World Trade Organization

WTO

Introduction
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Erasing national, political boundaries for the purpose of business can be termed as globalization

Integration of the economy of the country with world economy International Monetary Fund, International Bank for Reconstruction & Development, General Agreement on Tariffs & Trade World Trade Organization initiated

General Agreement on Tariffs & Trade (GATT)

World Trade Organization

Introduction
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Prolonged recession before World War II in west was due to protectionism followed by industrial countries

Led to negotiations in 1947 among 23 countries

To prevent protectionist policies & revive economies from recession Negotiations resulted in GATT
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Objectives of GATT
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Establishment of WTO

World Trade Organization

WTO
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India is one of the founder members of WTO GATT was not an organization, but was only a legal agreement WTO designed to play the role of watchdog in the spheres of trade in goods, trade in services, foreign investment, intellectual property rights
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Functions of WTO
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World Trade Organization

World Trade without Discrimination

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Organization Structure of WTO

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Based on 4 Hierarchical levels: Ministerial Conference General Council Councils Committees & Management Bodiess

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Organization Structure of WTO

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Ministerial Conference: Highest level Authority to make decisions on all matters Meets at least once in 2 years Policy & strategy making body & gets it executed & implemented by next level
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Organization Structure of WTO

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General Council: Executive body Reports to Ministerial Conference

All members of WTO are also representatives in General Council

Has other forms: Dispute Settlement Body Trade Policy Review Body
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Organization Structure of WTO

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Councils: Council for trade in goods Council for trade in services

Council for Trade Related Aspects of Intellectual Property Rights

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Organization Structure of WTO

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Committees: & Management Bodies: Committee on trade & development Committee on BOP Committee on budget, finance & admin

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Dispute Settlement Mechanism of WTO

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Powerful mechanism to solve disputes over trade among the member countries

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WTO & Dumping Measures

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Types of Dumping: Intermittent Dumping Persistent Dumping Predatory dumping

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India & Dumping

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After globalization, Indian economy govt reduced rates of customs duties Indian govt started MFN clause to the imports from various countries These factors led to dumping from China & East Asian Countries
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India & Dumping

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Goods dumped Indian Market are nt only China but also Est Asian Countries: Soaps & computer parts Thailand Chocolates Malaysia Instant coffee mix Singapore Glassware & Crockery Indonesia Tea Sri Lanka Tiles Taiwan
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India & Dumping

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Ease of import regulations main reason for dumping in India

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