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Advancement
International Economic Relations in 20 th Century
1.Evolution of Concepts, Precepts and Doctrines,
towards establishment of International Economic
institutions.
Reasons:1.Higher trade barriers, imposed by countries on
cross border trade and Commodity Exchange,
after 1st.World War
Introduction
In 1916,the Allied Economic Conference, Paris,
The issue of central concern to the United States was that this
pact included schemes for
subsidization and government ownership of manufacturing
enterprises and
division of European markets for the pact participants.
The outcome of the 1916 Paris Economic Conference
foreshadowed the conflict between the United States and the
Allied Powers during the Paris Peace Conference declared that
1. All commercial treaties between allied and enemy powers are
invalid.
2. The enemy powers should get no benefits from MFN
obligations
Introduction
Two other Institutions were also in existence
1. Wheat Executive(Royal Commission on Wheat
Supplies).1916
2. Allied Maritime Transport Council..1917
The Allied Maritime Transport Council (AMTC) was an
international agency created during World War I to
coordinate shipping between the allied powers of
France, Italy, Great Britain, and the United States.
The council was formed at a conference in Paris in
November 1917, with each nation appointing its
respective ministers (or delegates) in charge of
shipping to the council
Introduction
From 1916-1920 the trade was with no
restrictions from the countries in Europe or
in other countries outside Europe.
In 1920,Economic committee of League of
Nations in Brussels conference, convened
1.Abolition of artificial restrictions on Int.
Trade.
2.Restoration of pre-war trading
Introduction
From 1920-1930
Genoa(Italy) conference.1922,a
convention on the Simplification of
Customs Formalities.
Geneva conference1927,recomended
Collective Action from the member
nations
In 1927,a convention on Abolition of
Import and Export Prohibition was
adopted
Introduction
The World Economic Conference of
League of nations developed a doctrine in
1927,stating
Tariff were not a matter of domestic concern
and Sovereign power of Individual
State.and recommended reduction of
tariff by nations individually and
collectively
Introduction
Int. Trade 1920-1930
The concept of unconditional MFN treatment
became inoperative and there was steep rise
in tariffs.
The USA passed
1.Emergency Tariff Act.1921,imposing high
duties on wheat, corn, wool, sugar and meat
2. Fordney-Mc Umber act.1922,containing
extreme protection.
3. Hawly Smoot Tariff Act.1930,imposing high
tariff on 900 items.
Introduction
1930-1939-1945
The era of 1930-39 was a great recession in
the world trade.
In 1934 USA decided to liberalize trade by
reciprocal tariff bargaining. The concept
was forwarded by Cordel Hull, Secretary
of State in US Administration.
The League of Nations finally met in Geneva
in April 1946 and by series of resolutions,
transferred its powers and functions to the
United Nations.
Introduction
International Economic Relations during
and after World War-2
An Universal feeling was there that
Political security could not be divorced
from International Economic and Financial
stability.
Introduction
In Atlantic conference 1941,a charter was
forwarded containing basic ideas
The expectation of every nation to expend
the trade should not be suppressed or
diverted by
Towering tariffs
Preferences
Discrimination
Bilateral Treaties
Introduction
A Mutual Aid Agreement took place between USA and
Uk. In 1942,focussing
Elimination of all discriminatory treatment in
International Commerce, Reduction of Tariffs and
other Trade barriers.
From 1943-44,the US & UK, collaboration produced two
plans
1.White Plan, by US Treasury
2.Keynes Plan, by UK Treasury
These plans were the basic concept for the
establishment of IMF, adopted in 1944,as a result of
Bretton Woods, New Hampshire.England.
Another Institution, from this conference was
International Bank for Reconstruction and
Development (IBRD) also known as World Bank
GATT
The purpose of GATT can be seen through its various articles
Part-1(article 1&2),speaks about MFN clause and Tariff Schedules
Part-2, comprises commercial policy regulations, including
a.
Freedom of Transit
b.
