5.3.1.wto negotiations
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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)
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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.
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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
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Doha RoundDoha Round
Launched at Qatar in 2001.
Aimed to correct trade imbalances.
Talks sporadic and marred with differences betweendeveloped and developing countries.
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Doha RoundDoha Round ² ² Talks CollapseTalks Collapse
Mini - Ministerial negotiations collapsed , 30 July2008 at Geneva.
Main sticking point ± Trigger point for SpecialSafeguards Mechanism.
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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.
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IMPLICATIONS OF WTO ON
INDIAN AGRICULT
URESECTOR.
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INT
RODUCT
ION.
TOPICS TO BE COVERED«.
1.GATT2.WTO
3.INDIAN AGRICULTURE.
4.WTO AND INDIAN AGRICULTURE.
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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.
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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.
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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).
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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.
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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.
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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.
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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 .
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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
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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
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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.
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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
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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
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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.
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The WTO Agreement on Agriculture
contains provisions in 3 broad areas of agriculture.
1.Market access.
2.Domestic support.3.Export subsidies.
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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.
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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).
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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%.
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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.
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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.
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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.
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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.
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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.
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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.
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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´
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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
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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
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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").
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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).
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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
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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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