new_world trade organisation (wto)
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WORLD TRADE
ORGANISATION (WTO)
PRESENTED BY -
NEHA RAJE:
PAVAN HEGDE: 26 SACHIN JAIN:
VAIBHAV KOTHARE: 3
SHRADDHA GOJE:
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F LOW OF THE PRESENTATION
Introduction to WTO & its functions
Why was it necessary to form WTO
Scope
Objectives
What are obligations of WTO
Criticism of WTO
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INTRODUCTION TO WTO
The World Trade Organisation (WTO) was a successor to theGeneral Agreement on Trade and Tariffs (GATT)
Came into existence in January 1995 after the Uruguay round of the
GATT
The WTO is the only global international organization responsible
for administering international trade agreements and declarations
and handles:
Trade disputes
Monitors national trade policies,
Operates as the forum for global trade negotiations
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The goal is to help producers of goods and services, exporters, and
importers conduct their business.
The WTO has 153 members
The forum for Government to negotiate trade agreement.
Facilitate the implementation, administration and operation of
Multilateral Trade Agreements
Rules and Procedures Governing Dispute Settlement
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F UNCTIONS OF WTO
Administering WTO trade agreements
Forum for trade negotiations
Handling trade disputes
Monitoring national trade policies
Technical assistance and training for developing countries
Cooperation with other international organizations
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WHY WAS IT NECESSARY TO F ORM WTO
Trade creates the wealth necessary for economic development,
creation of employment opportunities and the alleviation of
suffering
Loopholes in GATT
Saturation of home markets , trade restrictions & barriers to entry in
foreign markets
Problems faced by developing countries
GATT had mainly dealt with trade in goods, the WTO and its
agreements now cover trade in services, and in traded inventions,
creations and designs (intellectual property)
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SCOPE OF WTO
In addition to national trade policies, such as antidumping
duties, the WTO also supervises domestic policies that affect
trade in goods or services particularly, a government¶s use of
taxes, regulations, and standards to correct market failure
Using government subsidies as a first-best instrument to
address market failure is covered by several WTO agreements
Using government subsidies to promote equity and social
justice within a country is also covered by WTO rules
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The legislative clout of the WTO comes not only through the
indirect application of its rules but also in the dynamic way inwhich the WTO interpenetrates other regimes. Two forms of
interaction are:
is the enforcement of non-trade law and the other is the
incorporation of WTO rules into other treaties
WTO has also gained legislative clout through the maneuver of
directing governments to confer rights on foreign nationalsthat owing to a sense of fairness will likely also be conferred
on domestic persons
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The TRIPS Agreement, in effect,
turned the traditional national
treatment principle on its head byinducing a political dynamic in
which domestic persons would
inevitably gain the same rights that
were being extended to foreign
nationals
The TRIPS Agreement fomented
one of modern history¶s greatest
transfers of wealth from the publicdomain into private hands
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OBJECTIVES OF WTO
The main objectives of the World
Trade Organization (WTO) :
to raise the standards of living of the member countries
to ensure their full employment,
and to expand their production
trade of goods and services
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OTHER OBJECTIVES
To create a knowledge base on various matter concerning
various National and International Trade Laws and Protocols,
and their National and International implications and
ramifications
Carry out R&D & the building up of a clearing-house of cases
on all matters of WTO agreements which are of national
concern
Increasing awareness amongst Domestic Industry, business,
agriculture, service and other sectors on the impacts of trade
laws arising out of WTO agreement and other treaties as
member of WTO
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Exploit all potential provisions of WTO agreement available tothe developing nations and advising and counseling them on
all such issues of national importance
To assist the Government in negotiating with the InternationalCommunity in the perspective of the WTO regime and to help
strengthen the position of developing countries in these
regards in all possible ways
To develop a base of expertise amongst the members of the
Institute on Intellectual Property Rights, TRIPS, Anti-dumping
laws, EXIM Policy matters etc through training programs
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To co-ordinate efforts with the Government in creating a level playing field for all countries
Identify areas of non-fulfillment of the WTO agreement which
concern developing countries interest and suggest line of action and remedies
Discussions on making the domestic trade and export and
import policies more WTO compatible and suggest initiatives
to be taken in this respect at various levels to ensure high
growth of the economy
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OBLIGATIONS OF WTO
Trade Related Obligations:
MFN TR EATME NT
-countries cannot normally discriminate between their trading partners
National treatment: Treating foreigners and locals equally
- Imported and locally-produced goods should
be treated equally Freer trade: gradually, through negotiation
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RECOGNIZING THE LEGITIMACY OF
SANITARY PROTECTION
SPS (Sanitary and Phytosanitary Measures)
- How do you ensure that your country¶s consumers are beingsupplied with food that is safe to eat ?
- Member countries are encouraged to use international
standards, guidelines and recommendations where they exist
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RECOGNIZING THE LEGITIMACY OF IPRS
TRIPS (Trade related intellectual property rights)
Patents
Copyright
Trademarks
Geographical indications
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DISCOURAGING |UNF AIR} PRACTICES
Export subsidies and dumping products at below cost to gain
market share
It doesn't pass judgment. Its focus is on how governments can
or cannot react to dumping
It disciplines the use of subsidies, and it regulates the actionscountries can take to counter the effects of subsidies
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SETTLING DISPUTES
Dispute settlement is regarded by WTO as the central pillar of
the multilateral trading system
Agreements, including those painstakingly negotiated in the
WTO system, often need interpreting.
The purpose behind the dispute settlement process is:
The most harmonious way to settle differences through some
neutral procedure based on an agreed legal foundation.
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CRITICISMS OF WTO
WTO trading rules are still in effect and help provide a solid
framework for global commerce however, WTO was biased
towards developed countries
WTO is accused of widening the sociological gap between
rich and poor it claims to be fixing
Global trade negotiations have become much more complex &
complicated WTO decision-making, and the process of
"consensus-building" has broken down
GATT decision making process worked ± no compulsion to
adhere rules
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Putting the interests of business especially big multinationals
above those of workers, the environment and poor nations lead
to the rise of G20
Frustrated by the lack of progress at the global level, U.S., the
Europeans, and Japan have increasingly turned to bilateral and
regional negotiations
The maintenance of high protection of agriculture in
developed countries while developing ones are pressed to open
their markets
TRIP agreement limits developing countries from utilizing
some technology that originates from abroad in their local
systems
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Critics claim that the issues of labor and environment are
easily ignored