Anti Dumping and Countervailing Duties
c.
Valuation
d.
Quantitative restriction
e.
Non-Discrimination
f.
Subsidies
g.
Governmental Assistance to Economic Development
h.
Emergency Actions
i.
Security Exceptions
j.
Consultation
k.
Nullification and Impairment
GATT
Part-3 includes,
a. The provision on territorial applications
b. Customs Union and free Trade areas
c. Joint Action by Contracting parties
d. Modification of Schedules, amendments and
withdrawals
Part-4(which was added in 1965)Captioned, Trade
and Development, deals with,
a. Principles & objectives for helping Less develop
Countries,
b. Delineates commitments and Joint Action to
achieve the objectives of International Trade
GATT
The preamble of GATT speaks on the basis
of
a. Comparative Cost Advantage
b. Free Market Access
GATT
The Concept of MFN
Any advantage, favor, privilege or immunity
granted by any contracting party to any product
originating in or destined for any other country
shall be accorded immediately and
unconditionally to the like product on all other
contracting parties.
It rests on four pillars
1.The unconditional MFN obligation
2.Tariff bindings
3. The National Treatment obligation
4.Elimination of Quantitative restrictions
GATT
The MFN principles are subject to some
exceptions, graded in four parts
a. Waiver under article 25(5)granted in
exceptional circumstances approved by 2/3
majority of votes cast
1. European and Steel community in 1952
2.Int.Agreement on Agriculture in 1955 on the
behest of USA
b. Security exceptions, under article 21,where
contracting parties do not furnish information to
each/any of them due to essential security
reasons, like traffic in arms, ammunition goods
for army use OR fissionable material etc.
GATT
C. General Exceptions under article
20,relating to
1.Public Morals
2.Human,Animal or Plant Life or health
3. Trade in Gold and Silver
4. Protection of Natural treasures of Artistic,
historic or archeological value
5.Conservation of natural resource
6.Restriction on the Export of domestic
material
GATT
D. Exceptions under article 24,on
Quantitative Restrictions are acceptable in
the case of balance of payments related
difficulties.
E. Exceptions under article 24,do allow
contracting parties to enter into customs
union and free trade areas on the basis of
fulfillment of certain conditions.
GATT
Tariff Binding
As per Article 2:1(a)
Each contracting party shall accord to the
commerce of the other contracting parties
treatment no less favorable than that provided
for in the appropriate part and schedule annexed
to this agreement.
GATT preamble and Article 28 provides for
multilateral tariff negotiations to reduce existing
tariff rates and to bind tariff concessions.
When the tariff rates are bound the duties
assessed on the bound items may not be
greater than the bound rate.
..continued
GATT (Tariff)
Bindings are Legal Guarantee that tariff will
not be increased above the maximum tariff
level, but any thing less than the level.
Besides encouraging the reduction of Tariff
Level, the GATT recognizes tariff as the
only form of permissible financial charge
that may be imposed on imported goods.
GATT (Tariff)
Tariff Negotiation
Article 28:1,establishes the framework for
negotiating tariff concessions
On a reciprocal and mutually advantageous basis,
directed to the substantial reduction of the
general level of tariffs and other charges on
imports and exports and in particular to the
reduction of high tariffs as discourage the
importation of even minimum quantities.
GATT is to progressively reduce tariff barriers
between various contracting parties
GATT (Tariff)
Since the beginning in 1947 till Uruguay
round in 1994,there have been eight
rounds, starting from 23 contracting
parties, in 1994 it reached on 124
contracting states.
The Process
The process of tariff negotiation in 1 st GATT
round in Geneva was on the basis of
Product-by-Product negotiation OR by the
application of such multilateral procedures
as may be accepted by contracting parties
concerned.
GATT (Tariff)
The growing complexity of tariff negotiation led to
abandonment of the product-by- product
negotiating approach in favor of a formula
applied to a large number of products called
Across-the-board or Linear method.
