Ministerial

Conference
Structure
WTO
General
Council

Secretariat
 Latest member: Yemen (2014, June)

160 MEMBERS
Appoint DG
Ministerial
Trade agreements
Conference
WTO Every 2 yr
Structure General
Council 9th @Bali’13

Secretariat
 Ministerial
Conference
WTO Day2day D/M
Structure General
@Geneva Trade Policy
Council review
Bodies
DG
Dispute
settlement
 Ministerial
Conference

WTO General Council

Structure
Roberto Azevêdo (Brazil)

DG 4 yrs (reappoint yes)

Secretariat @Geneva
 WTO
1. ▼ Barrier to trade:
i. Tariff
Functions
ii. Non-tariff
2. L.D.C get benefit from world trade
3. Make agreements to implement
1+2
4. Dispute settlement if #3s violated
5. Coop. with others sus.Dvlp,
environment
0% Excise duty 36% custom duty
12% CVD
Sales Tax/ VAT / octroi

Tariff Barrier
 1. Red tapes in custom
clearance
2. Quotas for each nation

Non-Tarriff
1. Subsidies @Detroit
2. Cheap electricity
3. Cheap loans
4. Interest subvention
5. EPF contribution

Low cost of production

Non-Tarriff
1. Public procurement
2. First preference
Deny application

Non-Tarriff
 Absurd quality controls
Relaxed norms Safety norms

Non-Tarriff
 Tariff Subsidies
Trade
Barriers Public
Non Procurement
Tariff
TBT
QUALITY
CONTROL
SPS

Indian Alphonso
American poultry
 WTO
1. Sanitary and phytosanitary (SPS)
measures SPS
2. Member can ban import to Agreement
protect local plant, animal and
human lives.
3. QC must be scientific. FAO-Codex
standards can be used
4. Developing countries be given
additional time to comply
 WTO- SPS
1. 2014, April: EU trade
commissioner bans Indian EU bans
Alphonso, egg plant & other Indian Mango
veggies
2. Reason: fruit fly contamination in
earlier shipment (2013).
3. EU not largest importer but bad
publicity
 WTO
1. From April 2014, only APEDA
certified Indian mangoes SPS
exported EU-Mango ban
2. Agricultural and Processed Food
Products and Export Development
Authority (APEDA)
3. 2015, Jan: finally ban lifted.
 WTO
1. 2007: avian influenza. India bans
US poultry import. India bans
American
2. But even after that bird flu
Poultry
outbreaks in India.
3. 2012: US challenged ban in WTO
4. 2014: WTO rules in US-favour,
because India gave no scientific
evidence.
 WTO-SPS
1. More US poultry products in
Indian market – cheaper Poultry
2. Increased competition for desi Interests
th
players (India 4 largest
producer)
3. 2015, Jan: India appealed against
this order.
 Tariff Bali Package

WTO Subsidies Peace clause

Trade
Barriers Non Public TFA
Tariff Procurement
TBT
QUALITY CONTROL
SPS
Syllabus
1. GS2: Policy affecting Indian Alphonso
2. GS3: Farm subsidies American poultry
WTO: agreements
 WTO-AoA
Three pillars
1. ▼ Import Duty Agreement on
2. ▼ Export Subsidy Agriculture
3. ▼ Domestic Subsidy (Amber box)
 No Green R&D, training, pest control
Limits
Fertilizer
Electricity
5% Amber
Subsidies disruptive Diesel
10%
MSP

No Not increase with production

Blue
Limits Iceland, Slovenia
 Amber Box: 86-87 production

$100 Billion De-minimum Level $10 Billion

5% 10%

$5 billion $1 Billion
 AoA: 10%
1. ‘86: production low.
2. US’s 5%>> India’s 10% India Opposed
3. Inflation unaccounted because
4. Food security for poors
5. Income support for farmers
 Bali Summit
9thMinisterial, Bali Indonesia,
Dec’13 THREE
1. L.D.C. Duty free quota free Packages
market access
2. Peace Clause
3. Trade facilitation agreement (TFA)
 Green No limits

Blue No Limit
AoA
Limits Developed (US): 5%
Subsidies Amber
Developing India: 10%

Peace-Clause
1. WTO won’t hear cases for 4 years (2017)
2. Permanent solution by 11th Conference
3. Subsidies only for food security / pub.stockholding
 Bali Summit
9thMinisterial, Bali Indonesia,
Dec’13 THREE
1. L.D.C. Duty free quota free Packages
market access
2. Peace Clause
3. Trade facilitation agreement (TFA)
 Customs Clearance Trade Facilitation
Agreement (TFA)
Bali Summit,
Dec 2013
BEFORE To be Effective from 2015 AFTER
BENEFIT?
1. Apply, pay fees/taxes Online
2. Single window for docu.-check ▲$1 Trillion GDP
3. Faster clearance to perishable goods ▲ 21 million jobs
4. No middlemen/agent needed
5. Coordination bodies @ Nat.+Intl.level