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TOPIC10 InternationalTradeRegulations WTO c M Mahmood 2 LearningObjectives IntroducetotheGeneralAgreementonTariffsandTrade GATT anditsobjectivesandprinciples DiscusstheestablishmentoftheWTOanditsprinciples purposes functionsandtheorganisationalstructure ExplainhowWTOrulesareimplemented AnalysetheproblemsfacingtheWTO c M Mahmood 3 LearningobjectivesCont Discusstheissuesrelatingtothenewroundofglobaltradenegotiation DescribetheroleofAustraliainthemultilateraltradingsystem c M Mahmood 4 Introduction TheGeneralAgreementonTariffsandTrade GATT wasestablishedin1947 TheobjectivetheGATTwastopromoteafreeandcompetitiveglobaltradingsystemonthebasisofasetofrulesdesignedtogoverntheconductofinternationaltrade c M Mahmood 5 IntroductionCont TheGATTmandatewastooverseeinternationaltradeingoodsandtograduallyliberalisethattradebymeansofprogressivereductionsintariffbarriers Thefurtheringoftradeliberalisationwastobeachievedbynegotiation Rounds heldbetweenvariouscontractingpartiesonaregularbasis Inall therehavebeeneightGATTRounds includingtheUruguayRound c M Mahmood 6 IntroductionCont GATTwasbasedontheprincipleofnondiscrimination embodyingtheprinciplesof MFN AnationisnottobetreatedanyworsethananyothernationwithMFNstatus i e grantingonenationaspecialfavourextendstoallWTOmembers NationalTreatment Importedandlocallyproducedproductsshouldbetreatedequally c M Mahmood 7 IntroductionCont Howeverexceptionsallowpreferntialtreatmentof developingcountriesRegionaltradeagreements RTA c M Mahmood 8 IntroductionCont BenefitsofMFN Minimisesdistortionsinthemarket i e importedproductswillcomefromthemostefficientcountryMoretradeliberalisationoccurs Forexample largecountriesgranteachotheradvantages butsmallcountriesontheirownlackpowerandresourcestonegotiatesuchadvantages c M Mahmood 9 IntroductionCont BenefitsofMFN Simplifiestherules onesetoftariffsforallcountries hence thereisnoneedforcustomsofficialstofindouttheoriginofgoods c M Mahmood 10 OriginsofWTO ThegenesisoftheWTOlayintheUruguayRoundofMultilateralTradeNegotiations 1986 94 ItsdistinctivefeaturehasbeentheestablishmentoftheWTO TheestablishmentoftheWTOplacestheinternationaltradingsystemonafirmlegalfooting ItsstatusnowisthesameastheIMFandtheWorldBank c M Mahmood 11 PurposesofWTO TheMarakeshAgreement 1995 establishingtheWTOsetsoutthepurposesandobjectivesoftheWTOanditsinstitutionalframework TheprimarypurposesoftheWTOaretwo folds Toensurethereductionoftariffsandotherbarrierstotrade andTheeliminationofdiscriminatorytreatmentininternationaltraderelations c M Mahmood 12 WTOObjectives Insummary theWTO soverridingobjectiveistohelptradeflowsmoothly freely fairlyandpredictably ThethreemainobjectivesoftheWTOareto Helpthefreeflowoftrade Helpnegotiatefurtheropeningofmarkets andSettletradedisputesbetweenitsmembers c M Mahmood 13 WTOPrinciples TheWTOcontinuesthekeyGATTprincipleofnondiscrimination AnotherimportantprincipleoftheWTO whichsignificantlyimprovesontheGATT isthe singleundertaking WTOmembersmustacceptallobligationsoftheGATT GATS TRIPSandothercorollaryagreements Thisisdesignedtoendfreerideofsomedevelopingcountries c M Mahmood 14 FunctionsofWTO TheWTO Providesasubstantivecodeconductdirectedatthereductionoftariffsandotherbarrierstotrade andtheeliminationofdiscriminationininternationaltraderelations Providestheinstitutionalframeworkfortheadministrationofthesubstantivecode c M Mahmood 15 FunctionsoftheWTOCont 3 Ensurestheimplementationofthesubstantivecode Itprovidesaforumfordisputesettlementininternationaltradematters andconductssurveillanceofnationaltradepoliciesandpractices and4 Actsasamediumfortheconductofinternationaltradeamongmemberstates Particularly itistoactasaforumforthenegotiationoffurthertradeliberalisation c M Mahmood 16 OrganisationalStructureofWTO MinisterialConferenceGeneralCouncilCouncilforTradeinGoods GATT CouncilforTradeinServices GATS CouncilforTradeRelatedAspectsofIntellectualPropertyRights TRIPS VariousCommitteesDirectorGeneralSecretariatoftheWTO c M Mahmood 17 MembershipofWTO MembershipoftheWTOisopentoanyStateorseparatecustomsterritorythathasautonomyintheconductofitsexternalcommercialrelations Eachmembercountryreceivesguaranteesthatitsexportswillbetreatedfairlyandconsistentlyinothercountries Eachinturnpromisestodothesameforimportsintoitsownmarket c M Mahmood 18 ImplementationofWTORules TheWTO likeotherglobalinstitutions usesthreeprincipalmethodsimplementingitsrules Surveillance Supervision andDisputesettlement c M Mahmood 19 ImplementationofWTORules Disputesettlement DisputeSettlementBody ThegeneralCouncilinanotherguise isresponsibleforsettlingdisputesamongWTOmembersDSBismadeupofallWTOmembersDSBhasthesoleresponsibilitytoestablishpanelsofexperts c M Mahmood 20 ImplementationofWTORules DSBcanacceptorrejectthepanelsfindings ortheresultsoftheappeal PanelsreportcanonlyberejectedbyconsensusintheDSB Therefore itsconclusionsaredifficulttooverturnDSBmonitorstheimplementationoftherulings andhasthepowertoauthorizeretaliation intheabsenceofcompliance c M Mahmood 21 ImplementationofWTORulesCont TheWTOprovidesabasicframeworkfortheinternationaltradingsystem Thesystemprovidesforlegislativemachineryinthefieldofinternationaltradefor Asurveillancemechanism Anadministrativemechanism andDisputesettlementapparatus c M Mahmood 22 AdministrativeStructureofWTO TheWTOhasmorethan140members accountingfor90 ofworldtrade Over20othersarearenegotiatingmembership DecisionsattheWTOaremadebyentiremembership TheWTOsecretarialisbasedinGenevaandisheadedbyaDirector General c M Mahmood 23 AustraliaandtheWTO Australiahasplayedanimportantroleindevelopingandmaintainingthemultilateraltradingsystemfromitsoriginsin1947tothepresentday Australiawasoneofthe23originalsignatoriestotheGATT AmajorpriorityforAustraliaistoreducebarrierstotheexportsofAustraliangoodsandservices MarketaccessiscrucialtoAustralia seconomicprosperity c M Mahmood 24 AustraliaandtheWTOCont Asamediumsizedeconomythatisnotamemberofapowerfulgeo politicalbloc theWTOremainstheprimaryvehicleforAustraliatoadvanceitseconomicinterestsinachievinggreatermarketaccess AgricultureiscriticaltotheAustralianeconomyandcurrentlyabout70 ofoftotalproductionisexported c M Mahmood 25 AustraliaandtheWTO TheUruguayRoundAgreementonAgriculturesignificantlyliberalisedagriculturaltrade Theag
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