PRESTIGE INSTITUTE OF MANAGEMENT

CLASS PRESENTATION ON“ BENEFITS FROM GATT”

PRESENTED BY:

SUKIRTI CHAUHAN

SUNIL BANAURIA

GATT

•The General Agreement on Trade and Tariff (GATT) came into existence in 1947.

•It sought substantial reduction in tariff and other barriers to trade and to eliminate discriminatory treatment in international commerce.

•Original intention behind the GATT was to create a third institution to supervise international trade, other two being the World Bank and IMF.

•India signatory to GATT 1947 along with twenty two other countries

•Eight rounds of negotiations had taken place during five decades of its existence

URUGUARY ROUNDHeld in September 1986 in Pantadel Este in Uruguay. The

major highlights were:

a) Expansion in the sphere of activities from international trade to services, investment and information.

b) Liberalization of trade in Agriculture and Textile goods.

c) Patents & Subsidies

d) Tariff cut- Developing countries have to cut tariffs by 24% over next 10 years while developed countries by 36% for 6 years.

e) Establishment of WTO

GATT/WTOThe World Trade Organization (WTO) deals with the rules of trade between nations at a global or near-global level.

It’s an organization for liberalizing trade. It’s a forum for governments to negotiate trade agreements.

GATT:GATT is the predecessor of WTO

Born in 1948 as a result of the international desire to liberalize trade

Lasted until 1994, when it was replaced by the World Trade Organization.

WTO:

World Trade Organization

The organization officially commenced on January 1, 1995

deals with regulation of trade between participating countries

The WTO has 153 members

headquarters is at the Centre William Rappard, Geneva, Switzerland.

BENEFITS FROM GATT

1.The system helps promote peace2. Disputes are handled constructively3. Rules make life easier for all4. Freer trade cuts the costs of living5. It provides more choice of products and qualities6. Trade raises incomes7. Trade stimulates economic growth8. The basic principles make life more efficient9. Governments are shielded from lobbying10. The system encourages good government

1. The system helps to keep the peace

2.The system allows disputes to be handled

3. A system based on rules rather than power makes life easier for all

4. Freer trade cuts the cost of living

5. It gives consumers more choice, and a broader range of qualities to choose from

6. Trade raises incomes

7. Trade stimulates economic growth, and that can be good news for employment

8. The basic principles make the system economically more efficient, and they cut costs

9. The system shields governments from narrow interests

10. The system encourages good government

THANK YOU