GROUP NO.

1
Australia & Armenia
AKANSHA JOHARI 073002 AMAN RAWAT 073004
ANKIT GOYAL 073005 HARMEET SINGH 073023
AMIT SHARMA 073026 VAIBHAV SHARMA 073056
Australia
Got independence in 1900.
1945-1973 witnessed good growth in term of trade import export.
In trade terms, the Australian economy has had persistently large
current account deficits (CADs) for more than 50 years.
In 1973, with Australia experiencing sharply rising inflation and
strong current account surpluses, special consultant to the
government, proposed a 25% across the board tariff cut, which was
adopted by the government.
In 1974 a 30% increase in imports and a $1.5 billion increase in
the trade deficit.
Economic liberalization and deregulation of the Australian
economy only began under the Hawke Labor Government in the
early 1980s.
Map of Australia
Politics
Australia is a constitutional monarchy with a federal division of
powers.
It uses a parliamentary system of government with Queen
Elizabeth II at its apex as the Queen of Australia.
The Queen resides in the United Kingdom, and she is represented
by her viceroys in Australia, who by convention act on the advice
of her ministers.
The federal government is separated into three branches:
The legislature: the bicameral Parliament, the Senate, and
the House of Representatives;
The executive: the Federal Executive Council
The judiciary: the High Court of Australia and other federal
courts, whose judges are appointed by the Governor-General
on advice of the Council.

Economy of Australia
GDP (nominal)2013 estimate - Total$1.525 trillion

Per capita$67,722
In terms of average wealth, Australia ranked second in the world
after Switzerland in 2013.
With the 2006 merger of the Australian Stock Exchange and the
Sydney Futures Exchange, the Australian Securities
Exchange became the ninth largest in the world.
Ranked 3
rd
in the Index of Economic Freedom (2010)
Australia is the worlds 12
th
largest economy and has the 5
th
highest
per capita GDP at $66,984.
The country was ranked 2
nd
in the United Nations 2011 Human
Development Index.


IDENTIFICATION OF WTO EFFECT
CONT
CONT..
CONT..
1. In trade terms, the Australian economy has had persistently large current
account deficits (CADs). One single factor that undermines balance of
payments is Australia's narrow export base.
2. There are other factors that have contributed to the extremely high current
account deficit in Australia such as lack of international competitiveness.
3. Historically, Australia has relied on overseas capital to fill the gap between
domestic savings and investment, and many of these investment opportunities
could not have been pursued if Australia did not have access to foreign
savings. This suggests that Australia's apparently low savings level and CAD
are not necessarily a significant problem. As long as the investment that is
being funded by overseas capital inflow generates sufficient returns to pay for
the servicing costs in the future, the increase in foreign liabilities can be
viewed as sustainable in the longer term
4. Dependent upon commodities, the Australian government has endeavored to
redevelop the Australian manufacturing sector. This initiative, also known as
microeconomic reform, helped Australian manufacturing to grow from
10.1% in 19831984 to 17.8% in 20032004.

AUSTRALIA'S CURRENT
TARIFF REGIME
With over 46% duty free. The average applied tariff rate is 2.9%.
The Government is committed to a forward program of further
tariff reductions.

On 1 January 2010, Australia proceeded with scheduled tariff
reductions on passenger motor vehicle (PMV) and textile clothing
and footwear (TCF) tariffs, with tariffs on clothing and certain
finished textile articles being reduced to 10%, and all other TCF
and PMV tariffs being reduced to 5%. By 2015, all tariffs on TCF
products will be no higher than 5%.
Role of Australia in WTO
Specifically in connection to the WTO, since 2002 Australia has
contributed over a $ 7.5 million to the WTO's Global Trust Fund to
provide technical assistance to developing country members to
participate in the Doha Round of trade negotiations.

In 2003, Australia removed duties and quotas on all imports from
Least Developed Countries. The growth in merchandise imports
from LDCs stronger than that from the rest of the world.

Australia is one of the most active advocates of services trade
reform in the WTO

DISPUTE SETTLEMENT: DISPUTE DS271
Australia Certain Measures Affecting the Importation
of Fresh Pineapple
Key facts

Complainant : Philippines

Respondent : Australia

Third Parties : none

Agreements cited : GATT 1994 Art. XI, XIII

Request for Consultations received: 18 October 2002
DISPUTE SETTLEMENT: DISPUTE DS271
Australia Certain Measures Affecting the Importation
of Fresh Pineapple
Complaint by the Philippines.

The Philippines requested consultations with Australia on certain
measures affecting the importation into Australia of fresh pineapple,
which includes:

Few regulations, requirements and procedures including Plant Bio-
security Policy Memorandum 2002/45

which states that fresh pineapple fruit from the Philippines, the
Solomon Islands, Sri Lanka, and Thailand, among other requirements,
are subjected to few pre-shipment conditions for importation into
Australia


The Philippines considered that these measures are inconsistent
with the obligations of Australia under the GATT 1994 and the
SPS Agreement.

