Multilateral Trade Agreements

and their Implications for

International Business

Lecture 3
Post 2nd World War Period: Multilateralism
• The pre-war days – tariff wars, money printing and competitive
devaluations
• Lessons learnt:
• Need for stable exchange rate system, with no possibility of arbitrary
devaluation
• Check on the tariff policy of the countries
• Check on indiscriminate use of fiscal and monetary policies
• Need for International Body to ensure mutual recognition of standards
• Responses:
• 44 countries meet at Bretton Woods
• Need to stabilize Deficit Countries
• Organize smooth functioning of World Trade and Payment System
• Emergence of International Monetary Fund (International Payments,
Trade and BOP Equilibrium), World Bank (Long-Term Capital for
Reconstruction and Growth) and the General Agreement on Tariff and
Trade (Tariff and other Policy Reform to promote Trade)

• So, how successful was GATT?

• Inception of World Trade Organisation in 1995
 What is WTO and what is it trying to deliver??
• Only international organization dealing with the global rules of
trade to ensure that trade flows as smoothly, predictably and
freely as possible.
• WTO agreements are the legal rules for international commerce
– which guarantees member countries important trade rights
(MFN, NT) and binds them to keep their trade policies within
agreed limits.
• Reduction in Tariff barriers through negotiations (distinction
between applied and bound tariff).
• Agreements are negotiated and signed by governments with the
purpose to ensure smooth business interactions through
Multilateral consensus - then ratified by national parliaments
• Are WTO provisions more democratic than majority rule followed
under other multilateral forums (UN, IMF, World Bank)???
• Basic principles:
1) nondiscrimination – normal trade relations or Most Favored Nation principle
2) national treatment – treat industries from other nations alike
3) public good – results of negotiations by one nation available to all nations
 WTO Framework: Current and Evolving
Regulation Area
type
Agriculture Non-Agriculture Services Conciliatory
attempts
Tariff Agreement of NAMA Provisions
Agriculture
General Agreement
Non-Tariff Sanitary and Technical Barriers
on Trade in
Phytosanitary Measures to Trade
Services
1. Agreement on Rules of Origin
2. Agreement on Import Licensing Procedures
Contingency 1. Agreement on Anti-Dumping Measures
Measures 2. Agreement on Subsidies and
Countervailing Duties
3. Safeguard Provisions
4. BOP restrictions on BOP ground
Others 1. Trade Related Intellectual Property Rights 1. Trade Policy
2. Trade Related Investment Measures Review
3. Regional Trade Agreements Mechanism
4. Singapore Issues (Trade Facilitation, 2. Dispute
Transparency in Government Procurement, Settlement
Competition Policy, Trade and Investment) Mechanism

 Number of Member countries in 1995 was 128, currently there are 164
members.
 Around 23 countries are observers: Iran, Iraq, Ethiopia, Algeria, Sudan,
Uzbekistan, Bhutan, Somalia etc.
 But how rewarding is WTO-induced market access reform?? Does non-
membership hurt?
WTO Members and Observers

Source: WTO Annual Report

 US Tariff Profile: Problems for Non-Members
Tariff Barrier at Product Level
620610 620620 620630 610990
The Arrangement Ad Valorem Ad Valorem Ad Valorem Ad Valorem
MFN Tariff 6 8 15 16

Non-MFN Tariff 65 90 90 90
US-Canada FTA 0 0 0 0
US-Israel FTA 0 0 0 0
US-Mexico FTA 0 0 0 0
US-Jordan FTA 0 0 0 0
US-Singapore FTA 0 0 0 0
US-Chile FTA 0 0 0 0
US-Australia FTA 0 0 0 0
AGOA Countries 0 0 0 0

Exports from Brazil and India continue to receive 6, 8, 15 and 16 percent tariff in
these cases.
 Progress of WTO Negotiations in Ministerial
No. Place Year Outcome

1 Singapore 1996 Information Technology Agreement; Singapore Issues (Trade and

Investment, Competition Policy, Transparency in Government
Procurement, and Trade Facilitation)

