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WORLD TRADE ORGANIZATION (WTO):WTO Agreements: Salient Features

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SME Management (MGT-601)
VU
Lesson 39
WORLD TRADE ORGANIZATION (WTO)
Introduction
The emergence of World Trade Organization (WTO) in 1995, as a result of Uruguay Round of negotiations
of GATT, marks a watershed in the history of international trade. GATT, the predecessor of WTO, was
established by 23 countries in 1948, which liberalized the trade and created an environment that enabled the
evolution of WTO is much wider as compared to GATT. It encompasses areas like textile, agriculture,
services and intellectual property etc. that were excluded in the GATT.
The main guiding principles of WTO are: non-discrimination among the members in stipulation of favours
regarding market access and tariff reductions provision of national treatment to foreign investors, imported
goods and services stability and predictability of international trade patterns to promote confidence of
investors and businesses by bounding the tariffs and market access for services; and promotion of
economic development by encouraging reforms in the less developed and transition economies.
To ensure that trade is as fair as possible and as free as practical WTO has a large number of agreements
that are the result of negotiations among member states. The current sets of agreements are the outcome of
1986-94 Uruguay Round negotiations. Through these agreements WTO members operate a non-
discriminatory trading system that spells out their rights and obligations. Important agreements are of
goods, agriculture, textile and clothing, subsidies and countervailing measures, antidumping, safeguard
measures, TRIMs, customs valuation, dispute settlement, technical barriers to trade, sanitary and
phytosanitary measures, GATS and TRIPs.
These agreements resulted in considerable reduction in tariffs in member countries and increased market
access for developing and developed countries.
WTO Agreements: Salient Features
Trade in Services.
1.
Trade in Services is regulated by the GATS, which concerns with some basic obligations that apply to all
members. its second part deals with nations schedules of commitments that contain specific assurances that
will be the subject matter of ongoing process of liberalization and the third part deals with the annexes
addressing the special situations of individual services sectors that are not binding on all members.
2.
Agreement on Textile and Clothing.
The Agreement of Textile and Clothing stipulates that the Multifibre Arrangement will be phased out and
that the textiles and clothing sector will be integrated into WTO in four stages over 10years. The major
portion i.e., 49% will be assimilated in the stage four (ending January 1, 2005).
3.
Agreement on Subsides and Countervailing Measures.
Agreement on Subsides and Countervailing Measures lays down rules on the subsidies for industrial
products and on countervailing duties to counteract the effects of subsidies. Subsidies are divided into three
categories; prohibited subsidies, actionable subsidies and non-actionable subsidies. Export subsidies and
those contingents on the use of domestic as opposed to imported products are categorized as prohibited
subsidies.
4.
Agreement on Anti-dumping.
Agreement on Anti-dumping provides the right to the contracting parties to apply anti-dumping measures,
i.e. measures against imports of a product at an export price below its "normal value" if such dumped
imports caused injury to a domestic industry.
5.
Agreement on Safeguards.
Agreement on Safeguard provides remedies for domestic producers injured by fairly traded imports. It
allows the use of temporary protective measures but sets rules to guard against the abuse of such measures.
6.
TRIMs Agreement.
The TRIMs agreement identifies trade related investment measures that are against the provisions of the
GATT and prohibits the use of such measures. TRIMs consist of investment incentives, such as subsidies,
investment grants and allowances, priority access to credit, tax relief and exemption, tariff protection and
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SME Management (MGT-601)
VU
other forms of fiscal, financial and commercial inducements for investment and performance requirements,
such as local content, trade-balancing and export requirements.
7.
The Agreement on Custom Valuation.
The agreement on Customs Valuation intends to provide greater uniformity and certainty in the application
of customs valuation rules and procedures. It provides for a fair, uniform and neutral system for the
valuation of goods for customs purposes and precludes the use of arbitrary or fictitious customs values.
Transaction value is the principal basis and method of value.
8.
The TBT & SPS Agreements.
The TBT and SPS Agreements do not question the right of governments to use technical regulation,
standards and sanitary and phytosanitary measures for health and safety reasons. The SPS Agreement also
requires that SPS measures be based on scientific justification.
9.
Agreement on TRIPs.
The Agreement on TRIPs provides for adequate intellectual property rights for copyrights, trademarks,
industrial designs, layout designs of integrated circuits, patents etc. and the provision of effective
enforcement measures for those rights, multilateral dispute settlement and transitional arrangements.
Adequate arrangements are also proposed for the protection of Geographical Indications.
10.  General Agreement on Trade in Services.
General Agreement on Trade in Services establishes rules of conduct for governments to follow in their
laws and regulations relating to services. It provides for specific commitments by member countries to
open up certain sectors of services to import competition.
