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S.P.

MANDALI’S

R. A PODAR COLLEGE OF COMMERCE AND ECONOMICS
MATUNGA, MUMBAI-400 019.

A PROJECT REPORT ON
STUDY ON WTO – POSITIVE & NEGATIVE IMPLICATION –
WTO & INDIA
SUBMITTED BY
KHUSHBU JAIN
M.COM (SEM. III): INTERNATIONAL MARKETING

SUBMITTED TO
UNIVERSITY OF MUMBAI
2015-2016
PROJECT GUIDE
Prof. TEJASHREE PATANKAR

S.P. MANDALI’S

R. A PODAR COLLEGE OF COMMERCE AND ECONOMICS
MATUNGA, MUMBAI-400 019.

CERTIFICATE
This is to certify that Ms. KHUSHBU JAIN of M.Com ( Business Management) Semester III
(2015-2016) has successfully completed the project on WTO – Positive & Negative
Implication-WTO & India under the guidance of Prof. TEJASHREE PATANKAR

Project Guide/Internal Examiner
Prof. _______________________
________________________

Dr. (Mrs) Vinita Pimpale
Course Co-ordinator

Date

External Examiner
Prof.

Dr.(Mrs) Shobana Vasudevan
Principal

Seal of the College

ACKNOWLEDGEMENT
I acknowledge the valuable assistance provided by S. P Mandali’s R. A. Podar
College of Commerce & Economics, for two year degree course in M.Com.
I specially thank the Principal Dr.(Mrs) Shobana Vasudevan for allowing us to
use the facilities such as Library, Computer Laboratory, internet etc.
I sincerely thank the M.Com Co-ordinator for guiding us in the right direction
to prepare the project.
I thank my guide Prof. TEJASHREE PATANKAR who has given her valuable
time, knowledge and guidance to complete the project successfully in time.
My family and peers were great source of inspiration throughout my project,
their support is deeply acknowledged.

Signature of the Student

KHUSHBU JAIN of R.Com SEMESTER III. PODAR COLLEGE OF COMMERCE & ECONOMICS of M. The information submitted is true and original to the best of my knowledge.DECLARATION I. A. Signature of the Student INDEX . hereby declare that I have completed the project WTO – Positive & Negative ImplicationWTO & India in the academic year 2015-2016 for the subject Economics.

1 Functions of WTO 7 2.Sr.2 Principals of WTO 9 2.1 2 Page No. PARTICULARS INTRODUCTION 1 1. Meaning & Definition 6 World Trade Organization (WTO) 2.5 Structure of WTO 15 3 How does it affect India 19 4 Members INTRODUCTION:The World Trade Organization was founded on 1 st Janaury 1995 to replace the General .3 Objective of WTO 12 2. No.4 Benefits of WTO 14 2.

to protect consumers or prevent the spread of disease. exporters. At its heart are the WTO agreements. and everything the WTO does is the result of negotiations. The World Trade Organization (WTO) is an international. Switzerland. under the ‗Doha Development Agenda‘ launched in 2001. Although negotiated and signed by governments. They are essentially contracts. Pascal Lamy is the current DirectorGeneral. All WTO members are required to grant one another most favoured nation status. and importers conduct their business. there are 159 members in the organization. But the WTO is not just about opening markets. It also means ensuring that individuals. binding governments to keep their trade policies within agreed limits. companies and governments know what the trade rules are around the world. with. The bulk of the WTO‘s current work comes from the 1986–94 negotiations called the Uruguay Round and earlier negotiations under Tariffs and Trade (GATT). negotiated and signed by the bulk of the world‘s trading nations. the negotiations have helped to open markets for trade. The 159 member states meet in ministerial sessions at least once every two years. Since its inception in 1995.Agreement on Tariffs and Trade (GATT). The WTO is currently the the GeneralAgreement on host to new negotiations. such that ( with some exceptions ) trade concessions granted by a WTO member to another country must be granted to all WTO members. the goal is The systems overriding purpose is to help trade flow as freely as possible .so long as there are no undesirable side effects . That partly means removing obstacles. to help producers of goods and services. and in some circumstances its rules support maintaining trade barriers . the WTO has been a major target for protests by the antiglobalization movement.for example. WTO headquarters are located in Geneva. The WTO was born out of negotiations. This multilateral organization aims to lower tariffs and non-tariff barriers so as to increase international trade. all of whom are signatories to its about 60 agreements. These documents provide the legal ground rules for international commerce. Where countries have faced trade barriers and wanted them lowered. and giving them the confidence that there will be no sudden changes .because this is important for economic development and well-being. As of now. while allowing governments to meet social and environmental objectives. which sets the rules for the global trading system and resolves disputes between its member states. multilateral organization.

statisticians and communications experts .assist WTO members on a daily basis to ensure. it was merely a legal arrangement. They spell out the principles of liberalization. Article III has set out the following functions of WTO:- Trade Negotiations:The WTO agreements cover goods. The Secretariat employs over 600 staff. it could not function without its Secretariat to coordinate the activities. It is designed to play the role of a watchdog in the spheres of trade in goods. foreign investment. They include individual countries commitments to lower customs tariffs and other trade barriers. The most harmonious way to settle these differences is through some neutral procedure based on an agreed legal foundation. and the permitted exceptions. These agreements 7 . the WTO is a new international organisation set up as a permanent body. and to open and keep open services markets.of policy. Agreements. and that the rules of international trade are correctly applied and enforced. In other words. that negotiations progress smoothly. economists. FUNCTIONS OF WTO:While the WTO is driven by its member states. Trade relations Often involve painstakingly negotiated in the conflicting interests. intellectual property rights. The former GATT was not really an organisation. among other things. etc. often need interpreting. the rules have to be transparent and predictable. trade in services. That is the purpose behind the dispute settlement process written into the WTO agreements. They set procedures for settling disputes. On the other hand. services and intellectual property. including those WTO system. and its experts lawyers.

