how WTO controls the trade
- 1. PRESENTED BY: • Ashutosh Vyas • Prasun Tiwari • Tarun Bhatt • Sumit Singh • Aakash Sharma • Rahul Singh • Sachin Choudhary • Aatish Raj
- 2. In the Presentation • Understanding of WTO • WTO in beginning and Fact file of WTO • Why WTO and functions and principle of WTO • Structure of WTO • Role of WTO • Relevance of WTO • TRIPs, TRIMs of WTO • Agreements done under WTO guidance • Role of WTO in developing countries • Current issues of WTO
- 3. World Trade Organization • Intergovernmental organisation which regulates the international trade • Officially commenced on 1st Jan 1995 under the Marrakesh Agreement • Signed by 123 nations in 1994 • WTO had replaced GATT (General agreement on tariffs and trade) • They deal with: agriculture, textiles and clothing, banking, telecommunications, government purchases, industrial standards and product safety, food sanitation regulations, intellectual property and much more.
- 4. WTO: The Beginnings • The World Trade Organization (WTO) came into being on January 1st 1995. • It extended GATT in two major ways. First GATT became only one of the three major trade agreements that went into the WTO • Second the WTO was put on a much sounder institutional footing than GATT
- 5. FACT FILE OF WTO Location Geneva, Switzerland Established 1 January 1995 Created by Uruguay Round negotiations (1986-94) Membership 153 countries on 23 July 2008 Budget 2014 CHF 197,203,900 Secretariat staff 625 Head Pascal Lamy (Director- General)
- 6. Why WTO? •To arrange the implementation, administration and operations of trade agreements •Settlement of disputes •Trade relations in issues deal with under the agreements
- 7. •To provide a framework for implementing of the results arising out of the deliberations which taken place at ministerial conference level. •To manage effectively and efficiency the trade policy review mechanism (TRIM). •To create more together relationship with all nations in respect of global economic
- 8. FUNCTIONS OF WTO • Administering WTO trade agreements • Forum for trade negotiations • Handling trade disputes • Monitoring national trade policies • Technical assistance and training for developing countries • Cooperation with other international organizations
- 9. PRINCIPLES OF WTO The basic principles of the WTO (according to the WTO): • Trade Without Discrimination 1. Most Favoured Nation (MFN): treating other people equally 2. National treatment: Treating foreigners and locals equally • Freer trade: gradually, through negotiation • Predictability: through binding and transparency • Promoting fair competition • Encouraging development and economic reform.
- 10. STRUCTURE OF WTO Ministerial Conference General Council Dispute Settlement Body Trade Policy Review Body Goods Council Intellectual Property Council Services Council The Committee on T&D and T&E
- 11. ROLE OF WTO • The main goal of WTO is to help the trading industry to become smooth, fair, free and predictable. It was organized to become the administrator of multilateral trade and business agreements between its member nations. It supports all occurring negotiations for latest agreements for trade. WTO also tries to resolve trade disputes between member nations. • Multi-lateral agreements are always made between several countries in the past. Because of this, such agreements become very difficult to negotiate but are so powerful and influential once all the parties agree and sign the multi-lateral agreement. WTO acts as the administrator. If there are unfair trade practices or dumping and there is complain filed, the staff of WTO are expected to investigate and check if there are violations based on the multi-lateral agreements.
- 12. TRIMs, AND TRIPS OF WTO 1) Agreement on Trade-Related Investment Measures (TRIMs) • TRIMs refers to certain conditions or restrictions imposed by a governments in respect of foreign investment in the country • The agreement on TRIMs provides that no contracting party shall apply any TRIM which is inconsistent with the WTO Articles. 2) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) • The Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) is an international agreement administered by the World Trade Organization (WTO) that sets down minimum standards for many forms of intellectual property (IP) regulation as applied to nationals of other WTO Members
- 13. • TRIPS contains requirements that nations' laws must meet for copyright rights, including the rights of performers, producers of sound recordings and broadcasting organizations; geographical indications, including appellations of origin; industrial designs; integrated circuit layout-designs; patents; monopolies for the developers of new plant varieties; trademarks; trade dress; and undisclosed or confidential information. • Specifies enforcement procedures, remedies, and dispute resolution procedures.
- 14. THE RELEVANCE OF WTO • The system helps promote peace. • The system allows disputes to be handled constructively. • A system based on rules rather than power makes life easier for all. • Freer trade cuts the cost of living. • It gives consumers more choice and a broader range of qualities to choose from. • Trade raises incomes. • Trade stimulates economic growth and that can be good news for employment • The basic principles make the system economically more efficient, and they cut costs.
- 15. THE AGREEMENTS • The WTO is ‘rules-based’; its rules are negotiated agreements • Overview: a navigational guide • Plurilateral agreement • Further changes on the horizon, the Doha Agenda
- 16. • Some of the agreements of WTO: -Tariffs: more bindings and closer to zero -The Agriculture Agreement: new rules and commitments -Textiles: back in the mainstream -Intellectual property: protection and enforcement
- 17. The agreement covers five broad issues: • How basic principles of the trading system and other international intellectual property agreements should be applied • How to give adequate protection to intellectual property rights • How countries should enforce those rights adequately in their own territories
- 18. • How to settle disputes on intellectual property between members of the WTO • Special transitional arrangements during the period when the new system is being introduced
- 19. Developing Countries How the WTO deals with the special needs of an increasingly important group • In the agreements: more time, better terms • Legal assistance: a Secretariat service • Least-developed countries: special focus • Committees -Trade and Development Committee
- 20. -Sub-committee on Least-Developed Countries -The Doha agenda committees • WTO technical cooperation • Participation in the system: opportunities and concerns • Erosion of preferences • The ability to adapt: the supply-side
- 21. Recent Issues • Trade to expand by 9.5% in 2010 after a dismal 2009, WTO reports • Twenty-four participants from around the world are attending a two-month Advanced Trade Policy Course (ATPC) from 18 January to 11 March 2016 • Lamy calls for addressing macro-economic imbalances through cooperation • 32 WTO members take anti-dumping actions during first half of 2010 • Transparency mechanism for preferential trade arrangements set for approval • Market access for LDCs (Least Developing Countries) • Trade agreements between developing countries • Trade policy reviews: ensuring transparency • TRIPS Agreement aimed at facilitating access to essential medicines in poor countries.
- 22. CONCLUSION • It is the place where the member country comes and talks together and shares their grievance in order to resolve their problem related to International trade. • The countries make their decisions through various councils and committees, whose membership consists of all WTO members. • The system helps promote peace, by handling Dispute of member countries. It provides free trade which cuts the costs of living and provides more choice of products and qualities and stimulates economic growth.
- 23. • The WTO agreements cover goods, services and intellectual property. They spell out the principles of liberalization, and the permitted exceptions. They include individual countries’ commitments to lower customs tariffs and other trade barriers, and to open and keep open services markets. They set procedures for settling disputes. They prescribe special treatment for developing countries. They require governments to make their trade policies transparent • WTO deals with the special needs of developing countries as two thirds of the WTO members are developing countries and they play an increasingly important and active role in the WTO because of their numbers, because they are becoming more important in the global economy, and because they increasingly look to trade as a vital tool in their development efforts.
- 24. THANK YOU