Implications of wto on india

Implications of wto on india

RoadmapStructure Of WTOWhy do we need WTOIndia and WTOEffect onAgricultureTextilesIT & ITesTelecom SectorIPR and TRIPS in IndiaSanitary and PhytoSanitary Measures/Technical Barriers To TradeOur RecommendationsTariff Reforms

Why Do We Need WTO?International peace:- by helping the trade to flow smoothly and dealing with disputes over trade issues

Risk reduction:- Confidence to nations to do more and more trade, thereby stimulating economic growth

India in WTOFounder memberEnsured more stability and predictabilityMFN status and national treatment for its exportsIndia 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[Source: WTO Secretariat Report]

GDP shareAgricultureReduction in domestic subsidiesAmber box, Green box and Blue boxTotal Aggregate Measurement of Support (AMS) is negative so not required to undertake reduction commitments in any of its productReduction in export subsidiesNo direct subsidies except marketing and transport subsidiesTariff binding and progressive reduction of tariffsPrimary agricultural products 100%Processed foods at 150% and edible oils at 300% TextilesThe textile sector remained outside the GATT disciplines for many decades1974: MFAATC : negotiated during the Uruguay RoundAccounted for about 36% of total exports from IndiaLargest net foreign exchange earner for the countryAnti-dumping probes against IndiaEuropean UnionUnbleached Cotton Fabrics (UCF)Cotton Type BedlinerPolyester Texturised Filament Yarn (PTFY)

TurkeyPolyester Texturised Yarn (PTY)

South AfricaPrinted and dyed bed linen Acrylic fibre blanketsIT & ITesKey contributor to the Services Sector accounting for 5.8% of Indias overall GDP[Source: PWC report for CII]

The increase in availability and reduction in tariffs has prompted many developed nations to go for business with India especially in IT and ITeS industry

Software exports from the Rajiv Gandhi Chandigarh Technology Park rose from Rs.504 crore in 2007-08 to Rs.750 crore last year.

TelecomThe WTO Agreement on Basic Telecommunications provided for liberalization of tradeIndias approach was primarily defensiveMFN exemptions: for different accounting rates into Pakistan, Bangladesh, Nepal and Bhutan1998 25% FDI2001 49% FDI2003 74% FDI but mgmt. control with Indian operatorsMobile tariffs in India

IPRSeven typesCopyrightsTrademarks Geographical indicationsIndustrial designsPatents Integrated circuitsTrade secretsTRIPS in IndiaIndias patent policy allowed very little scope for patents in agriculture

Protecting some of the geographical indications of interest to India e.g. Basmati rice, Darjeeling tea, Mysore Dosa

Exclusive Marketing Rights for the producers of patented drugs and agrochemicalsSanitary and Phytosanitary Measures and Technical barriers to trade (SPS/TBT)Protects human, animal and plant life and health including from pests and diseases of food

Size, shape, weight and packaging material requirements including labeling and handling safety

Peanuts, Marine products, Mushrooms in EUOur recommendationsBuilding up world-class infrastructure like roads, ports and electricity supply

Strength in IT and ITes sector should be tapped and further strengthened

Reorganize its Protective Agricultural policy

Textile industry modernizationChart159.213.327.554.816.628.646.321.631.139.223.736.632.227.240.62426.749.3

PrimarySecondaryTertiary

Sheet1PrimarySecondaryTertiary1950-5159.213.327.51960-6154.816.628.61970-7146.321.631.11980-8139.223.736.61990-9132.227.240.62001-022426.749.3To resize chart data range, drag lower right corner of range.

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Chart20.230.220.190.170.160.110.110.110.090.050.050.040.030.02

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