2. WHAT IS WTO ?
The World Trade Organization (WTO) is the only global
international organization dealing with the rules of trade
between nations
At its heart are the WTO agreements, negotiated & signed
by the bulk of the world’s trading nations & ratified in their
parliaments
The goal is to help producers of goods & services,
exporters & importers conduct their business.
3. HISTORY OF WTO & ITS ESTABLISHMENT
1944 - Bretten Wood conference established World bank,
International Monetary Fund & International Trade Organization
1947 - General Agreement on Trade & Tariffs (GATT) was
established
1947–1993 - Contracting parties of GATT held 8 rounds of trade
negotiations-reduction of tariff barriers
1986-1993 - Uruguay round held - resulted in conversion of
GATT to WTO.
1991 - Dunkel Draft issued by DG of GATT included issues on
Agreement on application of Sanitary & Phytosanitary Measures
(SPS)
1994 - Marrakech round on Agreement on Agriculture (AoA)
1995 - Establishment of WTO
2 specific WTO agreements – SPS & TBT- food safety & animal
& plant health & safety
4. The GATT had been organizing international trade negotiation to
define the regulation for & strengthening multilateral trading
system over the years
The latest round of international trade regulation was conducted
under auspices of GATT from 1986 to 1993
It was on 15 December that the latest round of international trade
negotiation among 117 countries was conducted at Uruguay
The agreement so conducted were signed on April 16,1994 by
123 countries. The agreement has come to known as a Uruguay
round or the GATT 94
One of the agreements during the Uruguay round was regarding
renaming of GATT as World Trade Organization (WTO)
The GATT 1994 is being implemented with effect from 1st of
January 1995, when the very first agreement regarding the
establishment of WTO was established
Thus WTO held its last round of international trade negotiation at
Doha in July 2006
At present 151 countries are member of WTO
5. OBJECTIVES OF WTO
To ensure the conduct of international trade on
non-discrimination basis
To raise standard of living & income, ensuring full
employment
To ensure that trade flows as smoothly, predictably
& freely as possible
To expand production & trade
To expand & utilize world resources to the best
Protecting environment
Ensuring better share for developing countries
To enhance competitiveness among all trading
partners so as to benefit consumers & help in
global integration
6. FUNCTIONS OF WTO
Oversees the implementation, administration &
operation of the covered WTO trade agreements
Provides a forum for the trade negotiations
Handling trade disputes
Monitoring national trade policy review mechanism
Technical assistance training for developing
countries
With a view to achieve greater coherence in global
economic policy making, Co-operation with other
international organization (like help from World Bank
& the IMF - International Monetary Fund )
7. WORLD TRADE AGREEMENTS
RELATED TO FOOD
AoA - Agreement on Agriculture
SPS Agreement - Agreement on the Application
of Sanitary & Phytosanitary Measures
TBT Agreement - Agreement on Technical
Barrier to Trade
TRIPS Agreement - Agreement on Trade Related
Intellectual Property Rights
All agreements increased both the scope & the specificity of disciplines on the
application of safety & quality regulations
8. AGREEMENT ON AGRICULTURE
came into effect with the establishment of WTO at
the beginning of 1995
has three central concepts or "pillars“ :
domestic support
market access
export subsidies
9. SPS AGREEMENT
Agreement on the Application of Sanitary &
Phytosanitary Measures
It was negotiated during the Uruguay Round of
GATT & entered into force with the establishment
of the WTO at the beginning of 1995
Under the SPS agreement, the WTO sets
constraints on members' policies relating to :
1. food safety (bacterial contaminants, pesticides,
inspection & labelling)
2. animal & plant health (imported pests &
diseases)
10. Concerns with measures applied to protect human, animal
& plant health.
Allows countries to set their own standards
Should not arbitrarily or unjustifiably discriminate between
countries
Encouraged to use international standards, guidelines &
recommendations
Allow use of different standards/methods of Inspection
To protect animal or plant life or health from risks arising
from pest, disease, disease-carrying organisms or disease-
causing organisms
To protect human or animal life or health from risks arising
from additives, pesticide residues, contaminants, toxins or
disease causing organisms
To protect human life or health from risks arising from
diseases carried by animals, plants or pests
11. Agreement covers all relevant laws, regulations; testing,
inspection, certification & approval procedures; & packaging &
labelling requirements directly related to food safety
Member States are asked to apply only those measures for
protection that are based on scientific principles, only to the
extent necessary & not in a manner which may constitute a
disguised restriction on international trade
The Agreement encourages use of international standards,
guidelines or recommendations where they exist & identifies
those from Codex (relating to food additives, veterinary drugs &
pesticide residues, contaminants, methods of analysis &
sampling, & codes & guidelines of hygienic practices), to be
consistent with provisions of SPS
Thus, the Codex standards serve as a benchmark for
comparison of national sanitary & phytosanitary measures
While it is not compulsory for Member States to apply Codex
Standards, it is in their best interests to harmonize their national
food standards with those elaborated by Codex
12. GENERAL PRINCIPLES
HARMONIZATION – encourages the adoption of
measures that conform to international standards,
guidelines, and / or recommendations of international
agencies.
EQUIVALENCE – mutual recognition of different but
equivalent measures to achieve international standards
NON-DISCRIMINATION – treating imports no differently
than domestic produce.
TRANSPARENCY – notifying trading partners of changes
in their SPS measures, especially when the measures
differ from international standards.
REGIONALIZATION – allows continued exports from
disease-free areas of affected countries
13. TBT AGREEMENT
Agreement on Technical Barrier to Trade is an international
treaty of the WTO
It was negotiated during the Uruguay Round of GATT &
entered into force with the establishment of the WTO at the
end of 1994
TBT refers to technical regulations & conformity
assessment procedures & applies to all commodities & not
just food
Tries to ensure that regulations, standards, testing &
certification procedures do not create unnecessary
obstacles to trade
Discourages any methods that would give domestically
produced goods an unfair advantage
encourages use of international standards eg. BIS –
National Enquiry Point in India
14. TRIPS AGREEMENT
Agreement on Trade Related Intellectual Property Rights
Include provisions protecting the use of geographical
indicators which are frequently used to differentiate
agricultural products in the marketplace
Set out rules for the use of standards & labelling in the
regulation of other quality attributes including nutritional,
sensory, functional & process characteristics
15. REFERENCES
Agriculture in WTO – The role product attributes in the
agricultural negotiations : Commissioned Paper Number 17;
The International Agricultural Trade Research Consortium ;
May 2001
Assuring Food Safety & Quality : Guidelines For
Strengthening National Food Control Systems ; Joint
FAO/WHO Publication
World Trade Organisation (Wikipedia)
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