World Trade Organization

• Estd: Jan 1, 1995 (Marrakesh Agreement, Uruguay Round); predecessor GATT

• H.Q: Geneva, Switzerland• Members: 164 (latest Afghanistan; 2015)• DG: Roberto Azevedo• ‘To regulate intl. trade’

o Administering trade agreementso Forum for trade negotiationso Reviewing national trade policieso Assisting Developing countries in trade policy issues o Co-operating with other intl. org

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Organizational Structure

• Ministerial Conference: Highest Decision-Making Body; Meets once every 2 YearsSwapnil J. Hadpe 3

Ministerial Conferences• 1st: Singapore Conference (1996)

o Disagreements between Developed & Developing Countrieso 4 Issues: Transparency in Govt. Procurement, Trade Facilitation, Trade

& Investment, Trade Competition

• 3rd Min. Conference; Seattle, US; ‘Millennium Round’ (1999)o Further disagreements between Developed & Developing Nationso US & EU attempted a mutual deal on Agricultureo Massive protests

• 4th Min. Conference; Doha Round (2001)• ‘Doha Development Round’ – Agriculture & Services• Agreement on Trade-Related Aspects of IP Rights (TRIPS)

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Doha Development Agenda• Objectives: Lower Trade Barriers, increase Global Trade• Disagreements over: Agriculture, Industrial Tariff & Non-tariff

Barriers, Services, Trade Remedies• Stand off Between: Developed Countries (US, EU, Japan &

Major Developing Countries (Ind., Brazil, China, S. Africa) over Agri. Subsidies

• Subsequent Rounds: Cancun (2003), Hong Kong (2005), Paris (2005), Potsdam (2007), Geneva (2004, 2006, 2008)

• Emergence of G-20 Block• 2008 Crisis & consequent ‘Economic Disbelief’

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TRIPS• Sets down min. standards for IP• Negotiated at the end of Uruguay Round (under GATT; 1994)• At Doha Round: scope of TRIPS clarified• Balance of interests between: Pharmaceutical Companies in

Developed Countries (Patent) & Public Health needs in developing Countries (medicine on AIDS in Africa)

• Protection of Traditional Medicinal Knowledge & Practices• Extra time to Developing Countries till 2005• Special & Differential Treatment to LDCs (Duty-Free, Quota-Free

Access); transition time till 2013 & 1 Jan, 2016 (for pharma.)• Criticism: Money from people in Developing Countries to Patent

Holders in Developed Countries

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Agreement on Agri. (AoA)• Three Pillars:

1. Market Access (Reduce Import Duties)2. Export Subsidies (Reduce)3. Domestic Agri. Subsidies

GREEN AMBERBLUE

Don’t disrupt trade balance

Aim to limit production Disturb Trade Balance

Agri. Research Don’t increase with production Subsidies on Fertilizers, Seeds, Power

Extension Services Eg. Subsidies on acreage or no. of animals

Encourage excessive production

Farmer Training Programmes

Very few countries use Products become cheaper

No Limit No Limit Limit: ‘De-Minimus Level’ (Base Prod. of 1986)Swapnil J. Hadpe 7

Bali Round• 9th Ministerial Conference; Dec, 2013• Three Main Outcomes:

1. Trade Facilitation Agreement (TFA) – Min. Red Tape in Custom Clearance2. LDC Exports - DFQFA3. Food Stockholding – Peace Clause

• TFA:o Every Member to publish detailed list for import-export, fees, inspection rules, penaltieso Min. proof docs & clearanceo Internet of ‘everything’o E-payment of fees, duties, taxeso Single-window Clearanceo National Committee on Trade Facilitationo Deadline to sign 31 July, 2014 (India Refused); enforced from 2015

• LDC:o Financial & Technical assistance

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India’s Food Security Act & ‘Peace Clause’• Subsidised food grains to 2/3rd of India’s population• Rice: Rs. 3/-; Wheat: Rs. 2/-; Coarse Grains: Rs. 1/- (Per kg)• Threat of sanctions by other members of WTO for violation of

‘De-Minimus’ level• Pressure on India to give up its :

o MSPo Public Procurement

• TFA needs ratification of 2/3rd Members of WTO (108 Countries)

• India Ratified & still using its ‘Soft Power’ (inspiration movie ‘Josh’)

• Peace Clause till 2017

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Nairobi Conference• Dec, 2015• 1st WTO Conference in Africa• Efforts by US & EU to set aside Doha Agenda• No concrete agreement on ‘Special Safeguard Mechanism’ to

protect farmers in Developing & LDCs• New issues of interest for Developed Countries – Competition

Policy, Govt. Procurement, Investment• Nairobi Package:

o Agri. Export Subsidies (SSM) – Stop them! India – Stop Export Subsidies by 2018, on Transport, Mktg. by 2023

o LDC – by 2030; cotton; prefential treatment to goods & serviceso I.T Agreement – eliminate tariff on 201 IT productso Patent Evergreen

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Thank You !!!