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1. Introduction to GATT and WTO
•GeneralAgreementonTariffsandTrade(GATT)
•TheGeneralAgreementonTariffsandTrade(GATT)wasnegotiated
duringtheUNConferenceonTradeandEmploymentandwasthe
outcomeofthefailureofnegotiatinggovernmentstocreatethe
InternationalTradeOrganization(ITO).
•GATTwasformedin1947andlasteduntil1994,whenitwasreplacedby
theWorldTradeOrganizationin1995.TheoriginalGATTtext(GATT
1947)isstillineffectundertheWTOframework,subjecttothe
modificationsofGATT1994.

2. •Inception:-
•Effortstonegotiateinternationaltradeagreementsbeganin1927
attheLeagueofNationsbutwereunsuccessful.
•ThefoundationorganizationtotheGATT,calledtheInternational
TradeOrganization(ITO),wasfirstproposedinFebruary1945by
theUnitedNationsEconomicandSocialCouncil.
•ThenegotiatingcountriesoftheITObeganparallelnegotiationsfor
theGATTasawaytointroduceearlytariffcuts.
•TheplancalledfortheITOtotakecontroloverGATT,oncetheITO
wasfinalized.
•DuetotheUnitedStatesfailingtoimplementtheITO,GATTwas
theonlyorganizationleft.

3. •On1January1948theagreementwassignedby23countries:
Australia,Belgium,Brazil,Burma,Canada,Ceylon,Chile,China,
Cuba,theCzechoslovakRepublic,France,India,Lebanon,
Luxembourg,Netherlands,NewZealand,Norway,Pakistan,Southern
Rhodesia,Syria,SouthAfrica,theUnitedKingdom,andtheUnited
States.
•AccordingtoGATT'sownestimates,thenegotiationscreated123
agreementsthatcovered45,000tariffitemsthatrelatedto
approximatelyone-halfofworldtradeor$10billionintrade

4. •History
•TheBrettonWoodsConferencehadintroducedtheideaforanorganizationto
regulatetradeaspartofalargerplanforeconomicrecoveryafterWorldWarII.
AsgovernmentsnegotiatedtheITO,15negotiatingstatesbeganparallel
negotiationsfortheGATTasawaytoattainearlytariffreductions.OncetheITO
failedin1950,onlytheGATTagreementwasleft.
•TheGATT'smainobjectivewasthereductionofbarrierstointernationaltrade.
Thiswasachievedthroughthereductionoftariffbarriers,quantitative
restrictionsandsubsidiesontradethroughaseriesofagreements.The
functionsoftheGATTweretakenoverbytheWTOwhichwasestablished
duringthefinalroundofnegotiationsinearly.

5. •ThehistoryoftheGATTcanbedividedintothreephases:
•1.From1947untiltheTorquayRound,largelyconcernedwhichcommodities
wouldbecoveredbytheagreementandfreezingexistingtariff1990slevels.
•2.Encompassingthreerounds,from1959to1979,focusedonreducing
tariffs.
•3.ConsistingonlyoftheUruguayRoundfrom1986to1994,extendedthe
agreementfullytonewareassuchasintellectualproperty,services,capital,and
agriculture.
•Eachsetofagreementswascalledaround.Ingeneral,eachagreementbound
memberstoreducecertaintariffs.Usuallythiswouldincludemanyspecial-case
treatmentsofindividualproducts,withexceptionsormodificationsforeach
country

6. GATT established the two basic directions for the trade regime:
•Developing requirements to lower and eliminate tariffs, and
•Creating obligations to prevent or eliminate other types of impediments or
barriers to trade (non-tariff barriers).
•World Trade Organisation
•Location : Centre William Rappard, Geneva,
•Switzerland Established: 1 January 1995
•Created by : Uruguay Round negotiations (1986-94)
•Membership : 159 countries
•Budget : 196 million Swiss France (approx. 209 million
US$)
•Secretariat staff : 640
•Head : Roberto Azevêdo(Director-General)

7. •RobertoAzevêdoofBrazil,istheSixthDirector-GeneraloftheWTO.
•Hisappointmenttookeffecton1September2013forafour-yearterm.
•TheWTOwasdesignedbyitsfounderstosuperviseandliberalize
internationaltrade.
•TheorganizationofficiallycommencedonJanuary1,1995underthe
MarrakechAgreement,replacingtheGeneralAgreementonTariffsand
Trade(GATT),whichcommencedin1947.
•Itdealswithregulationoftradebetweenparticipatingcountries.

8. •Itprovidesaframeworkfornegotiatingandformalizingtradeagreements
andadisputeresolutionprocessaimedatenforcingparticipants
adherencetoWTOagreementswhicharesignedbyrepresentativesof
membergovernmentsandratifiedbytheirparliaments.
•MostoftheissuesthattheWTOfocusesonderivefromprevioustrade
negotiations,especiallyfromtheUruguayRound(1986-1994).

