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The document discusses international economic institutions like the WTO, GATT, IMF and their role in facilitating global trade. It notes that developing countries face several trade issues and these organizations were established to resolve financial and commercial problems between nations. The key institutions are GATT, which was later replaced by the WTO, and this summary focuses on India's commitments and obligations as a WTO member.
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- 3. Developed and developing countries face problems relating to trade. Such problems relate to protective duties, trade restrictions, exchange control restrictions and so on. The institution established for solving financial & commercial problems at the international level are called international economic institution.
- 4. 1. General Agreement On Tariffs & Trade (GATT) 2. World Trade Organization (WTO) 3. United Nations Conference On Trade & Development (UNCTAD) 4. International Monetary Fund (IMF) 5. International Bank For Reconstruction & Development And Its Sister Institutions (World Bank)
- 5. General Agreement on Tariff and Trade (GATT)
- 6. The General Agreement On Tariffs & Trade(GATT) is an multinational agreement between the governments. It was signed on October 30, 1947 by 23 nations (including India) in Geneva & came into effect from 1st January, 1948. 125 countries have joined the membership of GATT. GATT was replaced by WTO (World Trade Organization) on 1st January, 1995.
- 7. The basic aim of GATT was to make international trade free of all barriers. The principle of GATT: Principles of transparency, multilateralism & non-discrimination with a willingness to reduce trade barriers on the basis of reciprocity.
- 8. a) Raising standard of living of the world community b) Ensuring full employment c) Developing full use of resources d) Bringing expansion of production & international trade
- 9. Any proposed change in the tariff or other type of commercial policy of a member country should not be undertaken without consultation of other parties to the agreement. That the countries that adhere to GATT should work towards the reduction of tariffs & other barriers to international trade which should be negotiated within the framework of GATT.
- 10. •WTO Agreement on Trips came effect for developed countries on 1 st January,1996. •The Agreement provides a transitional period of 5years (up to January,2000) for developing countries to bring their IPR legislation in conformity with the provisions of the Agreement. •This agreement is concern only with Property Rights but this agreement on TRIP’s is against Indian Patents Act,1970 •In India , the general public is not favorable to TRIPS as it is argued that TRIPS as embodied in the GATT agreement will not be favorable to our economy. •It is suggested that TRIPS are favorable to rich and developed countries and not to poor and developing countries. This is because rich countries hold a very large number of patents.
- 11. 1. Patents 2. Industrial Design 3. Trade Marks 4. Copy Rights 5. Layout Design of Intellectual circuits 6. Trade secrets 7. Geographical indicators 8. Plant microorganisms 9. Plant varieties.
- 12. Impact on Patent Protection. It implies that the patent regime will have manufacturing monopoly as well as import monopoly of the patent holder. Impact on Drug Prices. India is able to supply drugs at low prices. It is argued that prices of drugs will increase in India due to TRIPS. Impact on Agriculture. The agreement on TRIPS extends IPR’s to agriculture through the patenting of plant varieties. This will have serious implications for Indian agriculture.
- 13. All restrictions on foreign capital/investors/companies should be scrapped. No restrictions will be imposed on any area of investment. Foreign investors shall be given the same rights in the matter of investment as a national investor Imports of raw materials and components will be allowed freely. Foreign investor will not be obliged to use local products and materials. Export of part of the output will no longer be mandatory. Restrictions on repatriation of dividend, interest, royalty will be eliminated. There will be a complete exclusion of provisions like phased manufacturing programme which is intended to increase the indigenous content in manufacturing.
- 14. • Time Period The agreement requires the notification of all WTO- inconsistent TRIMS and their phasing out within two to seven years by industrial, developing and least developed countries respectively. • Financial Investment India has accepted some of these features in order to encourage large-scale foreign investment in India. • Adverse Effect TRIMS and its impact on developing countries will be harmful. In the case of India, complying with the agreement on TRIMS would mean giving up any plan of self reliant growth based on locally available resources and technology.
- 15. WTO is for free and fair trade at the global level. WTO is operating as a global trading organisation since 1995. It is also for the protection and preservation of environment and the growth of less developed countries.
- 16. WTO started functioning from 1st January 1995 and was the conversion of GATT. The Dunkel Proposals was the basis of the emergence of WTO having 147 countries as its member. India was founder member and joined in 1997. Copyrights were protected. Evolution of multilateral trading system. Governing body of world trade.
- 17. Free Trade Growth of less developed countries Protection of environment Optimum use of resources Standard of living Settlement of trade disputes
- 18. Achievements of WTO WTO is operating as a global trade forum since 1995.Unfortunately ,the concrete achievements of WTO are limited. Its achievements are as follows: ELIMINATION OF TARIFFS AGREEMENT ON FINANCIAL SERVICES LIBERALISATION OF POLICIES
- 19. The new agreement will lead to FREE and FAIR TRADE at the global level . It is a big victory for the poor countries . Another meeting at GENEVA in JULY 31st , 2004 was held to discuss the concerns of the developing countries . India was represented by commerce and Industry minister Mr Kalam Nath .
- 20. It started on Saturday, 31st July 2004. It is a welcome breakthrough as the trade liberalization under the aegis of the WTO is back on rails . The present WTO deals offer new hope for farmers and new economy. Indian farmers and cotton growers will get the benefit of new agreement.
- 21. The sixth ministerial conference of WTO was held in HONKONG in December, 2005. India and Brazil worked relentlessly to get some kind of deal for the developing. The significant development of this WTO meet was the greening of the young and newly developed countries.
- 22. In the last week of July , 2008 WTO mini-ministerial talks held at WTO headquarters in GENEVA collapsed ultimately. From Nov 30- Dec 3, 2009,the seventh WTO ministerial meeting was the first full ministerial meeting of the WTO. In short this meet was non – eventful with no major outcome. Future course of WTO seems to be uncertain with the US laying emphasis on bilateral negotiation.
- 23. India is bound by WTO agreements after rectification of the final act in 1994. As a member of WTO India has made a number of commitments
- 24. Phased reduction of tariffs: includes non- agricultural and textile items bound for a period of 10 years. Removal of quantitative restrictions: phased removal from 1997 were commenced with 714 items and 715 items in the exim policy of march 2000 and2001 respectively. Liberalization of trade in services: as per GATS 33 service activities have been liberalised depending on the impact on employment technological advancement and capital inflow..
- 25. TRIPs: to comply with TRIPs amendments were made in the copyright act, protection to layouts designs and customs valuations. TRIMS: notification in regard to local content requirements on certain pharmaceutical products and dividend balancing requirement in case of investment in 22 categories of consumer items.
- 27. Experience has proved that it is favourable to rich and developed countries and it is not fair to poor and developing countries. WTO is dominated by rich and developed countries of Europe. Certain imbalances and inequities in the WTO agreement was faced by developing countries. Obligations in letter ,spirit of agreements, special and differential clauses have remained UNOPERATIONLISED.
- 28. At the 4th conference held in DOHA new round negotiations received a major setback because it did not address implementation issues first. The 5th conference held in CANCUM in Mexico was without any progress on Doha declaration because it did not commit the rich countries to phase out their trade distorting farm subsidies within a time phrase. And from this conferences it came out that WTO will not be allowed to function as undemocratic ,non transparent and anti people organisation.
- 29. The new agreement will lead to FREE and FAIR TRADE at the global level . It is a big victory for the poor countries . Another meeting at GENEVA in JULY 31st , 2004 was held to discuss the concerns of the developing countries . India was represented by commerce and Industry minister Mr Kalam Nath .