Wto and Its Effect

In: Miscellaneous

Submitted By jawada
Words 8034
Pages 33


The General Agreement on Tariffs and Trade (GATT), multilateral treaty between governments, was signed in 1947 and came into force on 1st January 1948.


The primary of GATT is to expand international trade by liberalizing trade so as to bring about all around economic prosperity. The Preamble to the GATT mentions the following as its important objectives:

1. Raising standard of living. 2. Ensuring full employment and a large and steadily growing volume of real income and effective demand. 3. Developing full use of resources of the world. 4. Expansion of production and international trade.

For the realization of its objectives, GATT has adopted the following principles:

1. Non-discrimination: the principle of non-discrimination requires that no member country shall discriminate between the members of GATT in the conduct of international trade. To ensure non-discrimination the members of GATT agree to apply the principle of the most favoured nation (MFN) to all import and export duties. This means that each mission shall be treated as well as the most favoured nation. As far as quantitative restrictions are permitted they too are to be administered without favor.

However certain expectations to this principle are allowed for instance GATT, does not prohibit economic integration such as free trade areas or customs union, provided the purpose of such integration is “to facilitate trade between the constituent territories and not to raise barriers to the trade of other parties.” GATT also permits the members to adopt measures to counter dumping and export subsidies.

2. Prohibition of quantitative restriction: GATT rules seek to prohibit quantitative restrictions as far as possible and limit restrictions on trade to the less rigid tariffs.…...

Similar Documents

The Benefits of Wto

...Lecture 5 - World Trade Organisation What is the WTO? The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business. Who we are | Location: Geneva, Switzerland Established: 1 January 1995 Created by: Uruguay Round negotiations (1986-94) Membership: 157 countries on 24 August 2012 Budget: 196 million Swiss francs for 2011 Secretariat staff: 640 Head: Pascal Lamy (Director-General)Functions: • 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 | | There are a number of ways of looking at the World Trade Organization. It is an organization for trade opening. It is a forum for governments to negotiate trade agreements. It is a place for them to settle trade disputes. It operates a system of trade rules. Essentially, the WTO is a place where member governments try to sort out the trade problems they face with each other. The WTO was born out of negotiations, and everything the WTO does is the result of negotiations. The bulk of the WTO’s current work comes from...

Words: 5154 - Pages: 21

China and Wto

...Frequency on Class: Method and Criteria of Assessment: 100% Coursework (5000 words) Essay Submission Deadline is 4pm, Wednesday 27 November 2013 Topics: Please choose one area listed below and discuss its recent development in the context of China. You will need to narrow down your focus and set your own essay topic. 1. 2. 3. 4. 5. Non-market Economies in the WTO Energy Industry and the WTO Environment and the WTO Commentary on one WTO case involving China Self-selected topic upon approval (You are most welcome to decide a topic yourself. Once you decide to do so, however, you need to submit your topic and an one-paragraph abstract before 4pm 31 October. ) Module Aims: To give the students a broad knowledge of the multilateral trading system and China’s interaction with that system through focusing on several key sectoral topics. The module will also reinforce and extend the student’s knowledge of the business environment in China gained from other modules. Nottingham University Business School China WTO Module Outline 2 Summary of Content: The course will cover all of the primary WTO agreements, and address some of the more recent issues arising in public debates about the international trading system in the context of China. a) Knowledge and understanding: This module develops a knowledge and understanding of: • The development and operation of markets for resources, goods and services; • The development of the Chinese economy in the reform era;......

