I

nter
nat
ionalTr
adeLawNot
es

Q1.
Discusst
hei
mpor
tantofi
nter
nat
ional
Tr n21stcent
adei ury
.
I
nter
nati
onal
tradebet
weendiff
erentcount
ri
esisanimpor
tantf
act
orinrai
singl
i
vingst
andar
ds,
pr
ovidi
ngemploymentandenabl
ingconsumerstoenj
oyagreat
ervar
iet
yofgoods.

Int
ernat
ionalt
radehasoccur
redsincetheear
li
estcivi
li
sat
ionsbegantradi
ng,buti
nrecenty
ears
i
nternat
ional
tradehasbecomeincreasi
ngl
yimportantwit
hal ar
gershareofGDPdev ot
edtoexpor
ts
andimports.

Worl
dBank st
ats 
showhowwor
ldexpor
tsasa%ofGDPhav
eincr
easedf
rom 12%i
n1960t
oar
ound
30%in2015.

Withanincr
easedimport
anceoft
r ade,
therehaveal
sobeengrowi
ngconcer
nsaboutt
hepotenti
al
negati
veeff
ectsoftr
ade–inpart
icular
,theunbal
ancedbenef
it
swit
hsomelosi
ngout,despi
teover
all
netgai
ns.

I
mpor
tanceoft
rade
1.Makeuseofabundantr
awmat
eri
als

Somecountri
esarenat
ural
lyabundanti
nr awmater
ial
s–oi l
(Qatar
),metal
s,f
ish(I
cel
and),
Congo
(di
amonds)Butt
er(NewZealand)
.Withouttr
ade,
thesecountr
ieswouldnotbenef
itf
rom t
henatur
al
endowmentsofrawmateri
als.

At heoret
icalmodelfort
hiswasdevelopedbyEliHeckscherandBert
ilOhl
in.Knownasthe
Heckscher –Ohl
inmodel (
H–Omodel )itst
atescountr
ieswill
speci
ali
seinproduci
ngandexpor
ts
goodswhi chuseabundantlocal
factorendowments.Countri
eswil
limportthosegoods,
where
resourcesarescarce.

2.Compar
ati
veadv
ant
age

Thetheor yof 
compar ati
veadv ant age statest hatcount ri
esshoul dspecial
iseinthosegoodswher e
theyhav earelat
ivel
yloweroppor tunitycost .Ev eni fonecount rycanpr oducetwogoodsatal ower
absolutecost–doesn’ tmeant heyshoul dpr oduceev erything.India,withl
owerl abourcost
s,may
haveacompar ati
veadv antageinl abour -
intensi vepr oduction( e.g.cal
lcentres,cl
othingmanufactur
e).
Therefore,i
twouldbeef fici
entf orIndiat oexpor ttheseser v i
cesandgoods.Whi l
eaneconomyl ike
theUKmayhav eacompar ati
veadv antagei neducat ionandv ideogamepr oduction.Tr
adeall
ows
countri
est ospecial
i
se.Mor edet ail
sonhowcompar ativeadv antagecani ncreaseeconomicwel f
are.
Thetheor yofcompar ati
veadv ant agehasl i
mi tations, butitexplainsatleastsomeaspect sof
i
nternati
onal t
rade.

3.Gr
eat
erchoi
cef
orconsumer
s

Newt radetheory 
placeslessemphasisoncomparati
veadvant ageandr el
ati
veinputcost
s.New
tr
adet heor
ystatest hati
nt her
ealworl
d,adri
vi
ngfactorbehindthetradeisgivi
ngconsumer sgreat
er
choiceofdiff
erenti
at edpr
oducts.WeimportBMW carsfrom Ger many,notbecausetheyarethe
cheapestbutbecauseoft hequal
it
yandbrandimage.Regardingmusi candfil
m, t
radeenablest
he
wi
destchoi
ceofmusi
candfil
mtoappeal
todi
ff
erenttast
es.WhentheBeatl
eswentontourt
othe
USi
nthe1960s,i
twasexpor
ti
ngBr
it
ishmusi
c–relati
velabourcost
swereunimpor
tant
.

