This action might not be possible to undo. Are you sure you want to continue?
Tap to Ocean
• Multilateral - WTO • Regional - SAFTA / BIMSTEC / Bangkok Agreement / Growth Quadrangle • Bilateral - Nepal India/China/Bangladesh/Pakistan & Bhutan • Saarc & EU • Asian Highway-UN ESCAP
• • • • Part of global family of trade and legislation Global market access Diversification of products and markets possible Technical Assistance -Integrated Framework / Capacity Building • Rights to Inherent & Indigenous Products • Dispute settlement mechanism • Priority to LDCs /Aid for Trade
WTO Policy • Rule based International trading System • Member driven Organization • Trade with global market access at competitive price of best quality product • Harmonization of tariff .fusion with InfoTech • Protection only through Tariff • Trade Liberalization – ‘MFN’ to all members • Quantity and Quota system restricted • General agreement on trade & services (GATS) 4 .
ITO 5 .Genesis • Virtual Collapse of the world economy in the 1930 due to global economic recession followed by World War II in 1940s • International Meeting to hammer out strategy for the restructuring of the global economy .Bretton Woods Conference 1944 • Three legs proposed to handle global economic restructuring World Bank. IMF.
Genesis • IMF for facilitating world liquidity. World Bank for sectoral lending for restructuring and ITO for managing international trade • Two legs of Bretton Woods (IMF and the World Bank) did come up but ITO could not because the US Senate refused to ratify the treaty 6 .
• It was a multilaterally agreed treaty related to tariffs imposed on goods • Decision making body with a set of rules for the conduct of international trade in goods.GATT • Multilateral Trade Treaty – General Agreement on Tariff and Trade (GATT) singed by 23 countries on 30th October 1947 at UN building in Geneva. and formulated mechanisms for trade liberalisation 7 .
GATT • This provided a forum for the “contracting parties” to discuss and solve trade problems and negotiate tariff reductions to increase trade volume • From 1947 to 1994 GATT provided the rules for world trade • Additions made through “trade rounds” 8 .
) and a concept of ‘single undertaking’ was introduced • This round gave birth to an institution to oversee the implementation of GATT and other agreements – which is known as WTO 9 . textile and clothing. standards etc..GATT • From the seventh round (Tokyo Round) attention moved to other areas as well (such as non-tariff barriers) • During the eighth round (Uruguay Round) new issues were added (e.g. services. agriculture. IPR.
Operational from 1 January 1995 • Permanent inter-governmental body governing and regulating international trade in goods.WTO • Successor of GATT. services and IPR • It’s an organisation for liberalising trade – help trade flow as freely as possible • It’s a place for settling trade disputes 10 .
WTO • WTO is based on four pillars – Promoting rules based multilateral trading system – Non-discrimination (Most-Favored Nations and National Treatment) – Transparency – Special treatment for less developed countries • It has 153 members • Decisions are made through consensus • It provides for an effective dispute settlement system 11 .
negotiated and signed by members • These Agreements are contracts that bind governments to keep their trade policies within agreed limits 12 .WTO • At the heart of the system are WTO Agreements.
Major WTO Agreements • GATT 1994 • Trade Related Aspects of Intellectual Property Rights (TRIPS) • Agreement on Agriculture (AOA) • General Agreement on Trade in Services (GATS) • Agreement on Sanitary and Phytosanitary (SPS) Measures • Technical Barriers to Trade (TBT) • Agreement on Textile and Clothing (ATC) 13 .
WTO Agreements • The WTO Agreements cover goods.500 pages listing individual countries commitments • They set procedures for settling disputes 14 . services and intellectual property • They spell out principles of liberalisation and permitted exceptions • They include individual countries commitment to lower custom tariffs and other trade barriers and open key services sectors : 22.
Cross-Cutting and New Issues • WTO work is not confined to agreements • Members also discuss a range of other issues. trade and labour rights 15 . trade facilitation. competition policy. trade and investment. usually in special Committees and working groups • Trade and the environment.
How does the WTO Function ? • WTO is “member-driven”.with decisions taken by consensus • All major decisions are made by membership as a whole. either by ministers or by ambassadors or delegates in Geneva • Different from World Bank or IFM in that power is not delegated to a board of directors or the organisation’s head 16 .
Cancun.How does the WTO Function ? Highest Level • Ministerial Conference. Hong Kong Second level • General Council. Doha. heads the WTO and is the highest policy making body • Meets at least once every two years – Seattle. composed of representatives of all the members. composed of representatives of all the members and oversees the operation of the agreements and ministerial decisions on regular basis 17 .
How does the WTO Function ? Third Level • Council for Trade in Goods • Council for Trade in Services • Council for Trade-Related Aspects of Intellectual Property Rights (TRIPS) Fourth Level • Committees – Cover specific issues and carry out the functions assigned to them by the GC – Trade and Development. Plurilateral Agreements 18 .
