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1 WTO - Its Origin, Organization & Operational Mechanism -PART-1 Aftermath of world war-II & emergence of GATT in 1948. Aftermath of world war-II & emergence.

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Presentation on theme: "1 WTO - Its Origin, Organization & Operational Mechanism -PART-1 Aftermath of world war-II & emergence of GATT in 1948. Aftermath of world war-II & emergence."— Presentation transcript:

1 1 WTO - Its Origin, Organization & Operational Mechanism -PART-1 Aftermath of world war-II & emergence of GATT in 1948. Aftermath of world war-II & emergence of GATT in 1948. Lowering of tariffs on goods only & modifications through several rounds with provisions to deal with problems of developing countries. Lowering of tariffs on goods only & modifications through several rounds with provisions to deal with problems of developing countries. Uruguay Round enlarged the scope including other areas i.e. services, TRIPS, TRIMS Environment, Textiles etc. Uruguay Round enlarged the scope including other areas i.e. services, TRIPS, TRIMS Environment, Textiles etc.

2 2 WTO set up to oversee URAS & a forum for further liberalization & dispute settlement WTO set up to oversee URAS & a forum for further liberalization & dispute settlement - Single undertaking - Predicable & secured market access - Transparent, measurable & binding tariffs - MFN status - National Treatment - Credible dispute settlement system - Review mechanism of Trade policies - continuing forum for trade liberalization - special & differential treatment to developing & LDCs LDCs

3 3 India a founder member, pursuing Trade liberalization. India a founder member, pursuing Trade liberalization. India’s active role in creating awareness that multilateral trade negotiations must serve development goals of developing & LDCs. India’s active role in creating awareness that multilateral trade negotiations must serve development goals of developing & LDCs. India’s role in articulating, designing & developing Doha Development Agenda India’s role in articulating, designing & developing Doha Development Agenda

4 4 Organization Umbrella Organization to oversee the implementation of agreements under Uruguay Round and thereafter. Umbrella Organization to oversee the implementation of agreements under Uruguay Round and thereafter. Apex body for decision making along with dispute settlement and compliance. Apex body for decision making along with dispute settlement and compliance. General Council performs delegated functions and is being assisted by several councils. General Council performs delegated functions and is being assisted by several councils. Unanimous Decision making like GATT and decision making by majority in exceptional cases. Each member has one vote Provision for special voting. Unanimous Decision making like GATT and decision making by majority in exceptional cases. Each member has one vote Provision for special voting.

5 5 Located in Geneva & headed by Director General who is appointed in consultation with member countries. Located in Geneva & headed by Director General who is appointed in consultation with member countries. At present, it has 153 members and about 20 members in waiting At present, it has 153 members and about 20 members in waiting Though inter-governmental, it informs the civil society & Private sector Though inter-governmental, it informs the civil society & Private sector

6 6 Evolution and Major Developments Ministerial Meetings – Singapore (Dec 1996) Instead of focusing on Implementation problems, developing countries opposed inclusion of new areas such as labour clause, trade & investment, trade & competition, trade facilitation & govt. procurement. Instead of focusing on Implementation problems, developing countries opposed inclusion of new areas such as labour clause, trade & investment, trade & competition, trade facilitation & govt. procurement. Issue of E-commerce left for Plurilateral agreement, labour clause for ILO. Issue of E-commerce left for Plurilateral agreement, labour clause for ILO. Final Ministerial text was a compromise to avoid failure but dissension became apparent. Final Ministerial text was a compromise to avoid failure but dissension became apparent.

7 7 2 nd ministerial meeting – Geneva – (June 1998) Celebration of golden jubilee Celebration of golden jubilee General council to look into the problems concerning implementation of URA General council to look into the problems concerning implementation of URA Commencement of negotiations on built-in agenda in URA Commencement of negotiations on built-in agenda in URA The new subjects under study and analysis of WTO The new subjects under study and analysis of WTO More ceremonial than substantive one More ceremonial than substantive one

8 8 3 rd Ministerial meeting- Seattle, USA (1999) Demonstrations resulting in law & order problem & cancellation of inauguration. Demonstrations resulting in law & order problem & cancellation of inauguration. Civil societies from Developed & developing countries opposed. Former wanted inclusion of labour or social clause where as the latter opposed inclusion of Singapore issues and non- solution to the implementation problems of URA, conference was a disaster. Civil societies from Developed & developing countries opposed. Former wanted inclusion of labour or social clause where as the latter opposed inclusion of Singapore issues and non- solution to the implementation problems of URA, conference was a disaster.

9 9 4 th Ministerial Meeting – Doha, Qatar (2001) Agreement of public health and TRIPS was agreed before the meeting Agreement of public health and TRIPS was agreed before the meeting Problems associated with developing countries in implementation of URA were placed on front burner and agreed that decision on new issues deferred for 5 th ministerial meeting. Problems associated with developing countries in implementation of URA were placed on front burner and agreed that decision on new issues deferred for 5 th ministerial meeting. Doha Development Agenda was formulated keeping developing countries’ interests in mind. Doha Development Agenda was formulated keeping developing countries’ interests in mind.

10 10 5 th Ministerial Meeting – Cancun, Mexico (2003) Unbridgeable differences between developed & developing countries, LDCs on issues such as agricultural subsidies, NAMA issues, GATs etc. Unbridgeable differences between developed & developing countries, LDCs on issues such as agricultural subsidies, NAMA issues, GATs etc. Insistence of developed countries to include even truncated Singapore issues which was not acceptable to developing countries. Insistence of developed countries to include even truncated Singapore issues which was not acceptable to developing countries. Rise of G-20 & Collapse of Cancun. Rise of G-20 & Collapse of Cancun.

11 11 6 th WTO Ministerial Meeting Hong Kong, Dec.2005 a. Abolition of Export Subsidies by 2013. b. Abolition of Cotton Export Subsidies by 2006 and free access to cotton growing countries to developed markets. C.For NAMA Modalities to be agreed by April,2006 and Final Negotiations to be completed by July,2006 d. For Services offers to be made by Feb.2006, revised offer & acceptance by July,2006 & negotiations by 31 Oct.2006 e. Entire Doha Development Agenda Negotiaions to be completed by Dec.2006. Hongkong hearlded a new phase of global cooperation among developed and developing countries resulting from July,2005 framework of DDA which is more balanced and equitable to all WTO members. Hongkong hearlded a new phase of global cooperation among developed and developing countries resulting from July,2005 framework of DDA which is more balanced and equitable to all WTO members.

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