WTO, GATT,GATS

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    Presented By,Arun Prakash (27064)

    Kirubakaran (27020)

    Saravanan (27110)

    Siddhaarthan (27115)

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    FACT FILE

    Created by : Uruguay Round negotiations (1986-94)

    Membership :153 countries (on 23 July 2008)

    Budget : 196 million Swiss francs for 2011

    2011 Secretariat Staff : 640

    Head : Director-General, Pascal Lamy

    Established: 1 January 1995

    Location : Geneva, Switzerland

    WTO History:

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    WTO History:

    General Agreement on Tariffs and Trade was negotiated

    during the UN Conference on Trade and Employment.

    GATT was signed in 1947 and lasted until 1993, when it was

    replaced by the World Trade Organization in 1995.

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    Key functions

    Implementation of WTO Agreements.

    Forum for negotiations and for settling disputes.

    Providing assistance to least developed countries for

    transition to adjust to WTO rules. The WTO is also a centre of economic research and provides

    analysis of global trade.

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    Major Principles of WTO Framework of Trade

    Policies

    Non-Discrimination

    Most Favored Nation

    National treatment policy

    Reciprocity-Mutual Benefit with trade.

    Binding and enforceable commitments

    Transparency

    Safety valves.

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    Organizational structure of WTO

    Ministerial Conference

    General Committee(Dispute Settlement and Trade policy

    review) Council for Trade in Goods

    Council for Trade-Related Aspects of Intellectual Property Rights

    Council for Trade in Services

    Trade Negotiations Committee

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    Basic Rules of WTO

    Some of the basic premises under which WTO law were founded

    on are:

    1. Non- Discrimination

    2. Market Access3. Protection against unfair trades

    4. Trading and competing interests and values

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    Non Discrimination

    The two principles of non-discrimination in WTO law are:

    1. Most Favored Nation treatment obligation

    2. National treatment obligation

    Market Access

    The rules of WTO looks at 3 areas of regarding market access concerning:

    1. Custom duties

    2. Quantitative restrictions

    3. Non-tariff barriers

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    Protection Against Unfair Trade

    There are no direct regulations regarding unfair trading, but rules

    regarding specific trade practices are available. They are:

    1. Dumping

    2. Subsidies

    Trade and Competing Interest and Values

    Apart from above WTO law also provides general rules regarding

    1. Competing Non-Economic Interest and Values

    2. Competing Economic Interest and Values

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    Scope of Developing countries with regards

    to WTO

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    Developing countries & WTO

    Recognition of interests and needs of developing countries

    Special and differential treatment of developing countries General prohibition of export subsidies does not apply to developing country

    members whose per capita income is below $1000 per annum

    Lesser demands for reducing tariffs of export subsidies for agricultural products

    of developing countries (average of 24%) than the developed nations (average of24%)

    Longer implementation periods for Developing

    country members regarding WTO agreements

    Providing technical support to developingnation by developed nation or through the

    WTO secretariat

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    Differential Treatment for Least-Developed

    Nation members

    Additional differential treatment is provided by the WTO law to the least-

    developed nation members in the form of:

    1. Increased trade opportunities

    2. Support for Economic development

    3. Longer Implementation periods

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    WTO Dispute Settlement System

    The aim of the dispute settlement mechanism is to secure a positive

    solution to a dispute. A solution mutually acceptable to the parties to a

    dispute and consistent with the covered agreements is clearly to be

    preferred.

    Settling disputes is the responsibility of the Dispute Settlement Body,

    which consists of all WTO members.

    The Dispute Settlement Body has the sole authority

    to establish panels ofexperts to accept or reject the panels findings or the results of an appeal.

    It monitors the implementation of the rulings and recommendations

    to authorize retaliation when a country does not comply with a ruling.

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    Dispute Settlement

    Since 1995, 427 disputes have been brought to WTO and only

    88 have been resolved.

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    WTO & US

    US as respondent (113 cases)

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    WTO & US

    US as complainant (98 cases)

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    WTO & US

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    Developing Country Members

    The most active users of the dispute settlement system

    among developing country Members are Brazil, India, Mexico,

    Thailand and Chile.

    DSU requires the WTO Secretariat to make available qualified

    legal experts to help any developing country Member which

    so requests.

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    India as Complainant & Respondent

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    FUTURE ROLE OF WTO

    WTO an imperfect body from a business point of view

    Trade policy decisions - Now simulated by Game Theory

    Changing nature of trade

    Possible formation of new trade blocs

    Consequences of failure

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    DDA STALLED

    Uni/Bilateral setting to Multilateral setting

    Changing nature of WTO

    Changing equation between poor and small

    Evolution of negotiation into sticky areas

    Exploitation of imprecision in Formula + Flexibility approach

    Difficulty in valuing the final package

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    CASE FOR COMPLETION

    Insurance policy against future protectionism

    Reform of farm trade

    New Market Access

    Reinforcing of WTO system

    Opportunity Cost of failure ?

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    MOVING TO FINAL DEAL

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    General Agreement on Trade in Services

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    GATS is one of the treaties of WTO aimed at extending its multilateral

    trading system to the service sector for its member nations

    GATS defines Trade in services as any of these four modes of supply

    Cross border supply (mode1)

    Consumption abroad (mode 2)

    Commercial Presence (mode 3)

    Movement of natural persons ( mode 4)

    All other general obligations mentioned below also apply to the members

    Most Favored Nation

    Transparency

    Market Access

    National Treatment

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    Queries?