrakesh (Morocco)

Thus the General Agreement on Tariffs and Trade (GATT) also known as the Dunkel Agreement finally emerged as the World Trade Organization (WTO) in 1995

Why GATT converted to WTO GATT rules discriminated against

developing countries under the garb of clauses such as ldquoescape clausesrdquo ldquosafeguard rulesrdquo ldquovoluntary export restraintsrdquo ldquoorderly agreementsrdquo

lsquoAgriculturersquo was treated as a special case thus escaping GATT rules

Though developed countries removed majority of tariff barriers yet some others still remained affecting the interests of developing countries

US and EEC had concluded several bilateral discriminatory and restrictive arrangements outside GATT rules

ldquoSafeguardsrdquo rules under GATT undermined the effective working of GATT

Customs union and free trade areas permitted under GATT had been distorted and abused

Though GATT was a mandatory body it lacked enforcing mechanism

Last but not the least with the emergence of more and more new developing countries it was felt that GATT rules devised half a century ago had outlined their utility

GATT was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO)

The Bretton Woods Conference (1944) had introduced the idea for an organization to regulate trade as part of a larger plan for economic recovery after World War II As governments negotiated the ITO 23 negotiating states began parallel negotiations for the GATT

Once the ITO failed in 1950 only the GATT agreement was left

GATT can be divided into three phases

the first phase from 1947 until the Torquay Round largely concerned with which all commodities would be covered by the agreement and freezing existing tariff levels

the second phase encompassing three rounds from 1959 to 1979 focused on reducing tariffs

the third phase consisting only of the Uruguay Round from 1986 to 1994 extended the agreement fully to new areas such as intellectual property services capital and agriculture Out of this round the WTO was born

RoundsRoundsGATT held a total of 8 rounds Geneva Round - 1947 The first round

took place in 1947 in Geneva 23 countries participated The main focus of the round was tariff concessions around 45000 in total

Annecy Round ndash 1950 The second round took place in 1949 in Annecy France 13 countries participated The main focus of the talks was more tariff reductions around 5000 in total

Torquay Round ndash 1951 The third round occurred in Torquay England in 1951 38 countries participated 8700 tariff concessions were made

Geneva Round - 1955-1956 The fourth round returned to Geneva in 1955 and lasted until May 1956 26 countries participated $25 billion in tariffs were eliminated or reduced

Dillon Round - 1960-1962 The fifth round occurred once more in Geneva and lasted from 1960 to 1962 The talks were named after US Treasury Secretary and former Under Secretary of State Douglas Dillon who first proposed the talks 26 countries participated Along with reducing over $49 billion in tariffs it also yielded discussion relating to the creation of the European Economic Community(EEC)

Kennedy Round - 1964-1967 The sixth round was the last to take place in Geneva from 1964 until 1967 and was named after the late US President Kennedy 66 countries participated Concessions were made on $40 billion worth of tariffs

Tokyo Round - 1973-1979 Reduced tariffs and established new regulations aimed at controlling the proliferation of non-tariff barriers and voluntary export restrictions 102 countries participated Concessions were made on $190 billion worth

Uruguay Round - 1986-1993 The Uruguay Round began in 1986 125 countries participated It was the most ambitious round to date hoping to expand the competence of the GATT to important new areas such as services capital intellectual property textiles and agriculture

The Dunkel Draft Text or Dunkel Package or Dunkel Draft Act embodying the results of Uruguay Round was released on 20th December 1991

The Uruguay Round concluded on 15th Dec 1993 and as many as 125 countries including India signed the Final Act on April 15th 1994 at Marrakesh (Morocco)

Thus the General Agreement on Tariffs and Trade (GATT) also known as the Dunkel Agreement finally emerged as the World Trade Organization (WTO) in 1995

Why GATT converted to WTO GATT rules discriminated against

developing countries under the garb of clauses such as ldquoescape clausesrdquo ldquosafeguard rulesrdquo ldquovoluntary export restraintsrdquo ldquoorderly agreementsrdquo

lsquoAgriculturersquo was treated as a special case thus escaping GATT rules

Though developed countries removed majority of tariff barriers yet some others still remained affecting the interests of developing countries

US and EEC had concluded several bilateral discriminatory and restrictive arrangements outside GATT rules

ldquoSafeguardsrdquo rules under GATT undermined the effective working of GATT

Customs union and free trade areas permitted under GATT had been distorted and abused

Though GATT was a mandatory body it lacked enforcing mechanism

Last but not the least with the emergence of more and more new developing countries it was felt that GATT rules devised half a century ago had outlined their utility

