5.3.1.wto negotiations

8/2/2019 5.3.1.Wto Negotiations

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WTO: A BriefWTO: A Brief

Result of the Uruguay Round of multilateral tradenegotiations (1986-1994).

Aims to promote free and fair.

General Council highest decision making body.

Three major agreements ± General Agreement onTrade in Goods, General Agreement on Trade inServices, Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS)



Agreement On Trade In Goods (GATT) Agreement On Trade In Goods (GATT)

Aimed at creating a liberal and open trading system.

Lays down rules on multilateral trade in goods.

Covers trade in agriculture, industrial goods,technical barriers to trade, TRIMS (Trade RelatedInvestment Measures ) among others.



India·s Export ProfileIndia·s Export Profile(In US$ Million)(In US$ Million)

COMMODITY

NAME 2004 2005 2006 2007

AVERAGE

2004-07

%

EXPORTSNAMA Total

Petroleum

Products2484.81 9422.00 22522.77 30224.69 16163.57 16.64 14.98

Pharmaceutical

products.1892.99 2343.27 2991.61 3850.08 2769.49 2.85 2.57

Plastic Products 1900.03 2219.15 2652.78 2675.09 2361.76 2.43 2.19

Paper Products 406.26 553.52 596.93 660.91 554.41 0.57 0.51

Textiles &

Clothing14049.01 16875.86 18990.42 20757.63 17668.23 18.19 16.38

Leather &Footwear

2622.19 2989.53 3255.49 3751.02 3154.56 3.25 2.92

Gems &Jewellery

13412.80 17119.16 17079.24 20549.83 17040.26 17.54 15.80

Machinery &Equipments

4861.57 6689.95 8710.97 11027.79 7822.57 8.05 7.25

Auto and AutoParts

2240.46 3197.86 3654.77 4123.81 3304.23 3.40 3.06

Agriculture 8260.66 9650.88 10947.19 14100.93 10739.92 9.96

NAMA 61195.78 84425.72 109948.78 132933.23 97125.88 100.00 90.04

Total 69456.44 94076.60 120895.97 147034.16 107865.79



Doha RoundDoha Round

Launched at Qatar in 2001.

Aimed to correct trade imbalances.

Talks sporadic and marred with differences betweendeveloped and developing countries.



Doha RoundDoha Round ² ² Talks CollapseTalks Collapse

Mini - Ministerial negotiations collapsed , 30 July2008 at Geneva.

Main sticking point ± Trigger point for SpecialSafeguards Mechanism.



A moment comes, rarely in history, when we

step out from the old to the new, when an

age ends, and when the soul of a nation,

long suppressed, finds utterance.



IMPLICATIONS OF WTO ON

INDIAN AGRICULT

URESECTOR.



INT

RODUCT

ION.

TOPICS TO BE COVERED«.

1.GATT2.WTO

3.INDIAN AGRICULTURE.

4.WTO AND INDIAN AGRICULTURE.



GATT

. General Agreement on Tariffs and Trade

GATT was formed in 1947 and lasted

until 1994

was replaced by the World Trade

Organization

On 1 January, 1948 the agreement wassigned by 23 countries.

GATT held a total of 8 rounds.



Uruguay Round - 1986-1993

The Uruguay Round began in 1986. It wasthe most ambitious round to date, hoping to

expand the competence of the GATT to

important new areas such as services,

capital, intellectual property, textiles, and

agriculture. 123 countries took part in the

round.



WT

O

World Trade Organization

The WTO was born out of the GeneralAgreement on Tariffs and Trade (GATT).

Headquarters : Geneva, Switzerland

Formation : 1 January 1995 Membership : 153 member states

Budget : 163 million USD

(Approx).



It is an international organization designed to

supervise and liberalize international trade.

The WTO has 153 members, which represents

more than 95% of total world trade.

WTO cooperate closely with 2 other

component IMF and World Bank.



Purpose

WTO is to ensure that global trade

commences smoothly, freely and predictably.

T

ransparency in trade policies.

Work as a economic research and analysis

centre.



Aim

To create economic peace and stability inthe world through a multilateral system

based on consenting member states, that

have ratified the rules of the WTO in their

individual countries as well.



WT

O Vs GATT

GATT

It was ad hoc &

provisional.

It had no provision for

creating an organization.

It allowed contradictions

in local law & GATT

agreements.

WTO

It is permanent.

It has legal basis because

member nations have

verified the WTO

agreements.

More authority than GATT.

It doesn't allow anycontradictions in local law .



INDIAN AGRICULT

URE. Agriculture in India has a long history

dating back to ten thousand years.

Today, India ranks second worldwide in

farm output.

Agriculture accounted for 16.6% of the

GDP in 2007, employed 60% of the totalworkforce and despite a steady decline of

its share in the GDP, is still the largest

economic



OVERVIEW.

Yields per unit area of all crops have grown

since 1950 due to application of modernagricultural practices and provision of

agricultural credit and subsidies since Green

revolution in India.

However, international comparisons reveal

that the average yield in India is generally

30% to 50% of the highest average yield in the



INITIAT

IVES

The Indian Agricultural Research Institute(IARI), established in 1905, was responsiblefor the research leading to the "Indian GreenRevolution" of the 1970s.