2 Geneva 1998 Global E-commerce Agreement; implementation issues

3 Seattle 1999 Failed on the question of incorporation of environmental and labour-

standard related issues under the wings of WTO

4 Doha 2001 A new round was launched after initial battle and the concerns for
developing countries were addressed

5 Cancun 2003 Failure as discussion on Agricultural Subsidy overshadowed the

Ministerial

6 Hong Kong 2005 Some Progress in Agriculture, NAMA and Services; promise for
negotiation on Rules

7 Geneva 2009 Focus on continued negotiation, but not entirely fruitful

8 Geneva 2011 Limited progress in breaking the stalemate

9 Bali 2013 Decision on Supports to secure Food Security; Trade Facilitation

10 Nairobi 2015 Food security and subsidy, Preferential ROOs for LDCs, Cotton

11 Buenos Aires 2017 Fisheries Subsidies, E-Commerce, TRIPS

WTO: Influence on International Business
1. Agriculture under WTO - Three Boxes and Business
• Amber Box includes measures to support prices, or
subsidies directly related to production quantities and
are subject to reduction Commitments. Only 34 WTO
members provide it.
• “de minimis”, i.e., minimal supports are allowed (upto 5%
of the value of agricultural production for developed
countries, 10% for developing countries).
• Blue Box includes any support that would normally be in
the amber box, is placed in the blue box if they are not
linked with production (e.g. - Payments based on fixed
area and yields, Livestock payments made on a fixed
number of head).
• Discussion going on to reduce this type of support.
• Green box subsidies either do not distort trade, or at
most cause minimal distortion. They have to be
government-funded and must not involve price support.
• Tend to be programmes that are not targeted at
particular products, and include direct income supports
for farmers that are not related to (are “decoupled”
from) current production levels or prices (e.g. -
Investment on rural infrastructure, Research and
Extension services, Marketing and promotion services,
public stockholding for food security purpose, drought-
prone area programme, environmental schemes – soil
conservation, watershed management etc.).
• “Green box” subsidies are therefore allowed without
limits.
9
Case: WTO Disputes so far
Potential Concerns for International Business
 2. Standards: Sanitary and Phytosanitary Measures
(SPS) - All types of measures including:

• Health-related labelling
• Processing requirements
• Quarantine measures
• Product criteria
• Certification Intends to Protection from
• Inspection Protect
• Testing Human or Risks arising from:
Animal • Additives
Health • Contaminants
• toxins or
• disease organisms in food, drink, feedstuff
Human life Plant or animal carried diseases
Animal or • Pests
plant life • Diseases
• disease-causing organisms
A country Other damage caused by:
• entry
• establishment or 11
• spread of pests
 Harmonization: Article 3

Standard-setting organizations

food safety animal health plant health

CODEX OIE IPPC

Codex = Joint FAO/WHO Codex Alimentarius Commission

OIE = World Organization for Animal Health
IPPC = International Plant Protection Convention (FAO)

Other Frameworks:
• UN Convention of Biodiversity (CBD)
12
• Cartagena Protocol on Live Modified Organisms
 Codex Standards: Complications
Product / Pesticide US EU Codex India Philippines
Rice, grain – Bentazon 0.05 0.1 0.1 0.1 0.1

Corn, grain - Fludioxonil 0.02 0.1 0.05 0.05 0.05

Sorghum, grain - Bentazon 0.05 0.1 0.1 0.1 0.1
Wheat, grain - Aminopyralid 0.04 0.1 0.1 0.1 0.1

Poultry, by-products - 0.05 0.05 0.2 0.2 0.2

Cyromazine
Poultry, byproducts - 0.02 0.01 0.02 0.02 0.02
Fipronil
Milk - Bentazon 0.02 0.02 0.05 0.05 0.05
Lettuce, Leaf - Boscalid 11 30 40 40 40
Cashew – Methoxyfenozide 0.1 0.02 0.1 0.1 0.1

Grape – Fenhexamid 4 5 15 15 15
Tomato - Paraquat 0.05 0.02 0.05 0.05 0.05
dichloride
13
https://www.globalmrl.com/db#query
Principles of the WTO Technical Barriers to Trade
• Regulations and certification procedures shall not create
unnecessary obstacles

• Adoption of appropriate standards for interests of overriding

importance (e.g. for human, animal or plant life or health, for the
protection of the environment or to meet other consumer
interests)

• Applying of international standards (ISO, IEC)

• No discrimination: between countries or between domestic and

external products giving unfair advantage to domestic players

• Recognition of conformity assessments procedures – Mutual

Recognition Agreements

• Notification of all new or changed regulations (around 900 new or

changed regulations are notified each year)

