Association of southeast Asian nations

2. Origin of the theory
 The main concept of absolute advantage is
generally attributed to Adam Smith for his 1776
publication An Inquiry into the Nature and Causes
of the Wealth of Nations in which he countered
mercantilist ideas.
 Smith argued that it was impossible for all nations
to become rich simultaneously by following
mercantilism.
 Smith also stated that the wealth of nations
depends upon the goods and services available to
their citizens, rather than theirgold reserves.

3. Absolute Advantage
 Export thosegoodsand services forwhich a country is
more productive than othercountries.
 Import thosegoodsand services forwhich other
countriesare more productivethan it is.
 Countryshould concentrateon productionof goods in
which it holdsan absoluteadvantage.
 Measures nationswealth by the standard of living of
its people

4. The Theory of Absolute
Advantage: An Example
OUTPUTPER HOUR OF LABOR
France Japan
Wine 2 1
Clock
radios
3 5

5. Assumptions
 Two Commodities and twocountries
 Assumes total world productionand emphasis on
efficiency.
 No transportationcost between and within the
country.
 Factorsareeasily mobilewithin acountryand
immobile between thecountries
 Full employment.

7. IN THE PRESENTATION
 Understanding of WTO
 WTO in beginning and Fact file of WTO
 Why WTO and functions and principle of WTO
 Structure of WTO
 Role of WTO
 Relevance of WTO
 TRIPs, TRIMs of WTO
 Agreements done under WTO guidance
 Role of WTO in developing countries
 Current issues of WTO

8. WORLD TRADE ORGANIZATION
which regulates theIntergovernmental organisation
international trade
• Officially commenced on 1st Jan 1995 under the Marrakesh
Agreement
• Signed by 123 nations in 1994
• WTO had replaced GATT (General agreement on tariffs and
trade)
• They deal with: agriculture, textiles and clothing, banking,
telecommunications, government purchases, industrial
standards and product safety, food sanitation regulations,
intellectual property and much more.

9. WTO: THE BEGINNINGS
 The World Trade Organization (WTO) came into being on
January 1st 1995.
 It extended GATT in two major ways. First GATT became
only one of the three major trade agreements that went into
the WTO
 Second the WTO was put on a much sounder institutional
footing than GATT

10. FACT FILE OF WTO
 Location - Geneva, Switzerland
 Established - 1 January 1995
 Created by - Uruguay Round negotiations (1986-94)
 Membership - 162 countries since 30 November 2015
 Head - Roberto Azevêdo (Director-General)
 Secretariat staff - 625

11. WHY WTO?
 To arrange the implementation, administration and operations of
trade agreements
 Settlement of disputes
 Trade relations in issues deal with under the agreements.
 To provide a framework for implementing of the results arising out
of the deliberations which taken place at ministerial conference level.
 To manage effectively and efficiency the trade policy review
mechanism (TRIM).
 To create more together relationship with all nations in respect of
global economic

12. FUNCTIONS OF WTO
 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

13. The basic principles of the WTO (according to the WTO):
 Trade Without Discrimination
1. Most Favoured Nation (MFN): treating other people equally
2. National treatment: Treating foreigners and locals equally
 Freer trade: gradually, through negotiation
 Predictability: through binding and transparency
 Promoting fair competition
 Encouraging development and economic reform.

14. STRUCTURE OF WTO

15. ROLE OF WTO
 The main goal of WTO is to help the trading industry to
become smooth, fair, free and predictable. It was organized to
become the administrator of multilateral trade and business
agreements between its member nations. It supports all
occurring negotiations for latest agreements for trade. WTO
also tries to resolve trade disputes between member nations.
 Multi-lateral agreements are always made between several
countries in the past. Because of this, such agreements become
very difficult to negotiate but are so powerful and influential
once all the parties agree and sign the multi-lateral agreement.
WTO acts as the administrator. If there are unfair trade practices
or dumping and there is complain filed, the staff of WTO are
expected to investigate and check if there are violations based
on the multi-lateral agreements.

16. TRIMS, AND TRIPS OFWTO
 The Agreement on Trade Related Aspects of Intellectual
Property Rights (TRIPS) is an international agreement
1) Agreement on Trade-Related Investment Measures (TRIMs)
 TRIMs refers to certain conditions or restrictions imposed by a
governments in respect of foreign investment in the country
 The agreement on TRIMs provides that no contracting party shall
apply any TRIM which is inconsistent with the WTOArticles.
2) Agreement on Trade-Related Aspects of Intellectual Property
Rights (TRIPS)
administered by the World Trade Organization (WTO) that sets down
minimum standards for many forms of intellectual property (IP)
regulation as applied to nationals of other WTO Members

17.  TRIPS contains requirements that nations' laws must meet
for copyright rights, including the rights of
producers of sound recordings and
organizations; geographical indications,
performers,
broadcasting
including
appellations of origin; industrial designs; integrated circuit
layout-designs; patents; monopolies for the developers of new
plant varieties; trademarks; trade dress; and undisclosed or
confidential information.
 Specifies enforcement procedures, remedies, and dispute
resolution procedures.

