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- 2. What Is theWTO? The World Trade Organization (WTO) is the only international organization dealing with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible.
- 3. World Trade Organization Createdby : Uruguay Round negotiations (1986-94) Membership : 164 members representing 98 per cent of world trade Secretariat Staff : 625 Head : Ngozi Okonjo-Iweala (Director-General) Established: 1 January 1995 Location :- Geneva, Switzerland
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- 7. WTO • The WorldTrade Organization (WTO) deals with the rules of trade between nations at a global or near-global level. • It’s an organization for liberalizing trade. • Above all, it’s a negotiating forum • It’s a set of rules • And it helps to settle disputes
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- 9. Doha Round • TheDoha Development Round or Doha Development Agenda (DDA) is the latest trade-negotiation round of the World Trade Organization (WTO) which commenced in November 2001 under then director-general Mike Moore. • Its objective was to lower trade barriers around the world, and thus facilitate increased global trade. . • Progress in negotiations stalled after the breakdown of the July 2008 negotiations over disagreements concerning agriculture, industrial tariffs and non-tariff barriers, services, and trade remedies. • The most significant differences are between developed nations led by the European Union (EU), the United States (USA), and Japan and the major developing countries led and represented mainly by India, Brazil, China, and South Africa. • There is also considerable contention against and between the EU and the USA over their maintenance of agricultural subsidies—seen to operate effectively as trade barriers.
- 10. Core Principles ofWTO Non - Discrimination Reciprocity of Trade Concessions Trade Liberalization Transparency and predictability in import and export rules and regulations. Favorable treatment to less developed countries. MFN - Any trade concession a nation offers to one member, it must offer to all National Treatment. This means that imported products must be treated the same as domestic goods.
- 11. PRINCIPLES OF WTO 1.Most-favoured-nation (MFN): treating other people equally Under the WTO agreements, countries cannot normally discriminate between their trading partners. Grant someone a special favour (such as a lower customs duty rate for one of their products) and you have to do the same for all other WTO members. 2. National treatment: Treating foreigners and locals equally Imported and locally-produced goods should be treated equally — at least after the foreign goods have entered the market. The same should apply to foreign and domestic services, and to foreign and local trademarks, copyrights and patents.
- 12. 3. Freer trade:gradually, through negotiation Lowering trade barriers is one of the most obvious means of encouraging trade. The barriers concerned include customs duties (or tariffs) and measures such as import bans or quotas that restrict quantities selectively 4. Predictability: through binding and transparency With stability and predictability, investment is encouraged, jobs are created and consumers can fully enjoy the benefits of competition — choice and lower prices. The multilateral trading system is an attempt by governments to make the business environment stable and predictable. PRINCIPLES OF WTO
- 13. 5. Promoting faircompetition The system does allow tariffs and, in limited circumstances, other forms of protection. More accurately, it is a system of rules dedicated to open, fair and undistorted competition. 6. Encouraging development and economic reform. The WTO system contributes to development. On the other hand, developing countries need flexibility in the time they take to implement the system’s agreements. WTO allows for special assistance and trade concessions for developing countries. PRINCIPLES OF WTO
- 14. Agreement On Agriculture AgreementOn Agriculture
- 15. Agreement on Agriculture(AOA) Formationof WTO in Jan 1995 as a successor to GATT Many trade related agreements were signed by the member countries First time Agreement on Agriculture To reform and dismantle non-tariff barriers are to be replaced by tariffs
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- 17. Market Access • Themarket access rule for agricultural products is “tariffs only”. This means that all non-tariff measures were to be either removed or to be replaced by tariffs, reflecting substantially the same level of protection (this process is called “tariffication”). • As per the AoA, the WTO Members committed to set tariff bindings to agricultural products and assumed reduction commitments on tariffs, which are contained in each Member’s WTO Schedule of concessions on goods (Article 4). Different reduction commitments applied to developing and developed Members. • LDCs were not required to reduce their tariffs.