The Indian Agricultural Statistics ResearchInstitute develops new techniques for thedesign of agricultural experiments andspecializes in statistical techniques for animal

and plant breeding.



PROBLEMS.

The low productivity in India is a result of thefollowing factors:

Overregulation of agriculture has increasedcosts, price risks and uncertainty.

Government intervenes in labour, land, andcredit markets. India has inadequate

infrastructure and services



Illiteracy, general socio-economic backwardness, slow progress in implementingland reforms .

Inadequate or inefficient finance andmarketing services for farm produce.

The average size of land holdings is verysmall due to land ceiling acts and in somecases, family disputes.

Such small holdings are often over-manned,

resulting in disguised unemployment and low



WTO AND INDIAN

AGRICULTURE

Introduction.

After over 7 years of negotiations theUruguay Round multilateral tradenegotiations were concluded on December 1993 and were formally ratified in April

1994 at Marrakesh, Morocco. The WTO Agreement on Agriculture was

one of the main agreements which werenegotiated during the Uruguay Round.



The WTO Agreement on Agriculture

contains provisions in 3 broad areas of agriculture.

1.Market access.

2.Domestic support.3.Export subsidies.



Market access.

This includes tariffication, tariff reduction andaccess opportunities.

Tariffication means that all non-tariff barrierssuch as...

1. quotas.

2. variable levies.3. minimum import prices.

4. discretionary licensing.

5. state trading measures.



DOMEST

IC SUPPOR T

.

For domestic support policies, subject to

reduction commitments, the total supportgiven in 1986-88, measured by the Total

Aggregate Measure of Support (total

AMS).



EXPOR T

SUBSIDIES.

The Agreement contains provisionsregarding members commitment to reduceExport Subsidies.

Developed countries are required to reduce

their export subsidy expenditure by 36%.

For developing countries the percentage

cuts are 24%.



Special and Differential

Treatment

1. These include purchases for and salesfrom food security stocks at administered prices provided that the subsidy to producers is included in calculation of AMS.

2. Developing countries are permitteduntargeted subsidised food distribution tomeet requirements of the urban and rural

poor.



INDIA¶S COMMIT

MENT

.

As India was maintaining Quantitative

Restrictions due to balance of paymentsreasons(which is a GATT consistent

measure), it did not have to undertake any

commitments in regard to market access.

India does not provide any product specific

support other than market price support.



In India, exporters of agriculturalcommodities do not get any direct subsidy.

Indirect subsidies available to them are in theform of-:

(a) exemption of export profit from incometax under section 80-HHC of the Income Tax

(b) subsidies on cost of freight on exportshipments of certain products like fruits,vegetables and floricultural products.



WHAT

WE WANT

India¶s basic objectives in the ongoingnegotiations are:

(a) To protect its food and livelihood securityconcerns and to protect all domestic policymeasures taken for poverty alleviation, ruraldevelopment and rural employment.

(b) To create opportunities for expansion of agricultural exports by securing meaningful

market access in developed countries.



INDIA & AOA

Except in rice market ,India is negligible

force in global market. Domestic subsidies of rich nation will not

effect India.

Many Indian products are cost effective indomestic market.

So, no fear of cheap import flooding Indian

market.



CONCLUSION.

It will be ³just´ to highlight one issue each

where the RICH countries and poor countries need to be honest.

Let us be honest to understand thatdominance of politics over economics and

fair play will never render justice.



³With malice toward none ,charity for all

with firmness in right as god has given usto see the right, let us strive on to achieve

adjust and prosperous nation among all

other nation´



Agriculture Agriculture ² ² Main ElementsMain Elements

Domestic Support

Amber Box

Blue Box

Green Box

Market Access

Tariff Reduction

Special Safeguard Mechanism

Special Products

Export Subsidies



NonNon--Agricultural Market Access (N AMA) Agricultural Market Access (N AMA)

Covers Non-Agricultural goods (Industrial Goods)

Includes

Fish and fish products

Rubber & its productsWood products

Excludes

Raw silk, wool, cotton, flax, hemp, furskins,hides & skins

Modified starches, glues



SSM

The SSM is one of two new instrumentsthat many developing countries with mainlydefensive interests in agriculture areadvocating in order to defend their tripleconcerns of food security, farmers'

livelihoods and rural development. (T

heother instrument is the concept of "SpecialProducts").



SSM continued

The SSM is a tool to enable developing countriesto raise their tariffs above the bound rates in the

event of a fall in price of the imported product or an increase in volume of the imported product, beyond certain levels. The increase in tariffs ismeant to result in maintaining the import price (or at least to ensure that the increase will be

moderated) so that the local agricultural productswill not be adversely affected (or at least notaffected to the full degree if no action is taken).



Sectoral Initiatives

Member Countries of WTO agree to identify

sectors for additional tariff liberalisation :

Zero; or

A mutually agreed low tariff

The zero or low tariffs will be offered on an

MFN basis. It will not be a plurilateral

agreement



Proposals on Sectorals

Autos & related parts

Bicycles & related parts

Chemicals

Electronics/ electrical

Fish & fish products Forest products

Gems & Jewellery

Hand Tools

Raw Materials

Sports Equipment

Textiles, Clothing, Footwear

Toys

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