18. THE RELEVANCE OF WTO
 The system helps promote peace.
 The system allows disputes to be handled constructively.
 A system based on rules rather than power makes life easier for
all.
 Freer trade cuts the cost of living.
 It gives consumers more choice and a broader range of
qualities to choose from.
 Trade raises incomes.
 Trade stimulates economic growth and that can be good news
for employment.
 The basic principles make the system economically more
efficient, and they cut costs.

19. THE AGREEMENTS
 The WTO is ‘rules-based’; its rules are negotiated agreements
 Overview: a navigational guide
 Plurilateral agreement
 Further changes on the horizon, the DohaAgenda.
 Some of the agreements of WTO:
-Tariffs: more bindings and closer to zero
-The Agriculture Agreement: new rules and commitments
-Textiles: back in the mainstream
-Intellectual property: protection and enforcement

20. and other
should be
The agreement covers five broad issues:
 How basic principles of the trading system
international intellectual property agreements
applied
 How to give adequate protection to intellectual property rights
 How countries should enforce those rights adequately in their
own territories
 How to settle disputes on intellectual property between
members of the WTO
 Special transitional arrangements during the period when the
new system is being introduced

21. RECENT ISSUES
• Twenty-four participants from around the world are attending a two-
month Advanced Trade Policy Course (ATPC) from 18 January to 11
March 2016
• Lamy calls for addressing macro-economic imbalances through
cooperation
• Transparency mechanism for preferential trade arrangements set for
approval
• Market access for LDCs (Least Developing Countries)
• Trade agreements between developing countries
access to essential
• Trade policy reviews: ensuring transparency
• TRIPS Agreement aimed at facilitating
medicines in poor countries.

22. CONCLUSIO
N It is the place where the member country comes and talks
together and shares their grievance in order to resolve their
problem related to International trade.
 The countries make their decisions through various councils
and committees, whose membership consists of all WTO
members.
 The system helps promote peace, by handling Dispute of
member countries. It provides free trade which cuts the costs
of living and provides more choice of products and qualities
and stimulates economic growth.

23.  The WTO agreements cover goods, services and intellectual
property. They spell out the principles of liberalization, and the
permitted exceptions. They include individual countries’
commitments to lower customs tariffs and other trade barriers,
and to open and keep open services markets. They set
procedures for settling disputes. They prescribe special
treatment for developing countries. They require governments
to make their trade policies transparent
 WTO deals with the special needs of developing countries as
two thirds of the WTO members are developing countries and
they play an increasingly important and active role in the
WTO because of their numbers, because they are becoming
more important in the global economy, and because they
increasingly look to trade as a vital tool in their development
efforts.

24. EXIM
POLICY
PRESENTED TO:
Mrs Alka SWAMI
PRESENTED BY:
Ruchi Sharma

25. EXIM POLICY
 The foreign trade of India is guided by the Export
Import policy of govt. of India.
 Regulated by the foreign trade development and
regulatory Act 1992.
 Exim policy contain various policy decission with
respect to import and export from the country.
 It is prepared and announced by the central
government.

26. •EXIM Policy is the export import policy of the
government that is announced every five years.
• It is also known as the Foreign Trade Policy.
•This policy consists of general provisions
regarding exports and imports, promotional
measures, duty exemption schemes, export
promotion schemes, special economic zone
programs and other details for different sectors.
•Every year the government announces a
supplement to this policy.

27. GENERAL OBJECTVE OF
EXIM POLICY
 It aims to developing export potential, improving
export performance, encourage foreign trade &
creating favourable balance of payment position.
 To establish the framework for globalization.
 To promote internationally competitive import
subsitution and self reliance
 To encourage the attainment of high & internationally
accepted standards of quality.

28. The Foreign Trade Policy for the period 2009-2014
was announced on 27th August 2009 at a time when
the world was emerging from the shadow of a
challenging economic period, the worst we have seen
in the last 7 decades.
Economies and markets across the world were in
turmoil, causing sharp contraction in international
trade, adversely impacting global investment flows,
rendering over 50 million people jobless.
The world trade witnessed an unprecedented
contraction of over 12%.
EXIM POLICY- 2009-2014

29. OBJECTIVES OF 2009-14
 The key objective for the Foreign Trade Policy was
to arrest the declining exports and reverse the trend.
 To double India’s exports of goods and services by
2014.
 To double India’s share in global merchandise trade
by 2020 as long term aim of this policy. India’s
share in global merchandise export was 1.45% in
2008.
 Simplification of the application procedure for
availing various benefits.

