The document discusses the General Agreement on Tariffs and Trade (GATT) from 1948 to 1994 and its replacement by the World Trade Organization (WTO) in 1995. GATT was created in 1947 to promote international trade and reduce trade barriers. It established principles like non-discrimination between trading partners. The WTO was established in 1995 after the Uruguay Round negotiations to provide clearer rules and a stronger dispute settlement system. It now has 160 member countries and aims to liberalize trade through negotiated agreements.

1. Presented by-
Suditi Bhagat
Arpit Mittal
Naman Jain

2. Introduction Of
GATT(1948 - 1994)

 Set of multilateral trade agreements
To provide an international forum - expansion of
world trade
 That encouraged free trade between member states
 By regulating and reducing tariffs on traded goods
 Providing a common mechanism for resolving trade
disputes eliminating discrimination

3. Back ground

 1930 Depression in international trade.
 Restrictions- safe guard their interest
 Oct 30 1947,23 countries at Geneva signed an
agreement-GATT
 Post World War II, the victory nations sought to
create institutions - eliminate the causes of war.
 To resolve/prevent war through the United Nations
 To eliminate the economic causes of war by
establishing three international economic
institutions.

4. Objectives of GATT

 To provide equal opportunities to all countries in
terms of trade in international market
 Increase effective demand for real income growth
goods
 Minimize tariffs and other restrictions on trade
 Provide amicable solutions to dispute related to
international trade
 Ensure better living standard
 To strengthen and clarify rules for agricultural trade

5. Fundamental Principles
of GATT

 Non Discrimination
 Prohibition of Quantitative Restrictions
 Concept of consultation aims to avoid damage to trading
interests of contracting parties.
 GATT provides frame work within which the negotiations
can be held for reduction of tariff another barrier to trade and
structure for embodying results of such negotiations.

6. FUNCTIONS OF GATT
 Matters related to the tariff and related matters granted to any of

the trading partner.
 Ensures that any tariff reduction or any other trade concession is
extended to all GATT parties.
National treatment:
 GATT members must give imported goods treatment equal to that
of domestic goods.
 No restrictions on charges like rates may be applied to imported
goods unless equally treated.
Protection through tariff:
 Prohibits quantitative restrictions / Quotas.
 Contracting parties are expected to provide protection by means of
tariffs which are transparent and subject to negotiations in the
GATT.
Dispute Settlement:
 Procedures from Uruguay round negotiations provides more
automatic and effective resolution of disputes between member
nations.

7. INTRODUCTION OF

Established: 1st January 1995 with its origin in Bretton Woods
Conference post World War II .
Motive:- Formed for economic stability, peace and for
reconstruction
Created By: Uruguay Round negotiations (1986-1994)
Headquarter: Geneva, Switzerland
Membership: 160 member states (26th June 2014)
Secretariat Staff: 640
WTO

8. WORLD TRADE
ORGANIZATION

 Organization that intends to supervise
and liberalize international trade
 Only global international organization dealing with the
rules of trade between nations
 WTO deals with agreements, negotiated and signed by
the bulk of world’s trading nations and ratified in their
parliaments.
 The goal is to help producers of goods and services,
exporters and importers conduct their business.

9. WTO MEMBERS
 The WTO is composed of 160 countries which represents 95%

of world trade.
 Of these, 123 were signed during the Uruguay round
 WTO members do not have to be full-sovereign nation
members. Instead, they must be a custom territory with full
autonomy in their external relations.
 Over 3/4th of WTO members are developing or least
developed countries.
 There are 24 countries that are not members known as
Observers. These countries are currently negotiating
membership.
 The biggest of these non-members is Russia, however they are
in the process of accession.
 YEMEN became the newest member on 26 June, 2014

10. FORMATION OF WTO
 The GATT (1948) multilateral instrument governing
international trade managed to operate for almost half a
century as a semi institutionalized multilateral treaty regime
on a provisional basis.
 Seven rounds of negotiations occurred under the GATT
 The Tokyo round during the 70’s - tackle trade barriers that
do not take the form of tariffs and to improve the system but
the agreements were not accepted by all the member nations
of GATT.
 These agreements and policies were amended in URUGUAY
ROUND leading to acceptance by the member nations and
formation of WTO.
 This final act concluding the Uruguay round and officially
establishing the WTO regime was signed in 1994 at
Marrakesh, Morroco and hence known as Marrakesh
Agreement.

11. Areas of Uruguay

 Tariffs and Non-tariff measures
 Tropical product
 Textile product
 National resource based products
 Textile & clothing
 Agriculture
 GATT –articles
 Safeguards
 Multilateral trade agreements & arrangement
 Subsidies
 Dispute settlement
 Trade related aspects of intellectual property rights
(TRIPs)
Round

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. Principles of WTO
1. Non-Discrimination.
2. Reciprocity.
3. Binding and enforceable commitments.
The tariff commitments
4. Transparency.
5. Safety valves.

14. STRUCTURE OF WTO

 WTO has 160 members, around 24 other countries are negotiating
members.
 WTO’S top level decision making body is the “Ministerial Conference”.
 The second level is the “General Council’( normally head by the
ambassadors & delegations ).
 The General Council also meets the Trade policy Review Body and the
‘Dispute settlement body’
 The third level is “The goods council”, “Services Council” &
“Intellectual Property Council” , which reports to the General Council.

16. WTO AGREEMENTS

 The agreements are the outcome of negotiations between the members.
 The current set of agreements are the result of 1986-1994 Uruguay
round of negotiations, which is a revision of GATT.
 A non-discriminatory trading system is operated through these
agreements, which enlist the rights & obligations of the members.
 The various WTO agreements in different sectors are:
a. In case of Goods
b. In case of Services
c. In case of Intellectual property

17. THE WTO AND INDIA

 After Marrakesh Agreement, India joined WTO since
inception in 1995.
 Developing countries like India availed greater trade
opportunities and also challenged a certain policies of
developed countries.
 For India, exposure to volatile international market
would affect not only domestic prices but also incomes
of poor.
 Aim to participate in WTO rule based system with
greater stability, transparency and predictability in
governance of international trade.

18. IMPACT ON INDIAN
ECONOMY

 Increase in Export Earnings
 Agricultural Exports
 Export of textile and clothing
 Multilateral rules and disciplines
 Growth to service exports
 Foreign investment

19. 