World trade

organisation ( WTO )

Presented by:
Pavan Hegde:
Neha Raje:
Sachin Jain:
Vaibhav Kothare:
Shraddha Goje:
 Flow of the presentation

• Introduction to WTO & its functions



• Why was it necessary to form WTO



• Scope


• Objectives


• What are obligations of WTO



• Criticism of WTO
•
 Introduction to wto
• The World Trade Organisation (WTO) was a successor to the
General Agreement on Trade and Tariffs (GATT)


• Came into existence in January 1995 after the Uruguay round

of the GATT
•
• The WTO is the only global international organization
responsible for administering international trade
agreements and declarations and handles:
• trade disputes
• monitors national trade policies,
• operates as the forum for global trade negotiations

• The goal is to help producers of goods and services,
exporters and importers conduct their business.


• The WTO has 153 members



• Facilitate the implementation, administration and operation of

Multilateral Trade Agreements



• Trade Policy Review Mechanism Concern on Non-trade
issues such as Food Security, environment, health, etc


• Governed by a Ministerial Conference, which meets every two

years, General Council, Director – General.
•
• Treaties are built upon the principle
• trade should be as uninhibited as possible
• a country should treat all its trading partners equally
and avoid discriminating between domestic and
foreign products, services or people.
• More beneficial for less developed countries
•

•

 Functions of wto
• 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
•
 why was it necessary to form WTO
• Trade creates the wealth necessary for economic
development, creation of employment opportunities and the
alleviation of suffering
• Loopholes in GATT
• Saturation of home markets , trade restrictions & barriers to
entry in foreign markets
• Problems faced by developing countries
• GATT had mainly dealt with trade in goods, the WTO and its
agreements now cover trade in services, and in traded
inventions, creations and designs (intellectual property)
 Scope of wto
• In addition to national trade policies, such as
antidumping duties, the WTO also supervises
domestic policies that affect trade in goods or services
particularly, a government’s use of taxes, regulations,
and standards to correct market failure


• Using government subsidies as a first-best instrument to

address market failure is covered by several WTO
agreements


• Using government subsidies to promote equity and

social justice within a country is also covered by WTO
rules
• The legislative clout of the WTO comes not only through
the indirect application of its rules but also in the
dynamic way in which the WTO interpenetrates other
regimes. Two forms of interaction are:
• is the enforcement of non-trade law and the other
is the incorporation of WTO rules into other
treaties


• WTO has also gained legislative clout through the

maneuver of directing governments to confer rights
on foreign nationals that owing to a sense of fairness
will likely also be conferred on domestic persons


• The impact of WTO rules increased during the

organization’s first ten years as a result of
technological developments



• The TRIPS Agreement, in
effect, turned the traditional
national treatment principle
on its head by inducing a
political dynamic in which
domestic persons would
inevitably gain the same
rights that were being
extended to foreign nationals


• The TRIPS Agreement

fomented one of modern
history’s greatest transfers of
wealth from the public
domain into private hands
•
 Objectives of WTO
• The main objectives of the World
Trade Organization (WTO) :
• to raise the standards of
living of the member
countries
• to ensure their full
employment, and to
expand their production
• trade of goods and
services



 Other objectives
• To create a knowledge base on various matter
concerning various National and International Trade
Laws and Protocols, and their National and
International implications and ramifications


• Carry out R&D & the building up of a clearing-house of

cases on all matters of WTO agreements which are of
national concern


• Increasing awareness amongst Domestic Industry,

business, agriculture, service and other sectors on the
impacts of trade laws arising out of WTO agreement
and other treaties as member of WTO
• Cooperating with industry associates, bodies set up by
Govt. of India and Export Promotion Council & also to
develop linkages with overseas organizations in order
to create a common perception and approach to the
resolution of multilateral trade issues


• Exploit all potential provisions of WTO agreement

available to the developing nations and advising and
counseling the Government of India on all such issues
of national importance


• To assist the Government in negotiating with the

International Community in the perspective of the
WTO regime and to help strengthen the position of
developing countries in these regards in all possible
ways



• To co-ordinate efforts with the Government in creating a
level playing field for all countries especially with India


• Identify areas of non-fulfillment of the WTO agreement

which concern developing countries interest and
suggest line of action and remedies open for
fulfillment of these obligations


• Discussions on making the domestic trade and export

and import policies more WTO compatible and
suggest initiatives to be taken in this respect at
various levels
•
• To study the impact and threat perception of WTO
agreement on the growing service sector industries
including all those covered under 'business services'
of GATS agreement


• To develop a base of expertise amongst the members of

the Institute on Intellectual Property Rights, TRIPS,
Anti-dumping laws, EXIM Policy matters etc
 Obligations of wto
Trade Related Obligations:


• MFN TREATMENT
-countries cannot normally discriminate between
their trading partners
• National treatment: Treating foreigners and locals
equally
 - Imported and locally-produced goods should
 be treated equally
• Freer trade: gradually, through negotiation
 RECOGNIZING THE LEGITIMACY OF
SANITARY PROTECTION
• SPS (Sanitary and Phytosanitary Measures)


 - How do you ensure that your country’s consumers are

being supplied with food that is safe to eat ?


 - Member countries are encouraged to use international

standards, guidelines and recommendations where they
exist
 RECOGNIZING THE LEGITIMACY OF
IPRs

• TRIPS (Trade related intellectual property rights)



 - Patents


 - Copyright


 - Trademarks


 - Geographical indications
 Discouraging “ unfair ” practices

• Export subsidies and dumping products at below cost to

gain market share


• It doesn't pass judgment. Its focus is on how

governments can or cannot react to dumping


• It disciplines the use of subsidies, and it regulates the

actions countries can take to counter the effects of
subsidies
 Settling disputes
• Dispute settlement is regarded by WTO as the central pillar of
the multilateral trading system

• Agreements, including those painstakingly negotiated in the

WTO system, often need interpreting.

• The purpose behind the dispute settlement process is:

 The most harmonious way to settle differences through some
neutral procedure based on an agreed legal foundation.
•
 Criticisms of wto
 WTO trading rules are still in effect and help provide a
solid framework for global commerce however, WTO
was biased towards developed countries

 WTO is accused of widening the sociological gap
between rich and poor it claims to be fixing

 Global trade negotiations have become much more
complex & complicated WTO decision-making, and
the process of "consensus-building" has broken down

• Putting the interests of business -especially big
multinationals - above those of workers, the
environment and poor nations lead to the rise of G20
•
• Frustrated by the lack of progress at the global level,
U.S., the Europeans, and Japan have increasingly
turned to bilateral and regional negotiations
•
• The maintenance of high protection of agriculture in
developed countries while developing ones are
pressed to open their markets
•
• TRIP agreement limits developing countries from utilizing
some technology that originates from abroad in their
local systems
•
•
• Critics claim that the issues of labor and environment are
easily ignored


• GATT decision making process worked – no compulsion

to adhere rules

Thank you
