The document provides an overview of the role of the World Trade Organization (WTO) in international marketing. It begins with defining international marketing and trade, describing some of the largest trading partners of India. It then discusses the benefits of international trade and barriers such as tariffs and non-tariff barriers. The document explains the transition from GATT to the establishment of the WTO in 1995 following the Uruguay Round negotiations. It outlines the objectives and functions of the WTO, including administering trade agreements, implementing trade barrier reductions, examining member trade policies, and settling disputes. The document emphasizes that the WTO operates on consensus among member governments. Finally, it discusses some benefits for developing countries in joining the WTO.

1. ROLE OF
WTO
IN MARKETING
Mr. OMAR ALAJIL (‫أ‬.‫العجيل‬ ‫عمر‬)
M.Sc Food Technology
1

2. TABLE OF CONTENT
1. Introduction
2. What is trade
3. What is the benefits of international trade
4. What is the barriers of international trade
5. What is WTO
6. function of WTO
7. Understanding and Mis-understanding of
WTO
2

3. INTRODUCTION

4. INTERNATIONAL MARKETING
 International marketing is the marketing activity
carried on across national boundaries.
 It is the marketing activities involved between
countries.
 It always crosses the boundaries of the country.
 International/global trade, inter-regional
trade, world trade and export marketing are
some terms which are to some extent identical
with the term international marketing.
4

5. INTERNATIONAL MARKETING DEALS WITH
IMPORTS AND EXPORTS.
 Exporting - Marketing domestically
produced goods and services in foreign
countries
 Importing - Purchasing foreign goods and
services
5

6. THE LARGEST INDIAN TRADE PARTNERS
 The largest Indian partners with their total
trade (sum of imports and exports) in
millions of US Dollars for financial year
2012–2013 are as mentiond in next slide
 the information is taken from Wikipedia site:
 (http://en.wikipedia.org/wiki/List_of_the_largest_trading_partners_of_India)
6

7. Country Export Import Total trade Trade Balance
All countries 300,400 490,736 791,136 -190,336.00
United Arab
Emirates
36,265.15 38,436.47 74,701.61 -2,171.32
China 13,503.00 54,324.04 67,827.04 -40,821.04
United States 36,152.30 24,343.73 60,496.03 11,808.57
Saudi Arabia 9783.81 34,130.50 43,914.31 -24,346.69
Switzerland 1,116.98 29,915.78 31,032.76 -28,798.80
Singapore 13,608.65 7,754.38 21,363.03 5,854.27
Germany 7,244.63 14,373.91 21,618.54 -7129.28
Hong Kong 12,278.31 8,078.58 20,356.89 4,199.74
Indonesia 5,331.47 14,774.27 20,105.75 -9,442.80
Iraq 1,278.13 20,155.94 21,434.07 -18,877.81
Japan 6,099.06 12,514.07 18,613.14 -6,415.01
Belgium 5,506.63 10,087.16 15,593.80 -4,580.53
Kuwait 1,060.80 16,569.63 17,630.43 -15,508.83
Iran 3,351.07 11,603.79 14,954.86 -8,252.72
South Korea 4,201.49 13,461.25 17,662.73 -9,259.76
7

8. 8

9. IMPORTANCE OF INTERNATIONAL MARKETING
1. Lowers prices
2. Increases the real income and national
well being
3. Furthers technological development
4. Provides higher standard of living
5. Reduces dangers of monopolistic
exploitation
9

10. IMPORTANCE OF INTERNATIONAL MARKETING
6. Ensures optimum use of resources
7. Builds cultural relations
8. Bridges the technological gap
9. Bring international co-operation and
world peace
10. Brings about rapid industrialization
10

11. 11

12. SO
INTERNATIONAL MARKETING
IS
IMPORTANT
12

13.  Free and fair international trade is an
ideal situation as free trade is
beneficial to all participating countries.
 However, various types of
barriers/restrictions are imposed by
different countries on international
marketing activities.
13

14. TRADE BARRIERS
 Such imposed or artificial restrictions
on import and exports are called
Trade barriers which are unfair and
harmful to the growth of free trade
among the nations.
14

15. TRADE BARRIERS
15

16. TRADE BARRIERS
 Tariff Barriers.
 Non-Tariff
barriers.
The trade barriers can be broadly divided into
two broad groups.
16

