The World Trade Organization (WTO) was formed on January 1, 1995 to oversee and liberalize international trade. It replaced the General Agreement on Tariffs and Trade (GATT). The WTO aims to promote world trade and ensure developing countries benefit from trade expansion. India has been a member of GATT since 1948 and joined the WTO at its inception. While the WTO has increased trade opportunities, India and other developing nations have faced challenges in areas like agriculture, patents, and movement of people. India has made progress in reducing trade barriers but developing countries continue advocating for more flexibility in some WTO rules and commitments.

1. WTO
&
India
Presentation by :
Dimple Negi
2109019

2. Introduction of WTO
 WTO was formed 1st Jan 1995
 It took over GATT ( General Agreement on Trade and Tariff). In 8th round
of GATT popularly known as Uruguay Round, member nations of GATT
decided to set up a new organization known as World Trade Organization in
place of GATT

3. Functions of WTO
 Facilitate the implementation, administration and operation and
further the objectives of MTAs
 Provide the forum for negotiations among its members concerning
their multilateral trade relations in matters dealt with under the
Agreement in the Annexes to this Agreement.
 Administer the Understanding on Rules and Procedures Governing
the settlement of Disputes and trade Policy Review Mechanism.
 shall cooperate, as appropriate, with the IMF and IBRD and its
affiliated agencies.

4. Objectives of WTO
 to implement the new world trade system as  to enhance competitiveness among all
visualised in the Agreement; trading partners so as to benefit consumers
 to promote World Trade in a manner that and help in global integration;
benefits every country;  to increase the level of production and
 to ensure that developing countries secure a productivity with a view to ensuring level of
better balance in the sharing of the employment in the world;
advantages resulting from the expansion of  to expand and utilize world resources to the
international trade corresponding to their best;
developmental needs;  to improve the level of living for the global
 to demolish all hurdles to an open world population and speed up economic
trading system and usher in international development of the member nations
economic renaissance because the world
trade is an effective instrument to foster
economic growth;

5. India and WTO
 India one of members of General Agreement on
 Tariffs and Trade (GATT) since 1948.
 After Marrakesh Agreement, India joined WTO since inception in 1995.
 Aim to participate in WTO rule based system with greater
stability, transparency and predictability in governance of international
trade.
 Developing countries like India availed of greater trade opportunities and
also challenged certain policies of developed countries (DCs)
 Developmental issues increasingly focused along with trade issues
 S&D treatment for developing and LDCs incorporated

6. Areas of concern
 In spite of special provisions for developing countries, certain imbalances and inequities
experienced.
 A number of DCs not fulfilled some obligations for trade liberalization while developing
countries asked to reduce import duties and provide greater market access.
 India has reduced tariffs to bring them to bound levels. Even lower for a large number of
commodities as part of the reforms process. Now, India committed to reduce tariffs to
bring in line with South East Asian countries by 2007. We are not in a position to reduce
tariffs substantially to the extent suggested by developed countries since
 Customs duties important source of revenue for developing countries like India.
 The industrial sector faces several constraints-some protection warranted for specific
industries
 Non-agricultural tariffs gradually reduced but agricultural tariffs require greater caution
due to following reasons.

7. India and other developing countries have argued that agriculture is way of life
and employs large proportion of workforce while contributing significantly to GDP.
Exposure to volatile international market would affect not only domestic prices
but also incomes of poor.
Technical barriers to trade and stringent restrictions on grounds of SPS
regulations to be relaxed to prevent protectionist measures by DCs on this plea.
Grant of patents on non-original innovations, particularly linked to traditional
medicines issue of concern.
Mechanism proposed for disclosure of source of origin of biological material used
along with consent of country of origin. Dissemination of knowledge and also
patent rights for seed diversity important for developing countries.
Under agreement on Trade in Services, developing countries have asked for
relaxing restrictions on movement of natural persons.

8.  Some DCs not fully implemented the required reduction of domestic support to
farmers, export subsidies and tariffs.
 WTO permits non- distortionary subsidies. Experience shows these can be trade
distorting and DCs have steadily increased such subsidies leading to excessive
global production.
 Disadvantage to developing countries since such subsidies unaffordable. Get less
competitive in world market.
 Technical barriers to trade and stringent restrictions on grounds of SPS
regulations to be relaxed to prevent protectionist measures by DCs on this plea.
 Grant of patents on non-original innovations, particularly linked to traditional
medicines issue of concern.
 Mechanism proposed for disclosure of source of origin of biological material
used along with consent of country of origin. Dissemination of knowledge and
also patent rights for seed diversity important for developing countries.

9. Under agreement on Trade in Services, developing countries have asked for
relaxing restrictions on movement of natural persons.
India has advantage in movement of highly skilled and experienced
professionals.
Developing countries had wanted unbundling of Singapore issues comprising
MAI, competition policy, trade facilitation and transparency in Government
procurement.

10. Argument in favor of WTO
 Increase in Foreign trade
 Increase in Agricultural trade
 Increase in inflow of foreign investment
 Improvement in services
 Benefits for clothing and textile industries
 Inflow of better technology and better quality products

11. Progress in fulfillment of India’s
commitment to WTO
 Reduction in tariff and non tariff barriers
 Amendment in patent act
 Sui-generis system
 Copyright, trademark and industrial designs
 Geographic indication
 Trade Related Investment Measures (TRIM)
 General Agreement on Trade in Services (GATS)

12. Thank You