11.  The Dispute Settlement Mechanism.
The Dispute Settlement Mechanism is a keystone of multilateral trade order that encourages the members
to solve mutual disputes by consultation but also have a legal framework for solving the matter if concerned
parties fail to reach a consensus.
12.  Trade Policy Review Body.
Trade Policy Review Body encourages greater transparency in national trade policies by conduction mid
term trade policy reviews.
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Table of Contents:
  1. THE HISTORY:Cottage Industry, CONCEPT OF SMALL BUSINESS
  2. THE RELATIONSHIP BETWEEN SMALL AND BIG BUSINESS:The SME’S in Pakistan
  3. THE ROLE OF ENTREPRENEURSHIPS IN SMEs:Focus and Perseverance Guide the Entrepreneur
  4. THE ROLE OF ENTREPRENEURSHIPS IN SMEs:Kinds of Entrepreneurs
  5. SMALL ENTREPRENEURS IN PAKISTAN:National Approaches
  6. THE DEVELOPMENT OF SMES IN PAKISTAN:The Industrial History of Pakistan
  7. GOVERNMENT’S EFFORT TOWARDS SME DEVELOPMENT:Financing Programs
  8. THIS LECTURE DEFINES THE ROLE OF NGOS AND SMEDA:Mission Statement
  9. ISSUES AND POLICY DEVELOPMENT FOR SME:Monitoring Developments
  10. ISSUES IN SME DEVELOPMENT:Business Environment, Taxation Issues
  11. LABOR ISSUES:Delivery of Assistance and Access to Resources, Finance
  12. HUMAN RESOURCE DEVELOPMENT:Market and Industry Information, Monitoring Developments
  13. MARKET AND INDUSTRY INFORMATION:Measuring Our Success, Gender Development
  14. LONG TERM ISSUES:Law and Order, Intellectual Property Rights, Infrastructure
  15. THE START UP PROCESS OF A SMALL ENTERPRISE:Steps in Innovative Process
  16. TECHNICAL FEASIBILITY:Market Feasibility, Market Testing
  17. FINANCIAL FEASIBILITY:Financial resources and other costs, Cash Flow Analysis
  18. ASSESSMENT OF PERSONAL REQUIREMENTS AND ORGANIZATIONAL CAPABILITIES:Analysis of Competition
  19. Post Operative Problems of a New Enterprise:Environmental Causes
  20. HOW TO APPROACH LENDERS:Bank’s Lending Criteria, Specific Purpose, Be Well Prepared
  21. WHAT A BANK NEEDS TO KNOW ABOUT YOU:General Credentials, Financial Situation
  22. COMMERCIAL INFORMATION:Checklist for Feasibility Study, The Market
  23. GUARANTEES OR COLLATERAL YOU CAN OFFER:Typical Collateral
  24. Aspects of Financial Management:WINNING THE CASH FLOW WAR, The Realization Concept
  25. MEANING OF WORKING CAPITAL:Gross Working Capital, Net Working Capital
  26. RECRUITMENT, SELECTION AND TRAINING:Job Description, Job Specification
  27. SELECTION AND HIRING THE RIGHT CANDIDATE:Application Blank, Orientation
  28. TRAINGING AND DEVELOPMENT:Knowledge, Methods of Training
  29. CONDITIONS THAT STIMULATE LEARNING:Limitations of Performance Appraisal, Discipline
  30. QUALITY CONTROL:Two Aspects of Quality, Manufactured Quality
  31. QUALITY CONTROL:International Quality Standards, MARKETING
  32. MARKETING:Marketing Function, MARKETING PROCESS - STEPS
  33. MARKETING:Controllable Variable, Marketing Uncontrollable, Marketing Mix
  34. MARKETING:Demerits of Product Mix, Development of new product, SMEDA
  35. ROLE OF TECHNOLOGY:Training programmes, Publications
  36. ROLE OF TECHNOLOGY:Measure to Undertake for Promoting Framework.
  37. EXPORT POTENTIAL OF SME IN DEVELOPING COUNTRIES I:Commonly Seen Assistance Programme
  38. EXPORT POTENTIAL OF SME IN DEVELOPING Countries. II:At the national level
  39. WORLD TRADE ORGANIZATION (WTO):WTO Agreements: Salient Features
  40. WTO MINISTERIAL CONFERENCES:PAKISTAN AND WTO
  41. WORLD TRADE ORGANIZATION (WTO) PAKISTAN & WTO. II:International Treaties
  42. WORLD TRADE ORGANIZATION (WTO) PAKISTAN & WTO. III:Agriculture
  43. WORLD TRADE ORGANIZATION (WTO):PAKISTAN & WTO. III
  44. WORLD TRADE ORGANIZATION (WTO):CONCLUSIONS AND RECOMMENDATIONS
  45. SUMMARY & CONCLUSIONS:Financing Tool, Financing Tool