Kennedy Round(1964-67) used 50%linear cut as
a starting point.
After the linear cut was made, parties negotiated
on sector-to-sector, product-by-product basis,
except on agricultural products and specific
non-agricultural sectors where members
negotiated zero-for-zero,reductions
GATT
2.Preferential Tariffs
Preferential schemes registered under
Article 1:2 of GATT 1947
3.Non Tariff concessions
4.Commitments limiting subsidization of
Agricultural products
a. Domestic Support
b. Export Subsidies (budgetary and quantity
commitments
c. Export Subsidies ( commitments limiting
scope of export subsidies)
Quantitative Restrictions
GATT Article 11 specifies.. No prohibitions or
restrictions other than duties, taxes or other charges,
whether made effective through quotas, import or
export licenses or other measures, shall be instituted
or maintained by any contracting party or on the
exportation or sale for export of any product destined
for the territory of any other contracting party.
The prohibition on quantitative restriction is broad.and
applies on
1.Both import and Export quota
2.Any type of Govt. measure that may lead to the
imposition of a quota.
Here it is immaterial whether that it does have any
negative effect on imports or exports
Quantitative restrictions
Exceptions to Article 11.
There are three GATT authorized exceptions
1.Quotas imposed on agricultural and fisheries
products
to the extent necessary to enforce Govt. measure
designed to stabilize national market for these
products.
Para (a) permits restrictions temporarily applied to
prevent/relieve critical shortage of foodstuff.
Para (b) permits restrictions necessary to the
application of standards for classification, grading or
marketing of commodities in Int. Trade.
Para (c) permits import restrictions on any agricultural
/fisheries product necessary to the enforcement of
Govt. measures that operate in any of the following
Quantitative restrictions
1.To restrict the quantities of a like or directly
substitutable domestic product.
2. To remove the temporary surplus of the
like or directly substitutable domestic
product by making it available to domestic
consumers either free or at below market
price.
3.To restrict the quantities of any animal
productthe production of which is
directly dependent on the imported
commodity
NTB
NTBs are less transparent than tariffs as..
1.NTBs may not be widely known if they are introduced through
an administrative process that lacks proper notice or an
opportunity to comment.
2.The extent of an NTBs protectionist effect is hidden because of
the difficulty of qualifying it.
Negotiating the elimination or reduction is difficult in
1.Developing ..commonly, agreed-upon reporting requirements
2.Qualifying NBT in a consistent and uniform manner.
Unless NBTs are converted into a generally accepted tariff
equivalents, negotiators cannot know whether they are
comparing the same product ????
NTB
GATT under article 10 deals with Publication and Administration
of Trade Regulation for smooth functioning of a multilateral
trade system that requires transparency of the trade.
Laws, regulations, judicial decisions and administrative rulings
of general application made effective by any contracting
party pertaining to
The classification or valuation of products for custom purposes,
rate of duty, taxes or other chargesor
Requirements, restrictions or prohibitions on imports / exports or
on the transfer of payments there for, or effecting their sale,
distribution, transportation, insurance, warehousing,
inspection, exhibition, processing, mixing etc. is prohibitive.
NTB
The GATT provision have been a subject to
1.The Tokyo Round(1974) realizing the need
to improve the exchange of notifications, the
negotiators concluded an understanding
regarding notification, consultation, dispute
settlement and surveillance.
The major exporting countries compiled a list
of 800 measures that had not been notified
to GATT and were being used by importing
countries to block or suppress trade
NTB
NTB
The second is the decision on notification
procedures, extends an affirmation by member
to notify and publish all measures affecting the
operation of GATT 1994 and create a central
registry for filing notification.
It may have list of tariffs, quotas and surcharges,
Quantitative restrictions, Non-tariff measures like
licensing, mixing requirements, custom
valuation, rules of origin, safeguard actions,
anti-dumping actions, export taxes, subsidies
and exemptions, free trade zones etc.
