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c Administering Trade Agreements


c Acting as a forum for trade negotiation
c Settling trade disputes
c Reviewing National Trade Policies
c Assisting Developing Countries in Trade
Policy issues, through technical assistance
and training programmes
c Cooperating with other international
organizations
uASIC PRINCIPLES
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Promoting Fair Competition

c Open and healthy competition

c Creates level playing field


between local and foreign goods

c Encourages competition and


fosters efficiency
Organization handles the following aspects

 

Due to huge subsidy component in agriculture and support


by the developed countries and its influence on the
developing countries stretched the negotiation long

Agreement on Agriculture - helps to balance the terms of


trade between countries in agricultural commodities
Sanitary and Phyto-
Phyto-Sanitary Measures
(SPS)
c Agreement concerns the application of sanitary
and Phyto-sanitary measures for food safety
and animal & plant health regulations
c Organization encourages the member countries
to set their own standards based on
international standards
c The Agreement includes provisions on control,
inspection and approval procedures
c SPS standards to be followed in the future are
to be notified well in advance
Market Access
c Tariffication of all non-tariff measures
c Reduction of tariffs by 36% and 24%
c Current Access (Import as % of consumption in
base year)
c Minimum Access Commitment (3 to 5% 2 to 3 %
c Exemption under National Security Clause, uOP
clause and Special Safe Guards
c Quantity Restriction to be phased out
c LDC exempt from any commitment
Export Subsidies
c Export subsidies to be brought down by 36 %
(Dd) and 25 % (Dg) in 6 years
c Quantities subsidized to be by 21 % (Dd) and
14 % (Dg)
c Countries not giving export subsidies in the
base year should not give the later
c Developing countries can give individual or
external freight and market subsidies
Contd«.. (TuT)
c Packaging requirement

c Safety Regulation (Eg. Toys)

c Regulations of Testing (Medical Equipments)

c Quality and Efficacy of the product or health


risk to the handlers
Textiles and Clothing

Agreement on textiles and clothing


presently cover under multi-fibre
arrangement
Anti-dumping, safeguards and
Anti-
Countervailing Duties

c WTO members can restrict imports to protect


their domestic industry by imposing dumping
margin on imported products

c Countervailing duties are imposed on


subsidized imports
Customs Valuation

The agreement on customs valuation


obligate member countries to follow
certain rules, while calculating the
duty on imports
Rules of Origin

c Rules of origin are the criteria used to


define where the product is from
c It is linked to the application of trade
measures
Services
c Under the agreement on Trade in Services
(GATS), members countries need to open the
service sectors to the foreign investment

c Services like uanks, insurance firms,


telecommunication companies, tour operators,
transport companies so on«.
TRADE-RELATED INTELLECTUAL
TRADE-
PROPERTY RIGHTS (TRIPS)
c Agreement recognises the widely varying standards in
the protection and enforcement of intellectual property
rights.

c The most contentious form of intellectual property


rights is patent.

c Agreement requires that patent should be available for


any inventions, whether products or processes.
Dispute Settlement

c Organization acts as dispute settlement


body in the international trade
c Country brings disputes, if their rights
are being infringed
c All the disputes are settled based on the
legal grounds
Trade Related Investment Measures
(TRIMS)

c TRIMS mainly deals with foreign


investment in terms of trading activities.
c Developing countries retains the
flexibility to choose investment promotion
polices, if feels necessary
AGREEMENT ON AGRICULTURE

M The objective of the AOA is to reform trade

in the sector and to make policies more

market-oriented. This would improve

predictability and security for importing

and exporting countries alike.


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How is WTO different from GATT?
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Items Tariff - from Tariff ± to
Rice 0% 70-80%
Maize (TRQ) 0% 50%
Sorghum / Millet 0% 50%
Apples 35% 50%
SMP/WMP (TRQ) 0% 60%
Edible Oils 35-55% 75%
Refined Oils 45-65% 85%
Tea/ Coffee 35% 70%
Coconuts/ copra 35% 70%
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CHRONOLOGY OF REMOVAL OF QRs
Tariff line wise import policy announced on 31.3.96
Position of QR removal after 1.4.96
Tariff lines as on 1.4.96 ± 10202 (10 digit)

Year Removal of Tariff lines

As on 1.4.96 6161 (10 digit)


1.4.96-31.3.97 488 (10 digit)
1.1.98 132 (10 digit)
13.4.98 391 (8 digit)
1.4.1999 894 (8 digit)
1.4.2000 714 (8 digit)
1.4.2001 715 ( 8 digit)
EXIM Policy 2001

All QRs removed with effect from


1.4.2001 as per India¶s commitment
commitment..
Import of selected items (wheat, rice,maize,
coarse cereals, copra & coconut oil)
through State Trading Enterprises.
Enterprises.
Quarantine Regulation for import of agricultural
products
Secretaries to monitor import export promotion
surges of 300 sensitive products.
products.
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Domestic Support ' '    
-       
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Market Access ' '     


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Export Competition ' ' /


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Domestic Support
Green uox - Research, Extension, PDS, Decoupled
Payments etc;
ulue uox - Production Limiting Subsidies ;
Amber uox - AMS
AMS--subject to reduction commitments viz
- Product specific (MSP)
- Non product specific (input subsidies
subsidies--fert.
Power, irrigation) ;
Total Agricultural support reduction (uase period :
1986--88)
1986
- Developed countries 20 % (1995 - 2000)
- Developing countries 14% (1995 - 2004)
De--minimis level
De
Developed countries 5% ;
Developing countries 10%
Market Access
ù Removal of all remaining QRs by 1st April 2001.
2001.
All non-
non-tariff barriers(Quantitative
Restrictions) to be abolished

Tariff cuts :
Developed countries - Average 36%
- Minimum 15% (1995 - 2000)

Developing countries - Average 24 %


- Minimum 10% (1995 - 2004)
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