INDIA -US TRADE RELATED ISSUE

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Why WTO replaced GATT ?

While WTO came in existence in 1995, GATT didn’t cease to exist. It continues as WTO’S umbrella treaty for trade in goods.

  1. Locked institutional structure and locked, by legal complications.
  2. IPR absent, main focus on textiles and agriculture sector.
  3. Dispute relaxation mechanism was absent.
  4. Interest only promoting west.
  5. Countries failed to curb quantitative restrictions on trade.

Non –agriculture market access (NAMA)

NAMA refers to trade liberalisation rules about major non-agriculture goods under WTO. It covers laws for trading of items like manufacturing and other and industrial goods, mining, jewellery, forestry etc. The NAMA discussions are stalled after 2008 after difference of opinion between the emerging economics and developed countries.

And developed countries dem and higher level of terriff cutting commitments on NAMA products.

NAMA is ,includes WTO exclusive rules on trade or trade related aspects like Intellectual property, services.

  1. Quata system:- Developed country restrict or limit the industrial product of developing country. Consequentially developed economy is acting here like a protection based.
  2. Tariffs measure:- A tariff or customs duty is a financial charge in the form of a tax, imposed at the border on goods going from one customs territory to another. Tariff can also be imposed on exports also but the import terriff are most common type of tariffs and have been the main focus of attention of WTO, negotiations.

Type of tariff

  1. Ad Valorum tariff:- A tariff calculated on the basic of the value of the imported good, expressed as a percentage of such value for example:- an ad valorum tariff of 10% on an imported car worth us $ 10,000 would lead to a requirement to pay us $ 1000 as Customs duty.
  2. Specific tariff:- It is a tariff calculated on the basis of a unit of measure”, such as weight or volume of the imported good. For eg :- A tariff of Rs. 1000 per gram of gold on imported gold.

Impact;

  1. To protect their domestic industeries from the competition of imports.
  2. To collect revenue.
  3. Counter valiling duty CVO:- (dumping) It is trade imports tariffs imposed to nullify the adverse effects of Subsidies. They are imposed only under WTO rules and are also called anti-subsidy duties. They are leweid if a country investigates and finds out that a foreign country thus garming domestic suppliers. That is country can charge additional duties over the country.
  4. Non- tarriff measure:- These are policy measures – other than oridinary customs tariffs- that can potentially have an economics effect on international trade in goods, changing quantities traded or prices or both.

Sanitary and phytosanitary measures:- Measures that are applied to protect human or animal life from risk arising from: additives, contaminants, toxins or disease- causing organisms in food.

Technical barriers to tracks:- Measures referring to technical regulations and producers for assessment of conformity with technical regulations and standards.

  1. Environmental clause; due to different environment clauses in different countries there is aprted regulation been faced by the countries.