4. role of int. organ

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PRESENTATION

ON

The role of InternationalOrganizations

By

Priyanki Borah( BAM10013)

Anshuman Saikia(bam10014)

Priyaman Chaudhury(BAM10015)Shobika Maheswari(BAM10016)

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INTRODUCTION

Business has been significantly impacted byproliferation of regional economic integrationschemes and agreement. This has resulted in therise of the cross regional agreements and the rise

of interlinked agreements.

The international trading environmentencompasses important factors such as tradestrategies, trade barriers, trade agreement,multinational trade negotiation etc.

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CANALISATION

Canalisation means establishment of statemonopoly in foreign trade. In other words, anitem that is canalised can be imported or

exported as the case may be, only by thedesignated state trading agencies.

State trading agencies may also trade inproducts which are not canalised, in additionto the canalised items.

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Objectives of Canalisation

To help to reduce the difficulties experienced inexpanding trade with centrally planned countries.

To help maintain quantitative regulations of import andsome equilibrium in the price of commodities.

To provide developmental finance for organisedproduction and boost exports of small scale sector.

To check unhealthy competition and undercutting of

prices in international market. To ensure adequate and regular supplies at reasonable

and stable prices of essential commodities to meetlocal demands.

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TRADE BLOCS

--An economic integration scheme which isconceived as a building block of economic

development of the member countries.

-- It , however, may sometimes become a

stumbling block for firms located outside the

bloc.

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MOTIVATIONS IN THE FORMATION OF

TRADING BLOCS

1. To obtain economic benefits from achieving a

more efficient production structure by

exploiting economies of scale2. To pursue non economic objectives such as

strengthening political ties and managing

migration flows

3. To ensure increased security of market access

for smaller countries by forming regional

trading blocs with larger countries6


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ECONOMIC INTEGRATION

The term economic integration is commonly

used to refer to the type of arrangement that

removes artificial trade barriers, like tariffs

and quantitative restrictions between the

integrating economies.

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CONTD--It established a common market with a single

currency and member states agree to abide bycommon laws, guaranteeing the freedom of

movement of people, goods, services and

capital--What began as a purely economic union has

evolved into an organization spanning all

areas, from development aid to environmentalpolicy

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EU MEMBERS

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WTO/GATT

General Agreement on Tariff and Trade was

established in 1948 as a result of the

international desire to liberalise trade.

With effect from January, 1995, the GATT was

transformed into WTO as a more powerful

body with enlarged function than GATT.

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DIFFERENCE BETWEEN GATT AND

WTOGATT WTO

GATT was adhoc and provisional. WTO and its agreements are

permanent.

GATT had contracting parties WTO has members

GATT system allowed existing domestic

legislation to continue even if it

violated a GATT agreement

WTO doesnot permit this

GATT was less powerful, dispute

settlement system was slow and less

effective, its ruling could be easily

blocked

WTO is more powerful than GATT ,

dispute settlement mechanism is

faster and more effcient , very difficult

to block the rulings

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WTO

WTO was set up as a permanent body which is

designed to play the role of a watch dog in the

spheres of trade in goods, services, foreign

investment, intellectual property right etc.

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FUNCTIONS OF WTO

Administering the WTO trade agreements.

Providing the forum for negotiation among its

members concerning their multilateral trade

relations in matters dealt with under the

agreements

Administering the mechanism for settling

trade disputes between the member

countries.

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Contd

Monitoring national trade policies.

Providing technical assistance and training for

developing countries.

Co-operating with other international

organisations to achieve greater coherence in

global economic policy making.

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WTO AND INDIA

By being a part of WTO India enjoys the mostfavoured nation (MFN) status.

WTO has resulted in easy entry into bilateral

negotiation with each and every one of thetrading partners of India.

Take advantage of the opportunities created

through WTO Indias market share in worlds

export improved significantly.

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CONTD

WTO has significantly reduced the tariff andnon-tariff barriers to trade.

The liberalization of trade and investment has

been resulting in economic growth, efficiencyof resource utilisation, improvement in qualityand productivity etc.

WTO has a system which helps developingcountries like India to settle their tradedisputes.

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SAARC

Driven towards integration by the pressure of

economic interest of the region, seven South

Asian countries- Bangladesh, Bhutan, India,

Maldives, Nepal, Pakistan and Sri Lanka-formed the South Asian Association for

Regional Cooperation (SAARC) in 1985.

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OBJECTIVES

To promote the welfare of the people of SouthAsia and to improve their standard of living.

To promote and strengthen collective self-

reliance among the countries of South Asia. To promote active collaboration and mutual

assistance in the economic, cultural, social and

scientific fields. To cooperate with international and regional

organisation with similar aims and purposes.

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SAARC And INDIA

SAARC has resulted in the improvement of

bilateral relationship between India and Pakistan.

India has also improved its relationship with the

rest of South Asia and thereby expanded its range

of trade.

In terms of trade, commerce, investments etc.

India is a source of potential investments andtechnology and a major market for products from

all other SAARC members.