17. TARIFF BARRIERS
 Tariffs refer to a customs duty or a tax on
products that move across borders.
 The most important tariff barrier is the customs
duty imposed by the importing country.
 A tax may also be imposed by the exporting
country on its export.
 However, governments rarely impose tariff on
export, because countries want to sell as much
as possible to other countries.
17

18. TARIFFS
 Two important types of tariffs
 Revenue tariffs
- Designed to raise funds for the importing
government
 Protective tariffs
- Designed to raise the retail price of an imported
product to match or exceed that of a similar
domestic product.
18

19. 19

20. IMPORTANT TARIFF BARRIERS ARE AS
FOLLOWS
1. Protective tariff
2. Revenue tariff
3. Specific duty
4. Ad-valorem duty
5. Compound duty
6. Anti-dumping duty
7. Countervailing duty
8. Single column tariff
9. Double column
tariff
10. Triple column tariff
11. Sliding scale duty
/Seasonal duties
20

21. DUMPING
 exporters attempt to
capture foreign markets
by selling goods at
rock-bottom prices,
such practice is called
dumping.
 As a result of dumping,
domestic industries find
it difficult to compete
with imported goods
21

22. NON-TARIFF BARRIER
 A non-tariff barrier is any barrier other than a
tariff that raises an obstacle to free flow of
goods in overseas markets.
 Non-tariff barriers, do not affect the price of
the imported goods but only the quantity of
imports.
22

23. 23

24. NON-TARIFF BARRIER
 Import quotas - Limit the number of units of
products in certain categories that can cross a
country’s border for resale
 Embargo - Complete ban on the import of
specified products
 Subsidies - Government financial support of a
private industry
 Exchange control - Method used to regulate
international trade among importing
organizations by controlling access to foreign
currencies
24

25. THE MAIN IMPORTANT NON-TARIFF BARRIERS
ARE AS FOLLOWS
1. Quota System
2. Export Obligation
3. Prior Import
Deposits
4. Preferential
Arrangements
5. Consular
Formalities
6. Foreign Exchange
Regulations
7. State Trading
8. Other Non-tariff
Barriers
25

26. TRADE BARRIERS
 GATT and WTO agreements have
eliminated many tariffs on many
products
 Countries frequently use nontariff
barriers to boost exports and control
the flows of imported products
26

27. World Trade Organization

28. WTO
 The world trade organization (WTO)
started functioning from 1 st January 1995.
WTO is the result of Uruguay Round of
negotiations.
 WTO is the successor to the General
Agreement on Tariffs and Trade (GATT).
28

29.  GATT has ceased to exist as a separate
institution and has become part of the WTO.
 WTO has larger membership than GATT.
 India is one of the founder members of WTO.
29

30. 30

31. FROM GATT TO WTO
 1 947- 23 countries including India signed GATT
agreement. GATT was created to regulate and liberalize
world trade by reducing tariff barriers.
 1948 – GATT came into force to liberalize world trade.
 1949 – Second Round was held as Annecy in France.
Discussions were held to reduce tariff on number of
goods. About 5000 tariff concessions on various products
were agreed upon.
 1950 – Third Round was held at Torquay (England). About
8700 Tariff concessions were agreed.
 1956 – Fourth Round was held at Geneva. Tariff reduction
at this round was worth 2.5 US $ Billion.
31

32.  1960 – The Fifth Round called Dillion Round was held at
Geneva. It was held in two phase. Phase I- to create a single
schedule of concessions for the EC based on its common
external tariffs. Phase II- for general round of tariff negotiations.
 1964 – The Sixth Round, called Kennedy Round was held at
Geneva. Tariff reductions and anti-dumping measures were
discussed. The round took 3 years to complete.
 1973 – The Seventh Round, called the Tokyo Round was
launched at Tokyo and concluded at Geneva. It took six years to
conclude. Negotiations were held to reduce tariffs as well as
non-tariff barriers on goods.
32

33.  1987 –The Eighth Round, called the Uruguay
Round was Launched at Uruguay and concluded
at Geneva after 8 years. Negotiations took place
on various matters:-
 1. Tariff and non-tariff measures.
 2. Trade in services.
 3. Trips agreement.
 4. Trims agreement.
 5. Trade in textiles.
 6. Trade in agriculture.
 7. Creation of WTO, etc.
33

