Saturday, 21 December 2019

Unit 8: World Trade Organisation


Unit 8: World Trade Organisation

The WTO agreements deal with various sectors like agriculture, textiles and clothing, banking, telecommunications, government purchases, industrial standards and product safety, food sanitation regulations, intellectual property etc.

A set of fundamental principles run throughout all of these documents.

These principles are the foundation of the multilateral trading system.

About two thirds of the WTO, around 150 members are developing countries.

Developing countries are a highly diverse group often with very different views and concerns.

The WTO deals with the special needs of developing countries by preferential treatment.

The objective of GATT was that trade shall be conducted on a non-discriminatory basis, protection shall be afforded to domestic industries through customs tariffs, not through such commercial measures as import quotas, and consultation shall be the primary method used to solve global trade problems.

International Business Notes   Of all rounds of GATT talk, the most important was the eight set, the Uruguay Round of negotiations that began in 1986 and concluded in September 1993.

In a nutshell, the WTO helps developing and transition economies, helps in economic policy-making, taking information, giving information to public, encouraging development and economic reform.

The WTO functions on the basis of the following rules: Binding and Cutting of Tariff, Agriculture Rules and Policies, Standard and Safety, Textile Services, Trade Related Intellectual Property Rights, Anti Dumping Measures and Countervailing Duties, Emergency Protection from Imports Surge, Non-Tariff Barrier, Plurilaterals.

WTO has also special provision for developing countries.

India is also influenced by the WTO.

Almost all the industries will be influenced by it directly or indirectly.

Major and instant impact will be on Agriculture, Pharmaceuticals, Information technology, Textiles and clothing, Liquor companies, and the services sector.

Countervailing duty: Additional import duty imposed to offset the effect of concessions and subsidies granted by an exporting country to its exporters.

Dumping: Dumping means selling the product at below the ongoing market price and/or at the price below the cost of production.

GATS: This treaty was created to extend the multilateral trading system to service sector, in the same way the General Agreement on Tariffs and Trade (GAT T) provides such a system for merchandise trade.

GATT: It is a multilateral treaty among the member countries that lays down certain agreed rules for conducting international trade.

MFN: Most Favoured Nation: That principle of GATT which means treating one’s trading partner equally on the principle of non-discrimination.

Ministerial Conference: It is the top decision making body of the World Trade Organisation Plurilateral: At the WTO, there are a few agreements which have only a few signatories.

They were negotiated at the Tokyo Round and are known as “plurilateral agreements”.

Sustainable development: Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

World Trade Organisation: It is a regulatory body that deals with the rules of trade between nations at a global or near-global level.

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