GATT can be divided into three phases

the first phase from 1947 until the Torquay Round largely concerned with which all commodities would be covered by the agreement and freezing existing tariff levels

the second phase encompassing three rounds from 1959 to 1979 focused on reducing tariffs

the third phase consisting only of the Uruguay Round from 1986 to 1994 extended the agreement fully to new areas such as intellectual property services capital and agriculture Out of this round the WTO was born

RoundsRoundsGATT held a total of 8 rounds Geneva Round - 1947 The first round

took place in 1947 in Geneva 23 countries participated The main focus of the round was tariff concessions around 45000 in total

Annecy Round ndash 1950 The second round took place in 1949 in Annecy France 13 countries participated The main focus of the talks was more tariff reductions around 5000 in total

Torquay Round ndash 1951 The third round occurred in Torquay England in 1951 38 countries participated 8700 tariff concessions were made

Geneva Round - 1955-1956 The fourth round returned to Geneva in 1955 and lasted until May 1956 26 countries participated $25 billion in tariffs were eliminated or reduced

Dillon Round - 1960-1962 The fifth round occurred once more in Geneva and lasted from 1960 to 1962 The talks were named after US Treasury Secretary and former Under Secretary of State Douglas Dillon who first proposed the talks 26 countries participated Along with reducing over $49 billion in tariffs it also yielded discussion relating to the creation of the European Economic Community(EEC)

Kennedy Round - 1964-1967 The sixth round was the last to take place in Geneva from 1964 until 1967 and was named after the late US President Kennedy 66 countries participated Concessions were made on $40 billion worth of tariffs

Tokyo Round - 1973-1979 Reduced tariffs and established new regulations aimed at controlling the proliferation of non-tariff barriers and voluntary export restrictions 102 countries participated Concessions were made on $190 billion worth

Uruguay Round - 1986-1993 The Uruguay Round began in 1986 125 countries participated It was the most ambitious round to date hoping to expand the competence of the GATT to important new areas such as services capital intellectual property textiles and agriculture

The Dunkel Draft Text or Dunkel Package or Dunkel Draft Act embodying the results of Uruguay Round was released on 20th December 1991

The Uruguay Round concluded on 15th Dec 1993 and as many as 125 countries including India signed the Final Act on April 15th 1994 at Marrakesh (Morocco)

Thus the General Agreement on Tariffs and Trade (GATT) also known as the Dunkel Agreement finally emerged as the World Trade Organization (WTO) in 1995

Why GATT converted to WTO GATT rules discriminated against

developing countries under the garb of clauses such as ldquoescape clausesrdquo ldquosafeguard rulesrdquo ldquovoluntary export restraintsrdquo ldquoorderly agreementsrdquo

lsquoAgriculturersquo was treated as a special case thus escaping GATT rules

Though developed countries removed majority of tariff barriers yet some others still remained affecting the interests of developing countries

US and EEC had concluded several bilateral discriminatory and restrictive arrangements outside GATT rules

ldquoSafeguardsrdquo rules under GATT undermined the effective working of GATT

Customs union and free trade areas permitted under GATT had been distorted and abused

Though GATT was a mandatory body it lacked enforcing mechanism

Last but not the least with the emergence of more and more new developing countries it was felt that GATT rules devised half a century ago had outlined their utility

RoundsRoundsGATT held a total of 8 rounds Geneva Round - 1947 The first round

took place in 1947 in Geneva 23 countries participated The main focus of the round was tariff concessions around 45000 in total

Annecy Round ndash 1950 The second round took place in 1949 in Annecy France 13 countries participated The main focus of the talks was more tariff reductions around 5000 in total

Torquay Round ndash 1951 The third round occurred in Torquay England in 1951 38 countries participated 8700 tariff concessions were made

Geneva Round - 1955-1956 The fourth round returned to Geneva in 1955 and lasted until May 1956 26 countries participated $25 billion in tariffs were eliminated or reduced

Dillon Round - 1960-1962 The fifth round occurred once more in Geneva and lasted from 1960 to 1962 The talks were named after US Treasury Secretary and former Under Secretary of State Douglas Dillon who first proposed the talks 26 countries participated Along with reducing over $49 billion in tariffs it also yielded discussion relating to the creation of the European Economic Community(EEC)

Kennedy Round - 1964-1967 The sixth round was the last to take place in Geneva from 1964 until 1967 and was named after the late US President Kennedy 66 countries participated Concessions were made on $40 billion worth of tariffs

Tokyo Round - 1973-1979 Reduced tariffs and established new regulations aimed at controlling the proliferation of non-tariff barriers and voluntary export restrictions 102 countries participated Concessions were made on $190 billion worth

Uruguay Round - 1986-1993 The Uruguay Round began in 1986 125 countries participated It was the most ambitious round to date hoping to expand the competence of the GATT to important new areas such as services capital intellectual property textiles and agriculture

