WORLD TRADE ORGANISATION: WORLD TRADE ORGANISATION RAJENDRA K.KHETAN Vice President WTO CELL ~FNCCI


WTOBRIEF HISTORY: WTO BRIEF HISTORY International Trade Organization (ITO) after WW-II thought of -1945 Diluted version of ITO –GATT*established -1947/8 (*general agreement on tariff & trade) Many rounds of GATT negotiation. The Uruguay Round (1993) leads to World Trade Organization (WTO) With 125 Countries In -1994 at Marrakech


Important meetings: Important meetings GATT rounds Kennedy round 1967 Tokyo round 1979 Uruguay round 1993 Ministerial meets Singapore 9-13 dec 1996 Geneva 18-20 may 1998 Seattle 30 nov- 3 dec 1999 Doha 8-12 nov 2001 ( 144th member entered ) Cancun sept 2003


FUNDAMENTAL PHILOSOPHY: FUNDAMENTAL PHILOSOPHY Rule based International trading System Member driven Organization Trade with global market access at competitive price of best quality product Harmonization of tariff - fusion with InfoTech Protection only through Tariff Trade Liberalization – ‘MFN’ to all members Quantity and quota restricted General agreement on trade & services (GATS)


SUSTAINABLE DEVELOPMENT THROUGH GLOBALISATION: SUSTAINABLE DEVELOPMENT THROUGH GLOBALISATION Integrating Nepalese economy to global economy Strengthening domestic policies and institutions – gear up for ‘MFN’ Credibility and stability of policies to the outsiders Extended and secured market Enhancing capability


STATUS OF ACCESSION EFFORTS: STATUS OF ACCESSION EFFORTS Under GATT  (1989) Application submitted Working Party established Memorandum submitted Under WT0 (1995) Application submitted Working Party established Observer status


STATUS OF ACCESSION EFFORTS: STATUS OF ACCESSION EFFORTS Memorandum submitted ('98) Questions and replies ('99) Initial Tariff offers ('00) Initial commitments in services ('00) First Working Party meeting (May '00) Bilateral consultations (Sept '00) Additional questions and replies(Sept '02)


STATUS OF ACCESSION EFFORTS (2002): STATUS OF ACCESSION EFFORTS (2002) Revised tariff offers Revised services commitment Legislative action plan Second Working Party and Bilateral Meeting held in GENEVA, from 9 to 13 Sept. '02


APPROACH FOR CONCESSIONS AND COMMITMENTS: APPROACH FOR CONCESSIONS AND COMMITMENTS National constraints and capability Interests of Nepalese Producers Goodwill of international community Commercial interest of WTO members Compatibility with national objectives


GOODWILL OF INTERNATIONAL COMMUNITY: GOODWILL OF INTERNATIONAL COMMUNITY WTO decisions in favor of LDCs Third UN conference on LDCs Consensus on Quadrangle countries Doha declaration


REVISED OFFER AND COMMITMENTS: REVISED OFFER AND COMMITMENTS Offered tariff bindings lowered both in Agriculture Non-agriculture Services sector commitments widened 11 sectors / sub-sectors included in offer for market access


STRENGTHS & OPPORTUNITIES: STRENGTHS & OPPORTUNITIES Part of global family of trade and legislation Global market access Completed most accession requirements Diversification of products and markets possible Priority to LDCs SAPTA / SAFTA / QUADRANGLE / REGIONAL Inherent & Indigenous Products Dispute settlement mechanism


WEAKNESS & THREATS: WEAKNESS & THREATS Small economy / limited resources Lack competitive & comparative edge Lack of capital, technology & H.R. Big players in competition Weak implementation & Traditional approach Global compact Brain drain Opening of trade and investment boundaries


Present drive: Present drive Awareness and campaign Building capacity viz.capital,technology and skill Political commitments Administrative reforms System compatibility Radical changes for competitiveness Cross society's support Horizontal & vertical diversification


Potential Area: Potential Area MODERN AGRI FARMING INTELLECTUAL PROPERTIES BIO DIVERSITY (HERBS,FORESTRY,AYURVED,SPICES) TOURISM (FLORA,FAUNA,HEALTH,SPORTS,RELIGIOUS,EDUCATION,SAARC HUB) FINANCIAL & OFFSHORE CENTER SERVICE SECTOR & ‘SEZ’ INFORMATION TECHNOLOGY HUMAN RESOURCES ENERGY POWER GLOBAL LANDMARKS (MT.EVEREST,LORD BUDHA, SITA)


FUTURE COURSE: FUTURE COURSE TRIPS (patent Copyrights, Trademark Designs, Geographical Indications) - new laws and implementation required Rule based transparent business Agriculture - Protecting the rights of Farmers Opening of the diverse, new & service sector Technical assistance for enhancing competitive strength Identification and development of thrust \ core sectors Competition Law & facilitating mechanism Investment friendly law & policy Transparency in govt. procurements Safeguard measures – anti dumping \ counter veiling duty