australia and armenia

GROUP NO. 1

Australia & Armenia

AKANSHA JOHARI 073002 AMAN RAWAT 073004

ANKIT GOYAL 073005 HARMEET SINGH 073023

AMIT SHARMA 073026 VAIBHAV SHARMA 073056

Australia • Got independence in 1900.• 1945-1973 witnessed good growth in term of trade import export.• In trade terms, the Australian economy has had persistently large

current account deficits (CADs) for more than 50 years. • In 1973, with Australia experiencing sharply rising inflation and

strong current account surpluses, special consultant to the government, proposed a 25% across the board tariff cut, which was adopted by the government.

• In 1974 a 30% increase in imports and a $1.5 billion increase in the trade deficit.

• Economic liberalization and deregulation of the Australian economy only began under the Hawke Labor Government in the early 1980s.

Map of Australia

Politics • Australia is a constitutional monarchy with a federal division of

powers. • It uses a parliamentary system of government with Queen

Elizabeth II at its apex as the Queen of Australia.• The Queen resides in the United Kingdom, and she is represented

by her viceroys in Australia, who by convention act on the advice of her ministers.

• The federal government is separated into three branches: The legislature: the bicameral Parliament, the Senate, and

the House of Representatives; The executive: the Federal Executive Council The judiciary: the High Court of Australia and other federal

courts, whose judges are appointed by the Governor-General on advice of the Council.

Economy of Australia• GDP (nominal)2013 estimate - Total$1.525 trillion• Per capita$67,722• In terms of average wealth, Australia ranked second in the world

after Switzerland in 2013.• With the 2006 merger of the Australian Stock Exchange and the

Sydney Futures Exchange, the Australian Securities Exchange became the ninth largest in the world.

• Ranked 3rd in the Index of Economic Freedom (2010)• Australia is the world’s 12th largest economy and has the 5th highest

per capita GDP at $66,984. • The country was ranked 2nd in the United Nations 2011 Human

Development Index.

IDENTIFICATION OF WTO EFFECT

CONT…

CONT..

CONT.. 1. In trade terms, the Australian economy has had persistently large current

account deficits (CADs). One single factor that undermines balance of payments is Australia's narrow export base.

2. There are other factors that have contributed to the extremely high current account deficit in Australia such as lack of international competitiveness.

3. Historically, Australia has relied on overseas capital to fill the gap between domestic savings and investment, and many of these investment opportunities could not have been pursued if Australia did not have access to foreign savings. This suggests that Australia's apparently low savings level and CAD are not necessarily a significant problem. As long as the investment that is being funded by overseas capital inflow generates sufficient returns to pay for the servicing costs in the future, the increase in foreign liabilities can be viewed as sustainable in the longer term

4. Dependent upon commodities, the Australian government has endeavored to redevelop the Australian manufacturing sector. This initiative, also known as microeconomic reform, helped Australian manufacturing to grow from 10.1% in 1983–1984 to 17.8% in 2003–2004.

AUSTRALIA'S CURRENT TARIFF REGIME

With over 46% duty free. The average applied tariff rate is 2.9%. The Government is committed to a forward program of further tariff reductions.

On 1 January 2010, Australia proceeded with scheduled tariff reductions on passenger motor vehicle (PMV) and textile clothing and footwear (TCF) tariffs, with tariffs on clothing and certain finished textile articles being reduced to 10%, and all other TCF and PMV tariffs being reduced to 5%. By 2015, all tariffs on TCF products will be no higher than 5%.

Role of Australia in WTO• Specifically in connection to the WTO, since 2002 Australia has

contributed over a $ 7.5 million to the WTO's Global Trust Fund to provide technical assistance to developing country members to participate in the Doha Round of trade negotiations.

• In 2003, Australia removed duties and quotas on all imports from Least Developed Countries. The growth in merchandise imports from LDCs stronger than that from the rest of the world.

• Australia is one of the most active advocates of services trade reform in the WTO

DISPUTE SETTLEMENT: DISPUTE DS271Australia — Certain Measures Affecting the Importation of Fresh Pineapple

Key facts

Complainant : Philippines

Respondent : Australia

Third Parties : none

Agreements cited : GATT 1994 Art. XI, XIII

Request for Consultations received: 18 October 2002


Complaint by the Philippines.

