WORLD TRADE ORGANISATION WORLD TRADE ORGANISATION RAJENDRA K.KHETAN Vice President WTO CELL ~FNCCI

WTO WTO BRIEF HISTORY International Trade Organization (ITO) after WW-II thought of International Trade Organization (ITO) after WW-II thought of Diluted version of ITO –GATT*established -1947/8 (*general agreement on tariff & trade) Diluted version of ITO –GATT*established -1947/8 (*general agreement on tariff & trade) Many rounds of GATT negotiation. The Uruguay Round (1993) leads to World Trade Organization (WTO) With 125 Countries In at Marrakech Many rounds of GATT negotiation. The Uruguay Round (1993) leads to World Trade Organization (WTO) With 125 Countries In at Marrakech

Important meetings GATT rounds Kennedy round 1967 Kennedy round 1967 Tokyo round 1979 Tokyo round 1979 Uruguay round 1993 Uruguay round 1993 Ministerial meets Singapore 9-13 dec 1996 Geneva may 1998 Seattle 30 nov- 3 dec 1999 Doha 8-12 nov 2001 ( 144 th member entered ) Cancun sept 2003

FUNDAMENTAL PHILOSOPHY Rule based International trading System Rule based International trading System Member driven Organization Member driven Organization Trade with global market access at competitive price of best quality product Trade with global market access at competitive price of best quality product Harmonization of tariff - fusion with InfoTech Harmonization of tariff - fusion with InfoTech Protection only through Tariff Protection only through Tariff Trade Liberalization – ‘MFN’ to all members Trade Liberalization – ‘MFN’ to all members Quantity and quota restricted Quantity and quota restricted General agreement on trade & services (GATS) General agreement on trade & services (GATS)

SUSTAINABLE DEVELOPMENT THROUGH GLOBALISATION Integrating Nepalese economy to global economy Integrating Nepalese economy to global economy Strengthening domestic policies and institutions – gear up for ‘MFN’ Strengthening domestic policies and institutions – gear up for ‘MFN’ Credibility and stability of policies to the outsiders Credibility and stability of policies to the outsiders Extended and secured market Extended and secured market Enhancing capability Enhancing capability

STATUS OF ACCESSION EFFORTS Under GATT (1989) Application submitted Application submitted Working Party established Working Party established Memorandum submitted Memorandum submitted Under WT0 (1995) Application submitted Application submitted Working Party established Working Party established Observer status Observer status

STATUS OF ACCESSION EFFORTS Memorandum submitted ('98) Memorandum submitted ('98) Questions and replies ('99) Questions and replies ('99) Initial Tariff offers ('00) Initial Tariff offers ('00) Initial commitments in services ('00) Initial commitments in services ('00) First Working Party meeting (May '00) First Working Party meeting (May '00) Bilateral consultations (Sept '00) Bilateral consultations (Sept '00) Additional questions and replies(Sept '02) Additional questions and replies(Sept '02)

STATUS OF ACCESSION EFFORTS (2002) Revised tariff offers Revised tariff offers Revised services commitment Revised services commitment Legislative action plan Legislative action plan Second Working Party and Bilateral Meeting held in GENEVA, from 9 to 13 Sept. '02

APPROACH FOR CONCESSIONS AND COMMITMENTS National constraints and capability National constraints and capability Interests of Nepalese Producers Interests of Nepalese Producers Goodwill of international community Goodwill of international community Commercial interest of WTO members Commercial interest of WTO members Compatibility with national objectives Compatibility with national objectives

GOODWILL OF INTERNATIONAL COMMUNITY WTO decisions in favor of LDCs WTO decisions in favor of LDCs Third UN conference on LDCs Third UN conference on LDCs Consensus on Quadrangle countries Consensus on Quadrangle countries Doha declaration Doha declaration

REVISED OFFER AND COMMITMENTS Offered tariff bindings lowered both in Offered tariff bindings lowered both in Agriculture Agriculture Non-agriculture Non-agriculture Services sector commitments widened Services sector commitments widened 11 sectors / sub-sectors included in offer for market access 11 sectors / sub-sectors included in offer for market access

STRENGTHS & OPPORTUNITIES Part of global family of trade and legislation Global market access Completed most accession requirements Diversification of products and markets possible Priority to LDCs SAPTA / SAFTA / QUADRANGLE / REGIONAL Inherent & Indigenous Products Dispute settlement mechanism

WEAKNESS & THREATS Small economy / limited resources Small economy / limited resources Lack competitive & comparative edge Lack competitive & comparative edge Lack of capital, technology & H.R. Lack of capital, technology & H.R. Big players in competition Big players in competition Weak implementation & Traditional approach Weak implementation & Traditional approach Global compact Global compact Brain drain Brain drain Opening of trade and investment boundaries Opening of trade and investment boundaries

Present drive Awareness and campaign Awareness and campaign Building capacity viz.capital,technology and skill Building capacity viz.capital,technology and skill Political commitments Political commitments Administrative reforms Administrative reforms System compatibility System compatibility Radical changes for competitiveness Radical changes for competitiveness Cross society's support Cross society's support Horizontal & vertical diversification Horizontal & vertical diversification

Potential Area MODERN AGRI FARMING MODERN AGRI FARMING INTELLECTUAL PROPERTIES INTELLECTUAL PROPERTIES BIO DIVERSITY (HERBS,FORESTRY,AYURVED,SPICES) BIO DIVERSITY (HERBS,FORESTRY,AYURVED,SPICES) TOURISM (FLORA,FAUNA,HEALTH,SPORTS,RELIGIOUS,EDUCATION,SAARC HUB) TOURISM (FLORA,FAUNA,HEALTH,SPORTS,RELIGIOUS,EDUCATION,SAARC HUB) FINANCIAL & OFFSHORE CENTER FINANCIAL & OFFSHORE CENTER SERVICE SECTOR & ‘SEZ’ SERVICE SECTOR & ‘SEZ’ INFORMATION TECHNOLOGY INFORMATION TECHNOLOGY HUMAN RESOURCES HUMAN RESOURCES ENERGY POWER ENERGY POWER GLOBAL LANDMARKS (MT.EVEREST,LORD BUDHA, SITA) GLOBAL LANDMARKS (MT.EVEREST,LORD BUDHA, SITA)

FUTURE COURSE TRIPS (patent Copyrights, Trademark Designs, Geographical Indications) - new laws and implementation required TRIPS (patent Copyrights, Trademark Designs, Geographical Indications) - new laws and implementation required Rule based transparent business Rule based transparent business Agriculture - Protecting the rights of Farmers Agriculture - Protecting the rights of Farmers Opening of the diverse, new & service sector Opening of the diverse, new & service sector Technical assistance for enhancing competitive strength Technical assistance for enhancing competitive strength Identification and development of thrust \ core sectors Identification and development of thrust \ core sectors Competition Law & facilitating mechanism Competition Law & facilitating mechanism Investment friendly law & policy Investment friendly law & policy Transparency in govt. procurements Transparency in govt. procurements Safeguard measures – anti dumping \ counter veiling duty Safeguard measures – anti dumping \ counter veiling duty