Product Standard
The GATT under Uruguay Round builds an obligation of
the standard code with regard to the preparation,
adoption and application of technical regulations and
standards.
Article 2.2 specifies the legitimate objectives like
National security, prevention of deceptive practice,
protection of human health and saftey, animal or plant
life or health, environment.
The complaining member must show
1 Availability of alternative measure and its reasonability
2.Fulfilment of Govt. objective
3. It is less restrictive to trade
Product Standard
Conformity Assessment Procedure
The TBT Agreement defines it as measure of all
aspects including laboratory accreditation and
quality system registration.
A WTO member adopts internationally
recognized accreditation standards for
laboratory recognition that are promulgated by
bodies such as the ISO or Int. Electro-technical
Commission. The issue of mutual recognition of
conformity assessment procedure need to be
defused.
FDI
Investments may be divided in two categories
1.Portfolio Investment, acquires shares of foreign
corporation without exercising any direct control
over mgt. of the entity.
2. Foreign Direct Investment (FDI) involves
acquiring a significant controlling interest of an
existing foreign firmor establishing a new
firm.
FDI
It may be shown like
1.Acquisition overseas
2.Technology Transfer
3.Outsourcing abroad
4.Joint Venture
5.BOT
FDI
FDI
In 1996,in Singapore Ministerial Conference declaration it was
determined that a working group be formed who shall prepare
provision in relation to..
1. Matters related to investment and competition policy including
TRIMs
2. Probable, consented areas for future
At present, WTO does not have any comprehensive agreement
regulating all aspects of FDI, but some other measure do play a
vital role simultaneously like
TRIMs, Trade related Investment Measures
GATS, General Agreement on Trade in Service
TRIPS, Trade related Intellectual Property Rights
SCM, Agreement on Subsidies and Countervailing Measures
GP, Agreement on Government Procurement
TRIMs
1.TRIMs,is a trade related investment measure imposed
by a Govt. on a foreign investor as a condition for
investing in the host country.
It may be positive extending financial incentives like Tax
Holidays or Subsidies.
Or Negative like Local equity requirements, licensing
requirements, Profit remittance restrictions, foreign
exchange restrictions, transfer of technology
requirements, domestic sales requirements, trade
balancing requirements, local content requirements,
export requirements, import substitution requirements
Usually TRIMs agreement deals with negative part
TRIMs
It has three main features
1. It identifies certain types of investment measures that are
inconsistent with GATT 1994,Article 3 or 11.
2. The agreement requires that all inconsistent TRIMs be notified
and eliminated in 2 years by dev. Countries, 5 years by
developing countries and 7 years by least developed countries.
3. The council for Trade in Goods is to review the operation of
TRIM to consider whether the agreement is complemented with
provision on investment and competition policy.
Overall, TRIMs is an unbalanced document that reflects the
bargaining position of developed countries enabling US to
wager in order to secure gains in the areas of Intellectual
Protection protection and GATs.
On the other hand on Restrictive trade Practice, It is totally silent
The GATS
Foreign investment in the service sector is governed by GATS, a
binding, multilateral sectoral agreement on foreign investment.
The concept came in existence in 1986 at Punta-del Este by US and
EU members and could not reach on negotiation until 1992.It has
29 articles and contains five components.
1.General Concepts(Part-1)
2. general obligations and disciplines (Part-2)
3.Specific Commitments on market access and National Trtmnt
4. Commitment by member countries to progressive liberalization
5.Institutional provisions
The GATS permits market access for service suppliers through
different modes of supply,( Article-1)
1. Supply of service from territory of one member to another ,i.e. cross
border supply of service.
2.In the territory of one member to the service consumer by another
The GATS
This mode is called Consumption Abroad, here the service seeking
consumer travels to supplying country for tourism or education.
3.By a service supplier of one member through commercial
presence in the territory of any other member, establishing branch
office or agencies abroad.
4. By a service supplier of one member through presence of natural
person in the territory of another, deputing specialist in another
country.
