Write a short note on WTO

Write a short note on WTO

Following UR agreement, GATT was converted from provisional agreement into a formal international organisation (WTO) with effect from Jan 1995. WTO will serve as a single institutional framework encompassing GATT and all results of UR. It will be directed by a ministerial conference that will meet at least once every 2 years and its regular business will be Overseen by General council.

Functions:

1. To facilitate implementation, administration and operation and further the objectives of multilateral trade agreements and provide framework from administration of Trade Agreements.
2.  To provide forum for negotiations among numbers concerning multilateral trade relations in matters of agreements.
3. To administer the understanding on Rules and procedures governing the settlement of disputes.
4. The WTO, shall administer the 'Trade Review Mechanism
5. With a view to achieve greater coherence in global economic policy making, the WTO shall cooperate with IMF and IBRD and its affiliated agencies.

The general council with four main functions:

1. To supervise on a regular basis the operations of the revised agreements and ministerial declarations relating to a) goods b) services c) TRIPS;
2. To act as a dispute settlement body;
3. To serve as a trade review mechanism;
4. To establish goods council, services council and lighters, locks, car stereos energy saving lamps, VCD players, wrist watches, toys, pans, electric ovens and a large variety of consumer articles. Since China has become a member of the WTO this is going to create another problem because action against Chinese dumping of goods can be taken only within WTO provision.

1) Impact of WTO on SSI units: 

WTO agreement does not discriminate on the basis of size of industries or enterprise. In the WTO regime reservations may have to be withdrawn, preferential purchase and other support measures may not be available and thus SSIs have to compete not only with the large units within the country but also with cheap imported products. SSIs are thus losing their markets to cheap imported products. Consequently, a very large number of SSI units are becoming and closed down.

2) Double standards of developed countries: 

India is quite competitive in textile. But developed countries through various protectionist measures deny access to cost efficient textile producers. These measures take the form of anti-dumping duties, unilateral change in the rule of origin and unjustifiable foisting of environmental issues. All these measures are taken to protect domestic industry in developed countries and thus, these measures hamper free of Indian textile exports.

3) Agreement on Agriculture: 

The agreement on agriculture has only in theory favored agriculture in developing countries, but in practice, its implementation has seriously affected agriculture in developing countries. According to the agreement, developed countries agreed to reduce these subsidies by 20% over six year and developing countries by 13% over 10 years. However, developed countries under green box and blue box subsidies continue to support agriculture.