WTO means world Trade Organization . It was started from 1 January 1995.It’s an organization for liberalizing trade. It’s a forum for governments to negotiate trade agreements. It’s a place for them to settle disputes. It operates a system of trade rules.
The WTO began life on 1 January 1995, but its trading system is half a century older. Since 1948, the General Agreement on Tariffs and Trade (GATT) had provided the rules for the system. (The second WTO ministerial meeting, held in Geneva in May 1998, included a celebration of the 50th anniversary of the system.)
Administering and implementing the multilateral and plurilateral trade agreements which together make up the WTO.
Acting as a forum for multilateral trade negotiations.
Seeking to resolve trade disputes .
Overseeing national trade policies.
Cooperating with other international institutions involved in global economics policy making.
STRUCTURE OF WTO MINISTERIAL CONFERENCE GENERAL COUNCIL TRADE POLICY REVIEW BODY DISPUTE SETTLEMENT BODY APPELLATE BODY DISPUTE SETTLEMENT PANELS COUNCIL FOR TRADE IN SERVICES COUNCIL FOR TRADE-RELATED ASPECTS OF INTELLECTUAL PROPERTY RIGHTS COMMITTEE ON TRADE AND ENVIRONMENT COUNCIL FOR TRADE IN GOODS
DIRECTOR GENERAL –PASCAL LAMY
four Deputy Directors-General are: Alejandro Jara , Valentine Sendanyoye Rugwabiza , Harsha Vardhana Singh and Rufus H. Yerxa . Their appointment took effect on 1 October 2005.
DIFFERENCES BETWEEN GATT AND THE WTO
GATT was a set of rules, with no institutional foundation ,only a small associated secretariat ,and WTO is a permanent institution with its own secretariat.
GATT was applied on a provisional basis but WTO commitments are full and permanent .
GATT applied only on merchandise goods but WTO applied on trade in services and trade-related aspects of intellectual property foreign investment etc.
WTO dispute settlement system is faster, more automatic than GATT.
SALIENT FEATURES OF URUGUAY ROUND
Agreement on agriculture.
Agreement on trade in textiles and clothing.
Agreement on manufactured goods.
Agreement on TRIMs.
Agreement on TRIPs.
Agreement on services.
Disputes settlement body.
The Uruguay Round increased bindings Percentages of tariffs bound before and after the 1986-94 talks Before After Developed countries7899Developing countries2173Transition economies7398(These are tariff lines, so percentages are not weighted according to trade volume or value) In the WTO, when countries agree to open their markets for goods or services, they “bind
DOHA DEVELOPMET AGENDA
The WTO is currently the host to new negotiations, under the “Doha Development Agenda” launched in 2001.
Trips and public Health.
Trade and environment.
Market access for industrial products.
Competition, investment, transparency in government procurement and trade facilitation.
Importance's of WTO
Dynamic export industry can play in the country’s development.
To make independent economy in petroleum and fertilizers to capital goods and raw materials and life saving drugs.
Give opportunities to spread business in the whole world.
WORLD TRADE AND PRODUCTION
1-It helps to settle dispu
There are 151 members in WTO
India 1 January 1995
Australia 1 January 1995
Mexico 1 January 1995
Israel 21 April 1995
Italy 1 January 1995
Jamaica 9 March 1995
Japan 1 January 1995………………..
INDIA’S COMMITMENTS TO WTO
Tariff lines- India bound 67% with WTO
Quantitative restrictions- in 1997 for 2,714 tariff line at the eight digit level
TRIPs- appropriate amendments to patents act 1970 by April 19 1999
TRIMs-developing countries have transition
GATS-India commitments in 33 activities
Customs valuation rules-
BENEFITS TO INDIA
World bank, GATT –level of trade in goods by 745 billion U.S. dollars in 2005
In agricultural exports
URA strengthened multilateral rules and disciplines (safeguards, disputes settlement etc)
MFA (multi-fibre arrangement) by 2005
Benefits in exports of textiles and clothing
DISADVANTAGES TO INDIA
WTO launches first global review of Aid for Trade
The WTO, its members and key international agencies will conduct the first global review of Aid for Trade — aimed at expanding the trade capacity of developing countries — on 20-21 November 2007 in Geneva.
There are no WTO definitions of “developed” or “developing” countries. Developing countries in the WTO are designated on the basis of self-selection although this is not necessarily automatically accepted in all WTO bodies.