The Dunkel Draft Text or Dunkel Package or Dunkel Draft Act embodying the results of Uruguay Round was released on 20th December 1991

The Uruguay Round concluded on 15th Dec 1993 and as many as 125 countries including India signed the Final Act on April 15th 1994 at Marrakesh (Morocco)

Thus the General Agreement on Tariffs and Trade (GATT) also known as the Dunkel Agreement finally emerged as the World Trade Organization (WTO) in 1995

Why GATT converted to WTO GATT rules discriminated against

developing countries under the garb of clauses such as ldquoescape clausesrdquo ldquosafeguard rulesrdquo ldquovoluntary export restraintsrdquo ldquoorderly agreementsrdquo

lsquoAgriculturersquo was treated as a special case thus escaping GATT rules

Though developed countries removed majority of tariff barriers yet some others still remained affecting the interests of developing countries

US and EEC had concluded several bilateral discriminatory and restrictive arrangements outside GATT rules

ldquoSafeguardsrdquo rules under GATT undermined the effective working of GATT

Customs union and free trade areas permitted under GATT had been distorted and abused

Though GATT was a mandatory body it lacked enforcing mechanism

Last but not the least with the emergence of more and more new developing countries it was felt that GATT rules devised half a century ago had outlined their utility

Geneva Round - 1955-1956 The fourth round returned to Geneva in 1955 and lasted until May 1956 26 countries participated $25 billion in tariffs were eliminated or reduced

Dillon Round - 1960-1962 The fifth round occurred once more in Geneva and lasted from 1960 to 1962 The talks were named after US Treasury Secretary and former Under Secretary of State Douglas Dillon who first proposed the talks 26 countries participated Along with reducing over $49 billion in tariffs it also yielded discussion relating to the creation of the European Economic Community(EEC)

Kennedy Round - 1964-1967 The sixth round was the last to take place in Geneva from 1964 until 1967 and was named after the late US President Kennedy 66 countries participated Concessions were made on $40 billion worth of tariffs

Tokyo Round - 1973-1979 Reduced tariffs and established new regulations aimed at controlling the proliferation of non-tariff barriers and voluntary export restrictions 102 countries participated Concessions were made on $190 billion worth

Uruguay Round - 1986-1993 The Uruguay Round began in 1986 125 countries participated It was the most ambitious round to date hoping to expand the competence of the GATT to important new areas such as services capital intellectual property textiles and agriculture

The Dunkel Draft Text or Dunkel Package or Dunkel Draft Act embodying the results of Uruguay Round was released on 20th December 1991

The Uruguay Round concluded on 15th Dec 1993 and as many as 125 countries including India signed the Final Act on April 15th 1994 at Marrakesh (Morocco)

Thus the General Agreement on Tariffs and Trade (GATT) also known as the Dunkel Agreement finally emerged as the World Trade Organization (WTO) in 1995

Why GATT converted to WTO GATT rules discriminated against

developing countries under the garb of clauses such as ldquoescape clausesrdquo ldquosafeguard rulesrdquo ldquovoluntary export restraintsrdquo ldquoorderly agreementsrdquo

lsquoAgriculturersquo was treated as a special case thus escaping GATT rules

Though developed countries removed majority of tariff barriers yet some others still remained affecting the interests of developing countries

US and EEC had concluded several bilateral discriminatory and restrictive arrangements outside GATT rules

ldquoSafeguardsrdquo rules under GATT undermined the effective working of GATT

Customs union and free trade areas permitted under GATT had been distorted and abused

Though GATT was a mandatory body it lacked enforcing mechanism

Last but not the least with the emergence of more and more new developing countries it was felt that GATT rules devised half a century ago had outlined their utility

Kennedy Round - 1964-1967 The sixth round was the last to take place in Geneva from 1964 until 1967 and was named after the late US President Kennedy 66 countries participated Concessions were made on $40 billion worth of tariffs

Tokyo Round - 1973-1979 Reduced tariffs and established new regulations aimed at controlling the proliferation of non-tariff barriers and voluntary export restrictions 102 countries participated Concessions were made on $190 billion worth

Uruguay Round - 1986-1993 The Uruguay Round began in 1986 125 countries participated It was the most ambitious round to date hoping to expand the competence of the GATT to important new areas such as services capital intellectual property textiles and agriculture

The Dunkel Draft Text or Dunkel Package or Dunkel Draft Act embodying the results of Uruguay Round was released on 20th December 1991

The Uruguay Round concluded on 15th Dec 1993 and as many as 125 countries including India signed the Final Act on April 15th 1994 at Marrakesh (Morocco)

Thus the General Agreement on Tariffs and Trade (GATT) also known as the Dunkel Agreement finally emerged as the World Trade Organization (WTO) in 1995

