Download pdf - WTO, GATT,GATS

8/3/2019 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?