Wto
Upcoming SlideShare
Loading in...5
×
 

Wto

on

  • 3,425 views

 

Statistics

Views

Total Views
3,425
Views on SlideShare
3,425
Embed Views
0

Actions

Likes
1
Downloads
144
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Wto Wto Presentation Transcript

  • General Agreement on Tariffs and Trade he General Agreement on Tariffs and Trade (typically abbreviated GATT ) was originally created by the Bretton Woods Conference as part of a larger plan for economic recovery after World War II . The GATT's main purpose was to reduce barriers to international trade . This was achieved through the reduction of tariff barriers, quantitative restrictions and subsidies on trade through a series of different agreements. The GATT was an agreement, not an organization. The history of the GATT can be divided into three phases: the first, from 1947 until the Torquay round, largely concerned which commodities would be covered by the agreement and freezing existing tariff levels. A 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.
  • Rounds of GATT trade negotiations
    • GATT signatories occasionally negotiated new trade agreements that all countries would enter into.
    • Each set of agreements was called a round . In general, each agreement bound members to reduce certain tariffs .
    • Usually this would include many special-case treatments of individual products, with exceptions or modifications for each country.
    • Havana Round ( 1947 ): 23 countries. GATT enters into force.
    • Annecy Round ( 1949 ): 33 countries.
    • Torquay Round ( 1950 ): 34 countries.
    • Geneva Fourth Round ( 1956 ): 22 countries. Tariff reductions. Strategy set for future GATT policy toward developing countries, improving their positions as treaty participants.
    • Dillon Round ( 1960-1961 ): 45 countries. Tariff reductions. Named after C. Douglas Dillon , then U.S. Undersecretary of State.
    6. Kennedy Round ( 1962-1967 ): 48 countries. Tariff reductions. This was an across-the-board reduction rather than a product-by-product specification, for the first time. Anti- dumping agreement (which, in the United States, was rejected by Congress ). 7. Tokyo Round ( 1973-1979 ): 99 countries. Reduced non-tariff trade barriers. Also reduced tariffs on manufactured goods. Improvement and extension of GATT system.
    • Uruguay Round ( 1986-94 ): 125 countries. Created the World Trade
    • Organization to replace the GATT treaty. Reduced tariffs and export subsidies , reduced other import limits and quotas over the next 20 years, agreement to enforce patents , trademarks , and copyrights ( TRIPS ), extending international trade law to the service sector ( GATS ) and open up foreign investment. It also made major changes in the dispute settlement mechanism of GATT.
    • What is the WTO?
    • The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations.
    • At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments.
    • The goal is to help producers of goods and services, exporters, and importers conduct their business.
  •     FACT FILE Location: Geneva, Switzerland Established: 1 January 1995 Created by: Uruguay Round negotiations (1986-94) Membership: 150 countries on 11 January 2007 Budget: 175 million Swiss francs for 2006 Secretariat staff: 635 Head: Pascal Lamy (Director-General) Functions: • 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
  •  
  • Status of WTO negotiations: ██ members (including dual-representation with the European Communities ) ██ Draft Working Party Report or Factual Summary adopted ██ Goods and/or Services offers submitted ██ Memorandum on Foreign Trade Regime submitted ██ observer, negotiations to start later or no Memorandum on FTR submitted ██ frozen procedures or no negotiations in the last 3 years ██ no official interaction with the WTO
  •  
  • 7 The first step is to talk. Essentially, the WTO is a place where member governments go, to try to sort out the trade problems they face with each other. At its heart are WTO agreements, negotiated and signed by the bulk of the world’s trading nations. But the WTO is not just about liberalizing trade, and in some circumstances its rules support maintaining trade barriers — for example to protect consumers or prevent the spread of disease. Above all, it’s a negotiating forum …
  • Mission The WTO states that its aims are to increase international trade by promoting lower trade barriers and providing a platform for the negotiation of trade and to their business. The principles of the trading system should be ... without discrimination — a country should not discriminate between its trading partners (giving them equally “most-favoured-nation” or MFN status); and it should not discriminate between its own and foreign products, services or nationals (giving them “national treatment”); freer — barriers coming down through negotiation; predictable — foreign companies, investors and governments should be confident that trade barriers (including tariffs and non-tariff barriers) should not be raised arbitrarily; tariff rates and market-opening commitments are “bound” in the WTO; more competitive — discouraging “unfair” practices such as export subsidies and dumping products at below cost to gain market share; more beneficial for less developed countries — giving them more time to adjust, greater flexibility, and special privileges.
  • The Uruguay Round increased bindings Percentages of tariffs bound before and after the 1986-94 talks Before After Developed countries 78 99 Developing countries 21 73 Transition economies 73 98 (These are tariff lines, so percentages are not weighted according to trade volume or value) Trade negotiations While most international organizations operate on a one country, one vote or even a weighted voting basis, Many WTO decisions, such as adopting agreements (and revisions to them) are officially determined by consensus of all members. The advantage of consensus decision-making is that it encourages efforts to find the most widely acceptable decision. Main disadvantages include large time requirements and many rounds of negotiation to develop a consensus decision, and the tendency for final agreements to use ambiguous language on contentious points that makes future interpretation of treaties difficult.