• Legitimate objectives are listed

• Non-listed objectives can be challenged
• Case: Automobile Sector Standard– EU and India 15
 Shrimp-Turtle Dispute: Positive Outcome?
• The dispute – importance of Turtle-excluder devise (TED) in fishing
trawlers
• Estimated numbers in late 1980s: Whereas only 5000 turtles die in US
waters, some 65000 die in Western hemisphere and another 85000 in
other parts of the world
• Sea Turtles Conservation Act 1989
• US import prohibition of shrimp and shrimp products from non-certified
countries - India, Malaysia, Pakistan, Thailand
• DSB Panel Ruling:
– although the US import ban was related to the conservation of exhaustible
natural resources and, thus, covered by exception provisions, it could not be
justified under Art. XX because the ban constituted "arbitrary and
unjustifiable" discrimination
– "arbitrary" discrimination because of the rigidity and inflexibility in its
application, and the lack of transparency and procedural fairness in the
administration of trade regulations
• Appellate Body Ruling:
– Reversed the Panel's legal interpretation of Art. XX with respect to the proper
sequence of steps
– Future implications??
Standards - Indian Wood Exports

17
Growing Need for Private Certifications

• GAP, GHP, HACCP and

other requirements
• Implications for
International Business..
 3. Remanufactured Goods
• Several corporates operate units for remanufacturing by importing cores
from abroad and exporting remanufactured goods (e.g. retreaded tyre).
• Restrictions in several countries (primarily developing) on waste and second-
hand goods - obstacle to trade of both cores and remanufactured goods.
• Highest retreaded tyre export – Germany, Australia, Hong Kong
• Caterpillar and Komatsu have units that remanufacture parts of heavy
equipment using both domestically sourced as well as imported cores.
• Shine-Indonesia Abadi, located in Bekasi, is a subsidiary of Japanese
company Shin-Etsu Denso Co. Ltd. - imports raw materials from US, Japan,
South Korea, Germany and produces rebuilt alternators and starters - more
than 90% of rebuilt parts exported.
• Fuji Xerox recycling and remanufacturing facility in Thailand imports used
toner cartridges, dismantle them, and remanufacture toner cartridges.
• WTO Case: Brazil ban on retreaded tyre from Germany, which DSB rejected
as it allowed import of secondhand tyres. Brazil immediately banned that.
• Violation of National Treatment?

• Basel Convention on electrical and electronic equipment (2015) - used

equipment is not considered as waste, if the equipment is destined for
failure analysis, for repair and refurbishment, with intention or extended
reuse.
• RTAs and Future Implications??
4. Slow Multilateral Progress facilitating Bilateralism?

• IPN: Rules of Origin

• Value addition and Substantial Transformation

Source: WTO Annual Report (2018)

 ROOs in Indian RTAs : Implications for IPN?
Agreement Rules of Origin (ROO) Provisions

Regional

SAFTA Upto 40% of the FOB value of the finished goods for India and Pakistan,
35% for Sri Lanka, 30% for LDCs with CTH
APTA Not less than 45% of the FOB value of the finished goods for developing
country members, 35% for LDCs
ASEAN 35% value addition criteria and CTH (4-digit level)

Bilateral

Chile 40% value addition criteria and CTH

Thailand 40% value addition criteria and CTH (4-digit level)

Sri Lanka Minimum local value content of 35% and CTH

Afghanistan Not less than 50% of the FOB value of the finished goods and CTH

Comprehensive Agreements

Singapore 40% value addition criteria and CTH (4-digit level) and product specific rules
for some 380 products
Japan 35% value addition criteria and CTH (6-digit level)

South Korea 35% value addition criteria and CTH (6-digit level)

22
Source: WTO Trade Policy Review on India
 5. A Synthetic view of Modes of Services Supply

Services delivered by
provider based in one country
to consumer in another (IT-
enabled services)

Services consumed abroad

by national of another
country (Tourism, Education)

Services provided by an
operator based abroad to
consumers of that country
(US banks based in India
providing banking services
to Indian consumers)

Services provided by
nationals of one country by
traveling to and working in
another country (Indian
software professionals
working in US offices)

UNSTAT Manual on Statistics of International Trade in Services (2010)

 Terminology used in Offer Schedules
Term Definition of Entry
“None” Indicates no limitations on market access or
national treatment in a given sector and
Mode of supply

“Unbound” Indicates that an acceding government does

not intend making any commitment with
respect to a particular sector and Mode of
supply

Limitation(s) specified Entry describes the nature of the

limitation, indicating the elements that make
it inconsistent with Article XVI or XVII of
the GATS

Request-Offer Approach under Services Negotiations

 Example: Mongolia
Sector or subsector Limitations on Market Access Limitations on Additional
National Treatment commitments
I. HORIZONTAL COMMITMENTS

ALL SECTORS (4) Unbound except for (4) Unbound except

INCLUDED IN THIS measures affecting the entry for measures
SCHEDULE and temporary stay of natural referred to under
persons with managerial and market access
technical skills which are in
short supply in Mongolia, and fall
within the following categories:
business visitors, intracorporate
transferees and professionals
under a service contract.