Perhapsthebestexampl ei swithgoodsl i
kecl othing.Somecl othing(e.
g.valuecl othesf r
om Pr i
mark
–pr i
ceisveryimportantandt heyarelikel
yt obei mpor tedfrom l ow-l
abourcostcount ri
esl i
ke
Bangladesh.Howev er,
weal soi mportfashionl abelsGucci (
Italy)Chanel(France) .Hereconsumer s
arebenefit
ti
ngfrom choice, r
atherthanthel owestpr i
ce.Economi st
sarguet hatinternati
onal tr
ade
oft
enf i
tsthemodel ofmonopol i
sti
ccompet it
ion.Inthismodel ,
thei mport
antaspecti sbr and
di
fferent
iati
on.Formanygoods, wewantt obuygoodswi thst r
ongbr andsandr eputations.e.g.
populari
tyofCoca-Cola,Nike,Addidas,McDonal dsetc.

4.Speci
ali
sat
ionandeconomi
esofscal
e–gr
eat
eref
fi
ciency

Anot heraspectofnewt radet heor

yi st hatitdoesn’treall
ymat t
erwhatcount r
iesspeci ali
sei n,the
i
mpor tantthingi stopursuespeci alisationandt hisenablescompani est obenefitfrom  economi esof
scale whichout weighmostot herfact ors.Somet i
mes, countriesmayspeci al
iseinpar ti
cul ar
i
ndust r
iesfornoov er-
ri
dingr eason–i tmayj ustbeahi stori
calaccident.But,thatspeci ali
sat i
on
enabl esimpr ovedef f
ici
ency .Forhighv alue-addedproduct s,multi
nationalsof t
enspl i
tthepr oducti
on
processi ntoagl obalproductionsy stem.Forexampl e, Appledesignst heircomput ersint heUSbut
contractt hepr oducti
ont oAsi anfact ori
es.Tr adeenabl esapr oducttohav emulti
plecount rysources.
Withcarpr oduct i
on,theproduct i
vepr ocessi softenevenmor eglobal withengines, t
yres, designand
mar ketingall potenti
all
ycomi ngfr
om di ff
erentcountries.

5.Ser
vicesect
ort
rade

Tradetendstoconjur
eimagesofphysicalgoodsimpor tbananas,exportcars.But,
incr
easingl
ythe
servi
cesectoreconomymeansmor etradeisofinvi
sibles–ser vi
ces,suchasi nsur
ance,I
Tserv i
ces
andbanking.Eveninmakingthi
swebsite,
Isomet i
mesout sour
ceITser vi
cest odevel
opersinother
countr
ies.I
tmaybef orj
obsassmal l
as$50.Fur t
hermor e,Imayexpor tarevisi
onguidefor£7.49to
countr
iesallar
oundtheworld.Agl
obaleconomywi thmoder ncommuni cati
onsenablesmanymi cr
o
tr
ades,whichwouldn’
thavebeenaspossibleinapre-inter
netage.

6.Gl
obal
growt
handeconomi
cdev
elopment

I
nternat
ionaltr
adehasbeenanimportantf
act
ori
npr omot
ingeconomicgr
owth.Thi
sgrowthhasled
toareductioninabsol
utepov
ert
ylev
els–especi
all
yinsoutheastAsi
awhichhasseenhi
ghratesof
growthsincethe1980s.

Q2.
whati
sdumpi
ngandant
i-
dumpi
ngi
nint
ernat
ional
trade?
Dumpi
ng

Accordingt oHaberler,dumpingi
s“thesal
eofgoodsabr
oadatapr icewhi
chisl
owert
hant hesel
li
ng
pri
ceoft hesamegoodsatt hesametimeint
hesamecircumstancesathome,t
aki
ngaccountof
di
fferentintransportcost”.Dumpi
ngmeansselli
ngt
heproductatbelowtheon-
goi
ngmar ketpri
ce
and/oratt hepricebelowthecostofproduct
ion.

Dumpi
ngi
soft
hreet
ypes:

(
i) I
nter
mit
tentdumpi
ng;

(
ii
) Per
sist
entdumpi
ng;
 (
ii
i) Pr
edat
orydumpi
ng.

