Page 169 - DECO303_INDIAN_ECONOMY_ENGLISH

Indian Economy

Notes Know the importance of WTO
Understand the condition of India by the introduction of these policies

Introduction

In this unit, you will understand the World Trade Organization (WTO) oversees a
multidimensional system that contracts with the rules of trade amongst nations on a global
level. The working of the WTO is mainly based on the Uruguay Round of discussions that took
place from 1986 to 1994.
The WTO, which started to work on January 1, 1995, has its backgrounds in the General Agreement
on Tariffs and Trade (GATT) of 1947, and following rounds of negotiations. However GATT had
generally distributed with trade in goods, the WTO promises to cover trade in facilities and in
intelligent property in addition difference of opinion settlement processes.
The WTO arrangements comprise agriculture, textiles and clothing, banking,
telecommunications, government purchases, industrial standards and product safety, food
regulations, and more.
Although there have been numerous Ministerial Conferences after the Uruguay Round, the
purposes of a new round of negotiations were framed only under the “Doha Development
Agenda” launched in 2001 at the fifth Ministerial Conference at Doha, Qatar.
Though the GATT, over a period of 47 years – from 1948 to 1994, providing the rules for much of
world trade, it persisted a provisional agreement.

10.1 General Agreement on Tariff and Trade (GATT)

Let us begin the unit with the understanding of General Agreement on Tariff and Trade (GATT).
A treaty formed subsequent the conclusion of World War II. The General Agreement on Tariffs
and Trade (GATT) was executed to control world trade to aide in the economic retrieval following
the war. GATT’s chief purpose was to decrease the obstacles of global trade over the decrease of
tariffs, quotas and subsidies.

10.1.1 Main Objectives of GATT

You must understand that by decreasing tariff blockades and removing discrimination in global
trade, the GATT aims at:
1. Spreading out of international trade;
2. Intensification of world production by certifying full employment in the contributing
nations;

3. Development and full exploitation of world resources; and
4. Rising normal of living of the world communal as a whole.
On the other hand, the articles of the GATT do not offer directions for accomplishing these
purposes. These are to be indirectly realized by the GATT through the advancement of free
(unhampered) and multidimensional global trade.
As such, the rules accepted by GATT are created on the subsequent fundamental principles:
1. Trade should be directed in a non-discriminatory way;
2. The use of quantitative limitations should be predestined;
3. Disagreements should be determined through discussions.

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