Words: 3456 - Pages: 14

Wto Analysis

...Introduction to World Trade Organization (WTO) The WTO is the single international organization that is operating worldwide and it deals with the trading rules and regulation between the countries around the globe. The organization majorly supervises and opens up the trading activities that are taken place among the countries. There are the agreements and the negotiations that are signed by the number of the trading countries around the world and are approved within the WTO’s parliaments. The aim of the services provided by the WTO is to assist the manufacturers and the providers of the goods and services and the importers and exporters to carry out their business. The WTO is administered by its member governments. All the chief decisions are carried out as a whole by all the member ministers or by the ambassadors or delegates of WTO. The meeting among the ambassadors is regularly carried out in Geneva. The organization is also highly concerned with the dispute resolution processes among the trading countries; therefore the organization enforces the participating countries to comply with the trading laws and rules that are set under the WTO agreements. Roles played by WTO There are various roles related to trading activities that are played by WTO. It is the responsibility of WTO to evaluate and regulate the national and international trade policies and to make sure that the established trade policies are consistent and are relevant and transparent through the......

Words: 2201 - Pages: 9

Wto Introduction

...Core WTO Agreements: Trade in Goods and Services and Intellectual Property Arvind Panagariya Contents 1. Introduction 1 2. Trade in Goods 2 2.1 The Most favored Nation Principle 5 2.2 National Treatment 7 2.3 Tariffs 9 2.4 Customs Procedures 10 2.5 Quantitative Restrictions 11 2.6 Subsidies 13 2.7 Anti-dumping 16 2.8 Safeguards: Emergency Protection 20 2.9 Trade Related Investment Measures 22 2.10 State Trading 23 2.11 Preferential Trade Areas 25 2.12 Non-application of the Agreement and Security and Environmental Exceptions 26 2.13 Government Procurement 28 3. Trade in Services 30 3.1 Scope and Definition 31 3.2 The MFN Provision 32 3.3 Market Access, National treatment and the Schedule of Specific Commitments 32 3.4 Preferential Trade Areas 34 3.5 Mutual Recognition of Qualifications 36 3.6 Transparency, Domestic Regulation and the Status of Monopolies and Exclusive Service Suppliers 37 3.7 Restrictions to Safeguard the Balance of Payments 39 3.8 General and Security Exceptions 39 3.9 Issues for Future Negotiations: Emergency Safeguards, Subsidies and Government Procurement 40 3.10 Developing-Country-Specific Provisions 40 3.10 Other Provisions 41 3.11 Annexes 42 4. Intellectual Property Rights 43 4.1 General Obligations and Basic Principles 44 4.2 IP Standards 44 4.3 Enforcement 46 4.4 Dispute Settlement and Transition Arrangements 46 1. Introduction Prior to...

Words: 13238 - Pages: 53

Role of Wto

...countries can benefit from the ever growing interconnectedness and interdependence of the trade and commerce which is inseparable from just about every aspect of our lives – what we eat, what we wear, what kind of houses we live in, how we treat our sick & ill or how we show off. To be more precise, we aim to understand the problems facing us in the International Trade & commerce by looking at WTO principles and framework and what we need to do to address these issues so as to deliver more benefit to us. Introduction: WTO (World Trade Organisation) is an organisation that supervises the international trade. The organisation replaced the GATT in 1995. Broadly speaking, WTO deals with issues related to regulation of trade between participating member counties by providing the members with a framework for negotiations, trade agreements and dispute / conflict resolution process. These frameworks are evolved from earlier negotiations under the GATT and are ratified by the governments of the member countries. The member countries are 159 in number, so it can be safely said that WTO is at the forefront of the global trade and commerce and is spearheading a campaign for the global economic development. The organisation has its headquarters in Geneva, Switzerland and the Director General is Mr. Pascal Lemy. Research Methodology: This research is based on literature survey, study and discussions with a number of people with varied interests but who are all well informed......

