WTO Presentation PEP

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WTO, Globalization &WTO, Globalization &

PakistanPakistanPresented By

Abiha Jafar Zaidi Fareeha Saquib

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INTRODUCTIONINTRODUCTION

WTO(World Trade Organization)WTO(World Trade Organization)

Established: 1stJanuary, 1995

Created By: Uruguay Round Negotiations

(1986-94) 18th GATT round.

Budget: 185 Million Swiss Francs for 2008

Membership: 153 countries, with Ukraine as

its newest member

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ADVANTAGES OF WTOADVANTAGES OF WTO Free trade cuts the cost of living It gives consumers more choice and a broader

range of qualities to choose from Trade raises income Trade stimulates economic growth, which is

good for employment The basic principles make the system

economically more efficient and cuts costs The system allows disputes to be handles

constructively A system based on rules rather than power

makes life easier for all

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Purpose of WTOPurpose of WTO

Liberalize Trade

Solve Trade Disputes

Organize Trade Negotiations

Maintain Trade Barriers

Assist with Trade Policy Issues

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Objectives of WTOObjectives of WTO

To raise standard of living.

Ensuring full employment. Developing the full sense of the resources

of the world and expanding the

production and exchange of goods.

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4 Basic Principles4 Basic Principles

1. Protection to Domestic Industry

through Tariffs.

2. Binding of Tariffs3. MFNTreatment

4. National Treatment Rule

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AgreementsAgreements

Tariffs

Agriculture

Standards and Safety Textiles

Services

Anti-Dumping Intellectual Property

Non-tariff Barriers

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GlobalizationGlobalization

the free movement of goods, services, laborand capital across borders.

Types Of Globalization Economic globalization

Environmental globalization

communicative globalization

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Economic globalization is characterized by

increased trade and investment,

liberalization (free trade),

privatization of public services and

de-regulation of many government institutions.

Environmental globalization recognizes that anenvironmental incident or impact that happens in

one region or country. It has the potential to affect

the entire world's health and well being.

communicative globalization refers to the rapidgrowth of communication technologies such as

internet, telephone, cellular phone, satellite and so

on. This has great impact on culture.

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Impact Of GlobalizationImpact Of Globalization

On The developing countries

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Impact on industrial sectorImpact on industrial sector

y

Textile and related productsy Trade liberalization principle

y The average tariff in Pakistan is around 17% however

there is a need to ensure that there are no adverse

affects of trade liberalization on the domesticproducers.

y Completion of all textile and clothing products into

free trade environment underAgreement of Textile

and Clothing (ATC)

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Impact onAgricultureImpact onAgriculture

y Agreement ofAgriculture (AOA)

y Rules regarding export subsidies,

domestic support and market access

y Agreement regarding food safety and

protection of human and animal life and

health from agricultural imports

y Production and exports of meat, dairyproducts, fruits, vegetables, etc.

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y Agreement on Trade related aspects of

Intellectual Property Rights (TRIPS)

y To fully utilize its competitive advantage

and to ensure that the industry is

encouraged to provide intellectualproperty protection for its products, and

imported products.

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y Genaral Agreement on Trade in Services

(GATS)

y WTO agreements have an in-built

mechanism for trade remedial measures

for problems of increased imports and

unfair practices under the global trade

regime.y WTO agreement of Technical Barriers.

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y Proper support and policies for industry,

along with intelligent balancing of imports

and exports is vital for growth of

Pakistans economy and is likely to leadtowards a bright future and trade

enhancement under the WTO regime.

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Pakistans experiencePakistans experience

StrategiesA

fter 1947:

a strategy of import substitution (IS) industrialization

was adopted.

Pakistans exchange rate was relatively over-valued,use of quantitative controls on imports .

The objective of the end of EBS was to adopt more

uniform effective exchange rates for exports.

export promotion (EP) emerged as a desirable

strategy of development.

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y During 1970s:

Increased in international oil prices

This increased the import bill and thus worsened the

balance of payments problem.

On the other hand, the emergence of Middle Eastmarket and remittances contributed significantly to

improving the trade balance.

Devaluation, elimination of EBS, and the end of

import licenses were the most notable measuresduring 1970s that were taken to reduce anti-export

bias.

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y 1980S ONWARD:

Pakistan started liberalizing the economy with thehelp ofIMF and World Bank in 1982-83.

Government has taken a number of measures during

1990s that includes: privatization, liberalization of

trade and foreign exchange, and opening up its capital

markets to foreign investors.

like many other developing countries, Pakistan has

made significant efforts to integrate its economy withrest of the world through foreign trade, investment

and other macroeconomic policies.

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SUGGESTIONSSUGGESTIONS

Rationalizing the Tariff Structure

PakistansAgricultural potential has not been takenadvantage of due to inadequate research, structuralproblems, barriers in assessing export markets andcompetitions from other countries exporters

Very few institutions are in Pakistan where differentstake holders can interact on the WTO issues. Theyare based on assumptions rather than research

The speed and sequencing of reforms must becarefully orchestrated

There should not be excessive reliance on demandmanagement, as it can further slow down the pace ofeconomic growth

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There is need for a coordinated and collaborative effort among theSouthAsian countries to expand trade in the region

Pakistan needs to diversify its exports base and shift from primary

agricultural products to more value added and industrial products Pakistan should increase exports not only to earn more foreign

exchange but also to join the world community in globalization

Direct foreign investment is crucial for resource mobilization,therefore, it is strongly recommended that the government ofPakistan must attract foreign direct investment by giving themvarious incentives

Financial depth is also playing crucial role in the overalldevelopment of the country. It is important that we shouldstrengthen our financial sector for capital flow

Political stability is crucial for economic development of the country

Pakistan should be provided enhanced access to the internationalmarket

Pakistan should try to attract FDI through the policies ofliberalization, deregulation, and privatization

All three sectors, first (government), second (business), and third(civil society) must work together towards achieving nationaldevelopment objectives and strengthen national institutions

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