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? What is GATT
? Three Institution + UN
? Major provision of GATT
2. Quantitative restrictions
3. Developing Countries

? Achievement and problems of GATT

? Objective
? Function of WTO
? Key subjects in WTO
1. Patent

3.Industrial Design
4. Trademarks
5. Protection of Geographical Indication
6. Protection of undisclosed information

Toward the end of World War II, representatives
of the US and its Allied Forces endeavoured to work out the
arrangements for a new world order in the post war era. As a
result of these negotiations, after World War II the US and its
Allies planned to establish three important international
institutions to liberalize trade and payment.

GATT was the result of an international
conference held at Geneva in 1947 to consider a draft
charter for the International Trade Organization (ITO).
The US initiated negotiations with 22 other countries that
led to commitments to regulate 45,000 tariff rates.
Technically, GATT was viewed as an agreement under
the provisions of US Reciprocal Trade Act of 1934, and
hence did not require approval of Congress.
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(I) International Monetary Fund (IMF) was established to

facilitate international payments.

(ii) International Bank for Reconstruction and Development.

After the War, European countries and Japan had to rebuild
their production plants; this meant that these countries
required a large amount of foreign capital.
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To encourage free flow of private capital, International Bank

for Reconstruction and Development (IBRD, now the World
Bank) was also established.

(iii) To facilitate free trade, International Trade Organization

(ITO) was to be born.

(iv) As a political complement to these institutions, United

Nations was also established in 1945 to replaced the
League of Nations.

It was considered a provisional agreement that would be

replaced once the ITO became operational to take over its
? So GATT began its provisional existence on January 1,
1948, when 23 contracting parties signed the agreement.
However, US Congress refused in 1950 to ratify the treaty
establishing the ITO.

(i) GATT obligates each country to accord no
discriminative, most favoured nation (MFN) treatment to all
other contracting parties with respect to tariffs.
(ii) MFN treatment does not mean free trade or national
treatment. Imports from contracting parties are subject to
tariffs or quotas. MFN treatment means that no other
countries with some exceptions receive better treatment or
lower tariffs.
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(i) Existing tariff preferences such as those between British


(ii) GATT/WTO allows the formation of customs union,

which causes a significant erosion of the MFN principle.

(iii) An escape clause allows any contracting party to

withdraw or modify tariff concessions, if it threatens a
serious injury to domestic producers.

GATT in general prohibits the use of quantitative

restrictions on imports and exports.
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(i) agriculture - when government needs to remove surplus
of agricultural and fisheries products. Important to US .
(ii) balance of payments - to safeguard balance of
payments. If a country's foreign exchange reserve is low.

(iii) Developing countries - LDCs may use import quotas to

encourage infant industries.

(iv) National Security- Strategic controls on certain exports.

Patents, Copyrights, Public Morals
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Special Provisions to promote the Trade of Developing
Countries. In 1965, the contracting parties added Part IV
(Trade and Development) to GATT.

(i) Developed economies will give high priority to

reduction/elimination of tariffs on products of LDCs.
(ii) refrain from introducing tariffs and NTBs to such
(iii) refrain from imposing internal taxes to discourage
consumption of primary products from LDCs
(iv) not expect reciprocal commitments from LDCs.
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GATT has enjoyed a membership of over 100 countries and
generated about 85-90% of world trade.
(i) trade liberalization in industrial products (Kennedy
(ii) Adopted codes on NTBs (Tokyo Round)
(iii) No world wars since 1948 (Choi: Increased trade
promotes world peace)
(iv) replaced by WTO on January 1, 1995.

i) GATT failed to liberalize trade in agricultural products to

any significant degree. This was one of the major goals of
the Uruguay Round.

(ii) has experienced partial success in regulating trade

practices adopted by member countries in response to BP

For example, in 1971 the US imposed a 10% surcharge on

its imports, thereby doubling its average duties.

Location : Geneva,
Established : 1 January 1995
Created by : Uruguay Round
negotiations ( 1986-94)
Membership : 153 Countries
Budget : 185 million for 2008

2007 Secretariat Staff : 625

Head: Director General : Pascal Lamy

· Raising standard of living and income.

· Introduced sustainable development.

· Taking positive step for developing countries.


Î Acting as watchdog international trade.

Î Maintaining trade related database.

Î Overseeing national trade policies.

Î Seeking to resolve trade disputes.


‰ Agriculture

‰ Health& safety measures.

‰ Helping least developed and food importing countries.

‰ Textile & clothing.


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Intellectual Property Rights (IPR) have become important in
the face of changing trade environment which is
characterized by the following features namely global
competition, high innovation risks, short product cycle, need
for rapid changes in technology, high investments in
research and development (R&D), production and marketing
and need for highly skilled human resources.

