lN1kOuuc1lON

1he Genera| Agreement on 1rade and 1ar|ff predecessor of W1C

was born 1948 as resu|t of the |nternat|ona| des|re to ||bera||ze
trade
1he 8retton Woods Conference of 1944 wh|ch had
recommended the IMI and Wor|d 8ank had a|so recommended
the estab||shment of an Internat|ona| 1rade Crgan|zat|on
A|though the IMI and Wor|d 8ank were estab||shed |n 1946 the
I1C charter was never rat|f|ed because of ob[ect|on that |ts
enforcement prov|s|ons wou|d |nterfere w|th the autonomy of
domest|c po||cy mak|ng Instead the GA11 wh|ch had been drawn
up on|y as an |nter|m agreement to f||| the gap unt|| the I1C
charter was rat|f|ed became the frame work for |nternat|ona|
trad|ng system s|nce |t came |nto be|ng |n 1948 1he Internat|ona|
1rad|ng System s|nce 1948 was at |east |n pr|nc|p|e gu|ded by the
ru|es and procedures agreed to buy the s|gnator|es to the GA11
wh|ch was an agreement s|gned by the contract|ng nat|ons wh|ch
were adm|tted on the bas|s of the|r w||||ngness to accept the GA11
d|sc|p||nes
GA11 was transformed |nto Wor|d 1rade Crgan|zat|on (W1C) w|th
effect from Ianuary 199S 1hus after about f|ve decades the
or|g|na| proposa| of an Internat|ona| 1rade Crgan|zat|ons took
shape as W1C 1he W1C wh|ch |s a more power fu|| body than the
GA11 has an en|arge ro|e than the GA11
C8ILC1IVLS
1he reamb|e to the GA11 ment|oned the fo||ow|ng as |ts
|mportant ob[ect|ves
1 ka|s|ng standard of ||v|ng
2 Lnsur|ng fu|| emp|oyment and a |arge and a stead||y grow|ng
vo|ume of rea| |ncome and effect|ve demand
3 Deve|op|ng fu|| use of the resources of the wor|d
4 Lxpans|on of product|on and |nternat|ona| trade
GA11 embod|ed certa|n convent|ons and genera| pr|nc|p|es
govern|ng |nternat|ona| trade among countr|es that adhere to the
agreement 1he ru|es or convent|ons of GA11 requ|red that
1Any proposed change |n the tar|ff or other type of
commerc|a|
o||cy of a member country shou|d not be undertaken w|thout
consu|tat|on of other part|es to the agreement
21he countr|es that adhere to GA11 shou|d work towards the
reduct|on of tar|ff and barr|ers to |nternat|ona| trade wh|ch
shou|d be negot|ated w|th|n the framework of GA11
Lva|uat|on of GA11
1he grow|ng acceptance of GA11 desp|te |ts short com|ngs |s
ev|nced by the |ncrease |n the number of the s|gnator|es When the
GA11 was s|gned |n1947 Cn|y 23 nat|ons were partyto |t It
|ncreased to 99 by the t|me of 7
th
round and 117 countr|es |n the
next |e the Uruguay round
Cne of the pr|nc|p|e ach|evements of GA11 was the
estab||shment of a forum for cont|nu|ng consu|tat|ons "D|sputes
that m|ght otherw|se have caused cont|nu|ng hard fee||ng repr|sa|s
and even d|p|omat|c rupture have been brought to the conference
tab|e and comprom|sed"
Agr|cu|tura| trade was c|ear|y an except|on to the
||bera||zat|on Iar from becom|ng freer trade |n agr|cu|ture became
progress|ve|y more d|storted by the support g|ven to the farmers |n
the |ndustr|a| nat|ons
S|m||ar|y except|on was text||es 1rade |n text||e was
restr|cted by the mu|t|f|bre arrangement (MIA)Under the MIA
|mport of text||es |tems to a number of deve|oped countr|es were
restr|cted by quotas 8es|des agr|cu|ture and text||es two
except|ons to the genera| trend of trade ||bera||zat|on have been
trade of deve|op|ng countr|es and econom|c |ntegrat|on
Iurther the exports of deve|op|ng countr|es ga|ned
s|gn|f|cant|y |ess from the GA11 kounds than d|d exports of the
|ndustr|a| nat|ons 1he trade ||bera||zat|on has been conf|ned
most|y to goods of |nterest to the deve|oped countr|es Incase of
agr|cu|ture commod|t|es not on|y was that there was no
||bera||zat|on but a|so there was an |ncrease |n protect|on
Manufactured products of |nterest to deve|op|ng countr|es ||ke
text||es and c|oth|ng's footwear etc have been sub[ect to
|ncreas|ng nontar|ff barr|ers Wh||e the deve|oped countr|es en[oy
a more ||bera||zed trad|ng env|ronment the grow|ng N18's have
been severe|y affect|ng the exports of deve|op|ng countr|es 1h|s |s
|ndeed a sad commentary on the GA11 and other mu|t||atera|
organ|zat|ons

