GATT Round of Agreements

Agriculture
Sanitary and Phytosanitary Measures
Textiles & Clothing
Technical Barriers to Trade
Trade Related Investment Measures (TRIMS)
Anti-dumping
Customs Valuation
Pre-Shipment Inspection
Rules of Origin
Import Licensing Procedures
Subsidies and Countervailing Measures
Safeguards
General Agreement on Trade and Services
Trade Related Intellectual Property
Dispute Settlement
Plurilateral Trade Agreements

Agriculture:
Agriculture: The Agreement on Agriculture
included three aspects:
market access
domestic support
export subsidies.
Note: The market access provision included tariffication of the non-tariff barriers
and gradual reduction of such tariffs by 36 per cent in case of developed
countries over six years and 24 per cent in case of developing countries
over a ten year period.
Sanitary and Phytosanitary Measures:
A detailed guidelines are given regarding sanitary
and phytosanitary in the sense that such
measures should not be arbitrary and
discriminating. They should be more transparent
and justified on scientific grounds.
Textiles & Clothing: It provided for the
eventual elimination of the Multi- fibre
Arrangement (MFA) after a ten year
transition period.
Technical Barriers to Trade
Technical Barriers to Trade: The
member countries have the right to
introduce regulations and standards that
ensure health and protect environment.
The agreement sought to establish a
committee on technical barriers to trade.
Trade Related Investment
Measures (TRIMS
Trade Related Investment Measures
(TRIMS) GATT inconsistent TRIMs are
required to be notified and eliminated
within a transition period of two years
(developed countries), five years
(developing), seven years ( Least
developed).
Anti-dumping
GATT had permitted imposing of anti-dumping
duties but agreement at the Uruguay Round
provided greater clarity to the issue. A sunset
clause was introduced for the review of
antidumping actions every five years. Moreover,
it sought to establish a committee on
antidumping practices.
Customs Valuation:
Fraudulent practices normally involved in customs
valuation were taken care of during the Tokyo
Round. The agreement in the Uruguay Round
re-emphasized that the basis for the valuation of
goods for customs purpose should be at the
maximum of the transaction value of the goods.
It provided the customs authorities some
additional power to obtain further information
from the importers and to establish the customs
value through recourse to alternative methods.
Pre-Shipment Inspection
It involves the use of specialized private
companies to check shipment details,
such as the price, quality and quantity of
goods. The agreement sought to introduce
greater transparency and so it was in favor
of independent review procedure that
could resolve any dispute between the
inspecting agencies and the exporter.
Rules of Origin
Origin means nationality of a product. It is
important in case where a product is
manufactured in more than one country. It is
because the origin of a product is manufactured
in more than one country. It is because the origin
of a product determines the amount of tariff to be
imposed in the importing country. It is provided
that committee on Rules of Origin along with a
technical committee would supervise the
harmonization of different countries procedures.
Import Licensing Procedures
The agreement tried to bring in
transparency to the import licensing
procedure. It emphasized on the
publication of the licensing rules in the
importing countries and on avoidance of
unnecessary delays in granting license.
Subsidies and Countervailing
Measures
This agreement prohibited the subsidies that were related to export
performance but the least developed countries and the developing
countries with per capita income below $1000, continued to remain
outside the scope. The advalorem subsidization of a product
exceeding 5 per cent or a subsidy given in order to prop up a loss-
making industry was subject to be taken to the dispute settlement
body.
It classifies subsidies in three categories:
Red: Subsidies with high trade distorting effects, such as export
subsidies, and those that favor the use of domestic over imported
goods are prohibited.
Green: Subsidies that are not specific to an enterprise or industry or
a group of enterprises or industries are non-actionable.
Amber: Subsidies that are neither red nor green belong to the amber
category.
Safeguards
The protective measures to save domestic
industry from injury, the agreement limited
the scope and duration of the safeguard
measures. The grey area measures like
Voluntary Export Restraint Agreements
and orderly market arrangements were to
be phased out by the end of 1999.
GATS
General Agreement on Trade and Services involves reduction
and elimination of barriers to international trade in services and
establishment of MFNT (Most Favored Nation Treaty) Principle
in this area. It means that the WTO members are now obliged to
offer MFN status and provide market access ensuring
transparency to all service providers from countries by the
GATT in form of transparent rules and regulations and
administrative actions. The Agreement covers trade in all
service sectors exceptions in
Non Commercial services health care and education.
Measures affecting air-tariff rights and services.
Other services for which a country has sought partial or full
exemption before signing the treaty.
TRIPs: (Trade Related Intellectual Property)
This agreement covers the areas of
copyright and related rights,
trademarks including service marks,
geographical indication
Industrial designs
patent protection
Dispute Settlement
The dispute settlement procedure existed in the
pre-Uruguay Round of GATT but it was
handicapped by the refusal of countries, mainly
the developed countries respect the final rulings.
But the settlement of disputes under WTO is
effective and is possible within a prescribed time
framework.
TPRM:
The purpose of TPRM is to monitor the trade practices and practices of
the member countries and to achieve greater degree of
transparency in their trading policies.
Plurilateral Trade Agreements:
There were four plurilateral agreements concluded at the
Uruguay Round. The acceptance of these agreements
are not a pre-requisite to WTO membership.
Public Procurement: It means foreign suppliers be given
the same treatment like the domestic suppliers.
Trade in Civil Aircraft: This aims at elimination of import
duties on all aircraft.
International Dairy Products: The agreement tries to
introduce greater stability in the market by seeking to
limit surpluses, shortages and fluctuation in prices.
International Bovine and Meat Products: The purpose is
to regulate the international Bovine and Meat products.
Objectives of WTO
To increase standards of living.
Employment Generation
Optimal use of world resources
Sustainable Development
To see that Least Developed Countries (LDC) secure a better share of
growth in international trade.


Note: WTO was formed in January, 1995
Organizational Structure

Ministerial Conference (apex body )

General Council

Subordinate Council

Working Committees

Working Groups
Ministerial Conference
It is an apex body

It Meets in every two years

It is composed of the representatives from the
government of the member countries.

It is the chief policy making body.

Any major policy change requires its approval.
General Council
To act as a dispute settlement body.

To administer the TPRM (Trade Policy Review
Mechanism)

To supervise the functioning of trade in goods, GATS,
TRIPS as well as all the trade committees
It meets every two months
One representative from each member
Subordinate Council
Trade in goods,
Trade in services
Intellectual property rights.
Committee (Trade in Goods)
Market access,
Agriculture,
Specific non-tariff barriers,
TRIMs
Textile Monitoring body.