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GATT AND TRIPS AGREEMENT

AND WTO

PRESENTED BY

MANOJ KUMAR

AMITY UNIVERSITY

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GATT

The general agreement on tariffs and trade (GATT) was

originally created by the Bretton Woods Conferences as a

part of economics of world after world warII in 1947.

It was came into force in January 1948 after GenevaConference.

In starting about 23 countries was involved in GATT.

They thought to organized ITO (International Trade

Organization) but after discussion it was not success and

GATT was came in force in 1948.

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OBJECTIVE

Raising standards of living.

Ensuring full employment. A large and steadily growing volume of real income and

effective demand.

Developing the full use of the resource of the world.

Expanding the production and exchange of goods.

to provide industries and business enterprises from

different countries a secure, stable and predictable

environment in which they can trade with one anotherunder conditions of fair and equitable competition.

to promote through increased trade, greater investment,

production and employment.

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PRINCIPLE OF GATT

1- TRADE WITHOUT DISCRIMINATION-

This principle involve the provision of most favored

nation (MFN) means each contracting parties give any

other contracting parties the same benefits as those givesto another parties.

It also involve the national treatment means the imported

product treatment is preferment similar to the national

product with similar tax and regulation.

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2-PROTECTION ONLY THROUGH TARIFF-

Protection should be given to domestic industries only

through the customs tariffs and not through other

commercial measures .

The aim of this rules ,the extent of protection clear and to

make competition possible.

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3- A STABLE BASIS OF TRADE-

The contracting countries provide a stable predictable

basis for trade.

The binding of tariffs means that these can not be

increased unilaterally. So that this provision is made for

the renegotiation of bound tariffs.

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4- CONSULTATIONS

A basic principle of GATT is that members countriesshould consult one another on trade matters and

problems.

They can call on GATT for a fair settlement of cases in

which they feel that their rights under GATT are being

with held or compromised by other members.

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LIMITATION

Benefitted mainly for industrialized world.

Unfavorable for developing countries.

No specialization for intellectual properties.

No legal body included.

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Impact on developing countries-

The role of GATT in integrating developing countries is

open multilateral trading system. The GATT provide the trading system and programmatic

support through certain rules helped in both ways expand

and diversify their trade.

The developing countries have become full partners in

the systems means they actively participate in the

Uruguay Round.

The free trade has become the backbone of economicprosperity and development of the developing countries.

So that the GATT provide the good impact on developing

countries.

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TRIPPS AGREEMENT

Trade related intellectual properties agreement was

signed in Marrakesh, Morocco, on 15,april 1994.OBJECTIVE-

To protection and enforcement of intellectual property

right of persons.

To promotion of technological innovation.

To transfer and dissemination of technology.

To mutual advantage of producers and users of

technological knowledge and easy to social and

economic welfare.

To become of right and obligations.

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PRINCIPLE OF TRIPS-

The principles of TRIPS is that the members formulatingor amending their laws and regulation.

Adopt measures necessary to protect public health andnutritions.

Promotes the public interest in sectors of vital importance

to their socio-economic and technological development

with the provision of TRIPS Agreement.

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TRIPS COVERAGE AREA

Copyright and related Rights. Trademark and related Rights.

Geographical indication related.

Industrial designs related. Patent related.

Layout designs of integrated circuits.

Protection of undisclosed information.

Control of licensing authority.

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WTO (WORLD TRADE ORGANISATION)

WTO was established on January 1,1995.

WTO is the result of Uruguary Round of GATT. Organization created by the Marrakesh Agreement

WTO is completely replacement of GATT predecessor

and has a very different characters.

WTO is an international organization that established

rules for international trades.

It also resolves disputes between the members which are

all signatories to its set of trade agreement.

76 Governments became members of the WTO on its

first day. The present membership accounts for more

than 90 per cent of world trade.

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OBJECTIVE-

To set and enforce rules for international trades.

To provide a forum for negotiating and monitoringfurther trade liberalization.

To resolve trade disputes.

To increase the transparency of decision-makingprocesses.

To co-operate with other major international economic

institutions involve in global economic management.

