WTO GATT

YOLO

1. Globalization

2. Topics included Introduction to GATT and WTO Achievements of GATT WTO over GATT WTO Powers Role of WTO India’s Role in WTO

3. Introduction to GATT (GATT) is a multilateral agreement regulating international trade. Its purpose is the "substantial reduction of tariffs and other trade barriers and the elimination of preferences, on a reciprocal and mutually advantageous basis. It was negotiated during the UN Conference on Trade and Employment and was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO). GATT was signed in 1947 and lasted until 1993, when it was replaced by the World Trade Organization in 1995. The original GATT text (GATT 1947) is still in effect under the WTO framework, subject to the modifications of GATT 1994

4. Major Provisions of GATT Tariff Quantitative Restrictions Developing Countries

5. Achievements of GATT GATT has enjoyed a membership of over 100 countries and generated about 85-90% of world trade. trade liberalization in industrial products (Kennedy Round) Adopted codes on NTBs (Tokyo Round) No world wars since 1948 (Increased trade promotes world peace) Replaced by WTO on January 1, 1995.

6. WTO OVER GATT It came into existence on 1 st January 1995. The original intention was to create a third institution to handle the trade side of the international economic cooperation, joining the two “Bretton Woods” institutions, the International Monetary Fund and the World Bank. All was not going well under the GATT and with the world trade becoming more and more complex, GATT was not able to deal with it. For instance, in agriculture, loopholes in the multilateral system were heavily exploited, and efforts at liberalizing agricultural trade met with little success.

7. In the textiles and clothing sector, an exception to GATT’s normal disciplines was negotiated in the 1960s and early 1970s, leading to the Multifibre Arrangement. Even GATT’s dispute settlement systems were causing concern. The WTO framework ensures a “single undertaking approach” to the results of the Uruguay Round — thus, membership in the WTO entails accepting all the results of the Round without exception

8. WTO POWERS WTO covers a much broader purview, including subsidies, intellectual property, food safety and other policies that were once solely the subject of national governments. The WTO also has strong dispute settlement mechanisms. As under GATT, panels weigh trade disputes, but these panels have to adhere to a strict time schedule.

9. Role of WTO Trade negotiations Implementation and monitoring Dispute settlement Building trade capacity Outreach

10. India’s role in WTO Founder member - India is a founder member of the General Agreement on Tariffs and Trade (GATT) 1947 and its successor, the World Trade Organization (WTO), which came into effect on 1.1.95 after the conclusion of the Uruguay Round (UR) of Multilateral Trade Negotiations. Stability and Predictability - India's participation in an increasingly rule based system in the governance of international trade is to ensure more stability and predictability, which ultimately would lead to more trade and prosperity for itself and the 149 other nations which now comprise the WTO. MFN - India also automatically avails of MFN and national treatment for its exports to all WTO members. According to the WTO Secretariat Report, along with the policy statement by the Government of India, 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.

11. The increase in availability and reduction in tariffs has prompted many developed nations to go for business with India especially in IT industry. If the trend continues then by 2025, India is expected to cater to the software and services demands of major giants of the business world. Analyzing the present relationship with the promising economic growth of India, one can be sure that India is going to enjoy a very candid and bright relationship with WTO and associated member nations by 2025 “ India has also played an important part in the effective formulation of major trade policies”