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SOUTH ASIAN FREE TRADE AREA


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SOUTH ASIAN FREE TRADE AREA

(SAFTA)

--It came into effect from July 1, 2006--Earlier it was known as SAARC Preferential

Trading Agreement (SAPTA)

--Member states consist of India, Pakistan,Bangladesh, Sri Lanka, Bhutan and Maldives

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BASIC PRINCIPLES OF SAFTA

Step-by-step negotiations and extensions of

preferential trade arrangement in stages

Inclusion of all type of products-raw, semi-

processed and processed

Special and favourable treatment to Least

Developed Countries (LDCs)

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SAFTA AND INDIA

It has strengthen Indias international traderelations

It has strengthen the Indias trade liberalization

program. It has promoted trade through free trade

agreement with its member countries.

Preparation and establishment of industrial andagricultural projects

Training facilities and support to export marketing

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UNCTAD (The United Conference on

Trade And Development)

UNCTAD was created in 1964.

It aims at promoting trade and economic

development of developing countries.

The members meet every 4 years to set

priority and guidelines for the organisationand provide an opportunity to debate keyeconomic and development issue.

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AIMS OF UNCTAD

It aims at the development-friendly integration ofdeveloping countries into the world economy.

It is the focal point within the UN for the

integrated treatment of trade and developmentand the interrelated issues in the area of finance,technology etc.

It is a forum for intergovernmental discussions

and deliberations aimed at consensus building. It provides technical assistance to the developing

countries in corporation with other organisation.

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FUNCTIONS OF UNCTAD

To promote international trade with a view to

accelerate economic development.

To formulate principles and policies on

international trade and its related problems.

To negotiate multinational trade agreement.

To make proposals for putting its principles

and policies to effect

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UNTCAD AND INDIA

UNCTADs technical cooperation programmes intrade efficiency, trade points, debt management

programmes etc. is extremely useful in the

developing countries like India. It has promoted the growth of Indias

international trade.

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NORTH AMERICAN FREE TRADE

AGREEMENT(NAFTA)

--It is a very important free trade area made up ofdeveloped and developing countries

-- NAFTA, signed between US and Canada in 1988,

was enlarged by the inclusion of Mexico in 1994,making North America a giant free trade area

--NAFTA seeks to eliminate all tariffs on products

moving among the three countries and endother barriers to services and investment capital

within North America

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NAFTAIt covers the following areas-

1. Market access- Tariff and non-tariff barriers,rules of origin, governmental procurement

2. Trade rules- safeguards, subsidies , health and

safety standards3. Services- provides for the same safeguards for

trade in services that exist for trade in goods

4. Intellectual property- All three countries pledgeto provide efficient protection and enforcement

of IPR while ensuring that the measures dont

themselves become barriers to trade32


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CONTD.

5.Dispute settlement Provides a disputesettlement process that will be followedinstead of countries taking unilateral action

against an offending party--A very significant feature of NAFTA is that ,

while most free trade agreements haveprovisions only for trade liberisation, it

includes labour standards and environmentalstandards

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ASSOCIATION OF SOUTH EAST ASIAN

NATIONS (ASEAN)

--It was formed in 1967 by the Bangkok

declaration by Indonesia, Malaysia, Philippines,

Singapore and Thailand

--By 1999, Brunei, Vietnam, Cambodia,

Myanmar, Lao joined ASEAN

-- Endowed with natural resource. Primarily,

natural rubber, palm oil, tin ,sugar, coffee,

timber, petroleum, nickel, bauxite, tungsten and

coal

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CONTD--ASEAN Free Trade Area (AFTA) was created in

1992-- AFTA reduced intra-regional tariffs by 5%

--Agenda of AFTA includes-

Preferential liberalization of services andinvestment

Harmonization of tariff nomenclature

Intellectual property cooperation

Harmonization of product standards

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ASEAN AND INDIA

India has established trade and investment linkages

with a number of countries in Asia.

ASEAN has resulted in the improvement of trade

integration of India in respect to merchandise trade.

ASEAN has also extended the scope of commercial

services and financial integration of India which in

turn has contributed to the strengthening of Indiasmarket-based economic integration.

It has also improved Indias competitiveness and

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G8

--Group of Eight (G8) is a forum for thegovernments of eight of the world's largest

economies

-- France, Germany, Italy, Japan, the United

Kingdom, the United States, Canada and

Russia

-- The G8 nations comprise 42.5% of global GDP

-- Does not have a permanent secretariat, or

offices for its members

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CONTD.

-- The group's activities include year-roundconferences and policy research, culminating

with an annual summit meeting attended by

the heads of government of the member states

--Talks on the framework conditions for the

global economy and climate protection

-- Discussions on various issues like economy,

growth and responsibility

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INTELLECTUAL PROPERTY RIGHTS (IPR)

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OBJECTIVES OF IPR

Encourage and reward creative work

Protection to technological innovation

Fair competition

Consumer protection

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BENEFITS OF IPR

Encourages and safeguard intellectual and

artistic creations.

Spread of new ideas and technologies.

Investment in R&D efforts

Consumers get large range of products.

