GATT,WTO,ADB

Presented By,
Snehapriya John
Sukanya Mohan
Akshay Raj
Amala Lovely James
Dilshad Asharaf
Bindhya Babu
Josphy Tom
Anjaly M Vargheese
Ann Maria Mathew
Punnya Pradeep
What is GATT?
General Agreement on Tariff and Trade

1st world wide multilateral free trade agreement

June 30, 1948 (after 2nd world war) january 1

1995(WTO formed)

GATT trade in goods & WTO trade in

goods,services,intellectual property issues.

Reducing tariffs & eliminating discrimination boost

international trade & restore economic health
Objectives of GATT

To raise the standard of living of the people

To ensure full employment and a large and

steadily growing volume of real income and effective
demand.

To tap the use of the resources of the world fully.

To expand overall production capacity and

international trade.
Principles of GATT

Non Discrimination

Protection through tariffs

A stable basis of trade

Consultation
 Evaluation of GATT
The growing acceptance of GATT/WTO,despite
their shortcoming is evinced by the increase in the
number of signatories. When the GATT was signed
in 1947,only 23 nation were party to it, it
increased to 99 by the time of the seventh round
and 117 countries participated in the next
Uruguay Round. In July 1995, there were 128
signatories.

GATT contributed significantly to the

liberalisation and growth of trade in goods.
GATT and WTO have helped to create a more
liberal trading system contributing to
unprecedented growth.

The last round- the 1986-94 Uruguay Round led to

the creation of WTO and provided for global
economic and business liberalisation of very wide
scope.

Trade liberalisation was confined mostly to goods

of interest to developed countries.
GATT achieved considerably trade liberalisation
with the notable exception of agriculture and
textiles.

The average level of tariffs on manufactured

products in industrial countries was brought down
from about 40% in 1947 to nearly 3% after the
Uruguay round.

Trade liberalisation has no benefitted developing

countries significantly.
 Why GATT to WTO

Failed to cover trade in services & intellectual

property rights and the absence of international
mechanism to resolve dispute in international trade.

Another reason behind collapse of GATT was that

organisation was in favour of the industrial countries
and lost confidence among developing countries
 OBJECTIVES AND FUNCTIONS OF
WTO

The World Trade Organization (WTO) is an

intergovernmental organization which regulates
international trade.

The WTO officially commenced on 1 January 1995

under the Marrakesh Agreement
OBJECTIVES:

To improve the standard of living of people in the

member countries

To ensure full employment and broad increase in

effective demand

To enlarge production and trade of goods

To increase the trade of services

To ensure optimum utilization of world resources

To protect the environment

FUNCTIONS:

To implement rules and provisions related to trade

policy review mechanism

Provide a platform to member countries to decide

further strategies related to trade and tariff

To administer the rules and processes related to

dispute settlement
To provide facilities for implementation,
administration and operation of multilateral and
bilateral agreements of the world trade

It provides a forum for negotiations and for settling

dispute

Review and propagate national trade policies

 The WTO Structure

Is dominated by its highest authority

The Ministerial Conference.

Day to day work is entrusted to a number of

subsidiary bodies, principally the General Council.

General council convenes in 2 particular forms-

The Dispute Settlement Body &
The Trade Policy Review Body.
The General Council delegates responsibilities
to 3 other bodies , namely, The councils for:
*Trade in Goods,
*Trade in Services &
*Trade related aspects of Intellectual
Property Rights.

3 other bodies are established by the Ministerial

Conference who report to the General Council
*The Committee on Trade & Development
*The Committee on BOP
*The Committee on Budget, Finance and
Administration.
The WTO is based on 9 principles. They
are:
1. Transparency.
2. MFN Treatment.
3. National Treatment.
4. Free Trade Principle.
5. Dismantling Trade Barriers.
6. Rule- based Trading System.
7. Treatment for LCDs.
8. Competition.
9. Environment Protection.
 KEY SUBJECTS IN WTO

Agriculture
Health and safety measures
Helping least developed and food importing
countries
Textiles and clothing
Trips
Trims
GATS
Dispute settlement
 Treaties & Conventions

Treaties of friendship, commerce and

navigation(FCN)

The Treaty of Rome

Maastricht treaty

The Vienna convention on the Law of treaties

Paris convention

The patent cooperation treaty (PCT)