- 18. Domestic support (Subsidies) •This pillar is based upon the assumption that not all subsidies distort trade to the same extent. The Agreement distinguishes between two categories of domestic support: Domestic support with no, or minimal, distorting effects on trade – not subject to reduction commitments. These were kept in Green Box and Blue Box Measures. • Domestic support with distorting effects on trade – subject to limits and reduction commitments. These were kept in Amber Box measures.
- 19. Domestic support Domestic Support The AoAclassifies the support measures into the two basic categories: Total Domestic Support These are measures that can be usedwithout any limits on support. This category includes three basic sets of measures. Measures that are not subject to ceiling commitments Measures that are subject to ceiling commitments Measures which do not meet the exemption criteria of Green Box, Development Box or, Blue Box, are often referred to as AmberBox measures. Only support under these non- exempt measures is subject to limit. De minimis Amber Box Blue Box Development Box Green Box 19
- 20. Domestic Support Boxes •In WTO terminology Boxes->Subsidies • Green means permitted • Amber means slow(be reduced) • Red means forbidden • NO RED BOX FOR AOA • But things exceeding reduction commitment levels in Amber box are prohibited • One more box Blue means subsidies that are tied to programs that limit production
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- 22. Export Subsidies • TheAgreement contains provisions regarding members commitment to reduce Export Subsidies. • Developed countries are required to reduce their export subsidy expenditure by 36% and volume by 21% in 6 years, in equal installment (from 1986 –1990 levels). • For developing countries, the percentage cuts are 24% and 14% respectively in equal annual installment over 10 years. • The Agreement also specifies that for products not subject to export subsidy reduction commitments, no such subsidies can be granted in the future
- 23. WTO rules againstIndia’s export subsidies • Dispute settlement panel rules that India’s export promotion schemes violated several provisions of the WTO’s subsidies and countervailing measures agreement in November 2019
- 24. WTO rules againstIndia’s export subsidies • India suffered a setback at the World Trade Organization (WTO) in a dispute against the US that had challenged its key export subsidy schemes including the one for special economic zones. The WTO has ruled that these export subsidy programmes violated provisions of the trade body’s norms. • Some of the schemes that will be affected by the WTO's ruling include Merchandise Exports from India Scheme (MEIS), export oriented units (EOU) scheme and sector-specific schemes, including Electronics Hardware Technology Parks (EHTP) scheme and Bio-Technology Parks (BTP) scheme, Export Promotion Capital Goods (EPCG) scheme; and duty-free imports for Exporters Scheme. • The panel further ruled that India is not entitled to provide subsidies depending on export performance and said its per capita gross national product crossed $1,000 per annum. • It is worth noting that under Article 3.1 of the WTO's SCM agreement, all developing countries with gross per capita of $1,000 per annum for three consecutive years are required to stop all export incentives. • The US had earlier accused India of giving prohibited subsidies to Indian steel producers, pharmaceuticals, chemicals, information technology, textiles and apparel.
- 26. The General Agreementon Trade in Services (GATS) • The General Agreement on Trade in Services (GATS) is the first multilateral agreement covering trade in services. • It was negotiated during the last round of multilateral trade negotiations, called the Uruguay Round, and came into force in 1995. • The GATS provides a framework of rules governing services trade, establishes a mechanism for countries to make commitments to liberalize trade in services and provides a mechanism for resolving disputes between countries.
- 27. Modes of servicetrade 1. Mod e1: cros s-bord er tr ad e: – Trad e takes pl ac e from the te rr ito ry of country a into that of b Exam ple : The pu rc hase of insu ran ce or compu ter so ftware by a consu me r fro m a pro ducer locat ed ab ro ad .
- 28. Modes of servicetrade Mod e2: cons um ption ab road Serv ice s co nsume d by nat ionals of a country A in terri tory of country B. Exam ple :Touri sm, educ at ion or he alth se rv ices. .