Boosts economic development

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LIMITATIONS OF IPR

Encourages monopolies

Cost enhancement

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Common types of IPR

Copyrights

Trademarks

Patents

Industrial design rights

Trade secrets

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Trademarks

Trademarks are commercial source indicatorsor distinctive signs used by anindividual, business organization or other legal

entity that identify certain goods or servicesproduced or provided by a specific person orenterprise.

A trademark is typically a name, word,

phrase, logo, symbol, design, image, or acombination of these elements

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Patents

Patents are the set of exclusive rights grantedby a sovereign state to an inventor or theirassignee for a limited period of time in

exchange for the public disclosure ofan invention.

It gives the inventor the right to excludeothers from imitating, manufacturing, using or

selling the invention for commercial useduring the specified period.

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IPR & ITS IMPACT ON INDIA-- Agreement of Trade Related Intellectual

Property Rights - better known as TRIP

-- India is a signatory, an integral

part of WTO and it has an enormous impact on

Indian business and trade partnerships

-- Acts:-Indian Patents Act , Trademarks Act,

Copyright Act, Designs Registration Act

-- In Patents Acts there are areas where

substantive or procedural amendments could

be considered for complying with the TRIPs48


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CONTND..-- Business methods/models or computer

programme comprising only of mathematical

or scientific principles are not patentable under

the present Act

-- Copyright protects the coded expressions of

software, while patent protection can protect

the qualifying features of the software such as

its sequence, structure and organization or its

functional elements

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--How Indian companies can avoid falling into trapover misuse of Trademarks and Patents?

It is advantageous to register with the appropriateTrademarks Office and to attain certificate ofregistration

To avoid disputes with employees, the Companiesneed to get skilled advice before entering into anyagreement with the employees

Adopt internal policies and regulations or guidelines

on employee inventions- Such policies andregulations should contain provisions on thecategories of inventions which fall within the field ofthe employers business

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IPR AND ITS IMPACT ON SME


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IPR AND ITS IMPACT ON SMEThe Challenges for SMEs

1. Achieve Cost Efficiency

2. Produce quality comparable to the best

3. Efficient delivery of the "goods & services";to the consumer.

4. Become world class, this does notnecessarily mean world scale

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IPR AND ITS IMPACT ON SME

--SME should find their "niche" throughInnovation, which could be in any of the areaslike-

Creating new products or services.

Re-engineering products or services.

New processes to improve productivity.

Developing new marketing techniques to

expand sales.

New forms of management systems andtechniques to improve operational efficiency

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IPR AND DRUG & PHARMACEUTICALS


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4. A patent application covering the product

should have been filed after 1 January 1995 inthe country where the EMR is sought;

5. The applicant should apply seeking an EMR

by making use of the prescribed form andpaying requisite fee.

--Apart from manufacturing of drugs ,the product

patent regime will help the pharmaceuticalindustry to tap outsourcing of clinical research

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-- By participating in the international system of

IPR protection, India has unlocked vastopportunities in both export and outsourcing

in the area of R&D based clinical research

-- The patent ordinance also provides adequatesafeguards to protect the interest of the

domestic industry and the citizens from any

increase in prices of drugs

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IPR AND AGRICULTURE


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G CU U&BIOTECHNOLOGY

-- IPR can be used to protect goods or services

produced in the agricultural & biotech sector-- They are patents, plant breeders rights,

trademarks, geographical indications and tradesecrets

-- It is possible to include lay-out designs for chipsthat are designed to perform certain functionsrelated to agriculture

-- Patents are probably the most important IPR todayfor agricultural goods as they provide the strongestprotection for patentable plants and animals andbiotechnological processes for their production

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IPR AND AGRICULTURE


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&BIOTECHNOLOGY--In the field of biotechnology more than others, that

proprietary rights over knowledge is getting

increasingly important

--Commercial marks more often used in agriculture

than industry are geographical indications,including appellations of origin

-- Darjeeling for tea from this district in India

-- Basmati for rice from India-- sui generis protection-protection measures for

traditional agricultural practices and the traditional

knowledge of farmers and local communities 59

TRADE RELATED INVESTMENT


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TRADE RELATED INVESTMENT

MEASURES(TRIMs)

TRIMs refers to certain condition or

restrictions imposed by a govt in respect of

foreign investment in the country.

The agreement on TRIMS provides that no

contracting party shall apply any TRIM which

is inconsistent with the WTO Articles.

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INCONSISTENT TRIMs

Local content requirement i.e a certainamount of local inputs to be used in product.

Trade balancing requirement i.e imports shall

not exceed a certain proportion of export. Trade and foreign exchange balancing

requirement.

Domestic sales requirement i.e a companyshall sell a certain proportion of its outputlocally.

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GATS covers 4 modes of international


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GATS covers 4 modes of international

delivery of services-

Cross border supply (trans border data flows,

transportation service)

Commercial presence(provision of services abroad

through FDI) Consumption abroad (tourism)

Movement of personnel (entry and temporary

stay of foreign consultants)

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CONCLUSION

International trading environment has profoundlyinfluenced the growth and pattern of

international trade which accounts a major partof international business.

The developing countries must be able to take amore active part in trade negotiations, with the

help of these international trade organizationsthrough technical assistance and support fromthe developed countries.

4. role of int. organ

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