Under part 2,an obligation is on member state to apply the general
notions of WTO in service sector too relating to..
MFN, Transparency and fair Procedure, Domestic and Mutual
Recognition, Monopolies and Exclusive Service Suppliers,
Payments and Transfer, Subsidies and Govt. Procurement etc.
Subject to general exceptions related to environmental hazards and
protection to the life of Human, animal or plant or Security reason
TRIPs
General Provisions
1.It sets the minimum Standards only and allows the
member countries to go beyond.
2.It does not protect against unfair competition.
3. It provide the protection to the private persons and their
private property rights but the individuals must be
nationals of WTO members
4.IPR in WTO acknowledges the previous Paris, Berne
and Rome conventions and the rights of the holders.
5. The areas of Copyright is limited to expressions only,
ideas, procedures, method of operation and
mathematical concepts are not entitled to copyright
protection
TRIPs
Objectives
1.International harmonization of standard
2.Solidification of International regime
3.Reduction of distortions
4.Adequate protection of Intellectual property
rights
5.Cater the special need of LDC
The TRIP agreement insist to establish
relationship between WTO and WIPO.
The whole agreement contains 7 parts and 73
articles covering all aspects of IPR
TRIPs
The heart of the agreement lies in part-2 which speaks
about availability, scope, and use of IPRs
Agreement categorizes IPR in 7 parts
1. Copyright and related rights
2. Trademarks
3. Geographical indication(place of origin of a good) like
wine, music, etc.
4. Industrial Design
5. Patents
6. Layout-designs of integrated circuits
7. Protection of Undisclosed Information
Trademarks
Article 15 of TRIPs Agreement deals with trademark and defines
any sign or combination of signs, capable of distinguishing the
goods or services.personal names, letters, numerals,
figurative element and combinations of colorsshall be eligible
for registration as trademarks
The initial term and each renewal term of a registration may not
be less than 7 years, subject to renewal in perpetuity.
A registration may be cancelled only after an uninterrupted, three
year period of non-use. Like import restriction for 3 years.
Members may impose conditions on licensing and assignment of
trademarks.
Trademarks
The Convention identifies three grounds for
refusing/invalidating a trademark under Article 15.3
1.Rights acquired by third parties in the country, where
protection is claimed, are infringed by the mark.
2.The mark is devoid of any distinctive character,
consists exclusively of signs or indications to
designate the kind ,quality ,quantity ,value or place of
origin of the goods ,or has become customary in the
language or in the established practices of the trade of
the country where the protection is claimed.
3. The mark is contrary to morality or public order or
deceptive or violates the laws of unfair competition of
the country in which registration is sought
Geographical Indications
The concept of Geographical indication deals with the place of
origin of any product..like Montana Beer, Basmati Rice,
Swiss Chocolate, Kashmiri Kesar etc.
The concept came in existence and seen as an International
agreement in 1958,with Madrid Arrangement which extended
protection against False or Deceptive Indications of source of
goods. In 1967 an Additional act.( Madrid Arrangement) came
into existence.
In 1967 Lisbon Agreement came into existence for Protection of
Appellations of Origin and their International Registerations.
Articles 22 to 24 of TRIPs, deal with protection and use of
Geographical indications.
Geographical Indications
Article 22.1, defines Geographical indications identify a
good as originating in any territory, region or locality of
a member, where a particular quality, reputation or
other characteristic of a good is essentially attributable
to its geographic origin.
22.2,requires a member to provide interested parties the
legal means to prevent the use of product description
that misled the public regarding the geographic origin
of a good or that constitute an unfair competition .
22.3,requires member to refuse registration or to
invalidate that registered trademark, which may
mislead the public regarding the geographic origin of
goods( Nirma/Tirma)
Geographical Indications
Wines and Spirits
Under article 23 a special protection is provided to them
23.1 says, geographical indications for wines or spirits
that do not originate in the location indicated.may be
challenged.
