WTO AND AGRICULTURE KAUSALYA.S
World Trade Organization . It is an institution that was established in 1995 It replaced General Agreement on Trade and Tariffs (GATT) which was in place since 1946. It was signed in Geneva by only 23 countries and by 1986, in Uruguay round It was finally concluded in 1995 and led to creation of WTO in Marrakesh, Morocco), 123 countries were already its member.
India has been member of GATT since 1948 * Hence it was party to Uruguay Round and a founding member of WTO * China joined WTO only in 2001 and Russia had to wait till 2012. Afghanistan is the newest member, joining effective 29 July 2016. Russia was one of the only two large economies outside of the WTO after Saudi Arabia joined in 2005
Principle of the Trading System WTO 1) Non Discrimination a) Most Favored Nation: Treating other nations equally b) National Treatment :Treating foreigners and locals equally National treatment only applies once a product, service or item of intellectual property has entered the market 2) Free Trade: Gradually through negotiation Lowering trade barriers is one of the most obvious means of encouraging trade.
3) Predictability: Through binding and Transparency To fully enjoy the benefits of competition 4) 5) Encouraging Development and Economic Reforms Major agreements of WTO 1.Agreement on subsidies and countervailing measures SCM 2.General Agreement on Trade in Services - GATS
Negotiations is services under GATS are classified in 4 modes, interests of different countries depend upon this classification Mode 1 -cross border supply of services without movement of natural persons. For eg. Business Process Outsourcing, KPO or LPO services. Mode 2 This mode covers supply of a service of one country to the service consumer of any other country. E.g. telecommunication Mode 3 - Commercial presence - which covers services provided by a service supplier of one country in the territory of any other country. Mode 4 Presence of natural persons -E.g. Infosys or TCS sending its engineers for onsite work in US/Europe or Australia.
3.TRIPS * This is an Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) It is an international agreement administered by the World Trade Organization (WTO) that sets down minimum standards for many forms of intellectual property (IP) regulation as applied to nationals of other WTO Members. It was negotiated at the end of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) in 1994.
4. TRIMS * This refers to Agreement on Trade-Related Investment Measures (TRIMS) It recognizes that certain investment measures can restrict and distort trade. It states that WTO members may not apply any measure that discriminates against foreign products or that leads to quantitative restrictions, both of which violate basic WTO principles.
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