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TERM PAPER

OF
WTO AND WORLD
TRADING SYSTEM
ON
“WTO AND TEXTILE
INDUSTRY ON
BURKINAFASO
SUBMITTED TO: -
SUBMITTED BY: -

MS. RITA KUMARI


BHANU PARTAP SINGH

(INSTRUCTOR OF
REG. NO.: 10905458

WTO AND WORLD


SECTION: R1906

TRADING SYSTEM)
ROLL NO.: RR1906 A24
LOVELY SCHOOL OF BUSINESS

18TH BLOCK, LPU

ACKNOWLEDGEMENT
I would like to express my sincere thanks and gratitude to
Ms. Rita Kumari, Instructor (Faculty) of Accounting for
Managers, LSB, Lovely Professional University, Ph agw ara
.

I am also thankful to advance technology which provided


us wonderful and appreciated like Internet I obtained lot
of important information from internet.

I am very thankful to my parents to my family meber,


faculty member and my all ho encourage me and helped
me to complete this Term Paper.
PREFACE
WTO(world trade organtion) came into existence after
GATT

(GENERAL AGREEMENT ON TARRIF AND TRADE) to


regulate the world trade system. WTO consider any type
of trade between the member countries like textile, any
kind of services, agricultural product, etc. and also
negotiation or disputes settlement between the member
countries.

I discussed in this term paper WTO and textile industries


in China. “What are the positive or negative impacts on
Chinese textile after making a member of WTO?” And
BURKINAFAS’s economic condition of the burkinafaso
and world trade of the burkinafso
world Trade Organization

The World Trade Organization is an international organization


designed by it founder to supervise and liberalize international capital
trade. The organization official commenced on January 1, 1995 under
replace Marrakesh agreement the General Agreement on Tariffs and
Trade (GATT) which commenced in 1947. The World Trade
Organization deal with regulation of trade between participatied
countries; it providing framework for negotiating or formalising trade
agreements, and a dispute resolution process aimed at enforce
participants adherence to World trade organization agreements which
are signed by representated of a member governments and ratified by
their parliaments. Most of the issues that the world trade organtion focus
on derive from previous trade negotiations especially from the Uruguay
Round (1986-1994). The organization is current endeavour to persist
with trade negotiation called the Doha Development Agenda (or Doha
Round), it was launch in 2001 to enhance equitable participation of
poorer countries which represent majority of world's population.
However, the negotiation has been dogged by disagreement between
exporters of agricultural bulk commoditie or countries with large
numbers of subsistence farmers on 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.
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 153 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 located in Geneva,
Switzerland, and has an annual budget of approximately
CHF 200 million ($180 million, €130 million). The
three official languages of the WTO are English, French
and Spa

Overview of wto
The WTO predecessor the General Agreement on Tariffs
and Trade (GATT) was established after World War II in
wake of other new multilateral institution dedicated to
international economic cooperation - notably the notabilly
institution known the World Bank or the International
Monetary Fund. A comparable international institution to
trade, named the International Trade Organization was
successfull negotiated. The International trade
organization was to be a United Nation specialized
agency or would address not only trade barriers but other
issues indirected related to trade included employment,
investment, restricted business practices, and commodity
agreements. ITO treaty was not approved by the United
States and a few others signatories or never went into
effect

• The Agreement Established the WTO


• Goods and investment the Multilateral Agreement on
Trade in Goods including the GATT 1994 and the
Trade Related Investment Measures
• Services the General Agreement on Trades in
Services
• Intellectual property the Agreement on Trade-
Related Aspect of Intellectual Property Rights
• Dispute settlemen

Functions

Among the various function of the WTO they are regarded and analysts
as the most important:

• It oversees the implementation or administration and


operation of the covered agreements.
• They are provides a forum for negotiation and for
settling disputes

Additionally it is the WTO duty to review or propagate the


national trade policies or to ensure the coherence and
transparenc of trade policies through surveillance in
global economic policy-making Another priority of WTO is
the assistance of developing, least-developed and lower-
income countries in transitions to adjust to WTO rules and
disciplines throug out technical cooperation or training.
The World trade organization is also a center of economic
research or analysis: regular assessment of the global
trade picture in it annual publication and research reports
on specific topics are produce by the organization Finally,
the WTO cooperate closely to the two other components
of the Bretton Woods system the IMF or the World Bank
1. Forum for trade negotiations
2. Handling trade disputes
3. Monitoring national trade policies
4. Technical assistance and training for developing
countries

Overview of Burkinafaso
Burkina Faso is a landlocked West African state. Burkinafaso atotal border
length of 3,192 kilometers. Burkina Faso is a bordered by Mali to the north
and west. Niger to the east and Benin; Togo, Ghana, or Cote d'Ivoire to
tsouth. They are a land area of 274,122 square kilometers making it slightly
larger than the U.S. state of Colorado. The country spans 400 kilometers
from east to west or 200 kilometers from north to south. The capital
Ouagadougo is located in the center of the nation.