23.2 specifies.such indication may not be used or
registered even after using words like..kind, type,
style, imitation, etc.
Exceptions
1. The trademark that use the geographical indication for
wine or spirit are grandfathered if it was continuously
used in good faith prior to the effective date of
TRIPs(15th April 1994) or 10 years prior to that date.
Geographical Indications
2. Where a trademark has been applied for or
registered or acquired in good faith
a.Before the date of application of TRIPs
b.Before the geographical indication is protected
in the country of origin
The member does not need to prevent the use of
such trademark.
3. It is permitted to use the names of grapes
which are also geographical indications of
another member, provided that grape variety
existed in the country permitting the use
Patents
Patents
In determining the eligibility of an invention to be patented TRIPs
prohibits discrimination on a locally produced or imported
invention.
The requirement of patentability is subject to some exceptions.
1.Inventions may be excluded from giving Patent Rights..if the
commercial exploitation could endanger the public order or
morality of the WTO member concerned.
2. Plants and Animals or biological process for the production of
plants or animalsother than non-biological and microbiological process.
3.Patentatibility of any diagnostic, therapeutic and surgical method
for the treatment of humans or animals
Patent
A patent confers exclusive right to its holder
1.For a Product.exclude others from making,
using, offering for sale, selling or importing that
product. A third party cannot use it without the
consent of the patent holder.
2.For a processthe patent holder has an
exclusive right for preventing the third party
from all doings and also obtaining the end
product by using that process.
The patent holder may assign or transfer the right
by succession and also conclude it by license.
Compulsory Licensing
Compulsory licensing and Govt. use of the patent, without the
authorization of its owner, are allowed on the fulfillment of some
conditions aimed at protecting the legitimate interests of the
rights holder.(Art.31)
In TRIPs 11 principles are listed which must be met ordering
compulsory licensing like..
1.It must be on the case to case basis,
2.There must be prior consultation with the holder except in
national emergency and non-commercial use.
3.It must be revoked at the earliest, the emergency is over.
4.The scope must be proportional to the need and be limited to the
purpose.
5. It must be granted for public non-commercial use only
6. It must be completely Non-Exclusive
7. The rights derived from it cannot be transferred to a 3 rd party
Compulsory Licensing
UNCITRAL
Besides this some model law preparation is also going on the
following trade related areas
1. Model Law on International Commercial Conciliation 2002
2. UN Legislative guide draft on Secured Transaction 2002-06.
3. UNCITRAL Model Law on Cross border Insolvency 1997/2009.
4. UNCITRAL Model Law on Procurement of Goods , Construction
and Services 1994.
5. UNCITRAL Model Law on Electronic Commerce 1996
UNCTAD
Established in 1964, UNCTAD promotes the
development-friendly integration of developing
countries into the world economy. UNCTAD has
progressively evolved into an authoritative
knowledge-based institution whose work aims
to help shape current policy debates and
thinking on development, with a particular focus
on ensuring that domestic policies and
international action are mutually supportive in
bringing about sustainable development.
UNCTAD
UNCTAD
UNCTAD
UNCTAD
UNCTAD
Investment guides and capacity building for
the LDCs: Some of the countries involved are
Bangladesh, Ethiopia, Mali, Mozambique and
Uganda.
Empretec: Promotes entrepreneurship and the
development of small and medium-sized
enterprises. Empretec programmes have been
initiated in 27 countries, assisting more than
70,000 entrepreneurs through local marketdriven business support centres.
UNCTAD
Macroeconomic policies, debt and development financing
Policy analysis and research on issues concerning global
economic interdependence, the international monetary and
financial system, and macroeconomic and development policy
challenges.
Technical and advisory support to the G24 group of
developing countries (the Intergovernmental Group of 24) in the
World Bank and the International Monetary Fund; advisory
services to developing countries for debt rescheduling
negotiations under the Paris Club.
