The impact of WTO in India

The impact of WTO in India intrusion of WTO on IndiaIndia is a fo low member of the common stipulation on responsibilitys and change over (GATT) 1947 and its successor, the World Trade Organization (WTO), which came into effect in 1995 after the conclusion of the Uruguay Round (UR) of Multilateral Trade Negotiations. Indias participation in an increasingly rule based system in the governance of secrete subject field sight is to ensure more stability and predictability, which ultimately would lead to more give birth appear and prosperity for itself and the 134 other nations which now comprise the WTO. India withal automatically avails of MFN and national treatment for its exports to all WTO Members. ministerial throngs of WTO The first Ministerial congregation held in 1996 in capital of Singapore saw the bafflement of pressures to enlarge the agenda of WTO. Pressures were generated to unwrap new Agreements on enthronization, Competition insurance, Transparency in presi dency procurement and Trade Facilitation. The concept of Core Labor Standards was as well sought to be introduced. India and the developing countries, who were already under the burden of fulfilling the commitments undertaken through the Uruguay Round Agreements, and who also perceived m slightly(prenominal) of the new issues to be non-trade issues, resisted the introduction of these new subjects into WTO. They were part successful. The Singapore Ministerial Conference (SMC) set up open end Work Program to study the relationship between Trade and investiture Trade and Competition Policy to conduct a study on Transparency in Government Procurement practices and do analytical forge on simplification of trade procedures (Trade Facilitation). Most importantly the SMC cl early on declared on the Trade- Labor linkage as follows We reject the use of dig up standards for protectionist purposes, and agree that the comparative advantage of countries, particularly low-wage developing countries, must in no way be put into question. In this regard we stock that the WTO and ILO Secretariat will continue their existing collaboration. The Second Ministerial Conference of WTO, held at Geneva in May 1998, established a process to prepare for the Third Ministerial Conference and to submit recommendations regarding the WTOs futurity stimulate program, which would enable Members to take decisions at the Third Ministerial Conference at Seattle. The Geneva Ministerial Conference (GMC) Declaration had identified the following issues for the General Councils work, paragraphs 9(a) to 9(b) of the Declaration Issues, including those brought forward by Members, relating to implementation of existing agreements and decisions The negotiations already lawd at Marrakesh (Agriculture and Services) and to ensure that such negotiations begin on schedule Mandated re kens already provided for under other existing agreements and decisions taken at Marrakesh Recommendations concerni ng other possible future work on the stern of the work program initiated at Singapore Ministerial Conference consisting of Trade and Investment Trade and Competition Policy Transparency in Government Procurement Trade Facilitation.Recommendations on the revaluation to the High-Level Meeting on Least-Developed countries Recommendations arising from consideration of other matters proposed and agreed to by Members concerning their multilateral trade relations. The third Ministerial Conference held in Seattle during thirtieth November-3rd December, 1999 was being looked up by galore(postnominal), specially in the developing countries, as a unveiling pad for a comprehensive examination round of negotiations. In the preparatory process in the General Council of the WTO (September 1998 to September 1999), new issues which were proposed for the negotiating agenda by some Members under paragraph 9(d) are as follows industrial Tariffs Global Electronic Commerce Trade and Labour Standards Trade and purlieu Coherence in the interaction of WTO and other international organizations. Outcome of the Seattle Ministerial Conference of WTO The Indian delegation to the Third Ministerial Conference of the WTO was guide by the Union Minister of Commerce Industry, Mr. Murasoli Maran. The delegation also include Members of Parliament, senior officials from different Ministries and re deferatives from the apex Chambers of commerce and industry. The Seattle Conference attracted considerable attention because of propositions by some countries to press for the launching of a comprehensive round of negotiations covering subjects as wide ranging as labour issues, viscidness in global economic architecture, agriculture etc. Even in advance the commencement of the Conference on that point were widespread protests and demonstrations in Seattle by a heel of anti-WTO groups ranging from environmental activists to labour unions. The inaugural session which was to be held in the fo renoon of 30th November, 1999 had to be aband angiotensin converting enzymed because of disturbances. The plenary which was to start in the afternoon on the same day had to be held under punishing police protection. The Chairmen of various Working companys tried to narrow down the differences in their respective groups with a view to arriving at a consensus in the lottery Ministerial text edition edition that had been transmitted from the Geneva preparatory process. However, in view of the wide divergence of views, no group could constitute draft texts for inclusion in the Ministerial declaration acceptable to all the members. As in that respect was no prospect of reaching a conclusion on a large number of issues, it was decided after consultation among key members that it would not be practicable to adopt any Ministerial declaration. The Chairperson of the Conference do only a brief statement on 3rd December followed by brief reports by the Chairmen of the various groups . The Chairperson discovered that divergences of opinion remained that would take time to be narrowed down. It was therefore, decided to avoid the work of the Seattle Ministerial Conference. temporary hookup the above constituted the overall outcome, the deliberations and consultations which took adjust on several of the important issues are briefly outlined on a lower floor subject-wise (these positions are indicative and not definitive since a number of delegations, including ourselves, made it clear that nothing was agreed until ein truththing was agreed). Implementation issues A good dole out of discussions took place on this subject in Seattle, further to the extensive consultations held in Geneva earlier. The Working conference Chairman (Canada) came up with a final proposal (similar to what was mooted by the Secretariat) that meant a few immediate decisions at Seattle and brass section of a special mechanism to examine and make recommendations within one year, and i n any case by the quaternary Ministerial Session, on other implementation issues. The Chairmans text also proposed negotiations in respect of Anti-Dumping and Subsidies Agreements. While India and most other countries were prepared to go along with the Chairmans text, the US had reservations and was differentiated to any negotiations on anti-dumping