WTO Contribution in establishing Rule-Based Trading System
WTO Contribution in establishing Rule Based Trading System- The WTO was formally launched on 1 January 1995, under the Marrakesh Agreement, to replace the General Agreement on Tariffs and Trade (GATT)
W.T.O. Stands for “World Trade Organization”. The WTO is an organization that intends to supervise and liberalize international trade. The organization officially started on January 1, 1995, under the Marrakesh Agreement, to replace the General Agreement on Tariffs and Trade (GATT), which appeared in 1948. The organization deals with the regulation of trade between participating countries. It provides a framework for the negotiation and formalization of a commercial agreement and a dispute settlement process aimed at enforcing participants. Much of the focus of the WTO stems from previous trade negotiations, in particular from the Uruguay Round (1986-1994).
The organization is currently seeking to continue in trade negotiations called the Doha Development Agenda or (the Doha Round), which was launched in the year 2001 to promote the fair participation of the poorer countries that represent the majority of the population. However, negotiations hampered the dispute between exporters of bulk agricultural commodities and countries with large numbers of subsistence farmers over the specific conditions for a “special preventive measure” to protect farmers from import surges. At this time, the future of the Doha Round is uncertain. WTO Contribution in establishing Rule Based Trading System
Objectives of W.T.O:-
The Agreement establishing the World Trade Organization (WTO) in its preamble reiterates the GATT goal. that’s it:-
? Raising living standards and income to ensure full employment;
? (B) Expand production and trade;
? Allow optimal use of the world’s resources.
The preamble includes these objectives:
(I) Trade-in services;
(Ii) the need to promote “sustainable development” and to protect and preserve the environment in a manner consistent with the various levels of national economic development;
(Iii) Positive efforts need to be made to ensure that developing countries, especially the least developed, have a better share of growth in international trade.
Functions of the W.T.O:-
The agreement establishing the convention states that it should perform the following four functions:
(1) Facilitate the implementation, management and operation of the Uruguay Round legal instruments and any new agreements that may be negotiated in the future.
(2) The Commission shall provide a forum for further negotiations among member countries on issues covered by the agreements, on new issues within the scope of its mandate, and on further trade liberalization.
(3) shall be responsible for the settlement of disputes and disputes between its Member States.
(4) Responsible for periodic reviews of trade policies of its member countries.
Structure of the W.T.O:-
The highest decision-making body is the biennial Ministerial Conference. Since the establishment of the Third Ministerial Conference, the first two symposia were held in Singapore in December 1996 and the second in Geneva in May 1998. The third will be held in Seattle from 30 November to 3 December 1999.
During the two years between meetings, the General Council shall perform the functions of the Conference.
The General Council meets as a dispute settlement body when it considers complaints and takes steps to resolve disputes between member countries.
It is also responsible for conducting trade policy reviews of individual countries on the basis of reports prepared by the Secretariat.
The General Council is assisted in its work by the:-
? The Council on Classification of Goods, which supervises the implementation and operation of GATT, 1994 and related agreements;
? The Council for Trade in Services, which oversees the implementation and operation of GATTS;
? The TRIPS Council, which oversees the implementation of the TRIPS Agreement.
Decision – Making process:-
Under the agreement, special forces will continue to practice GATT decision-making by consensus. A consensus is considered to have been reached when; at a time when a decision is being taken, not a single member country expresses its opposition to its adoption.
When it is not possible to reach consensus, the US State Agreement provides for a decision by a majority vote, with each country having one vote.
Despite these provisions, decisions are expected to continue on all important political issues by consensus.
However, there are some cases where “special voting conditions” are described. “Special voting requirements” are as follows: –
? The interpretation of the provisions of any of the agreements requires a three-fourths majority vote. [W. t. O Agreement, Article IX: 2]
? Modifications generally require a two-thirds majority. However, the amendments made to me:
? Provisions in the agreement related to amendments and decisions
? The most favoured provisions of the GATT, 1994 and the TRIPS Agreement
It will not take effect until all members accept it. [W. t. O Agreement, Article X: 1, 2]
? Requests for temporary exemption on the part of any member country from their obligations require a three-fourths majority. [W. t. O Agreement, Article IX: 2]
The W.T.O Secretariat:-
Located w. t. O products in Geneva, Switzerland at Great Prices – JadoPado The program is headed by a Director-General, assisted by three Deputy Directors-General. They are appointed by the Director-General. They are appointed by the Director-General in consultation with member countries.
