The document provides an overview of the World Trade Organization (WTO). It discusses that the WTO was established in 1995 to oversee and liberalize international trade. It replaced the General Agreement on Tariffs and Trade (GATT) which was not a formal international organization. The key functions of the WTO are to provide a framework and rules for international trade and settle disputes between member countries. It has a hierarchical structure led by ministerial conferences that meet regularly to set trade policy.

1. World Trade Organization 1
WTO

2. Introduction
2
 Erasing national, political boundaries for the
purpose of business can be termed as
globalization
 Integration of the economy of the country with
world economy
 International Monetary Fund, International
Bank for Reconstruction & Development,
General Agreement on Tariffs & Trade –
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initiated

3. 3
General Agreement on Tariffs &
Trade (GATT)
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4. Introduction
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 Prolonged recession before World War II in west
was due to protectionism followed by industrial
countries
 Led to negotiations in 1947 among 23 countries
 To prevent protectionist policies & revive
economies from recession
 Negotiations resulted in GATT
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5. Objectives of GATT
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6. 6
Establishment of WTO
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7. WTO
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 India is one of the founder members of WTO
 GATT was not an organization, but was only a
legal agreement
 WTO – designed to play the role of watchdog
in the spheres of trade in goods, trade in
services, foreign investment, intellectual
property rights
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8. Functions of WTO
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9. World Trade without
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Discrimination
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10. Organization Structure of WTO
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 Based on 4 Hierarchical levels:
 Ministerial Conference
 General Council
 Councils
 Committees & Management Bodiess
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11. Organization Structure of WTO
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 Ministerial Conference:
 Highest level
 Authority to make decisions on all matters
 Meets at least once in 2 years
 Policy & strategy making body
 & gets it executed & implemented by next level
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12. Organization Structure of WTO
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 General Council:
 Executive body
 Reports to Ministerial Conference
 All members of WTO are also representatives in
General Council
 Has other forms:
 Dispute Settlement Body
 Trade Policy Review Body
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13. Organization Structure of WTO
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 Councils:
 Council for trade in goods
 Council for trade in services
 Council for Trade Related Aspects of
Intellectual Property Rights
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14. Organization Structure of WTO
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 Committees: & Management Bodies:
 Committee on trade & development
 Committee on BOP
 Committee on budget, finance & admin
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15. Dispute Settlement Mechanism of
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WTO
 Powerful mechanism to solve disputes over
trade among the member countries
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16. WTO & Dumping Measures
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 Types of Dumping:
 Intermittent Dumping
 Persistent Dumping
 Predatory dumping
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17. India & Dumping
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 After globalization, Indian economy govt –
reduced rates of customs duties
 Indian govt started MFN clause to the imports
from various countries
 These factors led to dumping from China &
East Asian Countries
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18. India & Dumping
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 Goods dumped Indian Market are nt only
China but also Est Asian Countries:
 Soaps & computer parts – Thailand
 Chocolates – Malaysia
 Instant coffee mix – Singapore
 Glassware & Crockery – Indonesia
 Tea – Sri Lanka
 Tiles – Taiwan
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19. India & Dumping
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 Ease of import regulations main reason for
dumping in India
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20. Ministerial Conferences of the
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WTO
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21. I ministerial Conference of WTO
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 9th December 1996 – Singapore
 128 member countries
 Highlights of this meeting:
 Observance of internationally recognised core
labour stds
 Effectiveness & credibilty of dispute settlement
mechnism
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22. 22
 Decision taken to organize meeting with UN
conference on Trade & Development (UNCTAD), aid
agencies & other organizations to help the least
developed countries
 Negotiations on basic telecommunications were to be
completed by February 1997
 To establish a working group to examine the
relationship between trade & investment.
 This working group will study the issues raised by
members relating to interaction between trade &
competition policy World Trade Organization

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 Working group to study on transparency in
govt procurement practices
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24. II ministerial Conference of the
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WTO
 18th to 20th May, 1998 – Geneva – 132 member
 Important decisions:
 Setting mechanism to ensure proper
implementation of existing multilateral agreements
 Accepting open & transparent rule-based trading
system
 Expanding global trade, creating more jobs &
raising living stds of the people in the world
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25. III Ministerial Conference of the
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WTO
 December 3, 1999 – Seattle – 135 member
 Meeting was a failure as developing nations jointly
protested against the lack of transparency &
 Imposition of the views of the rich countries on the
poor counties in the negotiations
 Trade ministers of Latin America & other countries
demanded transperency, openness & participation of
all members.
 Or else wont join hands to provide consensus
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26. III Ministerial Conference of the
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WTO
 Criticized – WTO cared little for the views of
the Asian, African & Latin American countries
 Objective was to review the working of WTO in
last five years & decide on agenda for a new
round of talks at millennium round
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27. IV Ministerial Conference of the
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WTO
 Doha, Qatar during 9-13, November 2001
 142 member countries
 3 documents finally adopted at this
conference, which will open the way for further
liberalization of the trade
 Includes:
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28. IV Ministerial Conference of the
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WTO
 Reductions in industrial tariffs
 Phasing out of agriculture export subsidies
 Promoting the trade in services
 Special treatment for developing countries
 Working group will focus on clarification of core
principles, transparency, non discrimination,
procedural fairness, etc – related to trade &
competition policy
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29. IV Ministerial Conference of the
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WTO
 Negotiations on setting up of a multilateral
agreement on transparency in govt
procurement
 Agreed to reach an agreement by May 2003,
regarding clarification of the dispute settlement
understanding
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30. V Ministerial Conference of the
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WTO
 10th – 14th September 2003 @ Cancun,
Mexico
 146 countries
 Failure as developing countries jointly
opposed the high agricultural subsidies in USA
& EU countries
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31. TRIPS & TRIMS
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