9. •Theorganizationiscurrentlyendeavoringtopersistwithatrade
negotiationcalledtheDohaDevelopmentAgenda(orDohaRound),which
waslaunchedin2001toenhanceequitableparticipationofpoorer
countrieswhichrepresentamajorityoftheworld'spopulation.
•However,thenegotiationhasbeendoggedby"disagreementbetween
exportersofagriculturalbulkcommoditiesandcountrieswithlarge
numbersofsubsistencefarmersontheprecisetermsofa'special
safeguardmeasure'toprotectfarmersfromsurgesinimports.Atthistime,
thefutureoftheDohaRoundisuncertain.

10. •The WTO has 153 members, representing more than 97% of total world trade and 30
observers, most seeking membership.
•Functions:
•Administering WTO trade agreements
•Forum for trade negotiations
•Handling trade disputes
•Monitoring national trade policies
•Technical assistance and training for developing countries
•Cooperation with other international organizations
•Finally, the WTO cooperates closely with the two other components of the
Bretton Woods system, the IMF and the World Bank

11. •ThebasicstructureoftheWTOincludesthefollowingbodies
•TheWTOisgovernedbyaministerialconference,ageneralcouncil,and
adirector-general,whoisappointedbytheministerialconference.
•TheMinisterialConference:
•iscomposedofinternationaltradeministersfromallmembercountries.
•ThisisthegoverningbodyoftheWTO,responsibleforsettingthe
strategicdirectionoftheorganizationandmakingallfinaldecisionson
agreementsunderitswings.
•TheMinisterialConferencemeetsatleastonceeverytwoyears.

12. •Althoughvotingcantakeplace,decisionsaregenerallytakenby
consensus,aprocessthatcanattimesbedifficult,particularlyinabody
composedof136verydifferentmembers.
•TheGeneralCouncil:
•iscomposedofseniorrepresentatives(usuallyambassadorlevel)ofall
members.Itisresponsibleforoverseeingtheday-to-daybusinessand
managementoftheWTO,andisbasedattheWTOheadquartersin
Geneva.
•Inpractice,thisisthekeydecision-makingarmoftheWTOformost
issues.Severalofthebodiesdescribedbelowreportdirectlytothe
GeneralCouncil.

13. •TheTradePolicyReviewBody
•iscomposedofalltheWTOmembersandoverseestheTradePolicy
ReviewMechanism,aproductoftheUruguayRound.
•Itperiodicallyreviewsthetradepoliciesandpracticesofallmember
states.
•Thesereviewsareintendedtoprovideageneralindicationofhowstates
areimplementingtheirobligationsandtocontributetoimproved
adherencebytheWTOpartiestotheirobligations.

14. •TheDisputeSettlementBody
•iscomposedofalltheWTOmembers.Itoverseestheimplementationand
effectivenessofthedisputeresolutionprocessforallWTOagreementsand
theimplementationofthedecisionsonWTOdisputes.
•Disputesareheardandruledonbydisputeresolutionpanelschosen
individuallyforeachcase,andthepermanentAppellateBodythatwas
establishedin1994.
•Disputeresolutionismandatoryandbindingonallmembers.Afinaldecision
oftheAppellateBodycanonlybereversedbyafullconsensusoftheDispute
SettlementBody.

15. •TheCouncilsonTradeinGoodsandTradeinServices
•OperateunderthemandateoftheGeneralCouncilandarecomposedof
allmembers.
•Theyprovideamechanismtooverseethedetailsofthegeneraland
specificagreementsontradeingoods(suchasthoseontextilesand
agriculture)andtradeinservices.
•ThereisalsoaCouncilfortheAgreementonTrade-RelatedAspectsof
IntellectualPropertyRights,dealingwithjustthatagreementandsubject
area.

16. •WTOsagreements:
•AgreementonTradeRelatedInvestmentMeasures(TRIMs)-This
agreementdealswithtradeingoods.
•Ithasannexesdealingwithspecificsectorssuchasagriculture(which
includesfisheries),textilesandwithspecificissuesuchasstatetrading,
productstandards,subsidiesetc.
•GeneralAgreementonTradeinServices(GATS)-Thisagreementcovers
theareassuchasbanking,insurance,telecommunicationandotherareas
liketourism,hotelchains,transportcompaniesetc.

17. •AgreementonTradeRelatedAspectsofIntellectualPropertyRights
(TRIPs)-IntellectualPropertyRights(IPR)referstothecreationsof
humanmindsuchasworksofart,fiction,designetc.Itispackageofright
thatcanbebought,sold,leased.
•TheTRIPsagreementscoverssevenaspectsofintellectualproperty
namely,Copyright,Relatedright,Trademarks,GeographicalIndications,
IndustrialDesigns,IntegratedCircuits,TradeSecretsandPatents.

