GATT AND WEST EXPOSED- NEW INDIAN ERA

GATT AND WEST EXPOSED: 

GATT AND WEST EXPOSED NAME-KAMLESH KUMAR REGD NO.-0801215330 BRANCH-MECHANICAL ENGG

CONTENTS: 

CONTENTS WHAT IS GATT ? HISTORY.. OBJECTIVE GATT AFTER 1986 INDIAS BLUNDER(15 TH DEC 1994) REASON GATT IN ACTION(ENGULFING INDIA) STEPS REQUIRED

WHAT IS GATT: 

WHAT IS GATT GATT-General agreement on TRADE and TARRIF. Older version of WTO. Formed to solve the international trade disputes.

HISTORY OF GATT: 

HISTORY OF GATT • Following World War II, the victor nations sought to create institutions that would eliminate the causes of war. • Their principles were to resolve or prevent war through the United Nations and to eliminate the economic causes of war by establishing international economic institutions.

GATT AFTER 1986: 

GATT AFTER 1986 Till 1986 it was running smoothly , there was no point of any conflict or dispute among its member countries . All members were free to abide by its rule on there will. There was no mandatory obligation or any hard and fast rule to follow. But during 1986, European and American countries felt economic slow down and these countries were going through high recession period.

PowerPoint Presentation: 

In order to counter this economic problem they arranged a meeting to bring changes in GATT. And in the next meeting of GATT members European and American countries started to make hue and cry for amendment. Finally they convinced all other members on this issue and after a long discussion a committee of 20 to 25 members was organized under the presiding of ARTHUR DUNCKEN. A full fledged draft containing 2000 resolutions was prepared and it was given the name DUNCKEN DRAFT. Later on it was renamed to GATT AGREEMENT and from 1995 it became WTO agreement.

INDIA’S BLUNDER: 

INDIA’S BLUNDER Till 14 th december 1994, Indian government was in no mood to sign the GATT agreement. But on 15 th december 1994, it took U turn and gave its approval to the so called GATT agreement. On being asked by media about the reason for such a big and fatal decision, the then representative of India gave a very insulting statement – “BEGGARS HAVE NO CHOICE” .

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An amazing incident took place the very next day that 77 countries signed GATT agreement following India. All those countries were the member of G-77 group of which India was the president. But it was not a wise decision from our point of view rather it was a decision taken in compulsion and under BLACKMAILING by U.S.A and European countries.

USA CONSPIRACY: 

USA CONSPIRACY Financial crisis in 1991. Mortgaged 47 metric ton in BANK OF ENGLAND. U.S.A blackmailed to sign when asked further help. Finally India signed the agreement on 15 th dec 1994. U.S.A signed it in 1995. Before giving its approval, Bill Clinton made changes in its constitution.

PowerPoint Presentation: 

Under the section 102 of American constitution it was added—” Whenever there will be a dispute between America and GATT, ALWAYS AMERICAN LAW WILL PREVAIL OVER GATT. Not in just some of the cases, not in just most of the cases but in every case American constitution will recede over GATT”. In 1996 European countries gave their consent to it after applying the same strategy. Hence America and European countries got the edge to defy the GATT.

GATT IN ACTION (ENGULFING INDIA) : 

GATT IN ACTION (ENGULFING INDIA) After 10 years of grace period it came in action in JAN 2005.It contains total 2000 resolutions that are mandatory to be obliged. First para of first chapter dictates - no single element of this draft will considered to be agreed till the whole package is agreed. How is it ENGULFING INDIA??? The answer to the same can be given on the various fields of agreements under GATT….

Various agreements in GATT: : 

Various agreements in GATT: Agricultural agreement – Under this agreement government has to decrease various subsidies given to the farmers. Two types of subsidy : 1. Direct subsidy- minimum supporting price fixed by the government on agro products. 2. Indirect subsidy- Subsidy on fertilizers, electricity, seeds etc.

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Indian government was given an ultimatum to abolish 1 LAKH 16 THOUSAND CRORE subsidy given to the farmers. Total subsidy to indian farmers = 4 billion $. Total subsidy to American farmers = 400 billlion $. American and Europan agro products have lower international price than that of Indian products. Indian products face tough competetion globally. Minimum support price for crops and cotton fall drastically.

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6. Price hike of fertilizer, electricity and seeds. 7. 70% cotton producers collapse down under debt and loss and finally commit suicide. Agreement of market access: Compulsory import of the products produced in India. 8% of minimum consumption rate to be imported. Extra burden on the government budget. It leads to wastage of crops and so money also.

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Agreement on services: Indian government can’t deny accesibility of any foreign services. Services includes bank, hospitals, colleges, temples and everything except production. Companies like Wallmart and Carefore get open market. Affluent class will become customer of these stores. Indian people take it as a status symbol to be a customer of these malls and marts. Ultimately small shops and markets shut down.

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Agreement on Sanitary & Phytosanitary Measures (SPS). The SPS deals with: – Food safety – Animal health standards – Plant health standards The SPS does not set the standards. 3. It encourages members to use international standards, but allows them to set their own.

SOME SURPRISING FACTS:: 

SOME SURPRISING FACTS: Wrong concept about fertilizers: Not even 1% of fertilizers is useful in agricultural production. Fertilizers breaks the soil balance by increasing acid level of soil. Fertilizers companies have distributed commission from ministers to scientists. Insects are attracted towards crops as their immunity level goes down.

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Value of INDIAN CURRENCY: At present Rs.48 = 1$ In future it can be, Re 1 = 1$. HOW ?

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Unite Arab countries and motivate them to sell crude oil in their own currency. Encourage them to deposit their savings in Indian bank. Boycott American and European products. Use indigenous products. What if 1$=1 rupee: Current foreign debt = about 5 to 6 lakh crore . When 1$=Re1, foreign debt=5/48 lakh crore . Diesel price =Rs.0.40, petrol price=Rs.1.2 per litre . Export income increases by 48 times. z

PowerPoint Presentation: 

What if 1$=1 rupee: Current foreign debt = about 5 to 6 lakh crore . When 1$=Re1, foreign debt=5/48 lakh crore . Diesel price =Rs.0.40, petrol price=Rs.1.2 per litre . Export income increases by 48 times. Import bill decreases by 48 times. India will become trade surplus.

STEPS REQUIRED: 

STEPS REQUIRED Promote organic farming. Use indigenous products. Encourage people to use country made products. Make people aware of the hidden facts. We can bring the GOLDEN ERA again

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THANK YOU

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PRESENTATION ENDS WHAT ABOUT INTENSIONS…