Various WTO councils and committees seek to ensure that these requirements are being followed and that WTO agreements are being properly implemented. each review containing reports by the country concerned and the WTO Secretariat. launched by WTO trade ministers in Doha. Countries bring disputes to the WTO if they think their rights under the agreements are being infringed. The WTO organizes hundreds of technical co-operation missions to developing countries annually. Judgements by specially appointed independent experts are based on interpretations of the agreements and individual countries commitments. and support to help them build their trade capacity. they are renegotiated from time to time and new agreements can be added to the package. 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. Building Trade Capacity:WTO agreements contain special provision for developing countries. in November 2001. All WTO members must undergo periodic scrutiny of their trade policies and practices. Aid for Trade aims to help developing countries develop the skills and infrastructure needed to expand their trade. including longer time periods to implement agreements and commitments. Qatar.are not static. It also holds numerous courses each year in Geneva for government officials. 8 . to handle disputes and to implement technical standards. Implementation and Monitoring:WTO agreements require governments to make their trade policies transparent by notifying the WTO about laws in force and measures adopted. Many are now being negotiated under the Doha Development Agenda. measures to increase their trading opportunities.

But a number of simple. for example. priority in the General Agreement on Trade in Services (GATS) and the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). It is so important that it is the first article of the which governs trade in goods. those three agreements cover all three main areas of trade handled by the WTO. These principles are the foundation of the multilateral trading system. although in each agreement the principle is handled slightly differently. parliamentarians.Outreach:The WTO maintains regular dialogue with non-governmental organizations. But And in services. in limited the agreements only permit these exceptions under strict conditions. with the aim of enhancing cooperation and increasing awareness of WTO activities. fundamental principles run throughout all of these documents. This principle is known as Most Favoured Nation (MFN) treatment. countries are allowed. to discriminate. MFN is also a World Trade Organisation (WTO). Or a country can raise barriers against products that are considered to be traded unfairly from specific countries. Some exceptions are allowed. Non-discrimination:Under the WTO agreements. grant someone a special favor (such as a lower customs duty rate for one of their products). Together. Or they can give developing countries special access to their markets. MFN means that every time a country lowers a trade barrier 9 . In general. countries cannot normally discriminate between their trading partners. PRINCIPLES OF WTO:The WTO agreements are lengthy and complex because they are legal texts covering a wide range of activities. the media and the general public on various aspects of the WTO and the ongoing Doha negotiations. circumstances. countries can set up a free trade agreement that applies only to goods traded within the group discriminating against goods from outside. other international organizations. If you do the same you have to do that for all other WTO members.

it has to do so for the same goods or services from all its trading partners – whether rich or poor. The same should apply to foreign and domestic services. jobs are created and consumers can fully enjoy the benefits of competition .or opens up a market. The WTO agreements allow countries to introduce changes gradually. Sometimes countries tax imports at rates that are lower than the bound rates. investment is encouraged. Developing countries are usually given longer time to fulfill their obligations. copyrights and patents. when countries agree to open their markets for goods or services. For goods. Frequently this is the case in developing countries. From time to time other issues such as red tape and exchange rate policies have also been discussed. and to foreign and local trademarks. The multi-lateral trading system is an attempt by governments to make the business environment stable and predictable. National treatment only applies once a product. Therefore. they bind their commitments. Predictable and Transparent:Sometimes.choice and lower prices. these bindings amount to ceilings on customs tariff rates. Imported and locally – produced goods should be treated equally . although once again the principle ishandled slightly differently in each of these. This principle of ―national treatment‖ (giving others the same treatment as one‘s own nationals) is also found in all the three main WTO agreements (GATT. charging customs duty on an import is not a violation of national treatment even if locally – produced products are not charged an equivalent tax. A country can 10 . In developed countries the rates actually charged and the bound rates tend to be the same. service or item of intellectual property has entered the market. promising not to raise a trade barrier can be as important as lowering one. these barriers include customs duties (or tariffs) and measures such as import bans or quotas that restrict quantities selectively.at least after the foreign goods have entered the market. In the WTO. weak or strong. GATS and TRIPS). through ―progressive liberalization‖. With stability and predictability. More Open:Lowering trade barriers is one of the most obvious ways of encouraging trade. because the promise gives businesses a clearer view of their future opportunities.

