World Trade Organization

Background
Great Depression 1930s July 1944 Bretton Woods Conference for International Conference I Money, Finance & Trade Creation of IMF & IBRD for overcoming short term BOP deficits without resorting to import restrictions November 1945 US dept of State proposed formation of ITO

GATT
General Agreement of Trade & Tariffs signed before ITO could be formed by 23 countries Oct 1947, Geneva

Australia, Brazil, Burma, Canada, Ceylon, Cuba, Czechoslokia, France, India, Lebanon, Luxembourg, Netherlands,New Zealand, Norway, Pakistan, South Rhodesia, Syria, South Africa, UK, USA China, Lebanon & Syria later withdrew

8 Rounds of Trade negotiations 1948-1994 Uruguay Round, Established the WTO 1 Jan 1995

History of Trade Negotiations

Trade Rules & Concessions Jan 1, 1948 ITO Ready in March 1948 but was dead by 1950 as US itself objected Kennedy Round of 1964-67 Important because of the Anti Dumping Agreement Signed

Tokyo Round 1973 79 (7th Round)

NTBs Subsidies, Countervailing Measures, Technical barriers, Licensing Process, Govt procurement, civil aviation, anti dumping

Uruguay Round held in Punta del este (Sept 1986) 4 yrs given to finalize the agreement due to disagreements between US & Europe on Agri issues extended beyond 1990 Dec 1991, Arthur Dunkel Director general of GATT created Dunkel draft Signed by 123 nations on 15 April 1994 at marrakesh, Morocco

Uruguay Round (1986 1994)

Trade Rules. Services, Intellectual property, dispute settlement, textiles, agriculture, creation of WTO. Covered all trades from tooth brush to pleasure boats, banking to telecommunication, genes of rice to AIDS treatments System of Rules for multi lateral trade negotiations (half a century old trading system)

MOST FAVOURED NATION (MFN)

Importers from one country should be treated no less favorably than similar imported products from other country Most favored unconditionally all concessions granted to all WTO members Once negotiation completed - applicable to all

GATT v/s WTO

WTO has structure Legally binding on ALL members Set up a dispute settlement procedure (DSP) Reneging from the agreement difficult Wider coverage not case by case/piece meal Oversees national trade policies

What does WTO do?

Entirely based on negotiations Rules of Trade, Implementation of agreements, Surveillance, Disputes & Settlements Administer WTO trade agreements, ensure trade flows freely Government Measures informed to WTO thru notifications

Trade Policy Review Frequency of review depends on share of worlds trade Quad USA, EU, Japan, Canada every 2 yrs Next 16 every 4 yrs Rest every 4 yrs LDCs longer Cooperation with IMF & WB

WTO Organization & DSP

WTO Ministerials
COUNTRY Singapore Geneva Seattle Doha Cancun Honk Kong DURATION Dec 9 13, 1996 May 18 & 20, 1998 Nov 30 Dec 3, 1999 Nov 9-14, 2001 Sept 10-14, 2003 Dec 2005

TRIPS
Protection of rights of people or organizations that develop specific new knowledge that has economic utility Critical impacts on food, health, education, culture
Patents , copy rights (literary & artistic works), related rights (performers, producers of sound recordings, broadcasting) Undisclosed information( trade secrets & test data) Trademarks Geo Indications Industrial designs Integrated Circuits

TRIPS
TRIPS simultaneously into existence with WTO in 1995 Compliance for LDC Jan 1, 2005 Problems& fears: AIDS/Cancer/Cardiac Medicines R&D developing country diseases tuberculosis, malaria, diarrhea Oligopolies Bio-piracy genetic resources of developing countries Traditional knowledge (medicine/ therapy)

TRIPS
Tech Development, Research, Financial Investment, production & mktg of agricultural products Genetically engineered seeds Montaso India 824 Agri products made open Corresponding reductions by Quad yet to take place Avg Tariff rates 115% , Quad 350-900% G21 countries Brazil, China, India pressing for abolishment of farm export subsidies

WTO protests

http://www.youtube.com/watch?v=rhFvSRWYusc

Environment & Social issues

Tuna Dolphin Case of Mexico Shrimps Turtles case of India 200 International Agreements Montreal protocol - Ozone Layer Basel Convention Trade/Transport of Hazardous Waste Across International barriers CITIES convention on Int Trade in Endangered Species US Child Labor Deferente Act 1996

GATS
Cross Border Transfers (Transportation, Transborder flow of data ) Consumption Abroad (Tourism) Movt of Personnell Location Abroad (Subsidaries / FDI)

Each Member to decide commitments

Which services (Banking & Tourism only) How open the mkts will be( no of licencees) Exceptions to National Treatment