Amity Business School

Amity Business School
MBA 2013, 3rd Semester IEP Amanpreet Kang

1

Amity Business School Principles of Multilateral Trading System 2 .

Principles of Multilateral Trading System Amity Business School Agreements – based on negotiations between members • Lengthy • Complex • Legal texts Basic principles of WTO (1) Trade without Discrimination • 2 aspects (1) No discrimination between trading partners and country’s own and foreign products and services 3 .

Principles of Multilateral Trading System Amity Business School (1) Trade without Discrimination • 2 aspects (2) Most-favored-nation (MFN) Treatment – First article of GATT which governs trade in goods – Priority in GATS. TRIPS – In each of these agreements the principle is handled slightly differently 4 .

countries allowed to discriminate in limited circumstances 5 .Principles of Multilateral Trading System Amity Business School • Most-favored-nation (MFN) Treatment – Some exceptions include: – Countries can set up free trade agreement – Special access extended by some to the developing countries – Barriers against products that are considered to be traded unfairly from specific countries – GATS.

17 of GATS and Art. copyrights and patents – Applies only when a good. 3 of TRIPS – Handled slightly differently in each. 3 of GATT. 6 .Principles of Multilateral Trading System Amity Business School • National Treatment – Imported and locally produced goods should be treated equally – It applies to foreign and domestic services. trademarks. service or IP has entered the market – Case of customs applicable to imports – In all 3 main agreements of WTO – Art. Art.

import bans. quotas Main objective of GATT Tariffs fell from 40% to 3-4% NTBs. customs duty.Principles of Multilateral Trading System Amity Business School (2) Gradual Move towards Freer Markets Through Negotiations • • • • • • • Encouraging international trade Lower trade barriers – Barriers are – tariffs. Services. IP Progressive liberalisation Developing countries given longer period to fulfill obligations 7 .

Principles of Multilateral Trading System Amity Business School (3) Increasing Predictability of International Marketing Environment • • • • • • • • Promise not to raise trade barriers Clear view of future market opportunities Stability Predictability Increase trade under binding commitments Binding commitments (bound tariffs) Case of agricultural goods Higher degree of market security for traders and investors Removing quotas 8 • .

Principles of Multilateral Trading System Amity Business School (3) Increasing Predictability of International Marketing Environment • • • • Making trade rules clear and transparent Public disclosure of policies and practices Notification in WTO Trade policy review 9 .

Principles of Multilateral Trading System Amity Business School (4) Promoting Fair Competition in International Markets • • • • • • Not entirely free trade institution Allows tariffs and protection in limited circumstances Fair trade is important It is a system of rules dedicated to OPEN. FAIR and UNDISTORTED COMPETITION Non-discrimination rules? Rules on dumping and subsidies 10 .

Amity Business School Thanks 11 .

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