The presentation deals with details about GATT : General Agreement on Tariffs and Trade and GATS : General Agreement on Trade ans Services

1. Presented by
SAKSHI SAXENA
ASU2013010200124
B.Tech (Bio)
Ivth Sem

2. The Story So Far...
Globalization started blossoming in the 1890’s. By
the end of the 19th century, trade was very free.

3. The Story So Far...
Globalization then
began failing at the
end of World War I,
at the beginning of the
20th century.

4. The Story So Far...
Economic pressure pushed countries to impose
trade barriers to divert national demand away from
imports and toward domestically produced goods.
Several organisations were formed and treaties
were then signed, one of which is GATT

5. GATT
 The General Agreement on Tariffs and Trade (GATT) was
first signed in 1947.
 Was designed
 To provide an international forum
 That encouraged free trade between member states
 By regulating and reducing tariffs on traded goods
 Providing a common mechanism for resolving trade
disputes.

6. Objectives of GATT
 According to the Preamble of GATT,main objective
was the “Reduction of Barriers to
International Trade”
Tariff
Change in monetary value
Non tariff
Quality and quantity of products and
services

7.  To expand International trade by liberating trade
and build an International trading system
 To ensure orderly and equitable expansion of world
trade and contribute to the prosperity of US.
Objectives of GATT

8.  To expand International trade by liberating trade
and build an International trading system
 To ensure orderly and equitable expansion of world
trade and contribute to the prosperity of US.
 Reduce foreign export subsides, tariff and non-tariff
barrier and internal supports.
 Cuts costs by 50 – 100% on important electronic
items
Objectives of GATT

9.  To expand International trade by liberating trade
and build an International trading system
 To ensure orderly and equitable expansion of world
trade and contribute to the prosperity of US.
 Reduce foreign export subsides, tariff and non-tariff
barrier and internal supports.
 Cuts costs by 50 – 100% on important electronic
items
 To strengthen and clarify rules for agricultural trade.
 Better utilization of resource of the world.
Objectives of GATT

12. Place : DOHA
November 2001
Current trade-negotiation round of the
world trade organization
Issues: agriculture
Access to patented medicines
Special and differential
treatment
Implementation issues
The most recent round

14. India was one of the 23 founding
contracting parties to the general
agreement on tariffs and trade (GATT) that
was concluded in october 1947.
India has often led groups of less developed
countries in subsequent rounds of
multilateral trade negotiations ( mtns)
under the auspices of the gatt.
GATT AND INDIA

15. •It was only after the GATT trade rounds that indian drugs industry
was allowed to patent its product.
•But the price of the patent was very expensive.
•Gatt strengthened india's pharma sector.
•Improved research base.
GATT and Indian Pharma Industry

16. THE MAIN OBJECTIVE OF THE GATT
TREATY IS TO REFORM WORLD
TRADE.
GATT AND INDIAN AGRI SECTOR IS
DIVIDED INTO 3 MAIN PHASES
MARKET ACCESS.
DOMESTIC SUPPORT.
EXPORT COMPETITION.
GATT and India’s Agriculture
Sector

17. GATT and Indian Agriculture
1. Market access.
In this all the gatt members were asked replace all the
trade barriers and to allow indian supplies into their
country.
Tariffs reduced by
24% to 36%.

18. GATT and Indian Agriculture
2. Domestic support.
Develop countries also supported india to grow their
domestic consumption.
India has a big
domestic market.

19. GATT and Indian Agriculture
3. Export competition.
Indian agriculture industry has always been strong.
India used to export to many developing and under
developed countries.
India only had
competition when
it comes to sales in
developed countries.

21. The creation of the GATS was one of the landmark achievements
of the GATT URUGUAY ROUND , whose results entered into
force in january 1995.
All WTO members, some 140 economies at present, are at the
same time members of the GATS and, to varying degrees.
Objectives of GATS
• Creating a credible and reliable system of international
trade rules ;
• Ensuring fair and equitable treatment of all
participants (principle of non -discrimination);
•Stimulating economic activity through guaranteed policy
bindings;
•Promoting trade and development through progressive
liberalization.
Introduction

22. Business services
Communication
Construction
Distribution
Education
Environmental services
GATS: Sectoral Coverage
and exceptions
 Health-Related Services
 Financial Services
 Tourism
 Recreation, Culture & Sport
 Transport
 Other Services
** “services supplied in the exercise of governmental authority”: These
are services that are supplied neither on a commercial basis nor in competition
with other suppliers.
Example :social security schemes and any other public service, such as health or
education, that is provided at non-market conditions.
**Air Transport Services
Exceptions

23. Modes of service trade
1. Mode1: cross-border trade: –
Trade takes place from the territory of country a into that
of b
Example : The purchase of insurance
or computer software by a
consumer from a producer located
abroad.

24. Modes of service trade
Mode2: consumption abroad
Services consumed by nationals of a country A in territory
of country B.
Example :Tourism, education
or health services.
.

25. Modes of service trade
Mode 3: commercial presence
A service supplier of country a crosses the border to
establish and provide a service in country b.
Example: Domestic subsidiaries of
foreign insurance companies or hotel
Chains.

26. Modes of service trade
Mode 4: movement of natural persons
Temporary movement from country a to country b to supply
a service.
Example. Accountants,
doctors or teachers
teachers

27. Obligations of GATS
General Specific
1. Most Favoured Nation (MFN)
Treatment
This requires equal and consistent
treatment of all foreign trading partners. It
means:
•Providing equal opportunities in that
sector for all foreign service providers.
•mutual exclusive treatment for all service
providers
2. Transparency
GATS Members are required, to
publish all measures of general
application
And establish national enquiry
points mandated to respond to
other Member's information
requests.

28. Specific Obligations
1. National Treatment
It requires equal treatment for
foreign providers and domestic
providers.
Once a foreign supplier has been
allowed to supply a service in one’s
country there should be no
discrimination in treatment between
the foreign and domestic providers.
2.Market Access: Market access is a
negotiated commitment in specified
sectors.
It may be made subject to various types of
limitations that are enumerated in
Article XVI(2).
For example, limitations may be imposed
on the number of services suppliers,
service operations or employees in the
sector; the value of transactions; the legal
form of the service supplier; or the
participation of foreign capital.

29. •WWW.WTO.ORG
•WWW.UNESCO.ORG
•WWW.WHO.INT
•WWW.CITIZEN.ORG
•WWW.GATT.ORG
•WWW.CIESIN.ORG