30.  To set in motion the strategies and policy measures
which catalyse the growth of exports.
 To incourage exports through a “ mix of measures
including fiscal incentives, institutional charges,
procedural rationalisation and efforts for enhance
market access around the world and diversification
of export markets.

31. AIMS IN GENERAL
 The policy aims at developing export potential ,
improving export performance, boosting foreign
trade and earning valuable foreign exchange.FTP
assumes great significance this year as Indai’s
export have battered by the global recession.
 A fall in exports have led to the closure of several
small and medium-scale export oriented units,
resulting in large scale unemployment.

32. TARGET
 Export target : $ 200 billions for 2010-2011.
 Export growth rate :15% for next two years and 25%
there after.
 In an endeavour to make India a diamond
international trading hub, it is planned to establish
“Diamond Bourse(s)”.

33. EPCG SCHEME
 Obligation under EPCG scheme relaxed.
 To aid technological up gradation of export sector ,
EPCG scheme at Zero Duty has been introduced.
 Export obligation on import of spares , mould etc.
under EPCG Scheme has reduced by 50%.

34. Announcements for
FPS,FMS,MLFPS
 26 new market s added in this scheme.
 Incentives under FMS raised from 2.5% to 3%.
 Incentives available under Focus Product
Scheme(FPS) Raised from 1.25% to 2%.
 Extra products included in the scope of benefits
under
FPS.

35. ANNOUNCEMENT FOR MARINE SECTOR
 Fisheries exempted from maintenance of
average EO under EPCG Scheme (along with 7
sectors) however Fishing Trawlers, boats, ships,
and other similar items shall not be allowed for
this exemption.
 Additional flexibility under Target Plus Scheme /
Duty free certificate of Entitlement Scheme for the
marine sector.

36. GEMS AND JEWELLERY
SECTOR
 Duty Drawbacks is allowed on Gold Jewellery
Exports to neutralize duty incidence.
 Plan to establish “Diamond Bourse (s ) with an aim
to make India an International Trading Hub
announced.
 Introduction of a new facility to allow import on
consignment basis of cut and polished diamonds for
the purpose of grading / certification.

37. ANNOUNCEMENTS FOR
AGRO EXPORTS
 Introduction to a single window system to facilitate
export of perishable agricultural produce with an aim
to reduce transaction and handling costing.
 This system will involve creation of multi-functional
nodal agencies .These agencies will be accredited
by APEDA.

38. ANNOUNCEMENT FOR
LEATHER EXPORT
 On the payment of 50% applicable export duty,
Leather sector shall be allowed re-export of unsold
imported raw hides and skins and semi finished
leather from public bounded warehouse.

39. ANNOUNCEMENTS FOR TEA
EXPORTS
 The existing minimum value addition under
advance authorisation scheme for export of tea is
100%. To 50%.
 DTA(domestic tarriff area) sales limit to instant tea
by EOU units increased from 30% to 50 %.
 Export of tea has been included under VKGUY
Scheme benefits.

40. ANNOUNCEMENT FOR
PHARMA EXPORT
 Export Obligation Period for advance authorization
issued increased from existing 6 months to 36
months.
 Pharma sector included under MLFPS for
countries in Africa and Latin America and some
countries in Oceania and Far East.

41. ANNOUNCEMENT FOR HANDLOOM EXPORTS
 The claim under Focus Product Scheme, the
requirement of “Handloom mark” was
required earlier. This has been removed.
 ANNOUNCEMENT FOR AUTOMOBILE
INDUSTRY
 Those automobile
industrie whichhave R & D
establishment will be allowed free import of
reference fuels upto a maximum of 5
kl/annum,which are not manufactured in Indi
Simplification in EPCG for automobile
industry.
a.

42. SET UP OF DIRECTORATE OF
TRADE REMEDY MEASURE
 A Directorate of Trade Remedy Measure shall be
set up , which will enable support to Indian industry
and exporters , especially the Micro Small &
medium Enterprises MSMEs in availing their rights
through trade remedy instruments.
 Restricted items can be imported now against
transferred DFIAs as the present DFRC scheme.
 There is provision for state run banks to provide
dollar credits.

