PRESENTATION ON W.T.O

Introduction MeaningIt was established on 1st Jan 1995.It aims at solving the problems related to

international trade.W.T.O office is located at Geneva,Switzerland.At present 149 countries in the world are the

members of W.T.OIt functions along with the world bank.It is regarded as third economic pillar of World

Trade and Commerce along with IMF and IBRD.

PROFILE OF W.T.O

Profile Abbreviation :WTOFormation : 1 January 1995; 20 years agoType : International trade organizationPurpose : Regulate international tradeHeadquarters : Geneva,Switzerland.Region served : WorldwideMembership : 161 member statesOfficial language :English, French, SpanishDirector-General : Roberto AzevêdoBudget : 196 million Swiss francs (approx. 209 million US$) in 2011.

Staff : 640

Website www.wto.org

OBJECTIVES OF W.T.O

Objectives of WTO

Important objectives of WTO are mentioned below:

(i) to implement the new world trade system as visualised in the Agreement;

(ii) to promote World Trade in a manner that benefits every country;

(iii) to ensure that developing countries secure a better balance in the sharing of the advantages resulting from the expansion of international trade corresponding to their developmental needs;

(iv) to demolish all hurdles to an open world trading system and usher in international economic renaissance because the world trade is an effective instrument to foster economic growth;

(v) to enhance competitiveness among all trading partners so as to benefit consumers and help in global integration;

(vi) to increase the level of production and productivity with a view to ensuring level of employment in the world;

(vii) to expand and utilize world resources to the best;

(viii) to improve the level of living for the global population and speed up economic development of the member nations.

Principles of WTO

Principles The WTO consists of fundamental principles that are the

foundation of the multilateral trading system.Non-DiscriminationBinding and Enforceable CommitmentsTransparencySingle UndertakingSafety Valves

WTO Agreements

GATTIt all began with trade in goods. From 1947 to 1994,

GATT was the forum for negotiating lower customs duty rates and other trade barriers; the text of the General Agreement spelt out important rules, particularly non-discrimination.

Since 1995, the updated GATT has become the WTO’s umbrella agreement for trade in goods. It has annexes dealing with specific sectors such as agriculture and textiles, and with specific issues such as state trading, product standards, subsidies and actions taken against dumping.  

GATSBanks, insurance firms, telecommunications

companies, tour operators, hotel chains and transport companies looking to do business abroad can now enjoy the same principles of freer and fairer trade that originally only applied to trade in goods.

These principles appear in the new General Agreement on Trade in Services (GATS). WTO members have also made individual commitments under GATS stating which of their services sectors they are willing to open to foreign competition, and how open those markets are.

TRIPSThe WTO’s intellectual property agreement amounts

to rules for trade and investment in ideas and creativity. The rules state how copyrights, patents, trademarks, geographical names used to identify products, industrial designs, integrated circuit layout-designs and undisclosed information such as trade secrets — “intellectual property” — should be protected when trade is involved. In Nutshell , the TRIPs Agreement covers 7 categories of intellectual property .

Dispute settlement System

The WTO’s procedure for resolving trade quarrels under the Dispute Settlement Understanding is vital for enforcing the rules and therefore for ensuring that trade flows smoothly. Countries bring disputes to the WTO if they think their rights under the agreements are being infringed. Judgements by specially-appointed independent experts are based on interpretations of the agreements and individual countries’ commitments.

TPRMThe Trade Policy Review Mechanism’s purpose is to

improve transparency, to create a greater understanding of the policies that countries are adopting, and to assess their impact. Many members also see the reviews as constructive feedback on their policies.

All WTO members must undergo periodic scrutiny, each review containing reports by the country concerned and the WTO Secretariat.

Functions of WTO1. To improve the standard of living of people in

the member countries.2. To ensure full employment and broad increase

in effective demand.3. To enlarge production and trade of goods.4. To increase the trade of services.5. To ensure optimum utilization of world

resources.6. To protect the environment.7. To accept the concept of sustainable

development.

W.T.O And India

The GATT secretariat estimated that largest increase in the level of merchandise trade in goods (in general, it would be US $ 745 billion .)

will be in the areas of clothing (60 per cent), agriculture, forestry and fishery products (20 per cent) and processed food and beverages (19 per cent).

India's textile and clothing exports will increase due to the phasing out of Multi-fibre An'angement (MFA) .

The reduction in agricultural subsidies and barriers to export of agricultural products, agricultural exports from India will increase .

Increase in the market share in the world exports from 0.5% to 1%

•Expansion in trade: world bank, OECD and GAAT secretariat

have estimated that the income effects of the implementation.

•Phasing out of the MFA: it has been argued that the phasing out

of the MFA by 2005 will india as the export of textiles and clothing

will increase.

•Improved prospects for agriculture exports: as a result of

likely increase in world prices of agricultural product due to

reduction in domestic subsidies and barriers to trade.

WTO IN INDIA OF BENEFITS

Cont,,,Multilateral rules and disciplines: the most

important of these relate to anti-dumping, subsidies and countervailing measures safeguards and disputes settlement.

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