DMFAS programme: Computer-based debt management and
financial analysis system specially designed to help countries
manage their external debt. Started in 1982, and now installed
in 62 countries.
UNCTAD
Technology and Logistics
ASYCUDA programme: Integrated customs system that
speeds up customs clearance procedures and helps
Governments to reform and modernize their customs
procedures and management. Installed in over 80 countries,
ASYCUDA has become the internationally accepted standard
for customs automation.
ACIS programme: Computerized cargo tracking system
installed in 20 developing countries of Africa and Asia.
E-Tourism Initiative: Linking sustainable tourism and
Information and communication technologies (ICTs) for
development, UNCTAD has developed this Initiative to help
developing countries' destinations to become more autonomous
by taking charge of their own tourism promotion by using ICT
tools.
UNCTAD
Technology:
Technology Services the UN Commission on
Science and Technology for Development and
administers the Science and Technology for
Development Network; carries out case studies on
best practices in transfer of technology; undertakes
Science, Technology and Innovation Policy Reviews
for interested countries, as well as capacity-building
activities.
TrainForTrade programme: Builds training networks
and organizes training in all areas of international
trade to enable developing countries to increase their
competitiveness. Currently developing distance
learning programmes focusing on the LDCs
Commercial Diplomacy
Trade in Services
Market Access and Preferential Arrangements
Commodities
Trade, Environment and Development
Competition Law and Policy and Consumer Protection
RTA
RTA
North American Free Trade Agreement(NAFTA)
When it was concluded in 1992 it was the most comprehensive
free trade area agreement creating the worlds largest market
for goods and services.
It was not an original ideait was modeled after the Canada-US
free trade agreement(CUSFTA) Jan1988.
In fact establishing free trade under CUSFTA was inspired by USIsraeli FTA of 1985 where US and Israel made an agreement
for trade in goods for an initial period of 10 years(1985-1995)
When CUSFTA was signed between President Ronald Regan of
US and Prime Minister Mulroney of Canada, on 2nd Jan 1988,it
covered almost all areas of Int. trade like trade in goods,
services, government procurement, Investment etc, except IPR.
The organization of CUSFTA was carried forward in NAFTA which
includes US, Canada and Mexico as trading partners.
NAFTA
The text of NAFTA is divided into eight parts
1.Objectives
2.Trade in Goods
3.Technical Barriers to trade
4.Government Procurement
5.Investment and Trade in Service
6 Intellectual Property
7.Administrative and Institutional provisions
8. Misc. Provisions
The unique feature of NAFTA is sectoral coverage and its depth of
legal disciplines to phase out elimination of all tariffs on trade in
goods among the member countries. It has got success to
eliminate a number of NTBs effectively.
US has introduced NAFTA Agreement Act 1993 to give effect to it in
US domestic market also.
EC
All 3 treaties together were called European
Communities (EC) until 1993 when EC became
EU through Maastricht Treaty but it did not
endow the EU with international legal
personality ( consequently the entity that
represents the 15 EU members in their trade
relations with third countries and the WTO is
still called EC)
The guiding principle of EU is the formation of a
custom union under which all obstacles to the
free movement of goods, services, capital and
people among the member states will be
removed.
EU
In its economic relations with countries outside the custom union
the EC adopts a common external tariff that harmonizes and
levels national duties on goods of non-EC origin and eliminates
tariff on goods of EC origin.
The EC member states agreed to the gradual elimination of all
tariffs and quotas on trade among its members and to the
introduction of a common external tariff within a duration of 12
years.
In 1993 the Treaty of Rome was amended by Maastricht(1993)
and created 3 Pillars.
1.The European Communities
2. Common foreign and security policy
3. Cooperation in the field of Justice and home affairs
EU
The EU acts through four institutions,
1.The commission
2.The Council of Ministers
3.The European Parliament
4.European Court of Justice
The Executive body of the commission is in Brussels and
comprises 20 commissioners as representatives of member
countries.
