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WTO, Globalization &WTO, Globalization &
PakistanPakistanPresented By
Abiha Jafar Zaidi Fareeha Saquib
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INTRODUCTIONINTRODUCTION
WTO(World Trade Organization)WTO(World Trade Organization)
Established: 1stJanuary, 1995
Created By: Uruguay Round Negotiations
(1986-94) 18th GATT round.
Budget: 185 Million Swiss Francs for 2008
Membership: 153 countries, with Ukraine as
its newest member
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ADVANTAGES OF WTOADVANTAGES OF WTO Free trade cuts the cost of living It gives consumers more choice and a broader
range of qualities to choose from Trade raises income Trade stimulates economic growth, which is
good for employment The basic principles make the system
economically more efficient and cuts costs The system allows disputes to be handles
constructively A system based on rules rather than power
makes life easier for all
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Purpose of WTOPurpose of WTO
Liberalize Trade
Solve Trade Disputes
Organize Trade Negotiations
Maintain Trade Barriers
Assist with Trade Policy Issues
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Objectives of WTOObjectives of WTO
To raise standard of living.
Ensuring full employment. Developing the full sense of the resources
of the world and expanding the
production and exchange of goods.
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4 Basic Principles4 Basic Principles
1. Protection to Domestic Industry
through Tariffs.
2. Binding of Tariffs3. MFNTreatment
4. National Treatment Rule
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AgreementsAgreements
Tariffs
Agriculture
Standards and Safety Textiles
Services
Anti-Dumping Intellectual Property
Non-tariff Barriers
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GlobalizationGlobalization
the free movement of goods, services, laborand capital across borders.
Types Of Globalization Economic globalization
Environmental globalization
communicative globalization
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Economic globalization is characterized by
increased trade and investment,
liberalization (free trade),
privatization of public services and
de-regulation of many government institutions.
Environmental globalization recognizes that anenvironmental incident or impact that happens in
one region or country. It has the potential to affect
the entire world's health and well being.
communicative globalization refers to the rapidgrowth of communication technologies such as
internet, telephone, cellular phone, satellite and so
on. This has great impact on culture.
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Impact Of GlobalizationImpact Of Globalization
On The developing countries
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Impact on industrial sectorImpact on industrial sector
y
Textile and related productsy Trade liberalization principle
y The average tariff in Pakistan is around 17% however
there is a need to ensure that there are no adverse
affects of trade liberalization on the domesticproducers.
y Completion of all textile and clothing products into
free trade environment underAgreement of Textile
and Clothing (ATC)
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Impact onAgricultureImpact onAgriculture
y Agreement ofAgriculture (AOA)
y Rules regarding export subsidies,
domestic support and market access
y Agreement regarding food safety and
protection of human and animal life and
health from agricultural imports
y Production and exports of meat, dairyproducts, fruits, vegetables, etc.
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y Agreement on Trade related aspects of
Intellectual Property Rights (TRIPS)
y To fully utilize its competitive advantage
and to ensure that the industry is
encouraged to provide intellectualproperty protection for its products, and
imported products.
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y Genaral Agreement on Trade in Services
(GATS)
y WTO agreements have an in-built
mechanism for trade remedial measures
for problems of increased imports and
unfair practices under the global trade
regime.y WTO agreement of Technical Barriers.
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y Proper support and policies for industry,
along with intelligent balancing of imports
and exports is vital for growth of
Pakistans economy and is likely to leadtowards a bright future and trade
enhancement under the WTO regime.
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Pakistans experiencePakistans experience
StrategiesA
fter 1947:
a strategy of import substitution (IS) industrialization
was adopted.
Pakistans exchange rate was relatively over-valued,use of quantitative controls on imports .
The objective of the end of EBS was to adopt more
uniform effective exchange rates for exports.
export promotion (EP) emerged as a desirable
strategy of development.
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y During 1970s:
Increased in international oil prices
This increased the import bill and thus worsened the
balance of payments problem.
On the other hand, the emergence of Middle Eastmarket and remittances contributed significantly to
improving the trade balance.
Devaluation, elimination of EBS, and the end of
import licenses were the most notable measuresduring 1970s that were taken to reduce anti-export
bias.
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y 1980S ONWARD:
Pakistan started liberalizing the economy with thehelp ofIMF and World Bank in 1982-83.
Government has taken a number of measures during
1990s that includes: privatization, liberalization of
trade and foreign exchange, and opening up its capital
markets to foreign investors.
like many other developing countries, Pakistan has
made significant efforts to integrate its economy withrest of the world through foreign trade, investment
and other macroeconomic policies.
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SUGGESTIONSSUGGESTIONS
Rationalizing the Tariff Structure
PakistansAgricultural potential has not been takenadvantage of due to inadequate research, structuralproblems, barriers in assessing export markets andcompetitions from other countries exporters
Very few institutions are in Pakistan where differentstake holders can interact on the WTO issues. Theyare based on assumptions rather than research
The speed and sequencing of reforms must becarefully orchestrated
There should not be excessive reliance on demandmanagement, as it can further slow down the pace ofeconomic growth
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There is need for a coordinated and collaborative effort among theSouthAsian countries to expand trade in the region
Pakistan needs to diversify its exports base and shift from primary
agricultural products to more value added and industrial products Pakistan should increase exports not only to earn more foreign
exchange but also to join the world community in globalization
Direct foreign investment is crucial for resource mobilization,therefore, it is strongly recommended that the government ofPakistan must attract foreign direct investment by giving themvarious incentives
Financial depth is also playing crucial role in the overalldevelopment of the country. It is important that we shouldstrengthen our financial sector for capital flow
Political stability is crucial for economic development of the country
Pakistan should be provided enhanced access to the internationalmarket
Pakistan should try to attract FDI through the policies ofliberalization, deregulation, and privatization
All three sectors, first (government), second (business), and third(civil society) must work together towards achieving nationaldevelopment objectives and strengthen national institutions
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