18. •AgreementonSanitaryandPhytosanitaryMeasures
•SPSmeasuresarethosewhoseapplicationisassociatedwiththeprotectionofhuman,
animalandplanthealth.
•Surveyshavedisclosedthatinternationally,concernsaboutfoodhazardsaremainly
relatedto:
•Food-bornediseasesresultingfrommicrobial[Salmonella,Listeria,Shigella,E.
coil,etc.]contamination.
•Residuesofpesticidesandveterinarydrugs[organochlorines,sulphadrugs,
antibiotics,etc.]
•Environmentalcontaminants[dioxins,cadmium,lead,mercury,zincetc.].
•Foodadditives-especiallythosetowhichsignificantnumbersofconsumersare
hypersensitive.
•Radioactivecontamination.

19. •Alsoincludedinthisagreementareaspectsrelatedtoconservationfor
e.g.,thecaseofturtles.
•Theagreementrecognizesthatgovernmentshavetherighttotake
sanitaryandphytosanitarymeasures,butemphasizesthattheyshould
notarbitrarilyorunjustifiablydiscriminatebetweenMembers.
•Conversely,governmentsofexportingcountriesareexpectedto
respectthejustifiablefoodsafetyrelatedstandardsadoptedby
importingcountriesandtakestepsnecessarytoensurethattheirfood
exportscomplywiththem.
•

20. •Inordertoharmonizesanitaryandphytosanitarymeasuresonaswidea
basisaspossible,membercountriesareencouragedtobasetheir
measuresoninternationalstandards,guidelinesandrecommendations
wheretheyexist.
•InordertoensurethattheadoptionofanewSPSregulationdoesnot
causebarrierstotrade,theagreementprovidesforareasonableinterval
betweenitspublicationanditsentryintoforceandfurtherprovides“longer
time-framesforcompliance”fordevelopingcountries.Thebasicpurpose
oftheseprovisionsistoprovidesufficienttimetoproducersindeveloping
countriestoadopttheirproductstotherequirementsofnewregulations.

21. •Manycountriesaresettingtheirhealthstandardsatalevelhigherthanthe
internationallyprescribedone.
•Forexample,thesettingofpesticideresiduelimitsthatareunnecessarily
stringent,prohibitingtheuseofsubstancesinfoodproduction[fore.g.,
growthpromotants]thathave,beenshownscientificallytobeharmlessif
usedcorrectly;anddemandingevidencefromharmfulsubstanceswhere
thereisnoriskoftheirpresence[fore.g.,testingforradionucleidesin
foodfromregionsofnormalradioactivity]

22. •Anotherinstanceisshrimps’exportfromIndia.
•TheUSAhadplacedrestrictiononthegroundthatthesearenotcaughtwith
turtleexcludingdevices.AnappealwasplacedagainstthisintheWTO
AppellateBody.
•HoweveronJune15,2001,thecourtruledthattheUScouldmaintaintheban
forthemoment.
•Atthesametime,itpointedoutthatthebancouldbejustifiedaslongastheUS
officialskeptupseriousgoodfaitheffortstoreachaninternationalagreementon
turtleconservation.Thedevelopingcountriesareofaviewthatthebanwas
aimedatprotectingtheUSshrimpindustryfromcompetition.

23. •Indiahastakenapositionthatarbitraryaswellasrestrictivesanitaryand
phytosanitarymeasurescontinuetorepresentamajorobstacleto
internationaltradeofagriculturalproducts.
•DevelopingcountryexportsareusuallyaffectedbecausetheSPS
measuresareoftendevelopedinanon-transparentmannerand
developingcountriesinvariablydonotgetadequateopportunityto
respondtotheproposedmeasures.

24. •Anumberofinternationalstandardsarethusbeingdevelopedwithoutthe
participationofdevelopingcountries.
•Asaresult,standardsareoftenbeingadoptedwithouttakingintoaccount
theproblemsandconstraintsthatdevelopingcountriesface.
•Seafoodexportregulation.
•AllexportsfromIndiaareregulatedasitinvolvesforeignexchange
dealings.TheReserveBankofIndiacontrolsallforeignexchange
dealingsandhasevolvedseparateguidelinesforthebankstofollow.

25. •TheGovernmentofIndiathroughtheMinistryofCommercehaslaidoutpolicy
guidelinesforexports.TheMarineProductsExportDevelopmentAuthority
(MPEDA)isthenodalorganizationtoregualateseafoodexports.Itwassetup
asanautonomousorganizationin1972throughanAct.
•AnexportershouldfirstobtainExportscodenumbercalledRBIcodenumber
fromtheReserveBankofIndia.
•AnexportershouldthenregisterwiththeofficeoftheDirectorate-Generalof
ForeignTrade(DGFT)andshouldobtaintheImporter-Exportercode(IEC)for
exports/imports.AfterregisteringwiththeDGFT,theexportershouldregister
withtheMPEDA.Thenonly,theexportercouldexportorimportseafoods.