More Competitive:The WTO is sometimes described as a free trade institution. other forms of protection. for example. In agriculture. intellectual property. One way is to discourage the use of quotas and other measures used to set limits on quantities of imports . and the rules try to establish what is fair or unfair. The system does allow tariffs and. in limited circumstances.a substantially higher degree of market security for traders and investors.change its bindings. which could mean compensating them for loss of trade.MFN and national treatment are designed to secure fair conditions of trade. 100% of products now have bound tariffs. Another is to make countries trade rules as clearand public (transparent) as possible. it is a system of rules dedicated to open. The regular surveillance of national trade policies through the Trade Policy Review Mechanism provides a further means of encouraging transparency both domestically and at the multi-lateral level. over three-quarters of WTO members are developing countries and countries in transition to market 1 1 . but that is not entirely accurate. and how governments can respond.administering quotas can lead to more red tape and accusations of unfair play. The system tries to improve predictability and stability in other ways as well. but only after negotiating with its trading partners. More Beneficial for Less Developed Countries:Giving them more time to adjust. More accurately. services. the agreement on government procurement (a ―pluri-lateral‖ agreement because it is signed by only a few WTO members) extends competition rules to purchases by thousands of government entities in many countries. The rules on non-discrimination . fair and undistorted competition. greater flexibility and special privileges. One of the achievements of the Uruguay Round of multi-lateral trade talks was to increase the amount of trade under binding commitments. Many WTO agreements require governments to disclose their policies and practices publicly within the country or by notifying the WTO. The issues are complex. in particular by charging additional import duties calculated to compensate for damage caused by unfair trade. Many of the other WTO agreements aim to support fair competition in agriculture. The result of all this:.

seminars. 1 2 . and their National and International implications and ramifications. 3. Increasing awareness amongst domestic industry. However. Protect the Environment:The WTO‘s agreements permit members to take measures to protect not only the environment but also public health. these measures must be applied in the same way to both national and foreign businesses. 4. The WTO agreements give them transition periods to adjust to the more unfamiliar and perhaps difficult WTO provisions.economies. To create a knowledge base on various matter concerning various National and International Trade Laws and Protocols. non-tariff and tactical barriers and undertake drive for awareness campaign by jointly or severally holding conferences. group discussions and other mode of awareness and campaign as also to develop linkages with overseas organizations in order to create a common perception and approach to the resolution of multilateral trade issues. In other words. animal health and plant health. service and other sectors on the impacts of trade laws arising out of WTO agreement and other treaties as member of WTO. Co-operating with industry associates. OBJECTIVES OF WTO:1. members must not use environmental protection measures as a means of disguising protectionist policies. business. bodies set up by Government of India and Export Promotion Council on various issues related to tariff. 2. agriculture. Carry out research and development and the building up of a clearing-house of cases on all matters of WTO agreements which are of national concern including safeguards and redressal mechanisms and suggesting alternative formulation in national interest which could form subject matters of future consultation or prenegotiations of WTO agreement.

7. develop research and education programs aimed at educating members of ICAI. 6. through seminars. publication of articles and monographs.5. education. To develop a base of expertise amongst the members of the Institute on Intellectual Property Rights. Identify areas of non-fulfillment of the WTO agreement which concern Indian interest and suggest line of action and remedies open for fulfillment of these obligations. transport. Exploit all potential provisions of WTO agreement available to the developing nations and advising and counseling the Government of India on all such issues of national importance. insurance. accountancy and consulting services. 11.. 1 3 . banking in particular and suggest policy issues. Finance. TRIPS. 8. Foreign and Product related Ministries. Anti-dumping laws. training programs and such other methods as may be considered effective. EXIM Policy matters etc. To assist the Government in negotiating with the International Community in the perspective of the WTO regime and to help strengthen the Indian position in these regards in all possible ways. To co-ordinate efforts with the Government in creating a level playing field particularly for the accounting professionals in India specially in view of the implementation of the WTO regime on GATS through the most effective means possible including the organization of seminars. Initiate discussions on making the domestic trade and export and import policies more WTO compatible and suggest initiatives to be taken in this respect at various levels to ensure high growth in export and economy including the development of various modes of synergy and effective regulation of trade laws which are functionally divided between Commerce. 9. communication. To study the impact and threat perception of WTO agreement on the growing service sector industries including all those covered under 'business services' of GATS agreement in general and knowledge. and presentation before the Government. medical. 10.

vi. To increase the level of production and productivity with a view to ensuring level of employment in the world. Disputes are handled constructively:. To demolish all hurdles to an open world trading international economic renaissance because the world system trade and usher in is an effective instrument to foster economic growth. 14 . viii.As trade expands in volume. To implement the new world trade system as visualised in the Agreement. vii. 2. helping trade flow smoothly and providing countries with a constructive and fair outlet for dealing with disputes over trade issues. iii. ii. there is a greater chance that disputes will arise. in the numbers of products traded and in the number of countries and company trading. Helps promote peace within nations:. If this could be left to the member states. v. To enhance competitiveness among all trading partners so as to benefit consumers and help in global integration. iv. WTO helps resolve these disputes peacefully and constructively.Peace is partly an outcome of two of the most fundamental principle of the trading system. Peace creates international confidence and co-operation that the WTO creates and reinforces. To improve the level of living for the global population and speed up economic development of the member nations.OTHER OBJECTIVES:i. To ensure that developing countries secure a better balance in the sharing of the advantages resulting from the expansion of international trade corresponding to their developmental needs. To promote World Trade in a manner that benefits every country. To expand and utilize world resources to the best. BENEFITS OF WTO:1.

