Sem - II Paper III Indian Economy WTO and Indian

Transcript:Sem - II Paper III Indian Economy WTO and Indian:
Sem - II Paper III Indian Economy WTO and Indian Economy Prof Karunakar Ram Tripathi World Trade Organisation (WTO) “WTO is an international organization set up as a permanent body and is designed to play the role of a watchdog in the sphere of trade in goods, trade in services, foreign investment, intellectual property rights etc.” Origin of WTO Prior to WTO, GATT was signed by 23 nations in 1947. GATT concerned with the promotion of international trade. The signing of the Final Act of the Uruguay Round of GATT in April 1994 paved the way for the setting up of the WTO. The WTO agreement came into force from January 1, 1995. GATT was merely a legal arrangement whereas the WTO is a legal institution. WTO Agreements Agreement on Agriculture (AoA) Agreement on Industry Agreement on Trade in Textiles and Clothing (Multi-Fiber Arrangement) Agreement on Market Access Agreement on TRIPS Agreement on TRIMs Agreement on Services Dispute Settlement Body Agreement on Antidumping Measures Other Agreements Agreement on Agriculture (AoA) This agreement provides a framework for the long-term reform of agricultural trade and domestic policies. It provides for commitments in the area of market access, domestic support and export competition. The members have to transform their non-tariff barriers in equivalent tariff measures. The tariffs resulting from this transformation, as well as other tariffs on agricultural products are to be reduced on an average by 36% in case of developed countries and 24% in case of developing countries. The reduction were required to be undertaken over 6 years in case of developed countries and 10 years in case of developing countries. The volume of subsidized agricultural exports is to be reduced by 21 per cent over a six year period. The LDCs were not required to make any commitment for reduction. Agreement on Industry Tariffs on industrial products are to be reduced from an average of 4.7 per cent to 3 per cent, and the share of goods with zero tariffs is to be increase from 20-22 per cent to 40-45 per cent. Tariffs were to be removed altogether on pharmaceuticals, construction equipment, paper products and steel. Government subsidies for industrial research are limited to 50 per cent of applied research costs. Agreement on Trade in Textiles and Clothing This agreement provides for phasing out the import quotas on textiles and clothing (in force under Multi-fiber Arrangement since 1974) over a