- 29. Modes of servicetrade M od e 3: com mer cial pres ence A service supplier of country a crosses the bo rd er to • estab lish an d pro vide a se rv ice in country b. • Exam ple : Do me stic su bsidiari es of •fo re ign insu ran ce compa nies or hotel Chai ns.
- 30. Modes of servicetrade M od e 4: mov em ent of natur al per sons Te mpo rary mov eme nt fro m count ry a to c ou ntry b to su ppl y a se rvi ce. Exam ple . Ac countan ts, doctors or teac he rs teac he rs
- 31. Obligations of GATS GeneralSpecific 1. Most Favoured Nation (MFN) Treatment This requires equal and consistent treatment of all foreign trading partners. It means: •Providing equal opportunities in that sector for all foreign service providers. •mutual exclusive treatment for all service providers 2. Transparency GATS Members are required, to publish all measures of general application And establish national enquiry points mandated to respond to other Member's information requests.
- 32. Specific Obligations 1. NationalTreatment treatment for and domestic It requires equal foreign providers providers. Once a foreign supplier has been allowed to supply a service in one’s country there should be no discrimination in treatment between the foreign and domestic providers. 2.Market Access: Market access is a negotiated commitment in specified sectors. It may be made subject to various types of limitations that are enumerated in Article XVI(2). For example, limitations may be imposed on the number of services suppliers, service operations or employees in the sector; the value of transactions; the legal form of the service supplier; or the participation of foreign capital.
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- 35. Agreement on theApplication of Sanitary and Phytosanitary Measures(SPS) • The Agreement on the Application of Sanitary and Phytosanitary Measures sets out the basic rules for food safety and animal and plant health standards. • Member countries are encouraged to use international standards, guidelines and recommendations where they exist.
- 36. Sanitary + Phyto-sanitary Sanitary ‣means clean Phyto-sanitary ‣ plants Measures ‣ creating rules HUH!? SPS measures....what???
- 37. What are Sanitaryand Phyto- sanitary measures Safety requirements imposed by governments ‣ ‣ ‣ Animals Humans Environmen t Protections ‣ ‣ Directly - contaminants (bird flu) Indirectly - pests (long term) Technical trade to barrier No danger! I promise
- 38. 3 SPS Measures Human or AnimalHealth risks arising from additives, contaminants, toxins or disease organisms in food, drink, feedstuff Definition - A measure taken to protect: Human Life plant- or animal-carried diseases Animal or Plant life pests, diseases, disease-causing organisms Acountry other damage caused by entry, establishment or spread of pests from from from from
- 39. C A S E STUD Y “MisusingSPS” CASEOF APPLES 39
- 40. Must provide scientificevidence WTO’s findings ‣ Japan’s quarantine treatment violated SPS measures no scientific evidence to prove harmful substances ‣ Conclusion ‣ Japan sinks under pressure after years pays America $143 million1 ‣ 40
- 41. 21 The right to protect human,animal or plant life or health Avoiding unnecessary barriers to trade TBT SPS
- 42. TBT- AGREEMENT ONTECHNICAL BARRIERS TO TRADE • The Technical Barriers to Trade (TBT) Agreement aims to ensure that technical regulations, standards, and conformity assessment procedures are non-discriminatory and do not create unnecessary obstacles to trade. ... Through its transparency provisions, it also aims to create a predictable trading environment..
- 43. The Agreementon TBTtries toensure that Regulations, Standards, Testing and Certification procedures do not createunnecessary obstacles.
- 44. TBT Agreement Covers alltechnical regulations, standards and conformity assessment procedures other that SPS measures Covers products, processes and services Covers all products, including industrial & agricultural products Covers all standards prepared by recognized standardization bodies
- 45. TBT’s Objectives • TheWTO’s most-favoured-nation rule binds countries’ technical requirements. • The TBT agreement strongly encourages countries to recognize the results of other countries’ conformity assessment tests – the tests that determine whether a product conforms to a given standard. • The TBT promotes the development of international standards and provides governments and inter-governmental bodies with guidance on how to best develop such standards. TBT members are strongly encouraged to adopt international standards as their technical requirements whenever possible. • All TBT members are required to establish “enquiry points” – offices that provide information about the country’s technical regulations, test procedures, and adherence to various international standards. • A technical assistance program helps developing countries meet international standards and helps them get involved in the establishment of such standards.