With upward trend economic growth. and ultimately a lower cost of living. but lot of trade tension is reduced by organizations such as WTO.Protectionism is expensive. Trade stimulates economic growth:. 9. increased certainty about together they make trading trading simpler. cutting company costs conditions etc. 8. and increasing confidence in the future and this in turn means more job opportunities and better goods and services for consumers. Basic principles make life more efficient:. Free trade cuts the cost of living:.WTO system shields the government from narrow interest. 3. Trade raises income:. 6. It provides more choice of products and qualities:. jobs can be created and this can be enhanced by WTO through careful policy making and powers of freer trade. and at the same time freeing the major powers from the complexity of having to negotiate trade agreements with each of the member states. 5.Through WTO trade barriers increases imports and exports thus earning the country are lowered and this foreign exchange thus raising the country's income. Many benefits of the trading system are as a result of essential principle at the heart of the WTO they make life simpler for the system and enterprises directly involved in international trade and for the producers of goods/services.It gives consumer more choice and a broader range of qualities to choose from. 7. Government is better placed to defend themselves against 1 5 . WTO lowers trade barriers through negotiation and applies the principle of non-discrimination.WTO system is based on rules rather than power and this makes life easier for all trading nations. nondiscrimination. it raises prices.the dispute may lead to serious conflict. Such principles include. WTO reduces some inequalities giving smaller countries more voice. The result is reduced costs of production ( because imports used in production are cheaper ) and reduced prices of finished goods and services. 4. Governments are shielded from lobbying:. Rules make life easier for all:.The basic principles make the system economically more efficient and they cut costs. transparency.

lobbying from narrow interest groups by focusing on trade-offs that are made in the interests of everyone in the economy. The WTO rules discourage a range of unwise policies and the commitment made to liberalize a sector of trade becomes difficult to reverse. The system encourages good governance:. 10.The WTO system encourages good government. 16 . These rules reduce opportunities for corruption.

STRUCTURE OF WTO:- 17 .

Highest Level:.The workings of the General Agreement on Tariffs and Trade (GATT) which covers international trade in goods. Council for Trade in Goods:.making body in Geneva. The current chairperson is Mr. all of which are countries or customs unions. The TPRB is thus open to all WTO members.Ministerial Conference The topmost decision-making body of the WTO is the Ministerial Conference.The WTO General Council meets as the Trade Policy Review Body to undertake trade policy reviews of members under the TRPM.General Council The daily work of the ministerial conference is handled by three groups:1. The Dispute Settlement Body:. Joakim REITER from Sweden. The current chairperson is Mr. The council acts on behalf of the Ministerial Council on all of the WTO affairs. The Ministerial Conference can take decisions on all matters under any of the multilateral trade agreements. meeting regularly to carry out the functions of the WTO. 3. Second Level:. It brings has together all members of the WTO. Shahid Bashir from Pakistan.Made up of all member governments. It has representatives (usually ambassadors or equivalent) from all member governments and has the authority to act on behalf of the ministerial conference which only meets about every two years. which to meet at least every two years. 2. There are three councils:1. are the . The General Council:. The Trade Policy Review Body (TPRB):.It is the WTO‘s highest – level decision . The current chairperson is Mr.Councils for Trade The Councils for Trade work under the General Council. Jonathan FRIED from Canada. Third Level:. usually represented by ambassadors or equivalent.

Information on intellectual property in the WTO. 2. The current chairperson is Amb. Michael STONE ADMINISTRATION (Hong Kong. and details of the WTO‘s work with other international organizations in the field. Francisco LIMA MENA (El Salvador) BUDGET. The current chairperson is Dr. FIVE other bodies report to the General Council reporting on issues:- COMMITTEE CHAIRPERSON TRADE & DEVELOPMENT Mrs. The current chairperson is Dr. It is made up of representatives from all WTO member countries.responsibility of the Council for Trade in Goods.The Council for Trade in Services operates under the guidance of the General Council and is responsible for overseeing the functioning of the General Agreement on Trade in Services (GATS). Abdolazeez ALOTAIBI from Kingdom of Saudi Arabia. China) . It is open to all WTO members. and can create subsidiary bodies as required. Council for Trade in Services:. Alfredo Suescum from Panama. Krisda PIAMPONGSANT (Thailand) BALANCE OF PAYMENTS Mr. Council for Trade-Related Aspects of Intellectual Property Rights:. Apart from these three councils. Abdul HANNAN RESTRICTION (Bangladesh) REGIONAL TRADE AGREEMENTS Amb. 3. FINANCE & Mr. news and official records of the activities of the TRIPS Council. Md. Marion WILLIAMS (Barbados) TRADE & ENVIRONMENT Mr. Tom MBOYA OKEYO from Kenya.