The relevant provisions of these agreements include, but are not
limited to Articles XI and XIII of the GATT 1994, and Articles 2,
3, 4, 5, 6 and 10 of the SPS Agreement.

Final decision

On 1 November 2002, the EC and Thailand requested to join the
consultations. On 7 November 2002, Australia informed the DSB
that it had accepted the requests of the EC and Thailand to join the
consultations

DISPUTE SETTLEMENT: DISPUTE DS271
Australia Certain Measures Affecting the Importation
of Fresh Pineapple
ARMENIA
Republic of Armenia s a mountainous country in the South
region of Eurasia.
it is bordered by Turkey, Georgia, Azerbaijan and Iran.
Population 3018854 peoples in 29743 Km sq. area
GDP $19.649 billion (as in 2012).
Religion Armenia was the first nation to
adopt Christianity as a state religion.
Literacy Rate 100% reported in 1960.
Sports Football, Hockey, Chess
Life expectancy 70 for males
76 for females
Introduction to Armenia
Introduction to Armenia (contd..)
The EU is Armenia's main trading partner, accounting for around 27%
of Armenia's total trade.
Trade picture
Source: http://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_113345.pdf
Armenia became WTO member on 5th February 2003
(145
th
member).

Trade policy review on 6, 8 April 2010.

Contribution to WTO budget (2013) is 0.016%.

Number of disputes till now is only 1 as respondant
(Complaint by Ukraine about Measures Affecting the
Importation and Internal Sale of Cigarettes and Alcoholic
Beverages)


Armenia and WTO
Main export Product of Armenia
Source: http://www.ada.am/eng/for-exporters/export-statistics/macroeconomic-
indicators/main-export-products-of-armenia
Global exports by Armenia
Source : http://globaledge.msu.edu/countries/armenia/tradestats
Immediate solution of specific problems for economically
sustainable development.
New opportunities open up for investments and export.
It may lead to a change of situation for domestic manufacturers
in foreign markets.
Armenia can use negotiations with neighbouring countries entry
into the WTO for safeguarding the interests of domestic
importers.
It will provide protection of investors, exporters, intellectual
property, so that it assists in attraction of direct foreign
investments and foreign capital to create new manufacturing
opportunities, privatization of working enterprises, and
introduction of new techniques
Positive consequences of membership
in the WTO
Locally produced products can turn out to be non-competitive in
cost because of high costs of energy, transportation expenses,
and high rate of credits.

The unavailability of financing institutes toward the country
joining the WTO can be considered as a threat to the financial
security of the state, and causes anxiety.
Negative consequences of
membership in the WTO
DISPUTE SETTLEMENT : DISPUTE DS411
Armenia Measures Affecting the Importation and
Internal Sale of Cigarettes and Alcoholic Beverages

Key facts

Complainant : Ukraine

Respondent : Armenia

Third Parties : none

Agreements cited : GATT 1994
: Art. II:1, III:1, III:2, III:4

Request for Consultations received : 20 July 2010
DISPUTE SETTLEMENT : DISPUTE DS411
Armenia Measures Affecting the Importation and
Internal Sale of Cigarettes and Alcoholic Beverages

Summary
The summary below was up-to-date at 8 November 2010




Consultations

Complaint by Ukraine.


DISPUTE SETTLEMENT : DISPUTE DS411
Armenia Measures Affecting the Importation and
Internal Sale of Cigarettes and Alcoholic Beverages


On 20 July 2010, Ukraine requested consultations with Armenia
regarding Armenia's measures affecting the importation and internal
sale of cigarettes and alcoholic beverages.

Ukraine alleged that Armenia's law On Presumptive Tax for
Tobacco Products of 24 March 2000 levies discriminatory internal
taxes on imported tobacco products and is therefore in violation of
Article III of the GATT 1994 and paragraph 1.2 of Armenia's
Protocol of Accession to the WTO.

Moreover, the law imposes customs duties on such imported
tobacco products at a rate of 24 per cent, which is higher than
Armenia's WTO bound rate of 15 per cent.



As to imported alcoholic beverages , Ukraine alleges that
Armenia's law On Excise Tax of 7 July 2000 applies higher
excise taxes on imported alcoholic beverages than on like domestic
products.

Ukraine considers that this is also inconsistent with Armenia's
obligations under Article III of the GATT 1994.

On 8 September 2010, Ukraine requested the establishment of a
panel.

On 6 October 2010, Ukraine requested the establishment of a
panel.

At its meeting on 25 October 2010, the DSB deferred the
establishment of a panel.
DISPUTE SETTLEMENT : DISPUTE DS411
Armenia Measures Affecting the Importation and
Internal Sale of Cigarettes and Alcoholic Beverages
THANK-YOU