The Special Forces had 134 members as at 31 May 1999.
Countries that are not currently members can become members of the World Trade Organization by negotiating for accession. In these negotiations, it must agree to take steps to bring its national legislation into line with the rules of multilateral agreements. In addition, they must make commitments to reduce tariffs and adjust their regulations in order to improve access to foreign goods and services. These obligations are often referred to as the price of “ticket entry.” Currently, 30 countries are negotiating to join. WTO Contribution in establishing Rule Based Trading System
The Basic Principles of W.T.O:-
The WTO establishes a framework for trade policies. It does not specify or determine the results. This means she is interested in setting rules for trade policy games.
The basic principles of the World Trade Organization are contained in the original GATT law 1947. These operations are still in effect in the form of GATT, 1994 which completes the GATT, 1947. They are nine in numbers. These data are as follows:
(2) care treatment
(3) National treatment
(4) The principle of free trade
(5) dismantling of the trade barrier
(6) rules-based trading system
(7) Special and differential treatment for the least developed countries
(8) The principle of competition
(9) Environmental protection
The WTO aims to achieve transparency in international trade relations by requiring members to notify changes in their trade regulations, technical and plant standards in advance. This helps exporters plan their business and protects them from unnecessary harassment.
Moreover, the World Trade Organization is conducting a periodic review of trade policy of member countries to enhance transparency in their trade policies.
A member of the World Trade Organization is required to immediately publish laws, regulations, judicial decisions and administrative provisions of general application relating to the classification or evaluation of customs products, rates of fees, taxes, or other fees, which affect the sale, distribution, transportation, insurance, inspection, storage etc. In order to enable governments and traders to identify them, agreements affecting international trade policy in force, between the government or government agency of any member and the government or government agency of any other members should also be published. However, a member of the World Trade Organization is not obligated to disclose confidential information that may hinder law enforcement or otherwise interfere with the public interest or that could harm the legitimate business interest of certain institutions, its private-public.
Prior to publication, no measure of general application that affects the increase in customs duties or other costs on imports can be enforced. And to conduct an immediate review of the administrative procedures related to the courts or customs, judicial, arbitration or administrative procedures and correct them. Such courts or proceedings shall be independent of the agencies entrusted with administrative enforcement. Unless these decisions are appealed, they are implemented by enforcement agencies.
MFN treatment: Non-discrimination between countries: –
The obligation to treat the most favoured nation, widely known as the obligation to treat the most favourable, requires WTO members not to distinguish between products originating in or destined for different countries. In simple terms, country ‘A’ should, for example, be treated equally or not distinguish between a product originating in country ‘B’ and ‘like’ the product originating in country C.
Article 1 of GATT, 1994 deals with this aspect as follows:
With regard to customs duties and fees of any kind imposed on or in connection with import or export or imposed on international transportation of payments for imports or exports.
Any advantage, favouritism, privilege, or immunity granted by any [member] of any product originating or destined for any other country must be granted immediately and without conditions to the product similar to that originating or destined for the territory of every other country [member]. ”
The aim of an obligation to treat MFNs is to ensure equal opportunities in importing or exporting to all WTO members.
Violation of the most favourable treatment: –
Article 1: From GATT, 1994 defines a test of three levels. These data are as follows:
(1) Does the measure give the subject of the case “an advantage” over the products originating in or destined for the territory of all other members?
(2) Are the products concerned “like”?
(3) Have you given preference in the case “immediately and unconditionally” to all products concerned?
National treatment: non-discrimination within the country: –
An obligation to national treatment usually referred to as the “mentioned region’s obligation,” requires that no discrimination be made against imported products once the imported products enter the domestic market. In other words, the country ‘A’ should not treat products imported from country ‘B’ or ‘C’ less favourable than its own domestic products ‘like’.
Article 3 of GATT 1994 prohibits distinguishing between domestic and non-imported products through the use of the various internal measures mentioned in Article 3: 1, i.e.