  • n reality, WTO negotiations proceed not by consensus of all members, but by a process of informal negotiations between small groups of countries. Such negotiations are often called "Green Room " negotiations (after the colour of the WTO Director-General's Office in Geneva), or "Mini-Ministerials", when they occur in other countries. Dispute resolution WTO is to act as an arbiter of disputes between member countries. Countries can bring disputes to the WTO's Dispute Settlement Body (DSB) if they believe another member has breached WTO rules. The DSB is the WTO General Council acting in a specialized role under a separate chair. It administers the Understanding on Rules and Procedures Governing Settlement of Disputes (DSU), [4] which regulates dispute settlement under all covered WTO agreements. [5]
  • Agreements The WTO oversees about 60 different agreements which have the status of international legal texts. Member countries must sign and ratify all WTO agreements on accession. most important agreements follows. AGREEMENT ON AGRICULTURE (AOA) three central concepts, or "pillars": domestic support , ( subsidies) market access ( reduction of tariff (or non- tariff) barriers and export subsidies .
  • GENERAL AGREEMENT ON TRADE IN SERVICES (GATS) entered into force in January 1995 as a result of the Uruguay Round negotiations. The treaty was created to extend the multilateral trading system to services , TRADE-RELATED ASPECTS OF INTELLECTUAL PROPERTY RIGHTS (TRIPS) AGREEMENT. sets down minimum standards for many forms of intellectual property (IP) regulation. It was negotiated at the end of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) treaty in 1994.
  • SANITARY AND PHYTO-SANITARY (SPS) AGREEMENT also known as the SPS Agreement was negotiated during the Uruguay Round of the General Agreement on Tariffs and Trade , and entered into force with the establishment of the WTO at the beginning of 1995. Under the SPS agreement, the WTO sets constraints on members' policies relating to food safety (bacterial contaminants, pesticides, inspection and labelling) as well as animal and plant health (imported pests and diseases). { SPS & Genetically Modified Organisms (GMOs)}
  • AGREEMENT ON TECHNICAL BARRIERS TO TRADE (TBT) i t was negotiated during the Uruguay Round of the General Agreement on Tariffs and Trade , and entered into force with the establishment of the WTO at the end of 1994. The object of the TBT Agreement is to "to ensure that technical negotiations and standards, as well as testing and certification procedures, do not create unnecessary obstacles to trade" [5]
    • Chronology
    • 1986-1994 - Uruguay Round of GATT negotiations culminating in the Marrakech Agreement that established the WTO.
    • January 1 , 1995 - The WTO came into existence.
    • May 1 , 1995 - Renato Ruggiero became director-general for a 4-year term.
    • December 9 - December 13 , 1996 - The inaugural ministerial conference in Singapore . Disagreements between largely developed and developing economies emerged during this conference over four issues initiated by this conference, which led to them being collectively referred to as the " Singapore issues ".
    • May 18 - May 20 , 1998 - 2nd ministerial conference in Geneva , Switzerland .
    • September 1 , 1999 - Mike Moore became director-general. The post had been fiercely contested; eventually a compromise was reached with Mike Moore and Supachai Panitchpakdi taking half each of a six-year term.
    • November 30 - December 3 , 1999 - 3rd ministerial conference in Seattle, Washington , USA . The conference itself ended in failure, with massive demonstrations and riots drawing worldwide attention.
    • November 9 - November 13 , 2001 - 4th ministerial conference in Doha , Qatar begins the Doha round . Issuance of the Doha Declaration .
    • December 11 , 2001 - The People's Republic of China joined the WTO after 15 years of negotiations (the longest in GATT history). [7]
    • January 1 , 2002 - Taiwan joined under the name "Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu".
    • September 1 , 2002 - Supachai Panitchpakdi became director-general.
    • September 10 - September 14 , 2003 - 5th ministerial conference in Cancún , Mexico aims at forging agreement on the Doha round. An alliance of 22 southern states, the G20 (led by India, People's Republic of China and Brazil), resisted demands from the North for agreements on the so-called " Singapore issues " and called for an end to agricultural subsidies within the EU and the US. The talks broke down without progress, although trade facilitation , one of the Singapore issues, re-emerged with the support from both developed and developing countries in later Doha trade round discussion.
    • August 2004 - Geneva talks achieve a framework agreement on the Doha round. Developed countries will lower agricultural subsidies, and in exchange the developing countries will lower tariff barriers to manufactured goods.
    • May 2005 - Paris talks aimed at finalizing issues for agreement before the December 2005 ministerial conference in Hong Kong are hung over technical issues. The group of five (U.S., Australia, the EU, Brazil and India) fail to agree over chicken, beef and rice. France continues to protest restrictions on subsidies to farmers. Oxfam accuses the EU of delaying tactics which threaten to scupper the Doha round.
    • November 11 - WTO General Council successfully adopts Saudi Arabia’s terms of Accession
    • December 13 - December 18 , 2005 - 6th ministerial conference in Hong Kong .
    • July 24, 2006 - The Doha Development Agenda negotiations were suspended, because gaps between key players remained too wide.
  •