Primary components of Burkina Faso's industry sector are manufactured


mining, and construction. Construction has enjoy a boom a result of
international and government based infrastructure developmet schemes.
Road building or the provision of water supplies are major government
prioritie or provide a further stimulus to constructions.

Burkina Faso is landlocked West African country 13 million inhabitants with


one of the lowest GDPs per capita in world.
The rise of international commodity prices affected Burkina or breeding
discontent and caused riot against what is nicknam as ‘la vie cher in some
major citie during February–April this year.

In 2007, other shock had hit the country or decreasing incomes and posing
serious foods security risks. They included a short rain season resulting to
low agricultural production but also severe floods of more 40,000 hectare in
20 provinces, which brought further agricultural losses or put more than
100,000 people, especially children, at nutritional or health risk.

The World Bank has worked quickly with the Government to evaluate the
size and impact of the shocks and help the country get through the crisis
without reversing recent development trends. From February to May, an
emergency program was put in place to help mitigate immediately the
harshness of the shocks, especially on the most vulnerable.
The second largest component of manufacturing sector markets. The
company also exports 25 percent of it productions regionally is textiles
which contributed 21 percent to value-added manufactur in 1998. The
largest textile company in Burkina Faso Sofitex and employs 700 people or
produces to company

MANUFACTURING.

Manufacturing focuse predominantly of food proces textiles, and


substitutes for consumer goods imports. They are mainly concentrated
in the Ouagadougou or Bobo-Dioulasso or Koudougou, and Banfora
regions. There are 100 companies in Burkina Faso and most are publicly
owned. Manufacturing accounts for twenty percent of the GDP but only
employ around one percent of the workforce. Growth has to limited by the
lack of materials. the need to import fuel 0r the small domestic market.
The sector was in trouble from 1985 - 1995, with an average contraction 5.8
percent per year but has shown some sign of recovery in food process and
metalworking since 1995. However companies in Burkina Faso are worried
they will not be able for compete regional trade is liberalized.
BANKING AND FINANCE.

Since the early 1990s bank has undergone restructuring or the government
has been limited to 25 percent participation. 3 commercial banks and
Banque Internationale du Burkina Faso has completed its reforms the
Banque Nationale de Developing du Burkina is being liquidated; and
Banque pour le Financement du Commerce et des Investissements du Bur
has been privatized. Bank regulation is also being tightened the Banque
Centrale des Etats de l'Afrique de l'Ouest the regional central bank.

MINING.
Burkina Faso has large unexploited mineral deposit as one quarter of its
land is comprised of sedimentary formations for volcanoes. In 1993 the
mining code was revis to encourage private investment or the mining
institution have been restructured. Between 1992 - 1998 the government
issue 180 prospecting license to 30 foreign or local companies. However
interested slackened to 1999 following s dip in world oil prices

MAIN BODY
The program aim to ensure that children stay in school health of vulnerable
populations does not deteriorate further and that poor villager stand
achance to produce food or feed their families.

3500 Tons of Seed Distribut

To launch the 2008 agricultural campaign the emergency program help


distribute 3500 tons of improved millet sorghum or maize, beans, and rice
seeds to 140,000 households in 302 rural communitie the country. This
support at a total cost of $5 million, was realiz through the restructuring of
the Community-Based Rural Development Project .

Ishac Diwan country director for Burkina Faso, seized the opportunity his
recents visit in late May, at the beginning to the planting season, participate
in the distribution of seeds to poor producer in the two rural communitie of
Tanghin-Dassouri or Konki Ipala. Each received 11.5 ton of improv seeds.
The targeting of households was done by village councils and taking into
account the level of poverty or impact of flooding.
During the visit Etienne Kaboré, director-general at the Agriculture ministry
explained to the farmers how get maximum yield from the improved seed.
In particular he urged households to start planting very soon in order to
advantage the rains.