To help developing countries benefits fully from theglobal trading system.

Ensuring growth of real income and demand

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SCOPE OF WTO-

The WTO shall provide the common institutionalframework for the conduct of trade relations among its

Members in matters related to the agreements and

associated legal instruments included in the Annexes to

the Marrakesh Agreement.

Multilateral Trade Agreement Plurilateral Trade Agreements

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FUNCTION OF WTO

Forum for trade negotiations.

Monitoring trade policy of countries. Proving technical advises to member countries.

It shall provide the frame work for the implementation ,

administration and operation of the plurilateral tradeagreement.

Handling trade disputes.

WTO shall administer the understanding on rules and

procedures governing the settlement of disputes.

It shall co-operate as appropriate, with the International

Monetary Fund and the International Bank for

Reconstruction and Development.

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STRUCTURE OF WTO

Ministerial Conference

General Council DSB

GOOD

COUNCIL

SERVICES

COUNCIL

TRIPS

COUNCIL

TPRB

Appellate

Body

DisputeSettlement

Panels

CTD (Development)CTE (Environment)

CRTA (Regionalism)BOP

BudgetWG (Accessions,

Investment, competition,

Government Procurement

Committees

Director-General

Secretariat

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STATUS OF WTO

The WTO shall have a legal personality and shall legal

capacity as may be necessary for the exercise of itsfunction.

WTO shall be accorded by each of its members such as

privileges and immunities as are necessary for the

exercise of its function. The official of WTO and the representative of members

shall similarly be accorded by each of its members are

necessary for the independent exercise of their function in

connection with the WTO.

WTO may conclude a headquarter agreement.

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MEMBERSHIP AND WITHDRAWAL-

Members

Established by the Marrakesh Agreement 153Members.

Members can be States or separate customs territory

possessing full autonomy in the conduct of itsexternal commercial relations

Membership is delivered after an accession

procedure (around 30 candidates)

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WITHDRAWAL-

Any member may be withdrawal from this agreement.

Such withdrawal shall apply both to this agreement and

the multilateral.

Shall take effect upon the expiration of six months fromthe date on which written notice of withdrawal is

received by director general of the WTO.

Withdrawal from a plurilateral trade agreement shall be

governed by the provisions of that agreement.

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DISPUTE SETTLEMENT

The basic principle of the dispute settlement committee

is-1-Equitable

2-Fast

3-Effective

4-Mutually acceptable

There are some stages involved in dispute settlment-

1- The first step conducted for 60 days.In this step if the

dispute is not solve then stepII is followed.

2- In this step the committee is formed within 45 days.

And this committee should submitted report with in 6

months.

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There is some steps involved in this steps as follows-

Before the first hearing

First hearing Rebuttals

Expert

First draft

Interim report

Reviews

Final report

Report become ruling

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ROLE OF WTO IN GLOBALIZATION-

WTO plays an important role in the principle of trade

withdrawal discrimination in the free market trade. Most favored nation (MFN) treating other people equally

under the WTO agreement ,countries can not normally

discriminate between their trading partner.

National treatment treating the foreigners and localequally.

Freer trade ,in this lowering trade barriers is one of the

most obvious means of encouraging trade. The barriersconcerned include customs duties and measures such as

import bans that restrict quantities selectively.

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Predictability with suitability and predictability

investment is encouraged , jobs are created and

consumers can fully enjoy the benefits of competitions

such as choice and lower prices.

Promotion fair competition ,the WTO is sometimes

describes as a free trade institution ,but it is not entirely

accurate the system does not allow tariffs . More accurate it is a system of rules dedicated to open

fair and undistorted competition.

WTO contributes to development. On other hand ,

developing countries need flexibility in the time they take

to implement the systems agreement.

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DIFFERENCE BETWEEN WTO AND GATT

GATT WTO

1- Provisional Agreement

2- Contracting Parties

1- International Organization

2- Members

3- Restricted Coverage

4- Goods

3- Broad Coverage

4- Goods, Services,

TRIPs

5- Dispute Settlement 5- Dispute Settlementstrengthened

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