1nL UkUGUA kCUND
Uruguay round |s the name wh|ch the e|ght and the |atest
round of the mu|t||atera| trade negat|ons (M1N) he|d under
the ausp|ces of GA11 |s popu|ar|y know as Uk because |t was
|aunched |n Uruguay |n September 1986
D|scuss|on taken p|ace |n fo||ow|ng areas
1rade |n serv|ces
1kIS
1kIMS
Io||ow|ng the Uk agreement GA11 was converted from a
prov|s|ona| agreement |nto a forma| |nternat|ona|
organ|zat|on ca||ed W1C w|th effect from Ian 1 199S
r|nc|pa| features of GA11
11he most favored nat|on c|ause
1h|s c|ause guarantees that a product of the GA11 member
county shou|d not be econom|ca||y worse off than a s|m||ar
product of any other country It |mp||es that any reduct|on |n
the |mport dut|es of a GA11 member must be app||ed
s|mu|taneous|y and uncond|t|ona||y to |mports from a|| other
GA11 countr|es It app||es s|m||ar|ty to dut|es on export 1h|s
ru|e bas|ca||y requ|red nond|scr|m|nat|on |n trade po||c|es
21he use of tar|ffs
A|though GA11 does not spec|a||y encourage protect|on
through tar|ff |t does perm|t the protect|on of domest|c
|ndustr|es through |mport tar|ff 1he GA11 conta|ns a c|ause
wh|ch stab|||zes the tar|ff of member countr|es so as to
prevent d|sturbance of trade f|ows by frequent change |n
|mport dut|es
31ar|ff barga|n|ng
May tar|ff negot|at|ng conference have been he|d under the
umbre||a of GA11 1he barga|n|ng techn|ques |n a||
conferences were bas|ca||y a ser|es of s|mu|taneous |atera|
negot|at|on product by product bas|s 1he pr|nc|pa| supp||er of
a certa|n product shou|d ask |mport|ng countr|es to reduce
tar|ffs on that product In return those countr|es wou|d
expect counter offers and negot|at|ons wou|d cont|nue t|||
sat|sfactory agreement was reached

4Subs|d|es and dump|ng
GA11 restr|cts the use of subs|d|es by mak|ng them sub[ect for
negot|at|on between countr|es De||berate export subs|d|es
on pr|mary products are d|scouraged the GA11 c|auses state
that they shou|d not |ead to a country acqu|r|ng a 'more than
equ|tab|e share' of trade |n the subs|d|es product Cn
manufactured product export subs|d|es are not perm|tted |f
they |ead to export at pr|ces |ower than those preva|||ng |n the
domest|c market


Suant|tat|ve restr|ct|ons
uant|tat|ve restr|ct|on on trade such as |mports quotas and
|mport ||cens|ng are str|ct|y forb|dden by the GA11 un|ess
when they become necessary to re|nforce domest|c output
restr|ct|on measures |n agr|cu|ture and f|sher|es or to app|y
standards and other techn|ca| regu|at|ons
IUNC1ICNS
1he GA11]W1C has the fo||ow|ng f|ve spec|f|c funct|on
11he W1C sha|| fac|||tated the |mp|ementat|on adm|n|strat|on
and operat|on and further the ob[ect|ves of the Mu|t||atera|
1rade Agreement and sha|| a|so prov|de the frame work for
the |mp|ementat|on adm|n|strat|on and operat|on of
p|ur||atera| 1rade Agreement
21he W1C sha|| prov|de the forum for negot|at|on among |ts
members concern|ng the|r Mu|t||atera| 1rade re|at|on |n
matters dea|t w|th under the Agreement
31he W1C sha|| adm|n|ster the understand|ng on ru|es and
procedure govern|ng the sett|ement of d|spute
41he W1C sha|| adm|n|ster the 1rade rev|ew mechan|sm
SW|th a v|ew to ach|ev|ng greater coherence |n g|oba|
econom|c po||cy mak|ng the W1C sha|| cooperate as
appropr|ate w|th the IMI and I8kD and |ts aff|||ated agenc|es