II. SECTOR-SPECIFIC COMMITMENTS

1.BUSINESS
SERVICES
A. Professional (1) None (1) None
services (2) None (2) None
B. (b) Accounting (3) None (3) None
(4) Unbound except as indicated (4) Unbound except
in the horizontal section as indicated under
market access

Modes of supply: (1) Cross-border supply, (2) Consumption abroad, (3) Commercial presence, (4) Movement of natural persons
 Case: Market Needs test for Independent
Professionals (MCS) - EU
• The natural person must possess:

a. a university degree which is relevant to the sector of activity

concerned or a technical qualification demonstrating knowledge of
an equivalent level,

b. professional qualifications where this is required to exercise an

activity pursuant to the laws, regulations or requirements of the
EC or the Member State where the service is supplied and

c. at least six years professional experience in the sector.

• Where the degree or qualification has been obtained in a third

country, the EU Member State concerned may evaluate whether
this is equivalent to a university degree required in that Member
State.
 6. How do the Contingency Measures Work?
Provisions Anti-Dumping
Proof Dumping and injury to domestic
industry and causal link between
them
Incidence 1. Dumping margin more than 2
percent
2. Volume of dumped import more
than 3 percent from a country
3. Volume of dumped import more
than 7 percent from all
partners
Precondition for Supported by more than 50
initiation percent of domestic industry
Initiation under Supported by more than 25
special circumstances percent of domestic industry
Provisional Measure Not sooner than 60 days
Duration of 4 months, extended to 6 months
Provisional Measure upon request
Price Undertaking Voluntary, but suggestion may be
provided
AD Duty Within 12 months, under no
Determination circumstances beyond 18 months
AD Duty amount Lesser Duty Rule
Duration For the necessary period, not
more than 5 years
Subsidies and Countervailing
Measures
Subsidy and injury to domestic
industry and causal link
between them
Total ad valorem subsidization
of the product exceeds 5
percent
Supported by more than 50
percent of domestic industry
Supported by more than 25
percent of domestic industry
Not sooner than 60 days
4 months, extended to 6
months upon request
Voluntary, but suggestion may
be provided
Within 12 months, under no
circumstances beyond 18
months
Lesser Duty Rule
For the necessary period, not
more than 5 years
Safeguard Provisions
Increased import and injury to
domestic industry and causal
link between them
Significant overall impairment
to domestic industry
Major section
Major section
Quick determination
200 days
Voluntary, but suggestion may
be provided
Quick determination
Lesser Duty Rule
For the necessary period, not
more than 8 years since the
date of investigations
 Case: US-Viet Nam Catfish Debate
• Catfish can be imported cheaply from the Viet Nam in the US and the local
catfish industry complained against it.
• First, it was complained that the Viet Nam variety contains traces of
certain harmful chemicals.
• Next it was claimed that the Viet Nam variety is much different from the
US variety. After several round of discussions, the Viet Nam exporters
started to call their variety basa or tra (meaning catfish in their language).
• What’s in a Name? The joy of the US players were short-lived, as the US
consumers started purchasing more of the Viet Nam variety, thinking the
nomenclature to represent a more exotic premium product.
• Finally, the US producers tried to access their last resort, anti-dumping.
However, it was already argued that the Viet Nam product is NOT
CATFISH!!
• Anti-Dumping Duty of 66 percent, increase in September 2010.
• Farm Bill 2008: change the U.S. definition of catfish to include Vietnamese
tra and basa catfish and transfer the management of catfish imports from
the U.S. Food and Drug Administration to the Department of Agriculture

Significance of
die-hard
protectionism 29
 Case: India as Importer
• Case I - Anti-dumping investigation concerning imports of 1-Phenyl-3-
Methyl-5-Pyrazolone from China PR
• Import of the subject goods from China PR constitutes almost 98% of
total imports to India
• Domestic industry showed that Sinochem Tianjin and Anhui Bayi
Chemicals Group co. Ltd. are under state control – so NME clause
applicable.
• No response was received from any exporter on the normal value of
the subject goods from China PR.
• Constructed normal value was therefore considered.
• The dumping margin was found to be 37.46 %.
• While the domestic demand of the product has increased by 66%
compared to the base year, the sales of the domestic industry has
declined by 23%.
• While market share of dumped imports increased from 6.68% in the
base year to 56.69% , the same for domestic industry declined from
93% in the base year to 43%.
• Final duty US $ 1.218 / KG

Source: DGAD Documents

 Case: India-US Solar Dispute
• India’s National Solar Mission, the Jawaharlal Nehru National
Solar Mission was launched in 2010.