Salient Features of World Trade Organization

Non-Discrimination
Free Trade
Stability in the Trading System
Promotion of Fair Competition
Market Access Commitment
Special Concern for Developing Countries
Decision at the Ministerial Level Meeting
Wider Range of Issues
Multilateral Trading System
 Comparison of WTO and GATT

WTO GAAT
Set of rules , Permanent institution with
multilateral its own secretariat.
agreement with no
institution Commitments are full and
permanent
Provisional basis
Trade in services &
Trade in goods intellectual property rights

Multilateral Multilateral
instrument
Faster dispute settlement
Slower and automatic

Contracting parties WTO members

 WTO in India
Tariff & non-tariff

Amendment in patent act

Sui-generis system

copyright, trademark & industrial

design

Geographical indications
 ASIAN DEVELOPMENT BANK

The Asian Development Bank (ADB) is

a regional development bank established on 19
December 1966, which is headquartered in
Manila, Philippines.

The company also maintains 31 field offices

around the world to promote social and economic
development in Asian and Pacific countries
through loans and technical assistance.
The bank admits the members of the United
Nations Economic and Social Commission for Asia
and the Pacific (UNESCAP, formerly the Economic
Commission for Asia and the Far East or ECAFE) and
non-regional developed countries.

From 31 members at its establishment, ADB now

has 67 members, of which 48 are from within Asia
and the Pacific and 19 outside.
The ADB was modeled closely on the World Bank,
and has a similar weighted voting system where
votes are distributed in proportion with members'
capital subscriptions.

At the end of 2014, Japan holds the largest

proportion of shares at 15.7%. The United States
holds 15.6%, China holds 6.5%, India holds 6.4%
and Australia holds 5.8%.
 HISTORY
The Asian Development Bank was conceived in
the early 1960s as a financial institution that would
be Asian in character and foster economic growth
and cooperation in one of the poorest regions in
the world.

A resolution passed at the first Ministerial

Conference on Asian Economic Cooperation held by
the United Nations Economic Commission for Asia
and the Far East in 1963 set that vision on the way
to becoming reality.
The Philippines capital of Manila was chosen to
host the new institution, which opened on 19
December 1966, with 31 members that came
together to serve a predominantly agricultural
region. Takeshi Watanabe was ADB's first President.

During the 1960s, ADB focused much of its

assistance on food production and rural
development.
 OBJECTIVES

Mobilization and promotion of investment of

private and public capital for productive purposes.

Utilization of its resources for financing those

development projects which contribute most to the
harmonious economic growth of the region as a
whole, with special emphasis on the needs of the
smaller or less developed members.

Coordination of plans and policies of the member

countries with a view to achieving better utilization
of their resources, making them economically more
complementary, and expanding their foreign trade.
Provision of technical assistance to the member
countries for the preparation, financing and
execution of development projects.

Cooperation with the United Nations and its

various organs and other international
organizations with the objective of persuading
them to make investments in this region.
ORGANIZATION OF ASIAN DEVELOPMENT BANK

The bank employs approximately 2400 people .

Its 67 member countries.
The company also maintains 31 field offices
around the world to promote social and economic
development in Asia.
ADB is multilateral development finance
institution dedicating to reducing poverty in Asia
and Pacific.
The highest policy making body of the bank is the
Board of Governors composed of one representative
from each member state.

The Board of Governors, in turn, elect among

themselves the 12 members of the Board of
Directors and their deputy eight of the 12 members
come from regional (Asia- Pacific) members while
the others come from non-regional members.
The Board of Governors also elect the President
who is the chairperson of the Board of Directors and
manages ADB.

The president has a team of office lasting five years

and may be re-elected.
FUNCTIONING OF ADB

The ADB finances & gives technical assistance for

developments purpose, & programmers, encourage
public & private capital investment for development
purpose, & helps in coordinating development policies
& plans of developing member-countries.

The ADB resources are generated through

subscriptions, borrowings on capital markets &
income from a variety of sources.
The majority of funds are in the form of country
subscriptions, the leading subscriber countries are
Japan, USA, China, India, Australia, Indonesia.

The principle special fund is the Asian development

fund which was established in the year 1974.

The ADB provides loans to Asian countries on

highly concessional interest rates.
ADB gets its maximum funds from voluntary
contributions of the more developed ADB members.

ADB opened its residential offices in New Delhi,

which started functioning since December 10, 1993.

Loan from the banks special funds are made on

highly concessionary terms almost exclusive to the
poor countries.
 REFERENCE
Aswathappa, S. (2013) International Business
New Delhi,ND :Mc Graw Hill Education
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