Words: 3425 - Pages: 14

Gatt , Wto

...are all around the reduction of tariff or non-tariff barriers to promote a more liberalized international trade system. When reading that “today, protectionism is the main purpose of the tariff” because for most developed countries, tariff doesn’t function as a main source of state revenue, I couldn’t help pondering Chinese import tariffs and non-tariff barriers. In 2007, Xinhua news agency reported that taxation revenue accounted for 95% of our state revenue and in 2009; the taxation revenue increased 9.8% than that of 2008, indicating that taxation is still the dominant actor in our state’s financial well-being. Although the average import tariff of China has been lowered from 15.3% of nine years ago before acceding to WTO to today’s 9.8%, honoring its WTO trade commitments, tariffs on certain imported products are still quite high, for example, the tariff on imported cosmetics is about 10%, and with the 17% VAT and 12% consumer tax, foreign cosmetics with their skyrocketing prices have become the genuine luxuries. In terms of price, those cosmetics have no advantage over our domestic brands, for people like me who are “coveting” the reputation of those “big names” of the cosmetics industry, we have either resentfully accepted the high prices at which those products are sold in mainland China, or we take every opportunity to grab a few for ourselves, for example, when travelling in other countries, we can always buy those products for much cheaper prices. Instead of......

Words: 366 - Pages: 2

What Is Wto

...The WTO The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. The bulk of the WTO’s current work comes from the 1986–94 negotiations called the Uruguay Round and earlier negotiations under the General Agreement on Tariffs and Trade (GATT). At the heart of the system — known as the multilateral trading system — are the WTO’s agreements, negotiated and signed by a large majority of the world’s trading nations, and ratified in their parliaments. These agreements are the legal ground-rules for international commerce. Essentially, they are contracts, guaranteeing member countries important trade rights. The goal is to help producers of goods and services, exporters, and importers conduct their business. The result is assurance. Consumers and producers know that they can enjoy secure supplies and greater choice of the finished products, components, raw materials and services that they use. Producers and exporters know that foreign markets will remain open to them. What it does. Trade negotiations 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. Implementation and monitoring WTO agreements require governments to make...

Words: 409 - Pages: 2

Final Effect of Wto Trading Agreements on Employer-Employee Relationships in the Uae

...Effect of WTO Trading Agreements on Employer-Employee Relationships in the UAE The World Trade Organization (WTO) was established in Geneva, Switzerland on January 1, 1995. The organization was created through the Uruguay Round negotiations. The organization has a total of 159 member countries (Who We Are, 2014). The WTO is an “organization for trade opening. It is a forum for governments to negotiate trade agreements. It is a place for them to settle trade disputes. It operates a system of trade rules. Essentially, the WTO is a place where member governments try to sort out the trade problems they face with each other” (Who We Are, 2014). The “UAE is a member of the WTO since 10 April 1996” (UAE and the WTO, 2014). The membership of the UAE in the World Trade Organization has improved the trade relations of the country with various other countries. This in turn has affected the knowledge inflow from UAE’s trading partners. This is because those countries which have a favorable trading relationship with the UAE tend to have a large number of their workforce migrating to the UAE in search for work and business opportunities. For example, the positive trading relations between the UAE and India since the independence of the UAE in 1971 (Kader, 2013). This has led to an increased inflow of executives and workers to the UAE. Moreover, the country has also experienced a tremendous increase in foreign direct investment from Indian businessmen. Furthermore, this strong......

Words: 1064 - Pages: 5

Wto Disputes

...How disputes are settled in World Trade Organizations (WTO) The countries can settle their disputes themselves at any stage, but these are the procedures that are usually followed:- 60 days Consultations, mediation, etc. 45 days Panel set up and panelists appointed 6 months Final panel report to parties 3 weeks Final panel report to WTO members 60 days Dispute Settlement Body adopts report (if no appeal) Total = 1 year (without appeal) 60-90 days Appeals report 30 days Dispute Settlement Body adopts appeals report Total = 1y 3m (with appeal) • Consultation & Mediation (up to 60 days). This is when the countries that are in dispute come together and try to reason better each other and settle their differences. And or ask the World Trade Organization director- general to intervene or mediate to try help them in any other way. • The panel (up to 45 days for a panel to be appointed, plus 6 months for the panel to conclude) At this stage the complaining country can ask for a panel to be appointed, the other country can block the creation of a panel once but when the dispute settlement body meets for a second time, the appointment can no longer be blocked. • Officially, the panel is helping the Dispute Settlement Body make rulings or recommendations. The panels conclusion are difficult to overturn and only can be rejected by consensus in the dispute settlement body. The panel’s conclusion have to be based on agreements referred to. According to the wto.org site,...

