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World Trade Organization


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World Trade Organization

  1. 1. World Trade Organization
  2. 2. INFORMATION <ul><li>Formation 1 January 1995 </li></ul><ul><li>Headquarter Geneva,Switzerland </li></ul><ul><li>Membership 153 member states </li></ul><ul><li>Official language English, French, Spanish </li></ul><ul><li>Director-General Pascal Lamy </li></ul><ul><li>Staff 625 </li></ul><ul><li>Website </li></ul>
  4. 5. INTRODUCTION <ul><li>The World Trade Organization (WTO) is an international organization designed to supervise and liberalize . </li></ul><ul><li>It is successor to the General Agreement on Tariffs and Trade (GATT), which was created in 1947, and continued to operate for almost five decades. </li></ul>
  5. 6. Contd… <ul><li>The WTO deals with the rules of trade between national at a near-global level. </li></ul><ul><li>It is responsible for negotiating and implementing new trade agreement. </li></ul><ul><li>The WTO has large membership than GATT, the number of member stand at 153. India is one of the founder member of the WTO. </li></ul>
  6. 7. MISSION <ul><li>The WTO’s stated goal is to improve the welfare of the people of its member countries, specifically by lowering trade barriers and providing a platform for negotiation of trade. </li></ul><ul><li>Its main mission “to ensure that trade flow as smoothly, predictably and freely as possible”. </li></ul>
  7. 8. FUNCTION <ul><li>It oversees the implementation, administration and operation of the covered agreement. </li></ul><ul><li>It provides a forum for negotiations and disputes. </li></ul>
  8. 9. PRINCIPLE <ul><li>Non-Discrimination:- It has two major components: </li></ul><ul><li>The most favored nation (MFN) rule, and national treatment policy. </li></ul><ul><li>Both are embedded in the main WTO rule on goods, services and intellectual property, but their precise scope and nature differ across these areas. </li></ul>
  9. 10. <ul><li>2 Reciprocity :- It reflects both a desire to limit the scope of free-riding that may arise because of MFN rule, and a desire to obtain better access to foreign markets. </li></ul><ul><li>3 Binding and enforceable commitments:- In the WTO, when countries agree to open their markets for goods and services, they ‘bind’ their commitments. In the case of goods, these bindings amount to ceiling on custom tariff rates. </li></ul>
  10. 11. <ul><li>4 Transparency:- WTO member are required to publish their trade regulation. </li></ul><ul><li>To establish and maintain institution allowing for the review of administrative decision affecting trade. </li></ul><ul><li>To respond to requests for information by other members, and to notify changes in trade policies to the WTO. </li></ul>
  11. 12. <ul><li>5 Safety Valves:- In specific circumstances, Government are able to restrict trade. There are four types of previsions in this direction:- </li></ul><ul><li>Goods and services meant for noneconomic objects such as public health and national security. </li></ul><ul><li>Industries likely to be injured by competition from imports. </li></ul>
  12. 13. <ul><li>c. Articles aimed at ensuring fair competition. </li></ul><ul><li>d. Provisions permitting intervention in trade for economic reasons. </li></ul>
  14. 15. AGENDA FOR NEXT MILLENIUM <ul><li>Agricultural products. </li></ul><ul><li>Services. </li></ul><ul><li>Tariffs on industrial products. </li></ul><ul><li>TRIPS, textiles and anti-dumping duties & subsidies. </li></ul><ul><li>New issues-foreign investment ,competition policies, transparency in government procurement, e-commerce. </li></ul>
  15. 16. Contd… <ul><li>Non-trade issues-linkage between trade and environment, linkage between trade and labor. </li></ul><ul><li>Technology transfer. </li></ul><ul><li>Non-tariff barriers. </li></ul><ul><li>The issue of commodity prices. Lack of stability in commodity prices has been causing economic instability among many developing countries </li></ul>