- 47. About TRIPs…… • TheAgreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) is an international agreement administered by the World Trade Organization • TRIPS is the most important and comprehensive international agreement on Intellectual Property rights • It was formed at the end of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) in 1994. • The TRIPS agreement introduced intellectual property law into the international trading system for the first time
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- 49. Intellectual property isdivided into two categories Industrial property which includes • patents for inventions, • trademarks, • industrial designs and • geographical indications Copyright and related rights which cover • literary and artistic expressions (e.g. books, films, music, architecture, art), • rights of performing artists in their performances, producers of phonograms in their recordings, and broadcasters in their radio and television broadcasts which are also referred to as neighbouring rights. Types of IPR
- 50. • Industrial Property. DistinctiveSigns Trademarks Geographical Indications Innovation, Design & Creation of Technology Inventions Industrial Design Trade Secrets Trade Related aspects of Intellectual Property Rights (TRIPS))
- 51. Copyright and Rightsrelated to copyright • The main social purpose of protection of copyright and related rights is to encourage and reward creative work. - a legal concept giving the creator of an original work exclusive rights to it, usually for a limited time Authors of literary and artistic works Performers Producers of phonograms Broadcasting Organizations Copyrights
- 52. Geographical Indication -Place names (in some countries also words associated with a place) used to identify the origin and quality, reputation or other characteristics of products Basmati Rice • Darjeeling Tea • Kanchipuram Silk Saree • Alphanso Mango • Nagpur Orange • Kolhapuri Chappal • Bikaneri Bhujia • Agra Petha • Goa Feni
- 53. Trademarks • A trademark(also written trade mark or trade-mark) is a type of intellectual property consisting of a recognizable sign, design, or expression which identifies products or services of a particular source from those of others, although trademarks used to identify services are usually called service marks
- 54. EXAMPLES TRADEMARK DEVICES •A trademark is a device which can take almost any form, as long as it is capable of identifying and distinguishing specific goods or services. The best way to understand the types of devices available is through actual examples. The examples on this page are divided as follows: • letters and words • logos • pictures • a combination of words and a logo • slogans • colors • product shapes • sounds
- 55. EXAMPLES TRADEMARK DEVICES •Letters and words • A word or other groupings of letters is the most common type of mark. Examples include: • APPLE • GOOGLE • NETFLIX • IBM • NBC • Logos • Logos are probably the next most common form of mark. A logo can be described as a design which becomes a mark when used in close association with the goods or services being marketed.