How does the WTO Function ? • The Director General appointed for a period of four years by the Ministerial Conference heads the secretariat of WTO 19 .
Why is WTO Powerful • Single undertaking and binding • Dispute Settlement Mechanism • Cross retaliation 20 .
Special Provisions for Developing Countries • Extra time and reduced level of commitments for developing and least developed countries to fulfill their commitments under most of the agreements • Market Access • Technical Assistance • Aid for Trade 21 .
it functions as per the mandate given by its members • Members have flexibility to protect their domestic sectors through tariff and trade remedy measures • WTO rules do not conflict with environmental conservation goals 22 .Some myths and reality • WTO will not eliminate custom duties • WTO does not set trade rules.
Reasons for Membership • Stable and predictable market • Participatory (consensus based) decision making • Rules based system and effective dispute resolution mechanism • Reduced dependence on a single market • Special and differential treatment for LDCs • Transit right • Policy lock-in • Technical assistance 23 .
academia. business sector. Civil Society • At the international level – Proactive negotiating agenda – Alliance building 24 .Post accession agenda • Focus: maximising opportunities and minimising costs • At the domestic level – Policy reforms – Legislative Action Plan – Actions and implementation • Government.
promoting conditions for fair competition & ensuring equitable benefits. Objectives of Safta: eliminating barriers to trade. and facilitating the crossborder movement of goods. 2. 3. establishing a framework for further regional cooperation 25 .SAFTA (South Asian Free Trade Area): The landmark achievement • 1. creating effective mechanism for the implementation as well as resolution of disputes. 4.
and any other equivalent measures.SAFTA – The landmark achievement ( Contd. ) • Takes care of the regional imbalance in development. 26 . inter alia. • Para 3(2) d reads – SAFTA shall involve the free movement of goods. • Para 3(1) a reads – eliminating barriers to trade in. para tariffs and non-tariff restrictions on the movement of goods. the elimination of tariffs. and facilitating the cross-border movement of goods between the territories of the Contracting States. between countries through.
• Para 8(g) reads – transit facilities for efficient intra-SAARC trade. 27 . especially for the land-locked Contracting States.SAFTA – The landmark Achievement • Para 3(2) f reads – The special needs of the Least Developed Contracting States shall be clearly recognized by adopting concrete preferential measures in their favor on a non-reciprocal basis.
ASEAN currently has 10 member states. • Established on 8 August 1967 with 5 member states. a combined gross domestic product of US$737 billion. the gap in per capita income between South Asia and East Asia (Excluding China) was $ 200. • When established the share of intra-ASEAN trade was just between 12 and 15 percent.SAARC – ASEAN Cooperation. and a total trade of US$ 720 billion. 61% of NAFTA and 25% of ASEAN 28 .46 percent of total trade of member states compared to 55 % of EU.000 in East Asia (excluding China) • Before formation of ASEAN in 1960s. • ASEAN region has a population of about 500 million.5 million square kilometers. It has now increased to almost 25 percent. which has increased to over $ 9700 in a matter of few decades • Intra-regional trade volume of SAARC countries stand at 4. • Per capita income is $ 309 in South Asia compared to over $ 10. a total area of 4.
Trade & Services Measures • Para 2 of Article 6 of the Final Draft Framework Agreement On the BIMST- “The parties further agree to enhance trade facilitation in areas. (c) Trade finance. the following:” EC Free Trade Area says: (a) Mutual Recognition Arrangements (MRAs). (d) E-commerce. conformity assessment. (b) Customs cooperation.BIMSTEC (Bay of Bengal Initiative for MultiSectoral Technical and Economic Cooperation) . accreditation procedures and standards & technical regulations. including but not limited to. and (e) Business Visa and travel facilitation 29 .
ASEAN & China can join hands to ensure the prosperous future for one-half of the world population. • SAARC. • Sino India is also the world’s largest market in terms of headcount. • The geographical proximity between SAARC-China-Asean must be exploited for mutual benefit 30 . • It can provide both techno-financial and market support.Bangkok Agreement • China & India are the world’s fastest growing economy who are members.
• ADB’s Sub Regional baby • East India’s Focal Role 31 . East India. Bangladesh & Bhutan Cooperation • Sub Regional Within SAARC • Sectorial Development Like Trade.Growth Quadrangle • Nepal. IT & Tourism etc. Transport.
Nepal India • • • • • • • Ocean Market / Sky Limit Preference Market Assess Value Addition Trade Balance Bilateral Within SAFTA/WTO Complementary & Supplementary 3rd Country Arrangement Like Pakistan & Bhutan 32 .
Saarc & EU • • • • • • Two of World’s Largest Regional Cooperation Demand & Supply Asia’s Market size and resource EU’s techno finance capacity Cooperation in WTO Win Win for both Economies 33 .
Others • NAFTA (North Atlantic Free Trade Agreement) • ASEAN (Association of Southeast Asian Nations) .
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.