Words: 3019 - Pages: 13

Wto India

...AT THE WTO: SHIFTING COORDINATES, UNALTERED PARADIGM Amit Shovon Ray* and Sabyasachi Saha January, 2009 Discussion Paper 09-06 Centre for International Trade and Development School of International Studies Jawaharlal Nehru University India * Corresponding author, e -mail: amit.shovon.ray@gmail.com INDIA’S STANCE AT THE WTO: SHIFTING COORDINATES, UNALTERED PARADIGM Amit Shovon RAY ∗ Jawaharlal Nehru University, India and Indian Council for Research on International Economic Relations (ICRIER), India Sabyasachi SAHA Indian Council for Research on International Economic Relations (ICRIER), India ∗ Corresponding author, e -mail: amit.shovon.ray@gmail.com INDIA’S STANCE AT THE WTO: SHIFTING COORDINATES, UNALTERED PARADIGM ♣ Abstract: India’s stance at the WTO has undergone a sea change since the beginning of the Uruguay Round. This paper attempts to trace the shifting coordinates of India’s position at the WTO. By focussing on three specific areas of negotiations, namely agriculture, services and TRIPS, the paper presents a theoretical analysis of how India’s stance at the WTO has evolved over time and whether it reflects any paradigm shift. In the light of international relations theory we argue that although the coordinates of India’s stance at the WTO have shifted over time, the underlying ‘neorealist’ position adopted by India remains by and large unaltered. I. Introduction The ongoing process of Doha round of the WTO......

Words: 10634 - Pages: 43

The World Trade Organisation (Wto)

...Trade Organisation (WTO) It has been suggested that “of all major economic institutions, the WTO has the worst reputation”. Outline the role of the WTO, and explain why it has proved difficult to reach agreement in recent WTO meetings in Doha, Geneva and Hong Kong. The World Trade Organisation (WTO) The WTO was founded in 1995 after the 8 year Uruguay round of talks, and it succeeded the General Agreement on Tariffs and Trade (GATT) created in 1947. Most of the WTO's current work comes from the Uruguay Round of negotiations (1986-1994). Headquartered in Geneva, Switzerland, the WTO has 151 members (as at 27th July 2007), accounting for over 97% of world trade. The organisation is governed by a Ministerial Conference, which meets every two years, a General Council which implements the conference's policy decisions and a director-general appointed by the Ministerial Conference. The World Trade Organization deals with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business. These agreements are the legal ground-rules for international commerce Global trade deals are negotiated at the Ministerial Conference meetings, which are known as trade rounds and are aimed at reducing barriers for trade. One of the central principles of the WTO is......

Words: 2636 - Pages: 11

Wto Synopsis

...this research paper is “success and failure of WTO”. 3. Object of Study: The object of the proposed research is to know the trade and non-trade barriers affecting the global economic growth by rules and regulations of WTO. 4. Introduction: The World Trade Organization — the WTO — is the international organization whose primary purpose is to open trade for the benefit of all. The WTO provides a forum for negotiating agreements aimed at reducing obstacles to international trade and ensuring a level playing field for all, thus contributing to economic growth and development. The WTO also provides a legal and institutional framework for the implementation and monitoring of these agreements, as well as for settling disputes arising from their interpretation and application. The current body of trade agreements comprising the WTO consists of 16 different multilateral agreements (to which all WTO members are parties) and two different plurilateral agreements (to which only some WTO members are parties). Over the past 60 years, the WTO, which was established in 1995, and its predecessor organization the GATT have helped to create a strong and prosperous international trading system, thereby contributing to unprecedented global economic growth. The WTO currently has 162 members, of which 117 are developing countries or separate customs territories. WTO activities are supported by a Secretariat of some 700 staff, led by the WTO Director-General. The Secretariat is......

