PRESENTATION ON

WTO.

By
Alok K. Singh
Nirmal Bhusal
Introduction
 It is an International Organization established in
January 1,1995
 Also known as World Trade Organization.
 Successor to GATT (General Agreement on
Tariffs and Trade).
 Currently consist of 153 members ( 28th July,
2008).
 Deals with the legal and institutional
foundations of multinational trading system
between the nations.
 Covers the trade in goods, services and
intellectual property.
Before WTO
 Before WTO there was a presence of
GATT.
 Founded in1947.
 No. of members 27 countries.
 The GATT still exist as WTO’s umbrella
treaty for trade in goods.
Principles of WTO
 Non-discrimination
 Transparency
 Safety Values
 Reciprocity
 Binding and enforceable commitments
Advantages of WTO
 Helps to promote peace within the
nations.
 Disputes are handled constructively.
 Rules make life easier for all
 Free trade cuts the cost of things
 Trade raises income
Ten misunderstandings of
WTO
 The WTO dictates policy.
 The WTO is free trade at any cost.
 Commercial interest takes priority over
interest.
 Destroys environment.
 Affects health and safety.
 Destroys job and worsens poverty.
 Small country are powerless.
 The WTO is the tool of powerful lobbies.
 Weakercountries are forced to join WTO.
 The WTO is un democratic.
Nepal’s membership in
WTO
 Nepal had applied for GATT membership in
1989 but couldn’t succeed.
 Nepal’s cabinet decided in 1996 to seek
membership of WTO.
 Since 1997 UNDP provided technical
assistance to Nepal’s WTO accession process.
 In 1998 July Nepal submitted the memorandum
on foreign trade regime.
 Nepal Membership was discussed in may 2000
in meeting of WTO.
 It took 14 years for Nepal to membership.
 became 148th member nation of
 Nepal
WTO on 15th August, 2003.
Commitments made by
Nepal to WTO.
 Nepal has opened 11 service sector and 76 sub-
sectors to attract investors, employment, HRD and
revenue.
 Nepal will publish the list of goods and services
subject to state control.
 Nepal will establish an impartial and independent
tribunals.
 Nepal would eliminate and would not introduce or
reintroduce restrictions on imports or other non-tariffs.
 To implement technical's barriers to trade by Jan
2007.
 To implement sanitary measures by Jan, 2007.
 Same tax rate on domestic and foreign
products .
 Nepal can give10% of agricultural
production and subsides to farmers.
 A tariff : 42% on agricultural product, 24%
on industrial goods, daily consumption
5%.
Impact of WTO on Nepal’s
Economy.
 Positive Impact
Trade expansion
Trade diversification
Freedom of transit
Dispute settlement
End of bilateralism
Industrial development
Image and power
Special benefits
 Negative Impact
Erosion of preferences
Price hike
Accession commitments
Institutional requirements
Domination of big nations
Challenges for Nepal.
 Maximizing the benefits.
 Improve competitive strength production
capacity, productivity and quality.
 Promote product with competitive
advantage.
 Strengthen SAARC and SAFTA to improve
negotiation power.
 Create legal safe guard for bio diversity,
genetics.
 Protection of agriculture and small industry.
Conclusion
 WTO membership is considered as
national pride to Nepal. It has established
an independent economic entity
competent to trade under global
framework of rules. How ever it also
possess challenges for Nepal.