2. India was a signatory of the General Agreement on Tariffs & Trade (GATT). with WTO coming into effect. 1. and those firms which are weak would fade into history in the process. GATT was only an agreement and there was no enforcing agency to strictly implement the clauses and punish the country which breaks the clauses. As a result. what it means and its implications for India in specific. Thus it is very clear that only those firms that have competitive advantage would be able to survive in the long run. Trade Related Investment Measures (TRIMS) The agreement relates to investments originating from one country to another. Thus the impact was partial. for those countries which face severe balance of payments problems special concession period was given. Besides this. However. The result of this agreement as mentioned earlier was limited as. Another requires that there should not be any domestic content requirement on foreign firms operating and manufacturing in other countries. Let us understand each agreement in general. which implies that it favours national treatment of foreign investment. Another restricts to impose any kind of export obligation or import cap on the investment. there are several other clauses of the agreement totaling to 5 in this segment. The agreement prohibits the host country to discriminate the investment from abroad with domestic investment. and as a part of the commitment had to change several laws and policies. WTO had the deadline till 2005. the major changes that were incorporated were as a follows  Reduction of peak and average tariffs on manufactured products  Commitments to phase out the quantitative restrictions over a period as these were considered non-transparent measure in any countries policy structure. for the domestic policy was supposed to phase out the QR's. there are several implications for India for the various agreements that are signed under WTO. one agreement requires investment to be freely allowed within domestic borders without any maximum cap on it. the competition from imports for the domestic firms has increased. and also treated as the part of developing countries group for accessing the concessions granted by the organization. .How Does it Affect India? India is a founder member of World Trade Organization.

This is quite a burden for small industries and there is a possibility that they are thrown out of business due to competition. decline in employment opportunities and over all decline in growth. Trade and merchandise mark act and the copyright right act. This required suitable amendment in the domestic IPR laws of each country. Trademarks. Strict implementation of law is very important in India. . as sudden change may result in loss of revenue and decline of foreign exchange for the government and economy. Implementation process for the above requires proper preparation by the industries and policy makers. Copyrights. because now with the law in place. change the process and produce the same product. Therefore the agreement stipulated some basic uniformity of law among all trading partners. a time period of 10 years was given to the developing countries. The main impact of this is on industries such as pharma and bio-technology. Besides these main laws. Besides these. otherwise there could be disastrous affect on the revenue of industries which invest millions of rupees in Research and development if their products get infringed. Designs. and it may result in decline of market share and profitability of businesses. it is not possible to reverse engineer the existing drugs and formulas. This agreement includes several categories of property such as Patents. in India there was a requirement to change the patents act. other related laws also required changes. Since this process is not a simple one.These agreements have a direct impact on our Trade. domestic annual budgetary proposals and also on the industrial policy. Geographical indications. Trade Related Intellectual Property Rights (TRIPS) An intellectual property right refers to any creation of human mind which gets legal recognition and protection such that the creator of the intangible is protected from illegal use of his creation. the technology transfer from abroad is expected to become costly and difficult. 3. Now new investment in fresh research is required. goods and services traded between countries which incorporated these intangibles faced severe risk of infringement. As a result. Since the law for these intangibles vastly varied between countries. Industrial circuits and Trade secrets. Investment and foreign exchange policy.

and look at the possible consequence and losses to be incurred if the stipulations are not followed. As a consequence a huge textile market is opened up for developing countries textile industry as well as for other countries that have competitive advantage in this area. Thus there is a requirement to change policy support to meet the changing needs of Indian agriculture to gear it up for future. then there is every right given to the authorities to block the imports.4. There is an urgent need to educate the exporters regarding the changing scenario and standards at the international arena. and therefore an agreement on the agricultural issues have always been evading and debated strongly by all the countries involved in trade in agriculture. to meet the standards certain operational changes are required in the industries such as food processing. The immediate impact is on the . Agreement on Agriculture (AOA): The Agriculture happens to be one of the most protected sectors in all the countries without any exceptions. Multi-Fiber Agreement (MFA): This agreement is dismantled with effect from 1 January 2005. 6. However. the concern is on the competitiveness and sustainability that the Indian farmer would be able to prove in the long run once the markets open up. the calculation of AMS reveals that the subsidy given to Indian farmers are much below the acceptable levels and therefore need not be changed. The result was removal of QR on the textile imports in several European countries. Broadly. Looking from other perspective. marine food and other packed food that is being currently exported from India. the reduction of tariffs and subsidy in export and import items would open up competition and give a better access to Indian products abroad. Therefore. but the problem is that of strictly implementing the laws. it is to go for tarrification and phase it out eventually or reduce it to bound limits. The immediate impact of the agreement would be on the policy makers to scrutinize all the items under subsidy. as of now the requirement is to open up the markets in specific products in market access and incase of subsidies. Export subsidies and government subsidies. 5. However. QRs and tariffs. Agreement on Sanitary and psyto-sanitary measures (SPM): this agreement refers to restricting exports of a country if they do not comply with the international standards of germs/bacteria etc… if the country suspects that allowing of such products inside the country would result in spread of disease and pest. Indian standards in this area are already mentioned and therefore there is no need to change the law. The agreement on agreement deals with market access.

it becomes imperative to enhance the competitiveness in niche areas. as small industries voice may remain unheard in the process. . The requirement is to prove that the product is being sold at a price. Besides these major agreements there are several other agreements such as agreement on Market Access . which results in material injury to the domestic industries. cost efficiency. the proposal always should come from the representatives of the industries affected. There are other agreements that call for direct reduction of S ubsidies on Exports. These are supposed to have an impact positive if they help the industries and negative if they reduce the cost competitiveness. Besides these there are other Counter-Veiling Duties (CVD) that are permitted to be used in certain conditions. which are not permissible. This requires quite an amount of modernization. The dismantling of QR also mean more competition to Indian textile exporters and therefore. These measures can include imposing QR for a certain period and also imposing tariffs on the concerned products. this may result in a problem. and phasing it out over a period of time. it still needs to be seen whether the industry is able and ready to take advantage of the large markets. However. which propagates free market access to products and reduction of tariff and non-tariff barriers. standardization. The trading countries are allowed to impose an Anti-Dumping Duty (ADD) against imported products if the charge of Dumping is claimed against them.garment and textile manufacturers and exporters. There are several cases in which the duty is imposed but it still remains to be proven by the Dispute settlement tribunal in case the other trading party opposes the duty imposed as "unfair". However. and customization and frequent up gradation of designs to meet the changing need of global customers. agreement to have Safeguard Measures if there is an import surge and it is liable to affect the domestic industries in the transition economies.