Whentheproducti
onofaproducti
smorethanthedemandi nthehomecount ry
,thest
ockspil
eup
ev
enaftersal
es.Insuchacasethepr
oducersel
lst
her emaini
ngstockinfor
eigncount
riesatl
ow
pr
icewit
houtreduci
ngthepri
ceindomest
iccountr
ies.Suchsi
tuat
ioniscall
edInter
mit
tentdumpi
ng.

Whenthemonopoli
stsel
lst
heremai
ningpr
oduct
ioni
nfor
eigncount
ri
esatal
owerpr
icecont
inuousl
y,
i
tiscal
l
edPersi
stentdumpi
ng.

Whenthemonopolistsel
l
st heproductinf
orei
gnmarketatal
owpricei
nit
ial
lywi
thaviewtodri
ve
awaythecompet
itorsandincreasesthepr
iceaft
ert
hecompeti
tor
sleavethemarket,
iti
scal
led
Predat
orydumpi
ng.

Theobj
ect
ivesofDumpi
ngar
e:

(
a)Toent
eraf
orei
gnmar
ketbyel
i
minat
ingt
hecompet
it
orsi
nthef
orei
gnmar
ket
;

(
b)Tosel
lthei
rsur
pluspr
oduct
ion;

(
c)Todev
elopt
rader
elat
ionswi
tht
hef
orei
gncount
ri
es;
and

(
d)Toexpandmar
kett
othei
rpr
oduct
s.

I
nviewoft
henegat
iveef
fect
sofdumpi
ng,
impor
ti
ngcount
ryi
mposest
hef
oll
owi
ngant
i-
dumpi
ng
measur
es:

(
i) Theimporti
ngcount
ryi
mposeshi ghr
ateofimpor
ttar
if
fsondumpi
ng,sothatt
hepriceof
thedumpinggoodswoul
dbeei t
herequaltoormor
ethanoft
hedomesti
cgoods.Thenthe
dumpingcompanyfi
ndsituneconomical
todumpthegoodsinaf
orei
gncountr
yandstops
dumping.

(
ii
) Theimpor
ti
ngcount
ryi
naddi
ti
ont
otar
if
fsdut
y,r
est
ri
ctst
hev
olumeofi
mpor
tsi
nreduci
ng
thedumpi
ng.

(
ii
i) Thei
mport
ingcount
rybanstheimpor
tofpar
ti
culargoodsoral
lthegoodsf
rom t
he
dumpi
ngcount
ryasaretal
i
atorymeasur
eagainstdumping.

(
iv) Thei
mport
ingcountr
ymayi
mposepenal
ti
esont
hei
mpor
tsi
ftheycausei
njur
ytot
he
domest
ici
ndust
ry.

(
v) Theexpor
ti
ngcount
rymayr
est
rai
nexpor
tsbyv
olunt
ari
l
ymaki
ngbi
l
ater
alagr
eement
sto
avoi
ddumping.

GATTal l
owitsmembercount r
iestoapplyant
i-dumpingmeasures.Anti
-dumpingdut i
esarea
contr
oversi
alfor
m oftempor ar
yt r
adeprotect
ionpermitt
edbyGATT.GATT’ sAnt i-
dumpi ngcode
al
lowscountri
estoviolatet
henon- di
scri
minationrul
eandi mposeanadditi
onaltar
iffonimportsfrom
afir
mt hati
sdumping.Ant i
-dumpingcodei st
hatitencouragestheuseofpriceundertaki
nginplace
ofananti-
dumpingduty .

