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Unit 10: GATT, WTO and Indian Economy

2. What was the effect of the EC’s measures on Guatemala, Honduras and Ecuador Notes
banana exports? What was the overall impact on the economies of Guatemala,
Honduras and Ecuador?
3. Find out if there was a ‘diversion of trade’ in favour of Caribbean countries. If so,
what was it in terms of US dollar value?

4. (a) Find out the trend in banana exports from Guatemala, Honduras and Ecuador
to the EC in the years subsequent to the dispute resolution.
(b) Did the banana exporters of these three countries implement any fresh
marketing strategies with specific reference to the EC market?

Self Assessment

Fill in the blanks:
4. The World Trade Organisation (WTO) is an organisation that means ……………………
international trade.
5. …………………… on a non-subsidized origin is an significant as well as problematic issue
for discussions in WTO.
6. ……………………, through numerous councils and committees, the 28 agreements confined
in the final Act of the Uruguay Round, plus a number of plurilateral agreements.

7. Under the provision of WTO, …………………… 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.

8. Moreover ……………………, the World Trade Organisation (WTO) is nowadays being
taken as the third support in the past-war worldwide economic relations.
9. The GATT developed the only …………………… leading international trade until the
WTO was established on January 1, 1995.
10. Resolution of implementation problems connecting to various pressures underneath World
Trade Organisation (WTO) agreements is a complex …………………….

10.6 Summary

India’s economic freedom score is 55.2, making its economy the 119th freest in the 2013
Index. Its score is 0.6 point higher than last year, with improvements in the management
of public finance and monetary freedom offsetting a continuing decline in freedom from
corruption.
India is ranked 23rd out of 41 countries in the Asia–Pacific region, and its overall score is
below the world average.

India’s institutional shortcomings continue to undermine the foundations for long-term
economic development.
In the absence of a well-functioning legal and regulatory framework, corruption throughout
the economy is becoming a more serious drag on the emergence of a more dynamic
private sector.

The state’s presence in the economy remains extensive through state-owned enterprises
and wasteful subsidy programs that result in chronically high budget deficits.

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