Besides that there are several other cases where there is no consensus on the entire agreement itself. leather. There would also be a overall impact on the export business as the rules related to packaging would be very stringent. packaging to transportation of the goods as specified by norms. There would be a direct impact on the foreign investment policy and trade policy of the government with a long-term impact on balance of payment and foreign exchange position of the country.Certain Other Unresolved Issues: There are several clauses in each of the above agreements. The ranges of clauses are from production. handicrafts and sports goods. Some of such agreements are on Labour Standards and core social clauses. which means that these are still in their conceptual and drafting stages. this is on Trade and Environment. the process for which has already started. Another agreement where the consensus is yet to be reached is on Trade and Investment. Some countries wish to impose restrictions on trade on environmental grounds. food processing and drugs and chemical manufacturing. The main objective of this agreement is to enable a free operating environment for foreign investment in host countries such that there is minimum interference and equal rights. There is another agreement. which intend to impose a labour standard and certain norm against exploitation of labour by the organization where they work. The main impact of this clause would be on industries such as seafood. where there has been no consensus arrived. Trade and Competition is another agreement on which the discussions are going on to reach a consensus. These changes would result in a more competitive environment and it would also be a deterrent for . This agreement would affect almost all industries and services without an exception. which needs to be replaced by the new competition law. crackers. The main aim of this is to stop the business practices that distort competition in any way and to curb monopolistic growth in trade. Such standards are likely to result in banning of certain items exports to developed world causing severe damage to industries such as Carpet manufacturing. The agreement revolves around protecting global environment by enforcing standards on production and consumption. The agreement would have an impact on the MRTP act. which is still under discussion by member countries. However the specific impact is expected on auto components and small retailers.

the formation of cartels and mergers and acquisitions would be restricted to a great extent. As said time and again there is no reversal . the economy also had to reorient itself to the changing multilateral trade discipline within the newly written GATT/WTO framework.big business houses if they wish to expand further in the same area. Thus. foreign investment. These sectors would also experience growth in output and exports.4 billion) when the assumed future WTO round of multilateral trade liberalization is achieved. Transparency in Procurements made by the Government is one such clause where it is being debated to a large extent. This would imply that no special preference would be given to the domestic suppliers and they also need to compete on a price basis for getting orders from domestic government. After analyzes of the economic effects on India and other major trading countries/regions of the Uruguay Round (UR) trade liberalization and the liberalization that might be undertaken in a new WTO negotiating round. This clearly can mean that many government suppliers may lose out in competition with efficient and low cost foreign suppliers. beverages. and intellectual property rights. clothing.7 billion over its 2005 GDP) when the UR scenarios get fully implemented. However as mentioned above in the analysis of each agreement there is a serious and urgent need to re-look the strategies followed by individual firms in the changing context of increasing competition and opened markets. and tobacco. import licensing. This is particularly of concern to developing countries as the role played by the government in a countries development is much higher than what it is in other developed countries.7% ($11. and export subsidies. The additional welfare gain is an estimated 2. The unilateral trade policy measures have encompassed exchange-rate policy. trade-related investment measures. Real returns to both labor and capital would increase in the economy. Major Conclusions The Indian economy has experienced a major transformation during the decade of the 1990s. external borrowing. India's welfare gain is expected to be 1. Apart from the impact of various unilateral economic reforms undertaken since 1991.1% ($4. custom tariffs. and food. leather and leather products. The multilateral aspect of India's WTO commitments is regarding trade in goods and services. It is expected that Resources would be allocated in India to the labor-intensive sectors such as textiles. This would have a serious impact on the way the government and other public sector units approach the domestic procurement.

Their argument include: . Under TRIPs patents can be granted to methods of agriculture and horticulture. it is logical to believe that India will obtain large gains in these sectors. trademarks etc. Only process patents can be granted in food.by the end of 2005) will be in the areas of clothing (60 per cent). it would be US $ 745 billion . India's competitive advantage lies in these fields. agriculture. meso and micro level to suit the changed external environment. This would be favourable environment for India's international business . BENEFITS TO INDIA The GATT secretariat estimated that largest increase in the level of merchandise trade in goods (in general. subsidies and countervailing measures. agricultural exports from India will increase . chemicals and medicines under the Indian Patents Act. · The reduction in agricultural subsidies and barriers to export of agricultural products. India's textile and clothing exports will increase due to the phasing out of Multi-fibre An'angement (MFA) by 2005 . so what is required is to make internal policy changes at macro.of agreements. safeguards and disputes settlement machinery will ensure greater security and predictability of international trade. DISADVANTAGE TO INDIA Despite the benefits of WTO to India. · Trade Related Intellectual Property Rights (TRIPs) : Protection of intellectual property rights (patents. It is argued that the TRIPs agreement goes against the Indian Patents Act. · The multilateral rules and disciplines relating to anti-dumping. TRIPs agreement provides for granting product patents also. 1970. India would be in a disadvantageous position by becoming a member of WTO. · India along with other developing countries has the market access to a number of advanced countries due to the imposition of the clauses concerning to trade without discrimination. bio-technological process including living organism like plants and animals. many economists and sociologists argue that. The . Hence. forestry and fishery products (20 per cent) and processed food and beverages (19 per cent).) has been made stringent. copyrights.