43. EXIM BANK
 The Export-Import Bank of India The Export-Import
Bank of India, also known as Exim Bank of India
leading export finance institution in the country.
 The bank was set up in the year 1982 under the
Export-Import Bank of India Act 1981.
 The bank offers wide-ranging services for enhancing
the prospect of Indian project exports.
 It plays the role of source of financial, promoter
,coordinator & consultation of India’s Foreign Trade.

44. What is
ASEAN?
(Association of Southeast Asian Nations)

45. Association of Southeast Asian
Nation s (ASEAN)
• The ASEAN was founded on August 8,
1967.
• The Foreign Ministers of Indonesia,
Malaysia, the Philippines, Singapore and
Thailand – sat down together in the main
hall of the Department of Foreign Affairs
building in Bangkok, Thailand and signed
a document. By virtue of that document,
the Association of Southeast Asian
Nations (ASEAN) was born.

46. • The five Foreign Ministers who signed it –
Adam Malik of Indonesia, Narciso R.
Ramos of the Philippines, Tun Abdul Razak
of Malaysia, S. Rajaratnam of Singapore,
and Thanat Khoman of Thailand – would
subsequently be hailed as the Founding
Fathers of probably the most successful
inter-governmental organization in the
developing world today. And the document
that they signed would be known as the
ASEAN Declaration.

47. • ASEAN is a regional grouping that
promotes economic, political, and security
cooperation among its ten members:
Brunei, Cambodia, Indonesia, Laos,
Malaysia, Myanmar, the Philippines,
Singapore, Thailand, and Vietnam.
• In 1976, the members signed the Treaty
of Amity and Cooperation, emphasizing
ASEAN's promotion of peace, friendship,
and cooperation to build solidarity.

48. • The ASEAN Emblem
represents a stable, peaceful,
united and dynamic ASEAN.
The colors of the Emblem —
blue, red, white and yellow —
represent the main colors of the
state crests of all the ASEAN
Member States.
•The blue represents peace
and stability. Red depicts
and dynamism,
shows purity and
courage
white
yellow symbolizes
prosperity.
•The stalks of padi in the centre of the Emblem represent the dream of ASEAN’s
Founding Fathers for an ASEAN comprising all the countries in Southeast Asia, bound
together in friendship and solidarity.
• The circle represents the unity of ASEAN.

50. • Thailand
• Myanmar
• Cambodia
• Laos
• Brunei
• Vietnam
• Malaysia
• Singapore
• Philippines
• Indonesia

51. • Some of the joint development programs
first undertaken by ASEAN include
projects to:
 increase food production
 promote tourism
 ease travel restrictions, and
mass media through exchanges
enhance cooperation in the field of
of
radio and television programs.
Plans were also put in place to liberalize
trade among members in a bid to
improve intraregional trade.

52. • Today, ASEAN is considered one of the
most successful intergovernmental
organizations in the developing world.
Since its founding, the grouping has
expanded to include other Southeast
Asian states – Brunei (1984), Vietnam
(1995), Laos (1997), Myanmar (1997) and
Cambodia (1999).

53. AIMS AND PURPOSES
As set out in the ASEAN Declaration, the
aims and purposes of ASEAN are:
• To accelerate the economic growth, social
progress and cultural development in the
region through joint endeavors in the spirit of
equality and partnership in order to
strengthen the foundation for a prosperous
and peaceful community of Southeast Asian
Nations.

54. • To promote regional peace and stability
through abiding respect for justice and the
rule of law in the relationship among
countries of the region and adherence to the
principles of the United Nations Charter;
• To promote active collaboration and mutual
assistance on matters of common interest in
the economic, social, cultural, technical,
scientific and administrative fields;
• To provide assistance to each other in the
form of training and research facilities in the
educational, professional, technical and
administrative spheres;

55. • To collaborate more effectively for the greater
utilization of their agriculture and industries,
the expansion of their trade, including the
study of the problems of international
commodity trade, the improvement of their
transportation and communications facilities
and the raising of the living standards of their
peoples;
• To promote Southeast Asian studies; and
• To maintain close and beneficial cooperation
with existing international and regional
organisations with similar aims and purposes,
and explore all avenues for even closer
cooperation among themselves.

56. Fundamental Principles
In their relations with one another, the ASEAN Member States
have adopted the following fundamental principles, as
contained in the Treaty of Amity and Cooperation in Southeast
Asia (TAC) of 1976:
• Mutual respect for
sovereignty, equality,
the
territorial
independence,
integrity, and
national identity of all nations;
• The right of every State to lead its national
existence free from external interference,
subversion or coercion;

57. • Non-interference in the internal affairs of one
another;
• Settlement of differences or disputes by
peaceful manner;
• Renunciation of the threat or use of force; and
• Effective cooperation among themselves.