• Phase I Batch I states that projects must use crystalline modules

made in India, while Phase I Batch II states that projects must
use domestically-made crystalline photovoltaic cells and modules;
subsidies are also available for using local equipment

• Phase II Policy Document (December 2012) – “Provision of

requirement of domestic content for setting up solar power
projects was kept in the guidelines for Phase-I with a view to
develop indigenous capacities and generate employment. It was
noted that the production capacities for solar PV cells and modules
have expanded in the country.”

• US argue this "appears to discriminate" against U.S. photovoltaic

cell and module manufacturers
 Use of Key WTO Databases
• AD, SCM databases.

• WTO Trade Policy Reviews

• Dispute Settlement Body documents and reports

 7. Trade Facilitation
GATT Articles Provision

Article V: Freedom of movement through the territory of each contracting party

Freedom of is to be assured for goods (and their conveyance), which are destined
Transit to or come from any other contracting party. Such traffic must be
allowed to move via the most convenient route; is to be exempt from
customs or transit duties; and is to be free from delays or restrictions.
Article VIII: In order to minimize impediments to trade due to customs procedures,
Fees and fees charged by customs officials must be limited to the approximate
Formalities cost of customs services; they are not to be used for protective or
Connected With fiscal purposes. Contracting parties are expected to decrease and
Importation and simplify their documentation requirements, and are not to impose
Exportation substantial penalties for breaches of customs regulations such as
clerical errors.
Article X: The basic “transparency” obligation requires contracting parties to
Publication and ensure prompt publication of laws and regulations affecting imports and
Administration of exports so that foreign governments and traders may clearly
Trade understand them. It provides that increases in customs duties and
Regulations more burdensome restrictions on imports may not be enforced until
such measures have been officially published.

The role of technology in trade facilitation is acknowledged

in all broad definitions.
33
 Key TF Concerns
Gateway issues
• Customs and other border
formalities like nontariff
barriers
• Transparency of regulations
• Efficacy of regulatory agencies
• Efficacy and logistical
capability of ports, airports,
and land border crossings
• Cost and quality of
international transport linkages
• Quality of international
institutional linkages such as
Mutual Recognition Agreements
(MRA) and Pre-shipment
Inspection (PSI) Agreements
Behind-the-border issues
• Quality and costs of transport
infrastructure
• Availability of multimodal
transport
• Quality of logistical support in
the hinterland such as
warehousing facilities
• Efficacy and transparency of
regulations of within-country
border crossings (that is,
crossing across provincial or
municipal lines)
Potential benefits of Trade Facilitation

US International Trade Commission

AFT and Trade Facilitation in Africa and other LDCs

Trade Facilitation: Implications for doing Business
• Minimum trade Fees and charges limited only to the cost of
service provided.
• Publication of all laws, regulations, judicial decisions etc. in a
transparent manner. (classification of products, rates of duty,
restrictions or prohibitions etc.)
• No discrimination on flags of vessels, place of origin, entry, exit
or destination etc.
• Cancun Ministerial: SDT – need to take into account the
implementation capacities of developing countries and LDCs
during negotiations and acknowledging their technical assistance
requirement.
• It is also agreed that Members would not be forced to
undertake investments in infrastructure projects beyond their
means.
• Bali Ministerial: proposed reforms – integrating LDCs

36
 8. Intellectual property Rights
• IPRs refer to the right to control and derive the benefits from
intellectual effort (e.g. writing, inventions, processes and
identifiers)
1. Copyright and related rights (no less than 50 years from the making of
the work, fair use photocopying)
2. Patents (20 years from the filing date, except morality; human, animal,
or plant life or health etc.)
3. Trademarks (Sign, Combination of Sign, letters, Colour etc. - initial
registration and subsequent renewals should be for no less than 7
years)
4. Geographical indications (only from a particular territory)
5. Industrial designs (at least 10 years)
6. Layout-designs of integrated circuits (Not less than 10 years from the
date of filing)
7. Undisclosed information, including trade secrets (protected unless it
is necessary to protect public by withdrawing it)