· Introduction of product patents in India will lead to hike in drug prices by the MNCs who have the product patent. · Patenting has also been extended to a large area of micro-organisms . . Indian scientists. This will hit the poor people who will not have the generic option open . inclusion of trade in services is detrimental to the interest of India. · Services : Service sector like insurance. plant breeding and seed production are largely. · The extension of intellectual property right to agriculture has negative effects on India. Indian scientists have undertaken plant breeding and multiplication is in the hands of National and State Seed Corporations. provides seed to Indian farmers at very low prices. Government. in future will find it extremely difficult to breed new varieties and Indian research institutions will be unable to compete financially with MNCs and will be denied access to patented genetic material. telecommunications. Presently. transportation is backward in India compared to that of developed countries.duration of patents under TRIPs is 20 years . through this machinery. MNCs will get the control over our genetic resources and as such the control over food production would be jeopardised . · Application of TRIMs agreement undermines any plan or strategy of self-reliant growth based on local technology and resources . in the public domain. banking. Liberalisation of service sector would be under tremendous pressure. Therefore.

CHINA 1 JANUARY 1995 1 JANUARY 1995 MADAGASCAR 17 NOVEMBER 1996 ANTIGUA & BARBUDA ARGENTINA 1995 ARMENIA 5 FEBRUARY 2003 MALAWI 31 MAY 1995 AUSTRALIA 1 JANUARY 1995 MALAYSIA 1 JANUARY 1995 AUSTRIA 1 JANUARY 1995 MALDIVES 31 MAY 1995 BAHRAIN 1 JANUARY 1995 MALI 31 MAY 1995 BANGLADESH 1 JANUARY 1995 MALTA 1 JANUARY 1995 BARBADOS 1 JANUARY 1995 MAURITANIA 31 MAY 1995 BELGIUM 1 JANUARY 1995 MAURITIUS 1 JANUARY 1995 BELIZE 1 JANUARY 1995 MEXICO 1 JANUARY 1995 BENIN 22 FEBRUARY 1996 MOLDOVA 26 JULY 2001 BOLIVIA 12 SEPTEMBER MONGOLIA 29 JANUARY 1997 1995 BOTSWANA 31 MAY 1995 MONTENEGRO 29 APRIL 2012 BRAZIL 1 JANUARY 1995 MOROCCO 1 JANUARY 1995 BRUNEI 1 JANUARY 1995 MOAZAMBIQUE 26 AUGUST 1995 BULGARIA 1 DECEMBER 1996 MYANMAR 1 JANUARY 1995 BURKINA FASO 3 JUNE 1995 NAMIBIA 1 JANUARY 1995 BURUNDI 23 JULY 1995 NEPAL 23 APRIL 2004 CAMBODIA 13 OCTOBER 2004 NETHERLANDS 1 JANUARY 1995 DARUSSALAM . The list is as follows:MEMBER DATE OF JOINING MEMBER DATE OF JOINING ALBANIA 8 SEPTEMBER 2000 LITHUANIA 31 MAY 2001 ANGOLA 23 NOVEMBER LUXEMBERG 1 JANUARY 1995 1 JANUARY 1995 MACAO.MEMBERS OF WTO:Currently WTO has 159 members.

MEMBER DATE OF JOINING MEMBER DATE OF JOINING CAMEROON 13 DECEMBER 1995 NEW ZEALAND 1 JANUARY 1995 CANADA 1 JANUARY 1995 NICARAGUA 3 SEPTEMBER 1995 CAPE VERDE 23 JULY 2008 NIGER 13 DECEMBER 1996 NIGERIA 1 JANUARY 1995 CENTRAL 31 MAY 1995 AFRICAN REPUBLIC CHAD 19 OCTOBER 1996 NORWAY 1 JANUARY 1995 CHILE 1 JANUARY 1995 OMAN 9 NOVEMBER 2000 CHINA 11 DECEMBER 2001 PAKISTAN 1 JANUARY 1995 COLOMBIA 30 APRIL 1995 PANAMA 6 SEPTEMBER 1997 CONGO 27 MARCH 1995 PAPUA NEW 9 JUNE 1996 GUINEA COSTA RICA 1 JANUARY 1995 PARAGUAY 1 JANUARY 1995 COTE d‘LVOIRE 1 JANUARY 1995 PERU 1 JANUARY 1995 CROATIA 30 NOVEMBER PHILIPPINES 1 JANUARY 1995 2000 CUBA 20 APRIL 1995 POLAND 1 JULY 1995 CYPRUS 30 JULY 1995 PORTUGAL 1 JANUARY 1995 CZECH REPUBLIC 1 JANUARY 1995 QATAR 13 JANUARY 1996 DEMOCRATIC 1 JANUARY 1997 ROMANIA 1 JANUARY 1995 1 JANUARY 1995 RUSSIAN 22 AUGUST 2012 REPUBLIC OF CONGO DENMARK FEDERATION DJIBOUTI 31 MAY 1995 RWANDA 22 MAY 1996 DOMINICA 1 JANUARY 1995 SAINT KITTS & 21 FEBRUARY 1996 NEVIS - - - - .

