IAS OUR DREAM

Presents QUICK FACTS on GATT, WTO

GATT • General Agreeement on Tariffs and Trade(GATT) formed
in 1947 after WWII
• 23 non communist nations took part initially
• Planned to hav International Trade Org (failed due to
differences)
• Came into being in Jan 1948
• By 1988, 96 nations joined
• Objectives Achieved
Tariff Removal of
reduction non-tariff
barriers
through
rounds of
negotiations
• Between 1947-86 seven rounds took place
• 1986-Uruguay rounds (Director General: Arthur Dunkel)---
concluded in 1994 decision to form WTO

WTO • Came into force on Jan 1,1995 after Dunkel Draft approval
thru Final Act at Marrrakesh,Uruguay.
• Incorporated all org. treaties of GATT
• New Areas---Services,intellectual property,trade related
investment
• Functions of WTO
To make int. trade free as more as possible thru transperancy n
predictability
Forum for trade negotiations
Neutral agency for settlement of trade disputes
 India’s point of view
wrt to WTO
WTO AGREEMENT
provides for review at the
ministerial level at leat once
every two years
Level of tariff reduction n export subsidies agreed to are generally in
consonance with the reforms accepted by us as recommended in
CHELLIAH Committee report
Multi fibre Agreement (MFA) governed the WTO’s trade in
textile n clothing imposed many quotas by developed countries.
IT was abolished in Jan 2005 which benefited INDIA
TRIPS caused major concern for developing countries like INDIA
because Indian Patents Act 1970 varied widely with requirements of
TRIPS .
TRIMS (Trade related investment measures)----
 not to discriminate against foreign capital,which
shud b given national treatment
 this takes away India’s discretion not to allow
certain foreign investments (soft drinks,potato
chips) n this INFRINGES on the nation’s
ECONOMIC SOVEREIGNITY.
Attempts were made by the US to intro issues lik LABOUR
STANDARDS (imposing dutieson developing countries products
on grounds of CHEAP LABOUR. & environmental protection in
the review meeting held in SEATTLE.
• Singapore (1st review meeting—1996)
• Geneva (2nd 1998)
• Seattle,USA (1999 abondoned due to protest by interest
groups belonging to both dev.eloped n developing countires)
TRIPS The World Trade Organization and intellectual-property law
Caused major concern for
The Agreement on Trade-Related Aspects of Intellectual Property
INDIA(see how-------- Rights (commonly known as TRIPS) has contributed greatly to the
expansion of intellectual-property law. Negotiated as part of the
Uruguay Round (1986–94) of the General Agreement on Tariffs and
Trade (GATT), the TRIPS Agreement obligates members of the World
Trade Organization (WTO) to establish and enforce minimum levels of
copyright, patent, and trademark protection within their jurisdictions.
Countries that fail to do so are subject to various WTO-administered
trade sanctions.

The leaders of some developing countries contend that the TRIPS

Agreement reflects and perpetuates a form of Western imperialism.
Noting that most owners of intellectual property (e.g., the copyrights
on popular movies and music, the patents on pharmaceutical products,
and the trademarks of multinational food and clothing companies)
reside in developed countries, these officials argue that strengthening
intellectual-property rights unfairly raises the prices paid by consumers
in the developing world. Accordingly, developing countries generally
have been slow to implement TRIPS. Some economists, however,
maintain that the long-term effect of the agreement will be to benefit
developing countries by stimulating local innovation and encouraging
foreign investment. Despite the existence of TRIPS, global rates of
piracy of software, music, movies, and electronic games remain high,
in part because many countries in Africa and Latin America have not
met the deadlines imposed by the agreement for revamping their
intellectual-property laws. Other countries, particularly in Asia, have
formally complied with the agreement by passing new laws but have
not effectively enforced them.

Currently whats in NEWS regarding India and WTO

India gives EU another chance to settle drug seizure case

India has decided to hold one last round of consultation with the European Union on
the steps it is taking to stop the wrongful
 confiscation of pharmaceutical consignments
from India at European ports before asking
the World Trade Organisation (WTO) to set
up a dispute settlement panel to resolve the
issue.

Preparations for filing a case against the EU,

however, continues as India wants the issue
to be settled as soon as possible, a
government official has said.

REPUTATION AT STAKE: Seizures

violate international patent pact

WTO Currently

WTO rules against China's restrictions

Judges at the World Trade Organisation have handed down a
landmark ruling - most of China's curbs on foreign books, films
and DVDs are illegal.

The ruling, which is now final, affects distribution in China of foreign

films for theatrical release, DVDs, music, books and journals. China has
said it "regrets" the WTO's decision.

China allows up to 70 foreign films a year to be shown in local cinemas.

Foreign distributors regarded the process as restrictive. Jonathan Bithrey
reports.

WTO talks: No compromise on Indian interests

India on Tuesday insisted that services must take top priority in world trade talks. “We
have our interests and there is no question of agreeing only to those sectors where the
developed countries are interested,” Commerce and Industry Minister Anand Sharma
said in Rajya Sabha.
He was replying to a calling-attention motion on the status of the World Trade
Organisation (WTO). Sharma said in the present round of negotiations “services will be
an integral part.”
He assured the House that “there is no question of coming under pressure when it
comes to trade policy. India will come under only one pressure, the pressure of its
interest, the pressure of its people and the pressure of its farmers. There is no question
of we being pro-US.”
Developed countries will have to make deep cuts in their subsidies, and this is still
being negotiated, he said, adding there cannot be any agreement while

DO U KNOW
SUPER 301

Section 310 of the 1974 Trade Act (P.L. 93-618, as amended) is commonly
referred to as Super 301.

As enacted, Super 301 required the USTR for 1989 and 1990 to issue a report
on its trade priorities and to identify priority foreign countries that practiced
unfair trade and priority practices that had the greatest effect on restricting U.S.
exports. The USTR then would initiate a Section 301 investigation against the
priority countries to obtain elimination of the practices that impeded U.S.
exports, in the expectation that doing so would substantially expand U.S.
exports.