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Unit 10: GATT, WTO and Indian Economy

10.5 Implementation of Related Issue in World Trade Organisation Notes
(WTO)

In this section, you will understand about the implementation of related issue in WTO.
Resolution of implementation problems connecting to various pressures underneath World
Trade Organisation (WTO) agreements is a complex issue. India along with other like-minded
emerging countries has sustained to maintain constant pressure for resolution of application
problem relating to numerous apparent asymmetric and imbalance in existing WTO agreements
and effective operationalization of numerous special and differential treatment provision for
developing countries.

10.5.1 Issue Related to Agriculture

You must understand that liberalising trade in agriculture on a non-subsidized origin is a
significant as well as problematic issue for discussions in WTO. As directed under Article 20 of
the WTO Agreement on Agriculture, the development of discussions has initiated in the year
2000.
10.5.2 Trade in Services

Now you must understand that under the provision of WTO, emerging countries like India
having sufficient manpower resources can put much belief on service sectors counting construction
and can indulge into trade in services with developed countries at better terms.

Case Study The Banana Wars – A Case Study

he “Banana War” was back in the news when the Doha Ministerial Conference of
2001 passed a separate decision on a dispute that had been going on for more than
Teight years then. The last time the banana dispute was in the limelight was when
the Original Panel found the dispute-related sanctions imposed by the United States against
the European Communities (EC) to be WTO-incompatible.
Introduction
The sanctions required US importers to pay 100 per cent duties on products imported from
the EC. The US sanctions were in retaliation against the EC’s favourable import regime for
bananas from the Caribbean when compared to those from some South American countries.
The US imposed the sanctions even as the Original Panel was coming to a conclusion on
the final suspension of concessions to be applied to EC products.
The dispute involved the EU’s 1993 regulatory regime for imported bananas. The EU-wise
banana trade regime had a system of a tariff rate quota (TRQ) based on the country of
origin. Bananas from the African Caribbean Pacific (ACP) countries had duty-free entry
into the EU up to a ceiling of 8,577,000 metric tonnes.
This quota was allocated to each of the banana-producing countries on the basis of their
historic exports to the EU. While ACP imports in excess of quota were levied 750 ECUs per
metric tonne, non-ACP bananas were subject to a duty of ECU 100 per metric tonne on
imports of up to two million metric tonnes and ECU 850 on imports above that amount.
Contd...

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