Presented By:-

Sandeep Singh Sikerwar

• The General Agreement on Trade and Tariff (GATT) came into
existence in 1947.

• It sought substantial reduction in tariff and other barriers to trade and to

eliminate discriminatory treatment in international commerce.

• Original intention behind the GATT was to create a third institution to

supervise international trade, other two being the World Bank and IMF.

• India signatory to GATT 1947 along with twenty two other countries

• Eight rounds of negotiations had taken place during five decades of its
existence
Held in September 1986 in Pantadel Este in Uruguay. The major
highlights were:

a) Expansion in the sphere of activities from international trade to

services, investment and information.

b) Liberalization of trade in Agriculture and Textile goods.

c) Patents & Subsidies

d) Tariff cut- Developing countries have to cut tariffs by 24% over

next 10 years while developed countries by 36% for 6 years.

e) Establishment of WTO
The 15 original Uruguay Round subjects:-
• Tariffs
• Non-tariff barriers
• Natural resource products
• Textiles and clothing
• Agriculture
• Tropical products
• GATT articles
• Tokyo Round codes
• Anti-dumping
• Subsidies
• Intellectual property
• Investment measures
• Dispute settlement
• The GATT system
• Services
 The Uruguay Round — Key dates:-

• Sep 86 Punta del Este: launch

• Dec 88 Montreal: ministerial mid-term review
• Apr 89 Geneva: mid-term review completed
• Dec 90 Brussels: “closing” ministerial meeting ends in deadlock
• Dec 91 Geneva: first draft of Final Act completed
• Nov 92 Washington: US and EC achieve “Blair House” breakthrough on
agriculture
• Jul 93 Tokyo: Quad achieve market access breakthrough at G7 summit
• Dec 93 Geneva: most negotiations end (some market access talks remain)
• Apr 94 Marrakesh: agreements signed
• Jan 95 Geneva: WTO created, agreements take effect
Year Place/Name Subject Covered Countries

1947 Geneva Tariffs 23

1949 Annecy Tariffs 13

1951 Torquay Tariffs 38

1956 Geneva Tariffs 26

1960-1961 Dillon Round Tariffs 26

1964-1967 Kennedy Round Tariffs & Anti-dumping 62

measures
1973-1979 Tokyo Round Tariffs, non-Tariffs 102
measures, “Framework
measures”
1986-1994 Uruguay Round Tariffs, non-tariffs 123
measures, rules, services,
intellectual property,
dispute settlement,
textiles, agriculture,
creation of WTO.
1994 Onwards Doha Round Agricultural Products & 151
subsidy issue
• The World Trade Organization (WTO) deals with the rules of
trade between nations at a global or near-global level.
• It’s an organization for liberalizing trade.
• Above all, it’s a negotiating forum:-WTO is a place where
member governments go, to try to sort out the trade
problems they face with each other.
• It’s a set of rules:- These documents provide the legal
ground-rules for international commerce. They are essentially
contracts, binding governments to keep their trade policies
within agreed limits.
• And it helps to settle disputes :- Settle the differences is
through some neutral procedure based on an agreed legal
foundation.
There are, at least, five main differences:

• Although it was in place for over forty years, the GATT was a provisional agreement
from a legal point of view. The WTO and its agreements are mandatory and
permanent.

• The GATT was a set of rules for conducting international trade with no solid
institutional basis (only an ad-hoc provisional secretariat). The WTO is an
intergovernmental organization, and has its own secretariat.

• The GATT dealt only with trade in goods. The WTO covers trade in services (under
the General Agreement on Trade of Services, GATS), trade related aspects of
intellectual property (under the TRIPS) and continues dealing with trade in goods
through the so called "GATT 1994" which is an updated version of the old text "GATT
1947".

• A large number of agreements adopted under the GATT were "plurilateral", and
therefore selective agreements. But WTO agreements are multilateral and all
member states are concerned.

• Another major difference is the dispute settlement system, which is faster and more
automatic than in the old GATT system. Its rulings cannot be blocked
• Location: Geneva, Switzerland
• Established: 1 January 1995
• Created by: Uruguay Round negotiations (1986–94)
• Membership: 150 countries (since 11 January 2007)
• Budget: 175 million Swiss francs for 2006
• Secretariat staff: 635
• Head: Pascal Lamy (director-general)
• Functions:
• • Administering WTO trade agreements
• • Forum for trade negotiations
• • Handling trade disputes
• • Monitoring national trade policies
• • Technical assistance and training for developing countries
• • Cooperation with other international organizations
• ‘Multilateral’ trading system i.e. the system operated by the
[Link] nations — including almost all the main trading
nations — are members of the system. But some are not, so
“multilateral”is used to describe the system instead of
“global” or “world”.
• In WTO affairs, “multilateral” also contrasts with actions
taken regionally or by other smaller groups of countries. (This
is different from the word’s use in other areas of international
relations where, for example, a “multilateral” security
arrangement can be regional.)
• Without discrimination- giving countries equally “most
favoured- nation” or MFN status; and it should not
discriminate between its own and foreign products, services or
nationals.
• Freer — barriers coming down through negotiation.
• Predictable — foreign companies, investors and governments
should be confident that trade barriers should not be raised
arbitrarily; tariff rates and market-opening commitments are
“bound” in the WTO.
• More competitive — discouraging “unfair” practices such as
export subsidies and dumping products at below cost to gain
market share.
• More beneficial for less developed countries — giving them
more time to adjust, greater flexibility, and special privileges.
 Start with broad principles: the General Agreement on Tariffs and Trade
(GATT) (for goods), and the General Agreement on Trade in Services
(GATS). (The third area, Trade-Related Aspects of Intellectual Property
Rights (TRIPS).
• Tariffs
• Agriculture
• Standards & Safety
• Textiles
• Services
• Intellectual property
• Anti-Dumping, Subsidies, etc.
• Non-Tariff Barriers.
• Plurilaterals
• Trade Policy Reviews.
• 60 days- Consultations, mediation, etc
• 45 days - Panel set up and panellists appointed
• 6 months - Final panel report to parties
• 3 weeks- Final panel report to WTO members
• 60 days- Dispute Settlement Body adopts report (if no appeal)
• Total = 1 - year(without appeal)
• 60-90 days- Appeals report
• 30 days- Dispute Settlement Body adopts appeals report
• Total = 1y 3m- (with appeal)
 The work programme lists 21 subjects. The original deadline of 1
January 2005 was missed. So was the next unofficial target of the end
of 2006.
 General Agreement on Tariffs and Trade (GATT)
 Agriculture
 Sanitary and phytosanitary (SPS) measures
 Textiles and clothing
 Technical barriers to trade
 Trade-related investment measures (TRIMs)
 Anti-dumping
 Customs valuation
 Rules of origin
 Subsidies and countervailing measures
 Trade-related aspects of intellectual property rights (TRIPS)
 Cross-cutting issues
 Outstanding implementation issues
• The Internationalization process of a firm.
• Distribution Decisions in the International
Marketing.
• Product decision in the International
Marketing.
• Pricing decision in the International Marketing.
• Communication decision in the Internationcal
Marketing.