Intellectual Property Rights as a collective term includes the

following independent IP rights which can be collectively
used for protecting different aspects of an inventive work for
multiple protection:-
? Patents
? Copyrights
? Trademarks
? Registered ( industrial) design
? Geographical indications, and
? Protection of undisclosed information

A patent is an exclusive right granted by a country to the

owner of an invention to make, use, manufacture and
market the invention, provided the invention satisfies certain
conditions stipulated in the law. Exclusive right implies that
no one else can make, use, manufacture or market the
invention without the consent of the patent holder. This right
is available for a limited period of time.
The Copyright Act, 1957 as amended in 1983, 1984, 1992,
1994 and 1999 governs the copyright protection in India.
The total term of protection for literary work is the author¶s
life plus sixty years. For cinematographic films, records,
photographs, publications, works of government and
international agencies the term is 60 years from the
beginning of the calendar year following the year in which
the work was published.
Copyright gives protection for the expression of an idea and
not for the idea itself. For example, many authors write
textbooks on physics covering various aspects like
mechanics, heat, optics etc. to be sufficient fixation.

We see so many varieties and brands of the same product

(e.g. car, television, personal computer, a piece of furniture
etc.) in the market, which look quite different from each
other. If the products have similar functional features or
have comparable price tags, the eye appeal or visual design
of a product determines the choice. Even if the similarities
are not close, a person may decide to go for a more
expensive item because that item has a better look or colour

A trademark is a distinctive sign, which identifies certain

goods or services as those produced or provided by a
specific person or enterprise. Trademarks may be one or
combination of words, letters, and numerals. They may also
consist of drawings, symbols, three dimensional signs such
as shape and packaging of goods, or colors used as
distinguishing feature.

The concept of identifying GI and protecting them is a new

concept in India, perhaps in most developing countries, and
has come to knowledge in these countries after they signed
the TRIPS Agreement. It may be noted that properly
protected GI will give protection in domestic and
international market.

The protected subject matter is information lawfully within

the control of a natural person or legal person that is secret
that has commercial value because it is secret and that has
been subject to reasonable steps by the person lawfully in
control of the information, to keep it secret.
´ Undisclosed information, generally known as trade secret
confidential information, includes formula, pattern,
programmed, device, method, technique or process..
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The Doha Development Round or Doha Development
Agenda (DDA) is the current trade-negotiation round of
the World Trade Organization (WTO) which
commenced in November 2001. Its objective is to lower
trade barriers around the world, which allows countries
to increase trade globally. As of 2008, talks have stalled
over a divide on major issues, such as agriculture,
industrial tariffs and nontariff barriers services, and
trade remedies. The most significant differences are
between developed nations led by the European Union
(EU), the United States (USA), and Japan and the
major developing countries led and represented mainly
by Brazil, China, India, South Korea, and South Africa.
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There is also considerable contention against and between

the EU and the USA over their maintenance of agricultural
subsidies seen to operate effectively as trade barriers.
The Doha Round began with a ministerial-level meeting in
Doha, Qatar in 2001. Subsequent ministerial meetings took
place in Cancun, Mexico (2003), and Hong Kong (2005).
Related negotiations took place in Geneva, Switzerland
(2004, 2006, 2008); Paris, France (2005); and Potsdam,
Germany (2007).
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In early 2004, the multilateral trading institution, the World
Trade Organisation (WTO), finds itself at the crossroads.
World trade has grown significantly in the past three
decades. Even as more and more countries appreciate the
importance of trade, disputes have also become frequent.
The WTO has been set up to resolve these disputes
amicably and create an environment where trade can
flourish. The Doha round launched in Qatar in November
2001, has set ambitious goals.
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It aims at reducing trade- distorting farm support,

slashing tariffs on farm goods, eliminating agricultural
subsidies, cutting industrial tariffs, especially in areas
that poor countries care about, such as textiles and
freeing up trade in services. w     





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As the Cancun Ministerial conference draws near, it is clear

that arriving at a consensus on the various thorny issues will
be difficult if not impossible.
The failure of the Cancun talks comes as no surprise. The
impasse at Cancun has prompted some economists to
wonder whether multinational trade negotiations have any
future at all. Others feel common sense will prevail and
countries will return to the negotiating table in due course of

The recession in the US market and the global meltdown

termed as Global recession have engulfed complete world
economy with a varying degree of recessional impact.

World over the impact has diversified and its impact can be
observed from the very fact of falling Stock market,
recession in jobs availability and companies following
downsizing in the existing available staff and cutting down of
the perks and salary corrections.

Globally the financial sector sacking the existing base of

employees in high numbers in US the major example being
CITI Group same still followed by others in hospitality
industry Jet and Kingfisher Airlines too. The cut in salary for
the pilots being 90 % can any one imagine such a huge cut
in salary.

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