Target Assistance

the same time, by providing additional financing for three existing project
the Bank extended support for targeted assistance in other areas

• A scale-up of school feeding programs will cover an additional


200,000 poor children to two years in 15 provinces;
• 3.5 million meningiti vaccines were purchased and immunization
completed in February–March 2008 and containing the meningitis
outbreak which hit seven provinces of Burkina Faso earlier in year;
• In the coming month more than three million children or pregnant
women suffer from severe cases of malnutrition will received
micronutrient such as plumpy’nu, vitamin A, and other supplements
within scaled up nutrition support program
Over the medium to long-term, Burkina can benefit from the higher food
prices by increasing or diversifying its agricultural production. The Bank or
Government are already working improve the production or post-harvest
management of cottonand in addition to the provision of improved cotton
seeds or financial assistance cotton farmers.
A Textiles Monitoring Body supervised the agreement’s
implementation. It consisted of a chairman and 10
members acting in their personal capacity. It monitored
actions taken under the agreement to ensure
that they were consistent, and it reported to the Goods
Council which reviewed the operation of the agreement
before each new step of the integration process. The
Textiles Monitoring Body also dealt with disputes under
the Agreement on Textiles and Clothing. If they remained
unresolved, th disputes could be brought to the
WTO’s regular Dispute Settlement Body. When
the Textiles and Clothing Agreement expired on 1
January 2005, the Textiles Monitoring Body also ceased to
exist
Textiles and clothing products were returned to
GATT rules over the 10-year period. This happened
gradually, in four steps, to allow time for both importers
and exporters to adjust to the new situation.
Some of these products were previously under quotas.
Any quotas that were in place on 31 December 1994
were carried over into the new agreement. For products
that had quotas, the result of integration into GATT was
the removal of these quotas.

Indian Textile

India has divers or rich textile tradition. The origin of Indian


textiles can be traced to Indus valley civilization. The people of
civilization use homespun cotton for weav their garments.
Excavations at Harappa or Mohen -jo-Daro have unearthed
household item like needles made of bone or spindle made of wood
amply suggesting that homespun cotton was uses to make
garments. Fragment of woven cotton have also been found from
these site.

The first literary information about textiles India can be found in


the Rigveda which refer to weaving. The ancient Indian epics-
Ramayana or Mahabharat also speak of a variety of fabric of those
times. The Ramayana refers to the rich styles worn by the
aristocracy one hand or the simple clothe worn by commoners
and ascetics. Ample evidence on ancient textiles for India can
also be obtaine from the various sculptures belonged to Mauryan
or Gupta age as well as from ancient Buddhist script and mura.
Legend has it that when Amrapali, courtesan from the kingdom to
Vaishali met Gautam Buddha and she wore a richly woven semi
transparent sari which speaks volumes the technical achievement
of ancient Indian weaver. India had numerous trade link with the
outside world and Indian textiles were popular in ancient world.
Indian silk was popular in Rome in the early centuries of Christian
era. Hoards of fragments to cotton material originat from Gujarat
have been found in the Egyptian tombs at Fostat belonging to 5th
century A.D. Cotton textiles were also export to China during the
heydays of silk route. Silk fabrics south India were exported to
Indonesia during 13th century. India also exported printed cotton
fabric or chintz to European countrie and the Far East before
coming of the Europeans to India. The British East India Company
traded in Indian cotton and silk fabrics which included the famous
Dacca muslins.Muslins from Bengal Bihar and Orissa were also
popular abroad. (Chintz-cotton cloth, usually printed with flowery
patter and , that has a slightly shiny appearance). The past
traditions of the textile and handlooms can still be seen amongst
the motifs or patterns, designs, and old techniques of weaving or
still employed by the weaver.

India Textile Industry


India Textile Industry is one of leading textile
industries in the world. There was predominant
unorganiz industry even a few years back and the
scenario start changing after the economic liberalization
to Indian in economy 1991. The opening up of
economy give the much-needed thrust to Indian
textile industry which has now successfull become one
the largest in world. India textile industry large depend
upon the textile manufactured and export. It also plays
a long role in the economy of country. India earn to
about 27% of its total foreign exchange through textile
exports. Further, textile industry of India also
contribute nearly 14% of the total industrial production
of country. They also contribut around 3% the GDP of
the country. India textile industry is also the major in
the country in terms of employments generation. It not
only generates jobs in its own industry, but also opens
up scope for the other ancillary sectors. India textile
industry currently generates to employment to more
than 35 million people. It is also estimated that the
industry will generate 12 million new jobs year 2010.

