WTO role and functions


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WTO role and functions

  1. 1. INTRODUCTION TO WTO • WTO Established Jan 1, 1995 Created by : Uruguay round negotiation (1986-1994) Members: 153 •recent: Saudi Arabia December 2005 •Including: China (as of 2001) •Not including: Russia, Iran, Iraq, N. Korea • Headquarters: Geneva, Switzerland www.StudsPlanet.com
  2. 2. WHY GATT REPLACED BY WTO ? • Gatt rules applied to trade only in merchandise goods. • 2. Gatt dispute settlement system is slow. • 3. Gatt was just provisional agreement. www.StudsPlanet.com
  3. 3. STRUCTURE OF WTO • The WTO is run by its member governments. All major decisions are made by the membership as a whole, either by ministers , who meet at least once every two years, Decisions are normally taken by consensus. the WTO is different from some other international organizations such as the World Bank and International Monetary Fund. In the WTO, power is not delegated to a board of directors or the organization’s head . www.StudsPlanet.com
  4. 4. HIGHEST AUTHORITY • The countries make their decisions through various councils and committees, whose membership consists of all WTO members. The Ministerial Conference can take decisions on all matters under any of the multilateral trade agreements. www.StudsPlanet.com
  5. 5. CHART OF THE WTO STRUCTURE • 1 1. Council for Trade in Goods: • 1 1. Council for Trade in Goods Since 1995, the updated GATT has become the WTO’s umbrella agreement for trade in goods. It has dealing with specific sectors such as agriculture and textiles, and with specific issues such as state trading, product standards, subsidies and actions taken against dumping. www.StudsPlanet.com
  6. 6. 2. COUNCIL FOR TRADE IN SERVICES : • 2 . Council for Trade in Services Banks insurance firms telecommunications companies tour operators hotel chains transport companies. • Example of Telecommunication services: : • The telecommunications sector has a dual role: it is a distinct sector of economic activity; and it is an underlying means of supplying other economic activities, for example: electronic money transfers. www.StudsPlanet.com
  7. 7. 3. INTELLECTUAL PROPERTY • The WTO’s Intellectual Property Agreement amounts to rules for trade and investment in ideas and creativity. The rules state how Copyrights patents trademarks geographical names used to identify products industrial designs “ intellectual property” – should be protected when trade is involved. www.StudsPlanet.com
  8. 8. 4.DISPUTE SETTLEMENT • The WTO’s procedure for resolving trade quarrels under the Dispute Settlement. Understanding is vital for enforcing the rules and therefore for ensuring that trade flows smoothly. www.StudsPlanet.com
  9. 9. 5.TRADE POLICY REVIEW : • The Trade Policy Review Mechanism’s purpose is to improve transparency, to create a greater understanding of the policies that countries are adopting, and to assess their impact. www.StudsPlanet.com
  10. 10. FUNCTION OF ORGANIZATION: • The WTO’s overriding objective is to help trade flow smoothly, freely, fairly and predictably. It does this by: Administering trade agreements Acting as a forum for trade negotiations Settling trade disputes Reviewing national trade policies Assisting developing countries in trade policy Organize training programmers Cooperating with other international organizations www.StudsPlanet.com
  11. 11. THE WTO DEALS WITH THE SPECIAL NEEDS OF DEVELOPING COUNTRIES IN THREE WAYS • 1. WTO Agreements • 2. WTO Committees • 3. WTO Technical Cooperation www.StudsPlanet.com
  12. 12. WTO AGREEMENTS • WTO AGREEMENTS In the agreements: more time, better terms Legal assistance: a Secretariat service Least-developed countries: special focus A ‘maison’ in Geneva: being present is important, but not easy for all www.StudsPlanet.com
  13. 13. 2. WTO COMMITTEES • Trade and Development Committee, Sub- committee on Least-Developed Countries. • The Doha agenda committees www.StudsPlanet.com
  14. 14. 3. WTO TECHNICAL COOPERATION • Training Seminars, workshops. www.StudsPlanet.com
  15. 15. THE DOHA ROUND: • 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 programmed 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. www.StudsPlanet.com
  16. 16. IMPACT ON INDIA: • Problems faced Commitments made Potential solutions to existing problems www.StudsPlanet.com
  17. 17. PROBLEMS FACED BY INDIA IN WTO AND ITS IMPLEMENTATION: • Predominance of developed nations in negotiations Non-tariff barriers being created by developed nations. Regional cooperation groups posing threat to utility of WTO agreement itself, which is multilateral encompassing all member countries Poor implementation of Doha Development Agenda Pressure to dismantle MFA ( Muti Fibre Agreement) Under TRIPS question of high cost www.StudsPlanet.com
  18. 18. INDIA’S COMMITMENT TO WTO • Reduction in tariff and non-tariff barriers Amendment in Patent Act; • Trade Related Intellectual Property rights (TRIPs) • Trade related investment measures (TRIMs) • General Agreement on Trade services (GATS) www.StudsPlanet.com
  19. 19. WHAT INDIA SHOULD DO? • Should speed up internal reforms in building up world-class infrastructure. • Should focus on R&D in important fields Helping textile and garment Industry go multinational Invoking reforms facilitating major FDI inflows. • Should downsize non-plan expenditure in Subsidies Lots of potential in renewable energy generation business www.StudsPlanet.com
  20. 20. THE 10 BENEFITS 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 www.StudsPlanet.com
  21. 21. CRITICISMS OF WTO 1> WTO is the fundamentally undemocratic. 2> WTO will not make us safer. 3> WTO tramples labour and Human Rights. 4> WTO Would privatize essential services. 5> WTO is increasing inequality. 6> WTO is increasing hunger. 7> WTO hurts poor ,small countries in favour of rich powerful nations www.StudsPlanet.com