Words: 766 - Pages: 4

Russia and Wto

...Objectives of the Accession to the WTO……………………4 Advantages and Disadvantages of the Accession to the WTO………5 Conditions of Accession to the WTO……………………………………...6 * Terms and Conditions of Russia’s Accession to the WTO * Unfavorable Institutional Environment * Russia Does Not Have Effective Mechanism to Support Domestic Business * Phytosanitary Standards: Good Conditions and Poor Implementation * Sources of Growth of Exports to Russia Are Limited Overall Assessment of Impact of Accession to the WTO…………….10 * Missed Opportunities for Growth * The Overall Picture Conclusion ……………………………………………………………………13 References.……………………………………………………………………15 Introduction Russian economy can effectively develop only in close cooperation with international market of goods and services, in spite of huge potential and resources. It also required by the state reforms inside the country. However, World Trade Organization (WTO) states the rules of game on the international market, on time of international globalization. WTO unify about 160 countries and covers more than 95% of turnover of international trade. Russia should enter to WTO considering strategic perspective. This is only way for both Russia government and business. However, rules and norms of WTO create new organizational and legal environment of functioning, which on its own way creates mixed reaction. Based on this Russia needs deployed and targeted preparation for enter to WTO, without political rush,......

Words: 3710 - Pages: 15

China and Wto

...China’s economy and the WTO All Change China’s entry into WTO On 11Dec 2011, China completed its 10 years of WTO entry. China had to wait 15 long years get the entry into WTO after reapplying in 1980s after the communist revolution of 1949. Because of this, China had to relax 7,000 tariffs, quotas and other trade barriers. China signed up for multilateral rules. China imposed lower tariffs compared to Brazil and India. China feared that entry into WTO would lead to the distress of farmers and local industries due to foreign competition. However, reverse happened China became the world’s greatest exporter and second-biggest importer. China is in the process of implementing economic reforms and transforming its economy into one, which is more market-based. Impact on China China has enjoyed one of the best decades in global economy. Its dollar GDP has quadrupled and its exports almost quintupled. Foreign direct investment increased to 13.5% from 9.7% worldwide. America became China’s single biggest trading partner. The entry in WTO has contributed to the economic development of the China. In terms of global trade, consumers everywhere benefitted from cheap Chinese goods. Chinese growth has created a huge market for other countries’ exports. WTO entry has promoted China's foreign trade system reform and the decentralization of the import and export rights. The marriage of foreign expertise, Chinese labour and the open, global market has succeeded beyond the......

Words: 485 - Pages: 2


...World Trade Organization (WTO) Introduction The World Trade Organization (WTO) is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade (GATT), which commenced in 1948. The organization deals with regulation of trade between participating countries; it provides a framework for negotiating and formalizing trade agreements, and a dispute resolution process aimed at enforcing participants' adherence to WTO agreements which are signed by representatives of member governments and ratified by their parliaments. Most of the issues that the WTO focuses on derive from previous trade negotiations, especially from the Uruguay Round (1986–1994). The organization is currently endeavoring to persist with a trade negotiation called the Doha Development Agenda (or Doha Round), which was launched in 2001 to enhance equitable participation of poorer countries which represent a majority of the world's population. However, the negotiation has been dogged by "disagreement between exporters of agricultural bulk commodities and countries with large numbers of subsistence farmers on the precise terms of a 'special safeguard measure' to protect farmers from surges in imports. At this time, the future of the Doha Round is uncertain." Subject to formal ratification of the three most recent members, the WTO has 157 members,[7]......

Words: 5101 - Pages: 21