WORLD TRADE

ORGANIZATION

AKASH SHAHI
2013A5PS874P

Contents
WTO : Introduction
WTO : Evolution
Objectives of WTO
Functions of WTO
Structure of WTO
TRIPS Agreement and its Impact
TRIMS Agreement
GATS Agreement

WTO : Introduction
A global
organization
dealing with rules
of trade between
nations.
Established on 1st
January 1995
Members: 162
countries

WTO : Evolution
General Agreement on Tariffs
and Trade (GATT)
In 1947, 23 countries came
into an agreement in Geneva
on multilateral Trade. This
agreement was termed as The
General Agreement on Tariffs
and Trade (GATT) which came
into effect on 1st of Jan. 1948.
The primary objective of GATT
was to expand international
trade by liberalising trade to
bring economic prosperity.

The Uruguay Round

Uruguay Round (UR) is the name by which the 8 th round of
Multilateral Trade Negotiations (MTNs) held under the auspices of the
GATT, September 1986. The main issues in this round discussed were
of Agricultural Subsidies, Multi Fibre Agreement (MFA), Trade in
Services, Anti Dumping etc.
Some of the main agreements of the Uruguay Round were as
follows:Anti-Dumping Code:
Trade Related Investment Measures (TRIMs):
Trade related aspects of Intellectual Property Rights
(TRIPs):According to GATT Intellectual Property Rights are the
rights given to persons over the creations of their minds.
Trade in services - Bank, Insurance, Transport and Communication,
etc. are trade related services.
Following the Uruguay Round (UR) Agreement GATT was converted
from a provisional agreement into a formal international organisation
known as World Trade Organisation (WTO). The WTO secretariat is
based in Geneva, Switzerland. The WTO members now accounts for
over 97 percent of the international trade.

OBJECTIVES OF WTO
The WTO has the following objectives:
To raise the standard of living in
member countries
To develop an integrated, viable and
durable multilateral trading system.
To promote sustainable development
in member countries by the optimal
use of resources.
To help the developing countries to
get a share in the growth in the
international trade.

To reduce tariffs and other trade barriers among member countries

and to eliminate discriminatory treatment in international trade

relations.
To insure linkages between trade policies, environmental policies
and sustainable development.

FUNCTION OF WTO
The basic functions of WTO are
as follows:
It facilitates the implementation,
administration and operation of the
trade agreements.
It provides the forum for further
negotiations among member
countries on matters covered by the
agreement as well as the new issues
falling within its mandate.
It is responsible for the settlement of the
differences and dispute among its member countries.
It is responsible for carrying out periodic reviews of the trade policies of
its member countries.
It assists developing countries in trade policies issues through technical
assistance and training programme.
It encourages co-operation within international organisations.

STRUCTURE OF WTO

STRUCTURE OF WTO
Ministerial Conference- The apex body for decision making (meets
every 2 years). Composition:-ministerial representatives.
General Council- performs the functions of the Conference between
meetings and has specific duties assigned to it by the WTO
agreements. Composition:- governmental representatives.
The General Council also meets as the Dispute Settlement Body
and the Trade Policy Review Body.
Councils for Trade in Goods (oversees GATT), Trade in Services
(oversees GATS) and TRIPS which report to and assist the General
Council.
Committees on special subjects, Committees functioning under the
Councils and Committees for the Plurilateral Agreements.
Membership- developed, developing, least developed countries and
economies in transition.
Decision making is by consensus. If consensus is not possible
decisions will be taken by a majority vote.

TRIPS AGREEMENT
The Agreement on Trade-Related Aspects of Intellectual Property Rights
(TRIPS) is an international agreement administered by the World Trade
Organization (WTO) that sets down minimum standards for many forms
of intellectual property (IP) regulation as applied to nationals of other
WTO Members.
The TRIPS agreement introduced intellectual property law into the
international trading system for the first time and remains the most
comprehensive international agreement on intellectual property to date.
Intellectual property rights may be defined as
Information with
commercial value. IPR
have been characterized as a composite of
ideas and creative expression. Plus the
public willingness to bestow the status of
property. It include
a. Protection of patent
e. Trademarks
b. Copyright
f. Trade secrets
c. Industrial design
g. Layout design
d. Geographical indication

Impact of TRIPS on India

Closure of Industries on a large scale

Indian Firms concentrating on generic products
Opening of R&D bases by foreign multinational
Standardization of Products.
Increasing visibility in the Contract Research and
Manufacturing Services (CRAMS) space

TRIMS AGREEMENT
TheAgreement on Trade-Related Investment Measures(TRIMs) are rules
that apply to the domestic regulations a country applies to foreign
investors, often as part of an industrial policy.
TRIMs are rules that restrict preference of domestic firms and thereby
enable international firms to operate more easily within foreign markets.
Features of TRIMs
1. Abolition of restriction imposed on foreign capital
2. Offering equal rights to the foreign investor on
par with the
domestic investor
3. No restrictions on any area of investment
4. No limitation or ceiling on the quantum of
foreign investment
5. Granting of permission of without restrictions to
import raw
material and other components
6. No force on the foreign investors to use the
total products and or
materials
7. Export of the part of the final product will not
be
mandatory

GATS AGREEMENT
The General Agreement on Trade in Services (GATS) is a treaty of the
World Trade Organization (WTO) that entered into force in January 1995
as a result of the Uruguay Round negotiations. The treaty was created to
extend the multilateral trading system to service sector, in the same way
the General Agreement on Tariffs and Trade (GATT) provides such a
system for merchandise trade.
The GATS defines that trade in services can be made in four ways, they
are:
1. Services supplied from one country to another (e.g. International
telephone calls)
2. Consumers from one country making use of
another
country (e.g. Tourism)
3. A company from one country setting up
subsidiaries or branch
to provide services in
another country (e.g. Banking)
4. Individual travelling from their own country
to supply
services in other country
(e.g. Actress or construction worker)

THANK YOU