What Is International Trade?

Exchange of capital goods and services

across international boundaries or territories

In most countries it represents a
significant share of GDP

Why International Trade?
Diverse Economic
Resources
Differences In Productive
Resources
Difference in cost: Absolute
and comparative
Important for Countries
well being
Importance for citizen


What do you know?
WTO Formation?
No. of Members
Latest member
General Secretary
Head Quarters
Indian Head Quarters
Last Summit
Indias representative to
WTO
WTO
Why WTO was formed? The History
Problems with GATT
Principles of WTO
Functions of WTO
Organizational Structure of WTO
WTO and India


History
GATT formed in 1947
Focus on multilateralism
Uruguay Round
Final Act of 1994
WTO incepted on 1st Jan,
1995
Problems with GATT
Failed to liberalize trade in agricultural products.
Experienced partial success in regulating trade
practices
Steady erosion of MFN principle by the EC.
Only a gentlemen's agreement with no teeth, no
enforcement power.
What is WTO

WTO is an International body designed to play the
role of a watchdog in spheres of trade in Goods,
services foreign investments, IPR etc.
Principles
To help trade flow as freely as possible

To achieve further liberalization gradually through
negotiation

To set up an impartial means of settling disputes
Functions
Administering the WTO trade agreements
Forum for trade negotiations
Administering the mechanism for settling trade
disputes among members
Monitoring national trade policies
Assisting developing countries with training and
technical assistance
Cooperation with other Internationals
organizations.
Organizational Structure
Level 1: Ministerial Conference

Level 2: General Council

Level 3: Goods, Service and intellectual property
council

All Members participate in all committees (Except Dispute
settlement and Textiles monitoring body)
Organizational Structure
GENERAL COUNCIL
GOODS COUNCIL SERVICES COUNCIL TRIPS COUNCIL
MINISTERIAL COUNCIL
India and WTO

Contribution of 0.747% to WTOs Budget 08

68% contribution to worlds total
manufacture exports in 2006

Indias Commitments To WTO

Tariff Lines

Quantitative
Restrictions (QRs)
Tariff Lines
It is when a country binds a tariff rate
by committing that it will not raise tariff
on that product beyond the bound
level.
Tariff Lines
73.8% of Indian Tariff lines are bound

36.2% for non agro goods
Quantitative Restrictions:

It is the restrictions imposed by WTO on the quantities that a
country can import or export. Such restrictions are also
imposed on India but looking at the fast growing economy of
India WTO has removed this restrictions from a number of
items like the Quantitative restriction on 714 items was
removed in Exim Policy on 31st March 2000 and again the
Quantitative restriction on 715 items was removed on 31st
March 2001.
Quantitative Restrictions
QRs on 714 items removed in Exim
Policy on 31
st
March 2000

QRs on 715 items removed on 31
st
March
2001
Benefits to India
Benefits from Phasing out of MFA
(Multi Fiber Arrangements)
Expansion in trade
Improved prospects for Agro exports
Thank You !!!
Presented By Group 5
Ashish Khera
Jasmine Framjee
Manish Baradia
Nidhi Goyal
Pallavi Khanna
Pradeep Singh
Shreshtha
Varun Khurana