PRESENTED BY :

Jyoti Sharma
Sanchi Sharma
 BACKGROUND- FROM
GATT TO WTO
In 1947, 23 countries signed GATT(general agreement
on tariffs and trade). India was one of the founder
members of GATT. On 31 december, 1994, 118 countries
were members of GATT- it was the day when GATT
ceased to exist. The main purpose of GATT was to
ensure competition in commodity trade by removal of
trade barriers.
Through successive rounds of negotiations, the barriers
obstructing the free flow of trade were slowly and
steadily lowered.
 The eighth round of GATT negotiated (which stared in
1986 and concluded in 1993) gave birth to the world
trade organisation (WTO).

GATT was converted from a provisional agreement into

a formal international organisation called world trade
organisation (WTO) with effect from january 1, 1995. it
is directed by the ministerial conference that meets at
least once every two years and its regular business is
seen by the general council. WTO is a more powerful
body with greater functions as compared to GATT.
 The World trade organisation is an organisation
that intends to supervise and liberalise
international trade.

WTO was officially commenced on january 1, 1995

Currently there are total 629 staff members are

present in WTO.
STRUCTURE OF WTO
THE MINISTERIAL CONFERENCE(MC)- It is the
highest level consisting of representative members. It
carries the functions of the WTO and also has the
authority to make decisions in any matter under the
multilateral trade agreement(MTA).

THE GENERAL COUNCIL(GC)- It discharges

functions of mc during interval between two meetings
of MC. It co-operates with other governmental and
non- governmental organisations which have
responsibilities towards WTO.
 It is responsible for discharge of responsibilities of the
dispute settlement body and the trade policy reviewbody.

DISPUTES SETTLEMENT BODY(DSB)- It is the

part of dispute settlement system and is empowered to
establish panels, constitute appellate body, exercise
surveillance for compliance with rules and regulations ,
and authorise measures in case of non- implementation
of recommendations.
 Raising standard of living and income.

Introduce sustainable development.

Develop durable multilateral trading system.

promote World Trade in a manner that benefits

every country.
 Acting as a forum for multilateral trade negotiations.

Seeking to resolve trade disputes.

Acting as a watchdog of international trade.

Maintaining trade related database.

Technical assistance and training for developing

countries.
 MAJOR TRADE
AGREEMENTS
Agreement on agriculture(AOA)

Agreement on trade related intellectual

properties(TRIPs)
Agreement on trade related investment
measures(TRIMs)

General agreement on trade in services(GATS)

Agreement on textiles and clothing-multi-fibre

agreement(MFA)
 AGREEMENT ON
AGRICULTURE
The Agreement on Agriculture(AOA) is an
international treaty of the World Trade Organization.
the establishment of the WTO on January 1, 1995.
The Agreement on Agriculture contains three main
categories of commitments:
Market Access
Domestic Support
Export Subsidies.
 MARKET ACCESS
To replace non-tariff measures by tariff that provide
substantially same level of protection.
Tariffs are to be reduced by an average of 36% in case
of developed countries and 24% in case of developing
countries.
Least developed countries are not required to reduce
tariffs.
To provide market access to products from efficient
producers of agricultural commodities.
 DOMESTIC SUPPORT
Members agreed to reduce domestic support to
agriculture, to correct price distortions and allow
market forces to determine level and composition of
agricultural production.

Other measures which do not distort trade are not to

be removed.
 EXPORT SUBSIDIES
The agreement contains provisions regarding
members commitment to reduce Export subsidies.

Developed countries are required to reduce their

export subsidy expenditure by 36%.

For developing countries the percentage cuts are

24%.
 THE TRIPS
AGREEMENT
The Agreement on Trade Related Aspects of
Intellectual Property Rights (TRIPS) 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.
MAIN FEATURES OF TRIPS
Each member to be provided minimum standard of
protection.

Intellectual property rights to be enforced by

domestic procedures and remedies.

Dispute settlement body will settle disputes

between the WTO members.
 THE TRIMS
AGREEMENT
The Agreement on Trade Related Investment Measures
(TRIMs) are rules that apply to the domestic regulations a
country applies to foreign investors, often as part of an
industrial policy The agreement was concluded in 1994 and
came into force in 1995.
MAIN FEATURES OF TRIMS
all restrictions on foreign capital/investors/companies should
be scrapped.
No restrictions will be imposed on any areas of investment.
Imports of raw materials and components will be allowed
freely.
 GATS
The General Agreement On Trade In Services(GATS)
which extends multilateral rules and discipline to services
is regarded as a Landmark achievement of the Uruguay
Round.
In short ,GATT covers the four modes of international
delivery of services-
1)Cross-border supply( transportation services)
2)Commercial Presence (provision of services abroad )
3)Consumption Abroad(Tourism)
4)Movement of personal(entry and temporary stay of
foreign consultants)
 MULTI FIBRE
AGREEMENT
This agreement provides for phasing out of the import
quotas in textiles and clothing under the multi fibre
arrangement since 1974, it also provides special
treatment to certain categories of countries- for
examples small suppliers, and least developed
countries.
 ACHIEVEMENTS OF
WTO
Greater market orientation has been implemented.

There has been a decline in use of restrictive

measures for balance of payments.

Trade of services has been brought into the

multilateral system.

Tariff based protection has been implemented.