34. FROM GATT TO WTO
Year Place Matters Covered Countries
participated
1947 Geneva Tariff Reduction 23
1949 Annecy Tariff Reduction 13
1950 Torguay Tariff Reduction 38
1956 Geneva Tariff Reduction 26
1960 Geneva Tariff Reduction 26
1964 Geneva Tariff and Anti- dumping 62
1973 Tokyo/Geneva Tariff and Non-tariff 102
1986 Uruguay/Geneva Tariff, Non-tariff, TRIPs,
TRIMs
123
34

35. URUGUAY ROUND
 The Uruguay round was launched at
Uruguay in 1986. It was the last round as far
as GATT was concerned because at the end
of this round, it was decided by the
participating countries to replace GATT by
WTO from 1 st January 1995.
35

36. THE MAIN HIGHLIGHT OF URUGUAY ROUND ARE
 1. Tariff and non-tariff measures.
 2. Trade in services.
 3. TRIPs agreement.
 4. TRIMs agreement.
 5. Trade in textiles.
 6. Trade in agriculture.
 7. Creation of WTO, etc.
36

37. THE MAIN HIGHLIGHT OF URUGUAY ROUND ARE
 1. Trade in services
Trade in services like banking, insurance,
travel etc. has been brought under
multilateral agreement.
The GATTs agreement introduces a number
of general obligations in the services.
 2. Anti-dumping measures
The developed countries have increasingly
resorted to antidumping measures.
The Uruguay round seeks to introduce new
rules relating to dumping, which would benefit
the developing nations.
37

38.  3. Agreement on Agriculture
The main objectives to increase market access to
agriculture items in member nations. The member
nations have to change or remove their non-tariff barriers
like quotas on agriculture items.
 4. TRIPs
(Trade Related Aspects of Intellectual Property Rights)
The TRIPs agreement provides protection of intellectual
property rights including patents, trade marks,
copyrights, etc.
This agreement is expected to boost research and
development and investment in property rights.
38

39.  5. TRIMs (Trade Related Investment Measures)
The TRIMs agreement introduces a number of
measures by member countries to treat foreign
investments on par with domestic investments and
also removal of QRs (quantitative restrictions) on
imports.
Certain measures that discriminate against foreign
investments were to be withdrawn by member
nations, such as dividend balancing requirements.
39

40.  6. Agreement on Textiles and Clothing
The MFA (Multi-Fiber agreement) was in
force since 1973.
Under MFA the developed countries (France,
USA, Canada, Japan England etc.) that were
importing textiles and clothing from
developing nations were imposing quotas.
At the Uruguay round, MFA has been
withdrawn, which would benefit the textile
exporting counties including India.
40

41. OBJECTIVES AND FUNCTIONS
OF
WTO

42. OBJECTIVES OF WTO
WTO desires to achieve the objectives as decided by GATT.
These are as follow-
1. Free trade i.e. trade without discrimination
2. Growth of less developed countries.
3. Protection and preservation of environment.
4. Optimum utilization of available world’s resources.
5. Raising living standard of citizens of member counties.
6. Settlement of trade disputes among member countries
through consultation and dispute settlement procedures.
7. Generating employment opportunities at global.
8. Enlargement of production and trade.
43

43. 44

44. FUNCTIONS OF WTO
1. Administration of agreement
It looks after the administration of the 29 agreements (signed
at the conclusion of Uruguay round in 1994), plus a number of
other agreements, entered into after the Uruguay round.
2. Implementation of reduction of trade barriers
It checks the implementation of the tariff cuts and reduction
of non-tariff measures agreed upon by the member nations at
the conclusion of the Uruguay round.
3. Examination of Members‘ Trade Policies
It regularly examines the foreign trade policies of the
member nations, to see that such policies are in line with
WTO guidelines.
45

45. 4- Collection of foreign trade information
It collects information in respect of export-import
trade, various trade measures and other trade
statistics of member nations.
5- Settlement of disputes
It provides conciliation mechanism for arriving at
and amicable solution to trade conflicts among
member nations. The WTO dispute settlement body
adjudicates the trade disputes that cannot be solved
through bilateral talks between member nations.
46
FUNCTIONS OF WTO

