1. World Trade Organization 1
WTO

2. Introduction
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 Erasing national, political boundaries for the
purpose of business can be termed as
globalization
 Integration of the economy of the country with
world economy
 International Monetary Fund, International
Bank for Reconstruction & Development,
General Agreement on Tariffs & Trade –
World Trade Organization
initiated

3. 3
General Agreement on Tariffs &
Trade (GATT)
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4. Introduction
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 Prolonged recession before World War II in west
was due to protectionism followed by industrial
countries
 Led to negotiations in 1947 among 23 countries
 To prevent protectionist policies & revive
economies from recession
 Negotiations resulted in GATT
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5. Objectives of GATT
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6. 6
Establishment of WTO
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7. WTO
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 India is one of the founder members of WTO
 GATT was not an organization, but was only a
legal agreement
 WTO – designed to play the role of watchdog
in the spheres of trade in goods, trade in
services, foreign investment, intellectual
property rights
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8. Functions of WTO
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9. World Trade without
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Discrimination
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10. Organization Structure of WTO
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 Based on 4 Hierarchical levels:
 Ministerial Conference
 General Council
 Councils
 Committees & Management Bodiess
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11. Organization Structure of WTO
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 Ministerial Conference:
 Highest level
 Authority to make decisions on all matters
 Meets at least once in 2 years
 Policy & strategy making body
 & gets it executed & implemented by next level
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12. Organization Structure of WTO
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 General Council:
 Executive body
 Reports to Ministerial Conference
 All members of WTO are also representatives in
General Council
 Has other forms:
 Dispute Settlement Body
 Trade Policy Review Body
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13. Organization Structure of WTO
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 Councils:
 Council for trade in goods
 Council for trade in services
 Council for Trade Related Aspects of
Intellectual Property Rights
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14. Organization Structure of WTO
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 Committees: & Management Bodies:
 Committee on trade & development
 Committee on BOP
 Committee on budget, finance & admin
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15. Dispute Settlement Mechanism of
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WTO
 Powerful mechanism to solve disputes over
trade among the member countries
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16. WTO & Dumping Measures
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 Types of Dumping:
 Intermittent Dumping
 Persistent Dumping
 Predatory dumping
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17. India & Dumping
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 After globalization, Indian economy govt –
reduced rates of customs duties
 Indian govt started MFN clause to the imports
from various countries
 These factors led to dumping from China &
East Asian Countries
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18. India & Dumping
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 Goods dumped Indian Market are nt only
China but also Est Asian Countries:
 Soaps & computer parts – Thailand
 Chocolates – Malaysia
 Instant coffee mix – Singapore
 Glassware & Crockery – Indonesia
 Tea – Sri Lanka
 Tiles – Taiwan
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19. India & Dumping
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 Ease of import regulations main reason for
dumping in India
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20. Ministerial Conferences of the
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WTO
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21. I ministerial Conference of WTO
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 9th December 1996 – Singapore
 128 member countries
 Highlights of this meeting:
 Observance of internationally recognised core
labour stds
 Effectiveness & credibilty of dispute settlement
mechnism
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 Decision taken to organize meeting with UN
conference on Trade & Development (UNCTAD), aid
agencies & other organizations to help the least
developed countries
 Negotiations on basic telecommunications were to be
completed by February 1997
 To establish a working group to examine the
relationship between trade & investment.
 This working group will study the issues raised by
members relating to interaction between trade &
competition policy World Trade Organization

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 Working group to study on transparency in
govt procurement practices
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24. II ministerial Conference of the
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WTO
 18th to 20th May, 1998 – Geneva – 132 member
 Important decisions:
 Setting mechanism to ensure proper
implementation of existing multilateral agreements
 Accepting open & transparent rule-based trading
system
 Expanding global trade, creating more jobs &
raising living stds of the people in the world
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25. III Ministerial Conference of the
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WTO
 December 3, 1999 – Seattle – 135 member
 Meeting was a failure as developing nations jointly
protested against the lack of transparency &
 Imposition of the views of the rich countries on the
poor counties in the negotiations
 Trade ministers of Latin America & other countries
demanded transperency, openness & participation of
all members.
 Or else wont join hands to provide consensus
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26. III Ministerial Conference of the
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WTO
 Criticized – WTO cared little for the views of
the Asian, African & Latin American countries
 Objective was to review the working of WTO in
last five years & decide on agenda for a new
round of talks at millennium round
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27. IV Ministerial Conference of the
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WTO
 Doha, Qatar during 9-13, November 2001
 142 member countries
 3 documents finally adopted at this
conference, which will open the way for further
liberalization of the trade
 Includes:
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28. IV Ministerial Conference of the
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WTO
 Reductions in industrial tariffs
 Phasing out of agriculture export subsidies
 Promoting the trade in services
 Special treatment for developing countries
 Working group will focus on clarification of core
principles, transparency, non discrimination,
procedural fairness, etc – related to trade &
competition policy
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29. IV Ministerial Conference of the
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WTO
 Negotiations on setting up of a multilateral
agreement on transparency in govt
procurement
 Agreed to reach an agreement by May 2003,
regarding clarification of the dispute settlement
understanding
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30. V Ministerial Conference of the
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WTO
 10th – 14th September 2003 @ Cancun,
Mexico
 146 countries
 Failure as developing countries jointly
opposed the high agricultural subsidies in USA
& EU countries
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31. TRIPS & TRIMS
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World Trade Organization