Impact Of WTO on Indian Economy
WTO GENESIS
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.
India became a signatory to GATT in 1947 along with twenty two other countries
Reasons for GATT to be carved into WTO
GATT faced many problems, with the world trade becoming more and more complex, GATT was unable to deal with it. Eg. In the agriculture sector, loopholes in the multilateral system were heavily exploited, and efforts at liberalizing agricultural trade met with little success. In the textiles and clothing sector, an exception to GATT’s normal disciplines was negotiated in the 1960s and early 1970s, leading to the Multifibre Arrangement. Even GATT’s dispute settlement systems were causing concern. The Uruguay round negotiations lasted for about seven and a half years, twice the time originally planned for.
But economists conclude that it was worth the trouble, basically all issues related to trade were discussed in these negotiations, GATT’s articles were reviewed and most importantly the Final Act concluding the Uruguay Round and officially establishing the WTO regime was signed during the April 1994 ministerial meeting at Marrakesh, Morocco, and hence is known as the Marrakesh Agreement.
WTO kept the basic objectives of GATT same, while worked on their implementation.
WTO
WTO on paper came into existence on 1-1-1995 with the conclusion of Uruguay Round Multilateral Trade Negotiations at Marrakesh. Finally, enforced on 1-1-2005:
For Transparent, free and rule-based trading system
To provide common institutional framework for conduct of trade relations among members
To facilitate the implementation, administration and operation of Multilateral Trade Agreements
Follow rules and Procedures Governing Dispute Settlement
Trade Policy Review Mechanism
Concern on Non-trade issues
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.
India became a signatory to GATT in 1947 along with twenty two other countries
Reasons for GATT to be carved into WTO
GATT faced many problems, with the world trade becoming more and more complex, GATT was unable to deal with it. Eg. In the agriculture sector, loopholes in the multilateral system were heavily exploited, and efforts at liberalizing agricultural trade met with little success. In the textiles and clothing sector, an exception to GATT’s normal disciplines was negotiated in the 1960s and early 1970s, leading to the Multifibre Arrangement. Even GATT’s dispute settlement systems were causing concern. The Uruguay round negotiations lasted for about seven and a half years, twice the time originally planned for.
But economists conclude that it was worth the trouble, basically all issues related to trade were discussed in these negotiations, GATT’s articles were reviewed and most importantly the Final Act concluding the Uruguay Round and officially establishing the WTO regime was signed during the April 1994 ministerial meeting at Marrakesh, Morocco, and hence is known as the Marrakesh Agreement.
WTO kept the basic objectives of GATT same, while worked on their implementation.
WTO
WTO on paper came into existence on 1-1-1995 with the conclusion of Uruguay Round Multilateral Trade Negotiations at Marrakesh. Finally, enforced on 1-1-2005:
For Transparent, free and rule-based trading system
To provide common institutional framework for conduct of trade relations among members
To facilitate the implementation, administration and operation of Multilateral Trade Agreements
Follow rules and Procedures Governing Dispute Settlement
Trade Policy Review Mechanism
Concern on Non-trade issues