Internal taxes and other internal fees, laws, regulations, and requirements that affect internal selling, offer for sale, purchase, transportation, distribution or use of products and internal quantitative regulations that require the mixture, treatment or use of products in specified quantities or proportions.
In other words, the purpose of Article 3: 1 is to ensure that these internal measures are not applied to imported or domestic products in order to provide protection for domestic production.
(Article Three: 1).
The principle of free trade: the optimal use of global resources: –
Reducing the trade barrier is one of the most obvious means of promoting trade. The barriers involved mainly include customs duties (or tariffs) and measures such as quantitative restrictions such as import bans or quotas that selectively restrict quantities.
Dismantling Trade Barriers: Removal of QRs, Tariff Bindings:-
? Quantitative restrictions: –
Quantitative restrictions (QRs) are measures that prohibit or restrict the quantity of a product that can be imported. A typical example of quantitative restrictions is measured that allow the import of only 10,000 needs. This quantitative restriction is also referred to as a quota.
? General prohibition of quantitative restrictions: –
The 1994 GATT set a general ban on quantitative restrictions. Article XI: 1 of GATT provides as follows:
“No member may establish or maintain any prohibitions or restrictions other than fees, taxes, or other fees, whether they are effective through quotas, import or export licenses, or other measures, regarding the import of any product to the territory of any other [member] or on export.” Or sale to export any product destined for the territory of any other [Member]. ”
Quantitative restrictions can be applied temporarily to prevent severe food shortages, and to apply commodity standards or any agricultural or fish products.
? Induction link: –
The Marrakesh Protocol is the legal instrument by which the obligations of each member of the World Trade Organization in the Uruguay Round to abolish or reduce tariff rates and non-tariff measures applicable to trade in goods have become an integral part of the GATT Group, 1994.
The tables are divided into four parts as follows: –
(1) Part I
? Section I
Agricultural products: tariff concessions based on care.
? Section I:
Agricultural products: tariff quotas.
? Subchapter II:
Introductory privileges based on sponsorship on other products.
(2) Part II:
Preferential tariff – (if applicable).
(3) Part Three: –
Concessions related to non-tariff measures (generally on non-agricultural products)
(4) Part Four: –
Agricultural products: – Obligations limiting subsidy.
? Section I: –
Local Support: – Total AMS Commitments.
? Subchapter II:
Export subsidies: obligations related to budget expenditures and quantity reduction.
? Third Branch:
An obligation that limits the scope of export subsidies.
Rules-based trading system: certainty and predictability: –
The World Trade Organization is defending the rules-based trade system. To this end, the World Trade Organization is developing and enforcing the necessary measures to achieve international trade fairly through its mechanism and the fastest settlement of disputes. The World Trade Organization adjudicates disputes that arise between members and in the event that the losing side does not comply with the recommendations of the Division; grant permission to impose sanctions on the complainant.
The basic principle of non-discrimination goes a long way towards achieving this goal of the rules-based trading system within the framework of the World Trade Organization.
Special and Differential Treatment for Developing and Least Developed Countries: Assistance to Poor Countries
The World Trade Organization recognizes the need to make positive policy efforts to help developing countries, especially the least developed ones, to take full advantage of trade liberalization. The preamble of the World Trade Organization agreements provides for this goal.
Article IV, paragraph 7, which deals with the structure of the World Trade Organization, directs the Ministerial Conference to establish a Committee on Trade and Development. The Committee periodically reviews the special provisions contained in the Multilateral Trade Agreement in favour of the least developed member countries and reports to the General Counsel to take appropriate action. WTO Contribution in establishing Rule Based Trading System
The principle of competition: restricting monopolies and promoting consumer interests: –
The World Trade Organization aims to enhance consumer interest in promoting competition in the market. To this end, tariff reductions and eliminations go hand in hand with measures to reduce or eliminate subsidies. The “equitable playing field” encourages and strengthens competition between foreign and domestic goods, with a positive impact on efficiency and consumer welfare.
In fact, the Singapore Ministerial Conference in 1996 established a working group on trade and competition policy. The Working Group was given the mandate to examine the issues raised by Members with regard to the interaction between trade and competition policy, including anti-competitive practises, in order to identify any areas that might merit further consideration within the WTO.