Local attitudes play a large role in piracy

Industrial Piracy in China: Concerns
 Piracy in China and India (US $ Million)
Industry China India

2004 2008 2004 2008

Loss Level Loss Level Loss Level Loss Level

Motion 280 95% NA NA 67.3 50% 36.2 55%

pictures
Records 202.9 85% 564 90% 239 74% 1060 66%
and
Music
Business 1488 90% 2940 79% 80 60% NA NA
Software
Entertain 510 90% NA NA 59.5 86% NA NA
ment
Software
Books 50 NA NA NA 38 NA NA NA

Totals 2530.9 3504 483.8 1096.2

Source: International Intellectual Property Alliance

 India’s Challenge: ACTA
• Anti-Counterfeit Trade Agreement (ACTA) has 11 members — the EU, the
US, Canada, Mexico, Switzerland, New Zealand, Morocco, Japan, Australia,
Korea and Singapore.
• ACTA Members intend to provide greater protection and ensure higher
standards for enforcement of intellectual property rights
• Recently, Customs authorities in a number of European countries
(Netherlands and France) seized about 17 drug consignments shipped from
India en route to various African and Latin American countries.
• The medicines, which were generics or off-patent in India, were repeatedly
impounded as European companies holding patents for them in their
countries had complained to the authorities that they were counterfeit.
• On 11 May 2010, India requested consultations with the EU at WTO
regarding the repeated seizures on patent infringement grounds.
• EU recently agreed to amend its laws, and remain within an agreed set of
guidelines to ensure greater and immediate legal certainty for producers
and traders.
• Nevertheless, the EU in return has asked an assurance that India would
refrain from further steps in the ongoing dispute.
 The International Arena

• Samsung asked to pay US $1 Bn compensation

• The Samsung Apple Battle:
• http://www.youtube.com/watch?v=qsz5JsDqAYs
 Your Trademark: Protected?
• DazzleSmile paid its ad agency Epic $43 per order generated by
advertising designed to mislead consumers into signing up for trials
or free samples, when in fact they were signing up for expensive
monthly subscriptions to the products.

• When Dazzlesmile and its parent company Optimal Health Science

ceased their dealings with Epic, Epic still allegedly continued to run
the ad campaigns.

• The new ads were funded by a Canadian named Jesse Willms, who
allegedly operated infringing websites including
DazzleSmilePro.com and DazzleSmilePure.com – both of which have
since been removed.

• Once aware, Dazzlesmile sued Epic and, for trademark

infringement among other things.

Google banned the advertisements after a point.

9. Members of Information Technology Agreement

Source: WTO IT Database

 10. Global E-Commerce
• Production, distribution, marketing, sale or delivery of goods and
services by electronic means

• Buenos Aires (2017) - Agreed to maintain the current practice of

not imposing customs duties on electronic transmissions.

• E-commerce and the concern with regard to revenue losses for

developing countries.

• Non-availability of certain technologies to several developing

countries (e.g., encryption, security of transactions).

• Certain products now categorized as goods and enjoying national

treatment and duty-free access under the Information Technology
Agreement – should they continue to receive similar treatment later
classified as services?

• Role of domestic competition policy and entry of a foreign e-

commerce player

Ongoing Debate: Digitized goods / products which can be delivered

both in electronic form and on a physical carrier – re-classified as
services?
• EU, Canada, Australia, Chile, South
Korea, Norway and Paraguay, along with
several other developed countries,
circulated a draft proposal among WTO
members in late 2017.
• The key demand: the current ban on
customs duties on global electronic
transactions, suspended in 1998, should
be made permanent.
• India’s Adverse Experience: Earlier
WTO Agreement on Information
Technology Agreement, which mandates
all Member countries to abolish tariffs
on hardware, thereby putting enormous
pressure on the domestic electronics
manufacturing industry.
• India’s Submission: Negotiations on
rules and disciplines in e-commerce
would be highly premature at this stage.
https://dipp.gov.in/s
ites/default/files/D
iscussion_paper_eco
mmerce_07012014%
20%20%2013.pdf

https://dipp.gov.in/
whats-new/draft-
national-e-
commerce-policy-
stakeholder-
comments
 Days to come ..
• Trade and Investment Issues

• Competition Policy

• Government Procurement

• Full Commitments under Trade Facilitation

• Trade and Environment?

• Trade and Labour?