The Philippines requested consultations with Australia on certain measures affecting the importation into Australia of fresh pineapple, which includes:

• Few regulations, requirements and procedures including Plant Bio-security Policy Memorandum 2002/45

which states that fresh pineapple fruit from the Philippines, the Solomon Islands, Sri Lanka, and Thailand, among other requirements, are subjected to few pre-shipment conditions for importation into Australia

The Philippines considered that these measures are inconsistent with the obligations of Australia under the GATT 1994 and the SPS Agreement.

The relevant provisions of these agreements include, but are not limited to Articles XI and XIII of the GATT 1994, and Articles 2, 3, 4, 5, 6 and 10 of the SPS Agreement.

Final decisionOn 1 November 2002, the EC and Thailand requested to join the consultations. On 7 November 2002, Australia informed the DSB that it had accepted the requests of the EC and Thailand to join the consultations


ARMENIA

Republic of Armenia s a mountainous country in the South region of Eurasia.

it is bordered by Turkey, Georgia, Azerbaijan and Iran. Population 3018854 peoples in 29743 Km sq. area GDP $19.649 billion (as in 2012). Religion Armenia was the first nation to adopt

Christianity as a state religion. Literacy Rate 100% reported in 1960. Sports Football, Hockey, Chess Life expectancy 70 for males

76 for females

Introduction to Armenia

Introduction to Armenia (contd..)

The EU is Armenia's main trading partner, accounting for around 27% of Armenia's total trade.

Trade picture

Source: http://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_113345.pdf

Armenia became WTO member on 5th February 2003 (145th member).

Trade policy review on 6, 8 April 2010.

Contribution to WTO budget (2013) is 0.016%.

Number of disputes till now is only 1 as respondant (Complaint by Ukraine about Measures Affecting the Importation and Internal Sale of Cigarettes and Alcoholic Beverages)

Armenia and WTO

Main export Product of Armenia

Source: http://www.ada.am/eng/for-exporters/export-statistics/macroeconomic-indicators/main-export-products-of-armenia

Global exports by Armenia

Source : http://globaledge.msu.edu/countries/armenia/tradestats

Immediate solution of specific problems for economically sustainable development.

New opportunities open up for investments and export. It may lead to a change of situation for domestic manufacturers in

foreign markets. Armenia can use negotiations with neighbouring countries entry

into the WTO for safeguarding the interests of domestic importers.

It will provide protection of investors, exporters, intellectual property, so that it assists in attraction of direct foreign investments and foreign capital to create new manufacturing opportunities, privatization of working enterprises, and introduction of new techniques

Positive consequences of membership in the WTO

Locally produced products can turn out to be non-competitive in cost because of high costs of energy, transportation expenses, and high rate of credits.

The unavailability of financing institutes toward the country joining the WTO can be considered as a threat to the financial security of the state, and causes anxiety.

Negative consequences of membership in the WTO

DISPUTE SETTLEMENT : DISPUTE DS411Armenia — Measures Affecting the Importation and Internal Sale of Cigarettes and Alcoholic Beverages

Key facts

Complainant : Ukraine

Respondent : Armenia

Third Parties : none

Agreements cited : GATT 1994: Art. II:1, III:1, III:2, III:4

Request for Consultations received : 20 July 2010


Summary The summary below was up-to-date at 8 November 2010

Consultations

Complaint by Ukraine.


• On 20 July 2010, Ukraine requested consultations with Armenia regarding Armenia's measures affecting the importation and internal sale of cigarettes and alcoholic beverages.

• Ukraine alleged that Armenia's law “On Presumptive Tax for Tobacco Products” of 24 March 2000 levies discriminatory internal taxes on imported tobacco products and is therefore in violation of Article III of the GATT 1994 and paragraph 1.2 of Armenia's Protocol of Accession to the WTO.

• Moreover, the law imposes customs duties on such imported tobacco products at a rate of 24 per cent, which is higher than Armenia's WTO bound rate of 15 per cent.

• As to imported alcoholic beverages , Ukraine alleges that Armenia's law “On Excise Tax” of 7 July 2000 applies higher excise taxes on imported alcoholic beverages than on like domestic products.

• Ukraine considers that this is also inconsistent with Armenia's obligations under Article III of the GATT 1994.

• On 8 September 2010, Ukraine requested the establishment of a panel.

• On 6 October 2010, Ukraine requested the establishment of a panel.

• At its meeting on 25 October 2010, the DSB deferred the establishment of a panel.


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australia and armenia

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