Professional Documents
Culture Documents
MFN
Stands for most favoured nation and is
used while levying import duties.
All members have agreed to offer the
MFN to each other.
The MFN applied rate includes any
temporary or content rate changes and is
the rate most likely to be available to
most countries.
MFN
Other kinds of trade agreements multilateral or bilateral may give countries a
preferential rate, which may be lower than
the MFN on specific goods.
Countries that are not WTO members for
example the Russian Federation, maintain a
General tariff for imports and preferential
rates according to trade agreements.
Harmonised System
The Harmonised Commodity Description
and Coding System is a classification
system for goods entering an importing
country through customs.
It has 97 chapters with description of every
commodity.
Periodically the Customs Cooperation
Council recommends revision due to
changes in technology or trade patterns.
WORLD TRADE
ORGANIZATION
GATT
The General Agreement on Trade and Tariff (GATT) came into
existence in 1947.
URUGUAY ROUND
Held in September 1986 in Pantadel Este in Uruguay. The major
highlights were:
a)
b)
c)
d)
e)
Establishment of WTO
1986 AGENDA
The 15 original Uruguay Round subjects: Tariffs
Non-tariff barriers
Natural resource products
Textiles and clothing
Agriculture
Tropical products
GATT articles
Tokyo Round codes
Anti-dumping
Subsidies
Intellectual property
Investment measures
Dispute settlement
The GATT system
Services
TIME LINE
Year
Place/Name
Subject Covered
Countries
1947
Geneva
Tariffs
23
1949
Annecy
Tariffs
13
1951
Torquay
Tariffs
38
1956
Geneva
Tariffs
26
1960-1961
Dillon Round
Tariffs
26
1964-1967
Kennedy Round
62
1973-1979
Tokyo Round
Tariffs, non-Tariffs
measures, Framework
measures
102
1986-1994
Uruguay Round
Tariffs, non-tariffs
measures, rules, services,
intellectual property,
dispute settlement,
textiles, agriculture,
creation of WTO.
123
1994 Onwards
Doha Round
151
INTRODUCTION
MEMBERS OF WTO
Although it was in place for over forty years, the GATT was a provisional
agreement from a legal point of view. The WTO and its agreements are mandatory
and permanent.
The GATT was a set of rules for conducting international trade with no solid
institutional basis (only an ad-hoc provisional secretariat). The WTO is an
intergovernmental organization, and has its own secretariat.
The GATT dealt only with trade in goods. The WTO covers trade in services (under
the General Agreement on Trade of Services, GATS), trade related aspects of
intellectual property (under the TRIPS) and continues dealing with trade in goods
through the so called "GATT 1994" which is an updated version of the old text
"GATT 1947".
A large number of agreements adopted under the GATT were "plurilateral", and
therefore selective agreements. But WTO agreements are multilateral and all
member states are concerned.
Another major difference is the dispute settlement system, which is faster and more
automatic than in the old GATT system. Its rulings cannot be blocked
WTO
TRADING SYSTEM
Multilateral trading system i.e. the system operated by
the WTO.Most nations including almost all the main
trading nations are members of the system. But some
are not, so multilateralis used to describe the system
instead of global or world.
In WTO affairs, multilateral also contrasts with actions
taken regionally or by other smaller groups of countries.
(This is different from the words use in other areas of
international relations where, for example, a multilateral
security arrangement can be regional.)
PRINCIPLES OF TRADING
SYSTEM
Without discriminationgiving countries equally most
favoured- nation or MFN status; and it should not
discriminate between its own and foreign products, services or
nationals.
Freer barriers coming down through negotiation.
Predictable foreign companies, investors and governments
should be confident that trade barriers should not be raised
arbitrarily; tariff rates and market-opening commitments are
bound in the WTO.
More competitive discouraging unfair practices such as
export subsidies and dumping products at below cost to gain
market share.
More beneficial for less developed countries giving them
more time to adjust, greater flexibility, and special privileges.
AGREEMENTS MADE BY
WTO
DISPUTE SETTLEMENT
DOHA ROUND
The work programme lists 21 subjects. The original deadline of 1
January 2005 was missed. So was the next unofficial target of the
end of 2006.
General Agreement on Tariffs and Trade (GATT)
Agriculture
Sanitary and phytosanitary (SPS) measures
Textiles and clothing
Technical barriers to trade
Trade-related investment measures (TRIMs)
Anti-dumping
Customs valuation
Rules of origin
Subsidies and countervailing measures
Trade-related aspects of intellectual property rights (TRIPS)
Cross-cutting issues
Outstanding implementation issues
INTERNATIONALIZATION
PROCESS
DISTRIBUTION DECISION
PRODUCT DECISION
PRICING DECISION
COMMUNICATION
DECISION