1he Genera| Counc|| w||| serve ma|n funct|ons
11o superv|se on a regu|ar bas|s the operat|ons of the
rev|sed agreement and m|n|ster|a| dec|arat|on re|at|ng to
a)Goods
b)Serv|ces
c) 1kIs
21o act as a D|spute Sett|ement 8ody
31o serve as a 1rade kev|ew Mechan|sm
41o estab||sh Goods Counc||s Serv|ces Counc|| and 1kIs
Counc|| as subs|d|ary bod|es
1o become a member of the W1C a country must comp|ete|y
accept the resu|ts of the Uruguay kounds

kounds GA11 he|d a tota| of 8 rounds
GA11 and W1C trade rounds
Name Start Durat|on Countr|es Sub[ects covered Ach|evements
Geneva Apr|| 1947 7 months 23 1ar|ffs
S|gn|ng of GA11 4S000 tar|ff concess|ons
affect|ng 510 b||||on of trade
Annecy Apr|| 1949 S months 13 1ar|ffs
Countr|es exchanged some S000 tar|ff
concess|ons
1orquay
September
19S0
8 months 38 1ar|ffs
Countr|es exchanged some 8700 tar|ff
concess|ons cutt|ng the 1948 tar|ff |eve|s by
2S
Geneva II
Ianuary
19S6
S months 26
1ar|ffs adm|ss|on of
Iapan
52S b||||on |n tar|ff reduct|ons
D|||on
September
1960
11 months 26 1ar|ffs
1ar|ff concess|ons worth 549 b||||on of wor|d
trade
kennedy May 1964 37 months 62 1ar|ffs Ant|dump|ng
1ar|ff concess|ons worth 540 b||||on of wor|d
trade
1okyo
September
1973
74 months 102
1ar|ffs nontar|ff
measures framework
agreements
1ar|ff reduct|ons worth more than 5300
b||||on do||ars ach|eved
Uruguay
September
87 months 123
1ar|ffs nontar|ff
measures ru|es serv|ces
1he round |ed to the creat|on of W1C and
extended the range of trade negot|at|ons
1986 |nte||ectua| property
d|spute sett|ement
text||es agr|cu|ture
creat|on of W1C etc
|ead|ng to ma[or reduct|ons |n tar|ffs (about
40) and agr|cu|tura| subs|d|es an
agreement to a||ow fu|| access
for text||es and c|oth|ng from deve|op|ng
countr|es and an extens|on of |nte||ectua|
property r|ghts
Doha
November
2001
? 141
1ar|ffs nontar|ff
measures agr|cu|ture
|abor standards
env|ronment
compet|t|on |nvestment
transparency patents etc
1he round |s not yet conc|uded



GA11 AND W1C
Io||ow|ng the Uk Agreement GA11 was converted from a
prov|s|ona| agreement |nto a forma| |nternat|ona| organ|zat|on
ca||ed Wor|d 1rade Crgan|zat|on w|th the effect from Ianuary 1
199S W1C now serves as a s|ng|e |nst|tut|ona| frame work
encompass|ng GA11 and a|| the resu|ts of the Uruguay kound
1he o|d GA11 system a||owed under what was known as the
grandfather of c|ause ex|st|ng domest|c |eg|s|at|on to cont|nue
even |f |t v|o|ated a GA11 agreement that a member country had
accepted by be|n a s|gnatory to GA11

CCNCLUSICN
1he conc|us|on of GA11Uruguay kound |s a h|stor|ca|
deve|opment |n Wor|d 1rad|ng System It has been argued that the
resu|ts of these negot|at|ons w||| be seen |n the 21stcentury o||cy
makers are hav|ng the task of ma|nta|n|ng the momentum towards
trade reforms created by the conc|us|on of GA11 oor nat|ons are
concerned about the effect of trade part|cu|ar|y on |ncome
BIFFERENCE BETWEEN uATT ANB WT0
W GA11 was ad hoc and
prov|s|ona|

W GA11 had contract|ng
part|es

W GA11 system a||owed
ex|st|ng domest|c
|eg|s|at|on to cont|nue even
|f |t v|o|ated a GA11
agreement

W GA11 was |ess powerfu|
d|spute sett|ement system
was s|ow and |ess eff|c|ent
|ts ru||ng cou|d be eas||y
b|ock
W W1C and |ts agreements
are permanent

W W1C has members


W W1C does not perm|t th|s




W W1C |s more powerfu| than
GA11 d|spute sett|ement
mechan|sm |s faster and
more eff|c|ent very d|ff|cu|t
to b|ock the ru||ngs
|nequa||ty poverty and the env|ronment and about f|nanc|ng soc|a|
safety nets have rece|ved much attent|on |n recent years
It |s to be noted that the deve|op|ng countr|es have accepted
||bera||z|ng the|r trade but they are a|so demand|ng the access to
the markets of the r|ch nat|ons 1here |s a need of better
framework for br|ng|ng reforms to trade and |t w||| be of benef|t for
the wor|d as a who|e to create a su|tab|e env|ronment for free
trade It |s hoped that the representat|ves of both the ax|s
deve|oped and deve|op|ng countr|es w||| focus on the benef|ts of
free trade for the g|oba| advantage of a|| the peop|e ||v|ng on th|s
p|anet and a|so to make |t susta|nab|e