- 56. EXAMPLES TRADEMARK DEVICES •Slogans from advertising campaigns are also used as trademarks. Example slogans which have strong trademark rights attached to them are:
- 58. TRIMS • Agreement onTrade Related Investment Measures (Uruguay round ) • TRIMs are rules that apply to the domestic regulations a country applies to foreign investors • Restrictions: 1. Include local content requirements 2. Manufacturing requirements 3. Trade balancing requirements 4. Domestic sales requirements 5. Technology transfer requirements 6. Export performance requirements 7. Local equity restrictions 8. Foreign exchange restrictions 9. Remittance restrictions 10. Licensing requirements 11. Employment restrictions
- 59. Transition periods • Membersare obliged to eliminate TRIMs which have been notified. Such elimination is to take place within – two years for developed countries – five years for developing countries – seven years for LDC
- 60. Current Issues • IPLbrands - intellectual property bouquets • Delhi's Nehru Place among IPR infringing IT markets • The Apple v Samsung Patent War
- 61. • The GATTlays down the principles to be followed by the member countries for imposition of anti-dumping duties, countervailing duties and safeguard measures. • Indian laws were amended with effect from 1.1.95 to bring them in line with the provisions of the respective GATT agreements. • Anti Dumping duties are expected to overcome only the problem of DUMPING. • To deal with the problem of direct and indirect subsidies there is a provision for COUNTERVAILING duties. • Safe guard measures are taken to deal with the problem of increased imports. Can take the form of tariff increase or quantitative restriction. ANTI DUMPING
- 62. Introduction • Dumping issaid to have taken place when an exporter sells a product to India at a price less than the price prevailing in its domestic market. • The phenomenon of dumping is per se not condemnable as it is recognised that – Producers sell their goods at different prices to different markets. – Not unusual for prices to vary from time to time in the light of supply and demand conditions. – Price discrimination in the form of dumping is a common international commercial practice – Not uncommon that export prices are lower than the domestic prices. ANTI DUMPING
- 63. The Doha Round •The Doha Round is the latest round of trade negotiations among the WTO membership. Its aim is to achieve major reform of the international trading system through the introduction of lower trade barriers and revised trade rules. • The work programme covers about 20 areas of trade. The Round is also known semi-officially as the Doha Development Agenda as a fundamental objective is to improve the trading prospects of developing countries. • The Round was officially launched at the WTO’s Fourth Ministerial Conference in Doha, Qatar, in November 2001. The Doha Ministerial Declaration provided the mandate for the negotiations, including on agriculture, services and an intellectual property topic, which began earlier. • In Doha, ministers also approved a decision on how to address the problems developing countries face in implementing the current WTO agreements.
- 64. What have thenegotiations achieved so far? • The achievements of the negotiations are reflected in two ways: • Agreed texts (the “acquis”, what has been acquired) — the 2001 Doha Declaration set the broad objectives; the 2004 Frameworks narrowed down differences in interpreting the broad objectives and defined the shape of the final agreements, particularly in agriculture and non- agricultural market access; the 2005 Hong Kong Declaration narrowed the gaps further.
- 65. What have thenegotiations achieved so far? • Agriculture:More market access, eliminating export subsidies, reducing distorting domestic support, sorting out a range of developing country issues, and dealing with non-trade concerns such as food security and rural development. • Non-agricultural market access (NAMA):“To reduce or as appropriate eliminate tariffs, including the reduction or elimination of high tariffs, tariff peaks and tariff escalation (higher tariffs protecting processing, lower tariffs on raw materials) as well as non-tariff barriers, in particular on products of export interest to developing countries”.
- 66. What have thenegotiations achieved so far? • Services: To improve market access and to strengthen the rules. Each government has the right to decide which sectors it wants to open to foreign companies and to what extent, including any restrictions on foreign ownership. • Trade facilitation:To ease customs procedures and to facilitate the movement, release and clearance of goods. This is an important addition to the overall negotiation since it would cut bureaucracy and corruption in customs procedures and would speed up trade and make it cheaper.
- 67. What have thenegotiations achieved so far? • Rules:These cover anti-dumping, subsidies and countervailing measures, fisheries subsidies, and regional trade agreement. • The environment These are the first significant negotiations on trade and the environment in the GATT/ WTO. They have two key components: • Freer trade in environmental goods. Products that WTO members have proposed include: wind turbines, carbon capture and storage technologies, solar panels. • Environmental agreements. Improving collaboration with the secretariats of multilateral environmental agreements and establishing more coherence between trade and environmental rules.
- 68. What have thenegotiations achieved so far? • Geographical indications: multilateral register for wines and spirits.This is the only intellectual property issue that is definitely part of the Doha negotiations. The objective is to “facilitate” the protection of wines and spirits in participating countries. • Dispute settlement:To improve and clarify the Dispute Settlement Understanding, the WTO agreement dealing with legal disputes. These negotiations take place in special sessions of the Dispute Settlement Body (DSB)
- 69. BENEFITS FROM WTO 1.Thesystem 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