Why GATT converted to WTO GATT rules discriminated against

developing countries under the garb of clauses such as ldquoescape clausesrdquo ldquosafeguard rulesrdquo ldquovoluntary export restraintsrdquo ldquoorderly agreementsrdquo

lsquoAgriculturersquo was treated as a special case thus escaping GATT rules

Though developed countries removed majority of tariff barriers yet some others still remained affecting the interests of developing countries

US and EEC had concluded several bilateral discriminatory and restrictive arrangements outside GATT rules

ldquoSafeguardsrdquo rules under GATT undermined the effective working of GATT

Customs union and free trade areas permitted under GATT had been distorted and abused

Though GATT was a mandatory body it lacked enforcing mechanism

Last but not the least with the emergence of more and more new developing countries it was felt that GATT rules devised half a century ago had outlined their utility

Uruguay Round - 1986-1993 The Uruguay Round began in 1986 125 countries participated It was the most ambitious round to date hoping to expand the competence of the GATT to important new areas such as services capital intellectual property textiles and agriculture

The Dunkel Draft Text or Dunkel Package or Dunkel Draft Act embodying the results of Uruguay Round was released on 20th December 1991

The Uruguay Round concluded on 15th Dec 1993 and as many as 125 countries including India signed the Final Act on April 15th 1994 at Marrakesh (Morocco)

Thus the General Agreement on Tariffs and Trade (GATT) also known as the Dunkel Agreement finally emerged as the World Trade Organization (WTO) in 1995

Why GATT converted to WTO GATT rules discriminated against

developing countries under the garb of clauses such as ldquoescape clausesrdquo ldquosafeguard rulesrdquo ldquovoluntary export restraintsrdquo ldquoorderly agreementsrdquo

lsquoAgriculturersquo was treated as a special case thus escaping GATT rules

Though developed countries removed majority of tariff barriers yet some others still remained affecting the interests of developing countries

US and EEC had concluded several bilateral discriminatory and restrictive arrangements outside GATT rules

ldquoSafeguardsrdquo rules under GATT undermined the effective working of GATT

Customs union and free trade areas permitted under GATT had been distorted and abused

Though GATT was a mandatory body it lacked enforcing mechanism

Last but not the least with the emergence of more and more new developing countries it was felt that GATT rules devised half a century ago had outlined their utility

The Uruguay Round concluded on 15th Dec 1993 and as many as 125 countries including India signed the Final Act on April 15th 1994 at Marrakesh (Morocco)

Thus the General Agreement on Tariffs and Trade (GATT) also known as the Dunkel Agreement finally emerged as the World Trade Organization (WTO) in 1995

Why GATT converted to WTO GATT rules discriminated against

developing countries under the garb of clauses such as ldquoescape clausesrdquo ldquosafeguard rulesrdquo ldquovoluntary export restraintsrdquo ldquoorderly agreementsrdquo

lsquoAgriculturersquo was treated as a special case thus escaping GATT rules

Though developed countries removed majority of tariff barriers yet some others still remained affecting the interests of developing countries

US and EEC had concluded several bilateral discriminatory and restrictive arrangements outside GATT rules

ldquoSafeguardsrdquo rules under GATT undermined the effective working of GATT

Customs union and free trade areas permitted under GATT had been distorted and abused

Though GATT was a mandatory body it lacked enforcing mechanism

Last but not the least with the emergence of more and more new developing countries it was felt that GATT rules devised half a century ago had outlined their utility

Why GATT converted to WTO GATT rules discriminated against

developing countries under the garb of clauses such as ldquoescape clausesrdquo ldquosafeguard rulesrdquo ldquovoluntary export restraintsrdquo ldquoorderly agreementsrdquo

lsquoAgriculturersquo was treated as a special case thus escaping GATT rules

Though developed countries removed majority of tariff barriers yet some others still remained affecting the interests of developing countries

US and EEC had concluded several bilateral discriminatory and restrictive arrangements outside GATT rules

ldquoSafeguardsrdquo rules under GATT undermined the effective working of GATT

Customs union and free trade areas permitted under GATT had been distorted and abused

Though GATT was a mandatory body it lacked enforcing mechanism

Last but not the least with the emergence of more and more new developing countries it was felt that GATT rules devised half a century ago had outlined their utility

US and EEC had concluded several bilateral discriminatory and restrictive arrangements outside GATT rules

ldquoSafeguardsrdquo rules under GATT undermined the effective working of GATT

Customs union and free trade areas permitted under GATT had been distorted and abused

Though GATT was a mandatory body it lacked enforcing mechanism

Last but not the least with the emergence of more and more new developing countries it was felt that GATT rules devised half a century ago had outlined their utility