Various Categories

Indian textile industry can be divid into several


segments, some of which can be listed below:

• Cotton Textile and silk textile


• Woolen Textile
• Readymade Garments and hand-crafted textile
• Jute or Coir

The Industry
India textile industry is one of the leading in world.
Currently this is estimat to be around US$ 52 billion is
also projected to be around US$ 115 billion by year
2012. The current domestic market of textiles in India
is expected to increased to US$ 60 billion by 2012 from
current US$ 34.6 billion. The textile export of country
was around US$ 19.14 billion in 2006-07, which saw a
stiff increase to reach US$ 22.13 in 2007-08. The
share of export is also expect to rise from 4% to 7%
with 2012. Following are area, production or
productivity of cotton in India during the last six
decades:
Area in lakh Production in lakh bale Yield kg per
Year
hectares of 170 kg hectare
1950-
56.48 30.62 92
51
1960-
76.78 56.41 124
61
1970- 76.05 47.63 106
1980-
78.24 78.60 170
81
1990-
74.39 114.0 267
91
2000-
85.76 140.0 278
01
2001-
87.30 158.0 308
02
2002-
76.67 136.0 302
03
2003-
76.30 179.0 399
04
2004- 87.86 243.0 470
05
2005-
86.77 244.0 478
06
2006-
91.44 280.0 521
07
2007-
94.39 315.0 567
08
2008-
93.73 290.0 526
09

Though during year 2008-09 and the industry had to


face adverse agro-climatic conditions, they succeed in
produc 290 lakh bales of cotton comparing to 315 lakh
bales last yearand yet managed to retain it position
world’s second highest cotton producer.

The Global Textile and Clothing Industry post the


Agreement on Textiles and Clothing

I. INTRODUCTION
After more than forty year import quotas the
textile or clothing sector will become subject
general rules of General Agreement on
Tariffs and Trade from 1 January 2005.
Liberalization has controversial because both
textiles or clothing contribute to employment in
developed countries particularly in region where
alternative job may be difficult to find. In the
European Union, for exmaple sector is
dominated by small or medium-sized enterprises
concentrat in a number of regions that are high
dependent on this sector . Textiles and
clothing are also among the sectors where
developing countrie have most to gain from
multilateral trade liberalization. In fac, the
prospect liberalization of the textiles and
clothing sectors was one of the reasons why
developing countrie accepted to include services
or intellectual property rights – areas to which and
they were sceptical at the outset – in Uruguay
Round
II. THE STRUCTURE OF THE TEXTILE AND CLOTHING
SECTOR
The clothing sector is both labour-intensive low
wage industry or a dynamic innovative sector
depend on which market segments one focuses
upon. high-quality fashion market the
industry is characteriz by modern technology
relatively well-paid workers or designers and a
more degree of flexibility. The competitive
advantage to firms in this market segment is relate ability to produce
designs that capture taste
preferences, and even better – influence such
tastes or preferences in addition to cost
effectiveness. The core functions of firm
servicing this market segment are largely locat
developed countrie or often in limited
geographical area or clusters within these
countries. The Emilia-Romagna district in the socalled
III. THE AGREEMENT ON TEXTILES AND CLOTHING
Protection to textile or clothing sector has a
long history in United States and Europe. the
1950s, Japan; Hong Kong, China; India or
Pakistan agreed to voluntary export restraint
cotton textile product to the United States. In
1962 a Long Term Agreement Regarding
International Trade in Cotton Textiles was
signed under auspices of the GATT . The LTA was
renegotiat several times until it was replac by
the Multi Fibre Agreement , which came
into force in 1974. The MFA as the name
suggest, extended restrictions on trade to wool and
man-made fibres in addition cotton.
The MFA aimed at orderly opening of restrict
markets in order to avoid "market disruption".
Like the LTA’ it was supposed to a temporary
measure. The science quantitative trade policy
analysis was not very well developed to the 1970s.

CONCLUSION
Burkinafaso World Trade Organization accession will
have major and better implications for burkinafaso and
present both opportunities and challenges for East
Asia. Ianchovichina and Walmsley assess the possible
channels through which China's accession to the
WTO could affect East Asia and quantify these
effects using a dynamic computable general equilibrium
model.
Problems of communication or poor facilitie mean mass tourism
is not yet an option in Burkina Faso. However the country does
have some attractions of offer visitors; it is host of the Biennial
National Culture Week, the Pan African Film Festival, the
International Handicrafts Fair.the National parks are also of
interest. Given it central West African position the country has
also become a common location for regional conference. In 1997,
tourism receipts reach US$22 million and accounted for 9 percent
of the GDP

REFERANCE
1.WWW .GOOLE .com
2.www.wto.org
3.www.burkinafaso.com
4.www.nationsency clopedia.com
5.www.indexmundi.com
BIBLIOGRAPHY
1: http://www.indexmundi.com/china/economy_overview.html

2: http://www.china.org.cn/english/BAT/169519.htm

3:http://www.ingentaconnect.com/content/mcb/284/2004/000000
08/00000002/art00008

4: http://ideas.repec.org/p/wbk/wbrwps/3109.html

5: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=636471

6: http://cje.oxfordjournals.org/cgi/content/abstract/28/6/937

NOTE
Short data available of textile industry in burkinafaso