TOPIC
GATT & WTO
INTERNATIONAL BUSINESS
Presentation
PRESENTED By
GAURANG SINGH
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GATT
(General
Agreement on
Tariffs and Trade)
INTRODUCTION
The General Agreement on Tariffs and Trade (GATT) is a
multilateral treaty whose overall purpose was to promote
international trade by reducing or eliminating trade barriers such
as tariffs or quotas. According to its preamble, its purpose was the
"substantial reduction of tariffs and other trade barriers and the
elimination of preferences, on a reciprocal and mutually
advantageous basis.“
It came into force on Jan 1948.
GATT provides a forum in which the countries could overcome
the trade problems.
Objectives of GATT
Improve std of living.
Ensure effective demand and full employment for
rapid growth in the volume of real income.
Development of resource of world.
Expansion of production and international trade.
Principles/Provisions
Non- discrimination
By this principle, it is not easy for the countries to normally discriminate
between their trading partners. Each nation should be considered as Most
Favoured Nation. All members must be treated equally when it comes to
tariffs.
Prohibition of quantitative
restrictions
Prohibit the quantitative restrictions as far as possible to less rigid tariff
Exemptions to this provision were granted to the countries which were
dealing with bop difficulties. Further import restrictions were allowed to
apply to agriculture & fishery product.
Consultation
By providing a forum for continuing consultation, it sought to
resolve disagreement through consultation.Eight rounds of trade
negotiation were held under the GATT. The URUGUAY
ROUND, the latest one took more than seven years to conclude.
The GATT was transformed into WTO with effect from Jan
1995. Thus, after the decade, the original body of international
trade took shape of WTO
What lead to the replacement of
GATT with WTO?
GATT dealt with only Tariff barriers but by 1970s
Non tariff barriers has also started increasing.
Also by 1980s developed countries started having
comparative advantage in trade in services.
Export oriented growth by developing countries.
WTO
(World Trade
Organization)
INTRODUCTION
Introduction
The world trade organization is the legal & institutional
foundation of multilateral trading system. It is a forum for
governments to negotiate trade agreements. WTO is a
place where member governments try to sort out the trade
problems they face with each other.
It was established on Jan 1995.
76 countries become members of wto on its first day.
Today, there were 164 members of WTO,
Structure of wto
MINISTERIAL CONFERENCE
GENERAL COUNCIL
DISPUTE SETTLEMENT DIRECTOR GENERAL TRADE POLICY REVIEW
BODY BODY
COUNCIL FOR TRADE TRIPS TRIMS COUNCIL FOR TRADE
IN GOODS IN SERVICES
OBJECTIVES
Improve std of living.
Ensure full employment & increase in effective demand for
rapid growth in the volume of real income.
Development of resource of world.
To enlarge production
To protect environment.
Concept of sustainable development.
FUNCTION OF WTO
To implement rules & provisions related to trade policy mechanism
To provide a platform to members countries to decide future strategies
related to trade & tariff.
Seeking to resolve trade dispute.
To ensure optimum use of world resources.
To co-operate with other nation involved in global policy making.
Recent news & updates
Conclusion
“ WTO is basically a referee which insures that big
player and small player should have a fair game”
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So this all about
THANKthe GATT & WTO
YOU
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