Environmental protection: improve the quality of life: –
The issue of trade and environment is not on the agenda of the Uruguay Round negotiations. However, some environmental concerns have been addressed in the outcome of the negotiations.
The preamble of the WTO Agreement contains direct references to the goal of sustainable development and to the need to protect and preserve the environment.
A Committee on Trade and Environment was established at the first meeting of the WTO General Council as a result of the Ministerial Decision adopted in Marrakesh on 15 April 1994. The Committee is charged with determining the relationship between trade and environmental measures, in order to promote sustainable development and make appropriate recommendations on whether Any amendments to the provisions of the trading system are required.
The committee submitted its report to the Ministerial Conference in Singapore. The Ministers expressed their appreciation for the work done by the Committee and instructed the Committee to carry out its work.
WTO system for the settlement of disputes
Dispute Settlement Body
The WTO agreement provides for a uniform system of rules and procedures applicable to disputes arising under any of its legal instruments. The primary responsibility for administering these rules and procedures rests with the General Council, which acts as the Dispute Settlement Body (DSB).
The importance of consultation and conciliation: –
One important principle established by these procedures is that the government of a member country should submit the dispute to the NDRC only after efforts to settle it through bilateral consultations have failed. The procedures also provide that in order to reach mutually acceptable solutions, the parties may request the WTO Director-General or any other person to use his good offices to reconcile and mediate between them.
The complaining party may not formally require the Committee on Conflict Resolution to start, by establishing a team to consider the complaint, except when consultations or efforts to conciliate do not produce the desired results within 60 days, in order to expedite the settlement of disputes and ensure that the establishment of the team is not delayed Aside from the country against which a complaint has been filed, the Complaints Committee is required to establish the panel, when requested by the complaining country, unless there is consensus against the establishment of such a panel. WTO Contribution in establishing Rule Based Trading System
The Panel is normally composed of three persons unless the parties to the conflict agree that it should have five persons. Its WTO secretariat is proposing the names of the persons to be appointed to the panel from the list maintained by governmental and non-governmental experts. The persons on the roster are well-qualified senior staff in member countries, members of their delegations to the World Trade Organization, senior officials who have served in the secretariat and persons who have studied international trade law or policy.
The membership of the panels is usually settled in consultation with the parties to the conflict. Panels are generally requested to submit to the Division within six to nine months a report containing their recommendation after an objective assessment of the facts of the case and for conformity with the measures complained of with the provisions of the legal instruments. WTO Contribution in establishing Rule Based Trading System
Appellate body: –
The establishment of the Appellate Body as a type of appeal court is a new addition to the dispute settlement system. The Commission is composed of 7 persons from the recognized authority and has experience in law, international trade and subjects covered by various agreements. You should not be affiliated with any of the seven governments; only 3 people are invited to serve in each case. Any party to the dispute can appeal the appeal. The report of the Appeals Panel, which will be limited to the legal issues contained in the Panel’s report and the legal interpretation it has developed, must be submitted to the Division within a period of 60 to 90 days.
Consider the reports submitted by the Division:
The report of the panel or its appellate body, where one of the parties challenged the report of the team, submits its own appeals to its division for submission and to make appropriate recommendations and provisions. To ensure prompt settlement of the dispute, the period “from the date of establishment of the panel by the panel and the date it considers the panel or appeal report” shall not exceed nine months when the report of the panel does not resume twelve months when it is appealed. WTO Contribution in establishing Rule Based Trading System
Implementation of reports: –
In accordance with the procedures, the Parties will implement the reports of the panels in the three ways described below:
(1) Compliance: –
First, the procedure confirms that the party in breach of obligations must comply immediately with the recommendations of the Panel or the Appellate Body. If the Party is unable to implement the recommendations immediately, the Panel may give it, upon request, a reasonable period of implementation.
(2) Provide compensation:
Secondly, if the violating party does not comply within a reasonable period, the party who invoked the dispute settlement procedure may request compensation. Alternatively, a party violating an obligation may offer to pay compensation.
(3) Permission for reprisals: –
Third, when the violating party does not comply with adequate compensation on request, the grieving party may request the aggrieved party to authorize it to take retaliatory action by suspending the concession or other obligations under the agreements.