and subsidies and could, at the most, agree to a few (not all) of the issues increase by the perpetration on Anti-Dumping and Subsidies respectively. No consensus could, therefore, emerge. Agriculture Mandated negotiations have to commence on 1.1.2000 on Agriculture. In the run-up to Seattle,however, the Cairns Group of countries back up by US sought to secure a more rigorous negotiating mandate that would speed up expulsion/ decrement of their export/domestic subsidies. EC, lacquer, Norway etc., resisted this to the very end. While EC appeared to display some flexibility on this issue, Japan put up stiff opposition on further inroads into elimination of domestic subsidies.As for India, our concerns relating to food security were adequately reflected. Services No all-important(a) negotiation took place in Seattle as there was hardly any divergence of views on the draft text which adequately takes into account Indias concerns. Investment and Competition Policy India, Malaysia, Hong Kong, China and Pakistan proposed the continuation of the study process launched at Singapore. EC and others stubbornly argued that they wanted negotiations to be launched right away. Given this, the duologue broke off but a bridge proposal which aimed at carrying forward the study process to prepare for negotiations to be launched by the Fourth Ministerial Conference began to take shape. While India, Malaysia, Hong Kong, China and Pakistan continued to oppose even the bridge proposal, a number of other developing countries (including countries such as Zimbabwe, Sri Lanka and Egypt) showed inclination to agree to launch negoti ations or to agree to the agree proposal. Market Access for non-agricultural items in that respect was virtually no opposition for the launching of negotiations in this area except that a number of developing countries including ourselves pointed out the priority that we attached to the implementation issues and made it clear that agreeing to any text on this issue depended on progress in other areas. The text which evolved during the Green Room consultations left open the modalities to be followed for the tariff diminution exercise although the APEC countries wanted a specific reference to their Accelerated Tariff Liberalisation (ATL) initiative. EU wanted a common tariff reduction method to be adopted for all countries patch certain others best-loved a formula approach to be the main methodology. While our concerns were generally met in the draft text, the US insisted on avoiding any reference to peak-tariffs precept it was a politically sensitive issue. Several developing c ountries, including us, however, firmly unlike the substitution of peak tariffs by any other phraseology. This matter fluid needs to be resolved. Transparency in Government Procurement There were broadly three proposals on this subject at the Seattle Ministerial. First, that the Working Group should continue its work until the fourth Ministerial session. India and number of developing countries back up this proposal. Second, that the Seattle Ministerial should mandate commencement of negotiations based on the elements that had formed the basis of discussion in the Working Group with the objective of concluding an Agreement at the latest by the Fourth Ministerial session. A number of developed and developing countries such as Brazil and South Africa supported this proposal. Third, that the Ministers adopt at Seattle an Agreement on Transparency in Government Procurement based on the formulation proposed by the United States and the European Communities. After further discussions i n the open-ended Seattle Working Group on Singapore issues and other issues, its Chairman gave his understanding that there was virtual consensus among Members present on the second proposal. He noted that India was the only Member present that tell that it could not join such a consensus and urged India to reconsider its position. India had stated that it could only support further work in the Working Group aimed at arriving at a consensus on the elements of a Transparency agreement. Trade and Environment Developed countries, particularly EU, were very keen on negotiations on environment related issues to accommodate concerns of their civil society. They wanted environmental considerations merged throughout the negotiations in the new Round (mainstreaming) which will also edit out the focussed mandate of the Committee on Trade and Environment (CTE ) to that extent. ground forces was further keen that Members right to set high environmental standards was not undermined by trade rules. US and CAIRNS Group countries also called for the removal of environmentally damaging subsidies such as agricultural subsidies and fishery subsidies that contributed to over capacity. developing countries sought adjustments in the TRIPS Agreement for preservation of biological diversity and honour for conventional knowledge. The proposal to mainstream environment and dilute the role of CTE and the US proposal regarding environmental standards were opposed by some developing countries including India while there was considerable support for removal of environment- related subsidies. The TRIPS related proposals were supported by some, but there was no consensus. Intellectual Property Many members were uncoerced to complete the negotiations on the establishment of a multilateral system of relation and registration of geographical indications for wines and possibly spirits, while there was an emerging consensus for an early decision on the ongoing discussions on inclusion of other products for the higher(prenominal) level of protection as has been provided to wines under Art 23 of TRIPS. otherwise work programmes proposed to be launched at Seattle included a proposal to make recommendations to the Fourth Ministerial Conference on the scope for protection for traditional knowledge and folkfore under the TRIPS Agreement, and review of Article 71.1, including enhancing the Agreement to respond to its objectives and principles as well as new developments elsewhere, and of Article 27.3(b) relating to life forms and plant varieties. other issues There were a few other issues which were less controversial. Subjects belonging to this grade included E-commerce and trade facilitation. A proposal to set up a working group on transfer of Technology, supported by India also found wide support but was opposed by USA, while EC and some others preferred discussions on this issue within the Committee on Trade and Development. On the other hand, the proposed Working Group on Bio-technology, pursued by USA was hardly discussed because of strong opposition from many members, including India. Regarding transparency in the functioning of WTO, US and EU were keen for some kind of mechanism whereby civil society could participate in the WTO functioning, inter alia, through amicus curiae briefs in the trade dispute settlement mechanism. that this was sharply opposed by India and many other developing countries. certainty Thus WTO has been playing a very important role in Indias foreign trade. And India will be much more benefited if the present capital of Qatar round gets completed. Pascal Lamy has projected that it will be completed in the year of 2012.