MEMBER DATE OF JOINING MEMBER DATE OF JOINING DOMINICAN 9 MARCH 1995 SAINT LUCIA 1 JANUARY 1995 21 JANUARY 1996 SAINT VINCENT & 1 JANUARY 1995 REPUBLIC ECUADOR the GRENADINES EGYPT 30 JUNE 1995 SAMOA 10 MAY 2012 EL SALVADOR 7 MAY 1995 SAUDI ARABIA 11 DECEMBER 2005 ESTONIA 13 NOVEMBER SENEGAL 1 JANUARY 1995 1999 EUROPIAN UNION 1 JANUARY 1995 SIERRA LEONE 23 JULY 1995 FIJI 14 JANUARY 1996 SINGAPORE 1 JANUARY 1995 FINLAND 1 JANUARY 1995 SLOVAK 1 JANUARY 1995 REPUBLIC FRANCE 1 JANUARY 1995 SLOVENIA 30 JULY 1995 GABON 1 JANUARY 1995 SOLOMON 26 JULY 1996 ISLANDS The GAMBIA 23 OCTOBER 1996 SOUTH AFRICA 1 JANUARY 1995 GEORGIA 14 JUNE 2000 SPAIN 1 JANUARY 1995 GERMANY 1 JANUARY 1995 SRI LANKA 1 JANUARY 1995 GHANA 1 JANUARY 1995 SURINAME 1 JANUARY 1995 GREECE 1 JANUARY 1995 SWAZILAND 1 JANUARY 1995 GRENADA 22 FEBRUARY 1996 SWEDEN 1 JANUARY 1995 GUATEMALA 21 JULY 1995 SWITZERLAND 1 JULY 1995 GUINEA 25 OCTOBER 1995 CHINESE TAIPEI 1 JANUARY 2002 GUINEA-BISSAU 31 MAY 1995 TAJIKISTAN 2 MARCH 2013 GUYANA 1 JANUARY 1995 TANZANIA 1 JANUARY 1995 HAITI 30 JANUARY 1996 THAILAND 1 JANUARY 1995 LATVIA 10 FEBRUARY 1999 LIECHTENSEIN 1 SEPTEMBER 1995 LESOTHO 31 MAY 1995 - - .

MEMBER DATE OF JOINING MEMBER DATE OF JOINING HONDURAS 1 JANUARY 1995 THE FORMER 4 APRIL 2003 YUGOSLAV REPUBLIC OF MACEDONIA HONG KONG. 1 JANUARY 1995 TOGO 31 MAY 1995 HUNGARY 1 JANUARY 1995 TONGA 27 JULY 2007 ICELAND 1 JANUARY 1995 TRINIDAD & 1 MARCH 1995 CHINA TOBAGO INDIA 1 JANUARY 1995 TUNISIA 29 MARCH 1995 INDONESIA 1 JANUARY 1995 TURKEY 26 MARCH 1995 IRELAND 1 JANUARY 1995 UGANDA 1 JANUARY 1995 ISRAEL 21 APRIL 1995 UKRAINE 16 MAY 2008 ITALY 1 JANUARY 1995 UNITED ARAB 10 APRIL 1996 EMIRATES JAMAICA 9 MARCH 1995 UNITED KINGDOM 1 JANUARY 1995 JAPAN 1 JANUARY 1995 UNITED STATES of 1 JANUARY 1995 AMERICA JORDAN 11 APRIL 2000 URUGUAY 1 JANUARY 1995 KENYA 1 JANUARY 1995 VANUATA 24 AUGUST 2012 KOREA 1 JANUARY 1995 VENEZUELA 1 JANUARY 1995 KUWAIT 1 JANUARY 1995 VIETNAM 11 JANUARY 2007 KYRGYZ 20 DECEMBER 1998 ZAMBIA 1 JANUARY 1995 2 FEBRUARY 2013 ZIMBABWE 5 MARCH 1995 REPUBLIC LAO PEOPLE‘S DEMOCRATIC REPUBLIC .

ANDORRA 4. EQUATORIAL GUINEA 11. COMOROS 10. ALGERIA 3. LEBANESE REPUBLIC 17. IRAN 14. YEMEN . SUDAN 23. KAZAKHSTAN 16.LIST OF OBSERVERS:1. AZERBAIJAN 5. UZBEKISTAN 25. BELARUS 7. AFGHANISTAN 2. SYRIAN ARAB REPUBLIC 24. VATICAN 13. BAHAMAS 6. IRAQ 15. SAO TOME & PRINCIPE 20. LIBERIA 18. BHUTAN 8. SERBIA 21. ETHIOPIA 12. LIBYA 19. SEYCHELLES 22. BOSNIA & HERZEGOVINA 9.

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