46. FUNCTIONS OF WTO
6. Consultancy services
It keeps a watch on the development in the world
economy and it provides consultancy services to its
member nations.
7. Forum for negotiation
WTO is a forum where member nations continuously
negotiate the exchange of trade concessions. The
member nations also discuss trade restrictions in
areas of goods, services, intellectual property etc.
8. Assistance of IMF and IBRD
It assists IMF and IBRD for establishing coherence
in universal economic policy administration.
47

47.  Trading without discrimination is the main
principle of the World Trade Organization;
this principle is divided into six aspects that
involved the organization goals:
48

48. 1. Most Favored Nations (MFN): Treating
other people equally
2. National Treatment: Treating foreigners
and locals equally
3. Freer Trade: gradually through negotiation
4. Predictability: through binding and
transparency
5. Promoting fair competition
6. Encouraging development an economic
reform
49

49. 50

50. 51

51.  it’s really important to emphasize that the
WTO is a “member driven”, with decisions
taken by consensus among all member
governments.
 All major decisions are made by the
membership as a whole, either by ministers
or by their ambassadors or delegates.
Decisions are normally taken by consensus.
52

52. WHY SHOULD
DEVELOPING COUNTRIES
JOIN THE WTO
53

53. WHY SHOULD DEVELOPING COUNTRIES JOIN THE WTO 54

54. COUNTRIES SHOULD JOIN THE WORLD TRADE
ORGANIZATION BECAUSE
the opening of national markets to
international trade with justifiable exceptions
or with adequate flexibilities, will encourage
and contribute to
* development,
* raise people's welfare,
* reduce poverty,
* and foster peace and stability.
55

55. THE OPENING OF NATIONAL MARKETS TO
INTERNATIONAL TRADE
56

56. At the same time, such market opening must
be accompanied by sound domestic and
international policies that contribute to
economic growth and development
according to each member's needs and
aspirations
57

57. Understanding
And
Mis-understanding
OF
WTO
58

58. 10 BENEFITS OF THE WTO TRADING SYSTEM
1. The system helps
promote peace
2. Disputes are handled
constructively
3. Rules make life easier
for all
4. Freer trade cuts the
costs of living
5. It provides more choice
of products and qualities
6. Trade raises incomes
7. Trade stimulates
economic growth
8. The basic principles
make life more
efficient
9. Governments are
shielded from lobbying
10. The system
encourages good
government
59

59. 10 MISUNDERSTANDING ABOUT THE WTO
 1. The WTO dictates policy
2. The WTO is for free trade
at any cost
3. Commercial interests take
priority over development …
4. … and over the
environment
5. … and over health and
safety
 6. The WTO destroys jobs,
worsens poverty
7. Small countries are
powerless in the WTO
8. The WTO is the tool of
powerful lobbies
9. Weaker countries are
forced to join the WTO
10. The WTO is
undemocratic
60

60. 61

61.  A senior official at the Indian commerce
ministry said about WTO
Developing countries’ interests are rarely
taken seriously at such forums.
Rich countries are allowed to violate WTO
rules with impunity, but when India tries to aid
its farmers, “long-term dumpers of subsidized
grain” like the U.S. and European
Union cry, “Trade-distorting!”
62

62. IN INDIA
63

63. 64

64. SUMMARY

65. SUMMARY
 Free and fair international trade is an ideal
situation as free trade is beneficial to all
participating countries. The trade barriers can
be broadly divided into two broad groups.
 1. Tariff Barriers. 2. Non-Tariff barriers.
 Tariffs refer to a customs duty or a tax on
products that move across borders.
 A non-tariff barrier is any barrier other than a
tariff that raises an obstacle to free flow of
goods in overseas markets..
66

66.  The world trade organization (WTO) started
functioning from 1 st January 1995.
 WTO is the result of Uruguay Round of
negotiations.
 Main Functions Of WTO like
Administration of agreement, Implementation of
reduction of trade barriers, Examination of
Members‟ Trade Policies, Collection of foreign
trade information, Settlement of disputes,
Consultancy services, Forum for negotiation,
Assistance of IMF and IBRD etc are the.
67

67. THANK YOU