IMPLICATIONS OF WTO ON INDIA

Presented by:-

Shivani Gautam

Shray Jali

Vishal Chaudhary

Roadmap

Structure Of WTO Why do we need WTO India and WTO Effect on

Agriculture Textiles IT & ITes Telecom Sector

IPR and TRIPS in India Sanitary and PhytoSanitary Measures/Technical

Barriers To Trade Our Recommendations

Tariff Reforms

Why Do We Need WTO?

International peace:- by helping the trade to flow smoothly and dealing with disputes over trade issues

Risk reduction:- Confidence to nations to do more and more trade, thereby stimulating economic growth

India in WTO

Founder member Ensured more stability and predictability MFN status and national treatment for its

exports India is expected to snatch most of the

business deals that are presently catering the developed nations which includes major service based industries like telecom, financial services, infrastructure services such as transport and power

[Source: WTO Secretariat Report]

59.2 54.8 46.3 39.2 32.2 24

13.3 16.621.6

23.727.2

26.7

27.5 28.6 31.1 36.6 40.6 49.3

1950-51 1960-61 1970-71 1980-81 1990-91 2001-02

Primary Secondary Tertiary

GDP share

Agriculture

Reduction in domestic subsidies Amber box, Green box and Blue box Total Aggregate Measurement of Support (AMS)

is negative so not required to undertake reduction commitments in any of its product

Reduction in export subsidies No direct subsidies except marketing and

transport subsidies Tariff binding and progressive reduction of

tariffs Primary agricultural products 100% Processed foods at 150% and edible oils at

300%

Textiles

The textile sector remained outside the GATT disciplines for many decades

1974: MFA ATC : negotiated during the Uruguay

Round Accounted for about 36% of total exports

from India Largest net foreign exchange earner for the

country

Anti-dumping probes against India European Union

Unbleached Cotton Fabrics (UCF) Cotton Type Bedliner Polyester Texturised Filament Yarn (PTFY)

Turkey Polyester Texturised Yarn (PTY)

South Africa Printed and dyed bed linen Acrylic fibre blankets

IT & ITes

Key contributor to the Services Sector accounting for 5.8% of India’s overall GDP[Source: PWC report for CII]

The increase in availability and reduction in tariffs has prompted many developed nations to go for business with India especially in IT and ITeS industry

Software exports from the Rajiv Gandhi Chandigarh Technology Park rose from Rs.504 crore in 2007-08 to Rs.750 crore last year.

Telecom

The WTO Agreement on Basic Telecommunications provided for liberalization of trade

India’s approach was primarily defensive MFN exemptions: for different accounting rates

into Pakistan, Bangladesh, Nepal and Bhutan 1998 – 25% FDI 2001 – 49% FDI 2003 – 74% FDI but mgmt. control with Indian

operators

Mobile tariffs in India

0.230.22

0.19

0.170.16

0.11 0.11 0.11

0.09

0.05 0.050.04

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0.2

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IPR

Seven types Copyrights Trademarks Geographical indications Industrial designs Patents Integrated circuits Trade secrets

TRIPS in India

India’s patent policy allowed very little scope for patents in agriculture

Protecting some of the geographical indications of interest to India e.g. Basmati rice, Darjeeling tea, Mysore Dosa

Exclusive Marketing Rights for the producers of patented drugs and agrochemicals

Sanitary and Phytosanitary Measures and Technical barriers to trade (SPS/TBT)

Protects human, animal and plant life and health including from pests and diseases of food

Size, shape, weight and packaging material requirements including labeling and handling safety

Peanuts, Marine products, Mushrooms in EU

Our recommendations

Building up world-class infrastructure like roads, ports and electricity supply

Strength in IT and ITes sector should be tapped and further strengthened

Reorganize its Protective Agricultural policy

Textile industry modernization