26. •TheexporterwouldneedtomentionboththeRBIcodenumberandthe
IECinallexportdocuments.
•TheIECwasreplacedwithPANnumberissuedbytheIncomeTax
DepartmentfromApril2001soastoensureauniformidentification
numberfortransactionwithallgovernmentagenciessuchasthecustoms,
Dept.CentralExciseDepartmentPortauthorities,etc.
•TheUnionMinistryofcommercehaslaiddownpolicyguidelinesforall
exports.TheMPEDAnotifiesthesametoseafoodexporters.

27. •AgreementonTechnicalBarrierstoTrade[TBT]
•TheobjectiveoftheAgreementonTechnicalBarrierstoTradeisto
preventtheuseofnationalorregionaltechnicalrequirements,or
standardsingeneral,asunjustifiedtechnicalbarrierstotrade.
•Itcoversalltypesofstandardsincludingaspectsoffoodstandardsexcept
thoserequirementsrelatedtoSanitaryandPhytosanitarymeasuresand
includesaverylargenumberofmeasuresdesignedtoprotectthe
consumeragainstdeceptionandeconomicfraud.

28. •Theaspectsoffoodstandardsitcoversrelatespecificallytoquality
provisions,nutritionalrequirements,labeling,andmethodsofanalysis.
TheAgreementprovidesthatalltechnicalstandardsandregulationsmust
havealegitimatepurpose.
•ItisnoteworthythatbothSPSandTBTAgreementsacknowledgethe
importanceofharmonizingstandardsinternationallyiftheriskofsanitary,
phytosanitaryandothertechnicalstandardsbecomingbarrierstotradeis
tobeminimizedoreliminated.

29. •Non-tariffbarrierstotrade(NTBs)
•NTBsaretradebarriersthatrestrictimportsbutarenotintheusual
formofatariff.
•SomecommonexamplesofNTB'sareanti-dumpingmeasuresand
countervailingduties,which,althoughtheyarecalled"non-tariff"
barriers,havetheeffectoftariffsoncetheyareenactedTheirusehas
risensharplyaftertheWTOrulesledtoaverysignificantreductionin
tariffuse.

30. •Somenon-tarifftradebarriersareexpresslypermittedinverylimited
circumstances,whentheyaredeemednecessarytoprotecthealth,
safety,orsanitation,ortoprotectdepletablenaturalresources.In
otherforms,theyarecriticizedasameanstoevadefreetraderules
suchasthoseoftheWorldTradeOrganization(WTO),theEuropean
Union(EU),orNorthAmericanFreeTradeAgreement(NAFTA)that
restricttheuseoftariffs.

31. •SixTypesofNon-TariffBarrierstoTrade
1.SpecificLimitationsonTrade:
1.Quotas
2.ImportLicensingrequirements
3.Proportionrestrictionsofforeigntodomesticgoods(localcontent
requirements)
4.Minimumimportpricelimits
5.Embargoes

32. 2.CustomsandAdministrativeEntryProcedures:
1.Valuationsystems
2.Antidumpingpractices
3.Tariffclassifications
4.Documentationrequirements
5.Fees

33. 3.Standards:
•Standarddisparities
•Intergovernmentalacceptancesoftestingmethodsandstandards
•Packaging,labeling,andmarking
4.GovernmentParticipationinTrade:
•Governmentprocurementpolicies
•Exportsubsidies
•Countervailingduties
•Domesticassistanceprograms

34. •Chargesonimports:
•Priorimportdepositsubsidies
•Administrativefees
•Specialsupplementaryduties
•Importcreditdiscriminations
•Variablelevies
•Bordertaxes
•Others:
•Voluntaryexportrestraints
•Orderlymarketingagreements

35. •AntiDumping
•Sellinggoodsinaforeigncountryatapricewhichlocalproducers
regardasunfairlylow.
•Thismaymeansellingatlessthanthelong-runaveragecosts;
chargingalowerpriceinexportmarkets;orsimplysellingataprice
withwhichproducersintheimportingcountrycannotcompete.
•This is an unfair trade practice, which can have a distortive effect on
world trade.

36. •AntiDumpingisameasuretorectifythesituationarisingoutofthe
dumpingofgoodsanditstradedistortiveeffect.
•TheuseofAnti-Dumpingmeasureasaninstrumentoffair
competitionispermittedbytheWTO.
•Infact,Anti-Dumpingisaninstrumentforensuringfreetradeandis
notameasureofprotectionperseforthedomesticindustry.
•Itprovidesrelieftothedomesticindustryagainsttheinjurycausedby
dumping.