World Trade Organization
Bhavna Bhatia, 05 Neha Gaonkar, 15 Robin Lobo , 25 Vanessa Valdar,45 Manpreet Bhogal, 55 Stefanie Collis
Principles Of WTO
Non-discrimination Reciprocity Transparency Regionalization
India & WTO
One of the founding Members in 1995. - Principal aim of Indias negotiating strategy in the WTO:
To protect the interests of farmers (agriculture). To protect sensitive industrial sectors from the impact of tariff reductions or bindings (initially textiles & others). Ensure that the interests of developing countries are protected.
Trade Agreement of WTO
1.General Agreement on Tariffs and Trade Origin and history GATT and WTO
2. General Agreement on Trade in service Origin and History The four mode of supply(Cross-border supply Consumption abroad, Commercial presence Presence of a natural person
3. Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) History and origin Examples
The Agreement on Agriculture
Agreement on Agriculture
Final Act of the Uruguay Round.
Signed : April 1994 at Marrakesh, Morocco.
Reason for establishment
Objectives
Main features of AoA
Market Access
Domestic support Export subsidies
Market Access
The Agreement has two basic elements:
1) Tariffication of non tariff barriers:
2) Minimum level for imports of agricultural products by member countries as a share of domestic consumption
Domestic Support
Two main Objectives:
To identify acceptable measures that support farmers. To deny unacceptable, trade distorting support to the farmers.
These provisions are aimed largely at the developed countries where the levels of domestic agricultural support have risen to extremely high levels in recent decades.
The Three Boxes
GREEN BOX
AMBER BOX
BLUE BOX
Export Subsidies
Lists several types of subsidies to which reduction commitments apply. Non-existent in India as exporters of agricultural commodities do not get direct subsidy.
Even exemption of Export profits from income tax under Section 80-HHC of the Income Tax Act is not among the listed subsidies.
Implications on India
Short Term implications
No effects of AoA on India
Maintained QRs on import of 825 agri products as on 1.4.1997. In Trade Policy 2004-09 it has removed all QRs. The MSP provided to commodities is less than the fixed external reference price determined under agreement. Lag lead relationship between prices and produce
Long term implications
To enjoy the gain from the application of Science& Technology it would require:
Infrastructural support Improved technologies Provision of inputs at reasonable costs
Indian agriculture enjoys the advantage of cheap labour. Domestic prices in India are considerably less with the exceptions of a few commodities. Imports to India would not be attractive in the case of rice, tea, sun flower oil and cotton.
Long term implications
Improved
export prospects
Farmers
benefits
Results
of decrease in export subsidies
Criticism
Reduced tariff protections for small farmers
Only beneficial for rich countries
No discipline for trade and non-trade distorting barriers. "the protection is better disguised, but the effect is the same by Martin Khor .
Doha Round
4th ministerial conference held at Doha Qatar. The Doha development round or Doha development agenda is the current trade negotiation round of the world trade organization which commenced in November 2001. Negotiations included on major issues such as agriculture, industrialtariffs and non- tariffs barriers, services and trade remedies.
Subsequent ministerial meetings took place in Cancun, Mexico (2003), and Hong Kong (2005) Related negotiations took place in Geneva, Switzerland (2004, 2006, 2008); Paris, France (2005); and Potsdam, Germany (2007).
Before Doha
Trade in agriculture & Trade in services. First WTO ministerial conference : Singapore,1996. Established Four issues
Seattle, USA, and the Millennium Round
US terrorists attack on 11 September 2001
DOHA 2001
Agricultural and manufacturing markets, as well as tradein-services (GATS) negotiations & expanded intellectual property regulation (TRIPS) To make trade rules fairer for developing countries.
By 2008, critics opined that the round would lead to a set of laws that would be bad for development and interfere with the domestic policies of the nations
Cancun 2003 - Collapse of negotiations Geneva, 2004 Paris, 2005 Hong Kong, 2005 Geneva, 2006 Potsdam, 2007 Geneva, 2008 - Collapse of negotiations
Issues
Agriculture Access to patented medicines: Special and differential treatment: Implementation Issues
The UE and the WTO
Member since 1995. EU member = WTO members in their own right. 27 + 1 Till Nov. 2009 officially European Communities (legal). The European Commission (= EUs executive arm) speaks for all EU member States at almost all WTO meetings. Most WTO materials refer to the EU
Trade Policy Reviews of the UE
1) 1995 WTO rules are important: frictions; trade. EU gains importance & influence in WTO. 2) 1997 Greater liberalization WTO implementation & EU Single Market. 3) 2000 Open market: industrial products: tariff decreased AGRICULTURE & Textile: Barriers: higher tariffs & quotas in place. 4) 2002 Key trade liberalization supporter. Keeps markets open except: AGRICULTURE & Textile.
5) 2004 NON-agricultural products. Granted market access to developing countries under its Generalized System of Preferences (GSP) scheme. AGRICULTURE. 2005 - Textiles: restrictions terminated. 6) 2007 - Improved economic situation, but continued reforms needed. - EU is worlds leading exporter & 2nd largest importer of goods. Mostly Open Market. Services & AGRICULTURE. 7) 2009 - Continued reforms needed. + Services & AGRICULTURE: Robust recovery; Sustained ec. growth; Resources Reallocation.
Spain & WTO
1995 - Founding Member. I) Participation in coalitions (one voice): 1) European Union Issues: General 2) Friends of Ambition Non-Agricultural Market Access 3) W52 sponsors Intellectual property (TRIPS) II) 2010 - Offers EUR 350,000 to WTO developing countries.
III) More: Indo-Spanish Joint Commission (not only WTO related).
Thank You