The Council of Ministers represents national governments through
their nominated people and is responsible of adopting EU laws.
The EU Parliament gets 626 representative directly elected by the
citizens.
The EU Court of Justice is meant for ensuring legal obligations
arising among members. It is the final word on EU Law
Mercosur
Mercosur or Mercosul (Southern Common market) is a
Regional Trade Agreement (RTA) among Argentina, Brazil,
Paraguay and Uruguay founded in 1991 by the Treaty of
Asuncin, which was later amended and updated by the 1994
Treaty of Ouro Preto.
Its purpose is to promote free trade and the fluid movement of
goods, people, and currency.
Bolivia, Chile, Colombia, Ecuador and Peru currently have
associate member status. Venezuela signed a membership
agreement on 17 June 2006, but before becoming a full
member its entry has to be ratified by the Paraguayan and the
Brazilian parliaments.
The founding of the Mercosur Parliament was agreed at the
December 2004 presidential summit. It should have 18
representatives from each country by 2010.
Mercosur
It is the 3rd largest RTA in the world. Its key
obligations are
1.To establish an FTA where tariff and non-tariff
barriers are progressively eliminated.
2. Coordination of macroeconomic policies and
the harmonization of laws.
3.Implementation of a common tariff and trade
policy in 3rd party relations.
4.Adoption of sectoral arrangements
Mercosur
Role and potential
Some South Americans see Mercosur as giving the capability to
combine resources to balance the activities of other global
economic powers, especially the North American Free Trade
Agreement (NAFTA) and the European Union.
The organization could also potentially pre-empt the Free Trade
Area of the Americas (FTAA)however, over half of the current
Mercosur member countries rejected the FTAA proposal at the
IV Cumbre de las Amricas (IV Summit of the Americas) in
Argentina in 2005.
The members have not reached on trade in services, IPR,
Protection or Govt. Procurement .However all members are in
WTO and are signatories to the GATS and TRIPs agreement
Mercosur
The development of Mercosur was arguably weakened by
the collapse of the Argentine economy in 2001 and it has
still seen internal conflicts over trade policy, between
Brazil and Argentina, Argentina and Uruguay, Paraguay
and Brazil, etc. In addition, many obstacles are to be
addressed before the development of a common
currency in Mercosur.
Mercosur as a bloc is currently negotiating bilateral free
trade agreements with other blocs such as CARICOM,
the Andean Community, European Union, and the Gulf
Cooperation Council. It is also seeking one with the
Dominican Republic.
APEC
The Asia- Pecific Economic Cooperation Forum
Was founded in 1989 in Canberra(Australia) with a
loosely organized forum having 12 members for
the purpose of consultation and cooperation on a
range of economic issues.
It is an Intergovernmental forum and has its
headquarter in Singapore ,established in 1992,it
has no written treaty or document creating
institutions ,rules or procedure ,mechanism for
dispute settlements etc. It does not impose any
legal obligations on its members so all timetables
are volentary n not mendatory.
APEC
The organization works on the basis of
consensus and gives veto to all members.
There are 10 ad-hoc working groups assigned
to collect data on trade and investment and
suggests on trade promotion ,investment ,
technology transfer HRD ,regional energy
cooperation ,maritime resource cooperation
,telecommunication ,transportation ,tourism and
fisheries etc.
Research Titles
1. Concept of Dumping Margin in International Trade and Indian
trading policies.( Parikshit & Ajay)
2.The injury determination in antidumping and countervailing duty,
in Indian trade laws.( Ankit & Shaina)
3.A comparative assessment of WTO and Indian FDI related
policies.(Manoj & Amit)
4. Prospective benefits to Indian foreign trade after ASEAN
effects.(Avi & K.S.Rathore)
5.Indian foreign trade policies and Chinese trade invasion.
( Anupam & Vratika)
6.Countervailable Subsidy and WTO provisions.
7. Dispute Settlement Mechanism in WTO ( Shivani Saini &
Yogesh Kalra)