Ant
i-
dumpi
ngact
ions
I
facompanyexpor
tsaproductatapri
celowerthanthepr
icei
tnor
mal l
ychargesonit
sownhome
mar
ket
,iti
ssai
dtobe“dumping”theproduct
.Isthi
sunfai
rcompet
it
ion?Opini
onsdif
fer,
butmany
governmentstakeactionagainstdumpinginordertodefendt hei
rdomestici
ndustr
ies.TheWTO
agreementdoesnotpassj udgement .I
tsfocusisonhowgov ernmentscanorcannotreactto
dumpi ng—itdisci
pli
nesanti-
dumpi ngact
ions,anditisoft
encal l
edthe“Anti
-Dumpi
ngAgr eement
”.
(Thisfocusonl
yont hereacti
ont odumpingcontrastswit
ht heapproachoftheSubsidi
esand
Countervai
li
ngMeasur esAgreement .
)
Thel egaldefi
nit
ionsaremoreprecise,butbroadl
yspeakingtheWTOagr eementallowsgover
nment s
toactagai nstdumpingwherethereisgenuine(“mater
ial
”)inj
urytothecompetingdomesti
cindustr
y.
Inordert odothatthegover
nmenthast obeabletoshowt hatdumpi ngi
staki
ngplace,cal
cul
atethe
extentofdumpi ng(howmuchl owert heexportpri
ceiscompar edtotheexpor
ter’
shomemar ket
pri
ce) ,andshowt hatt
hedumpingi scausinginj
uryorthr
eateningtodoso.
GATT( Ar
ti
cle6)al l
owscount r
iestotakeacti
onagai nstdumpi ng.TheAnt i-
DumpingAgreement
clar
ifi
esandexpandsAr ti
cle6,andthetwooper at
etogether.Theyallowcount r
iest
oactinawayt hat
woul dnormallybreaktheGATTpr i
nci
plesof bindi
ngat ar
if
fand  notdiscri
minati
ng 
betweentr
adi
ng
partners—ty pical
l
yanti-
dumpi ngacti
onmeanschar gingextraimportdut yontheparti
cul
arpr
oduct
from theparti
cularexpor
tingcountryinordertobringitspr
iceclosert othe“normalval
ue”ort
o
remov etheinjurytodomest i
cindustr
yinthei mporti
ngcount r
y.
Ther earemanydi ff
erentway sofcalcul
ati
ngwhet heraparti
cul
arproductisbeingdumpedheav i
lyor
onlylightl
y.Theagreementnar rowsdownt herangeofpossibleopti
ons.Itprovi
desthr
eemet hodsto
calculateaproduct’
s“ normalvalue”
.Themai noneisbasedont hepricei
nt heexport
er’
sdomest i
c
mar ket.Whent hi
scannotbeused, t
woalternat
ivesareavail
abl
e—t hepricechargedbytheexporter
i
nanot hercountr
y,oracal cul
ati
onbasedont hecombi nat
ionoftheexporter’
sproduct
ioncosts,
otherexpensesandnor mal pr
ofitmargi
ns.Andtheagr eementalsospeci
fieshowaf ai
rcompar i
son
canbemadebet weent heexportpri
ceandwhatwoul dbeanor malpri
ce.
Calculat
ingtheext
entofdumpi ngonapr oductisnotenough.Ant i-dumpi ngmeasur escanonl ybe
appli
edi ft
hedumpingi shurti
ngt heindust r
yintheimportingcount ry.Therefore,adet ail
ed
i
nvest i
gati
onhastobeconduct edaccor dingtospecif
iedrulesfir
st.Thei nvestigationmustev aluat
e
al
lrelevanteconomicfactorsthathaveabear i
ngont hestateoft heindust r
yi nquest i
on.Ifthe
i
nvest i
gati
onshowsdumpi ngistakingpl aceanddomest icindustryisbeinghur t
,theexpor t
ing
companycanunder taketor ai
seitspr i
cet oanagreedl ev
el i
nordert oav oidant i
-dumpi ngimportduty
.
Detai
ledproceduresaresetoutonhowant i
-dumpingcasesar
etobeini
tiated,
howt heinvesti
gat
ions
aretobeconduct ed,andtheconditi
onsf
orensuri
ngthatal
li
nter
est
edpar t
iesaregivenan
opportuni
tytopresentevidence.Ant
i-
dumpingmeasuresmustexpi
ref
iveyearsafterthedateof
i
mposi ti
on,unl
essani nvesti
gati
onshowsthatendi
ngthemeasurewouldleadtoinjury.
Anti-dumpi nginvesti
gationsar etoendi mmedi atel
yincaseswher et
heaut hori
ti
esdeterminethatt
he
mar ginofdumpi ngisinsignifi
cantlysmall(defi
nedasl essthan2%oft heexportpri
ceoftheproduct)
.
Othercondi t
ionsarealsoset .Forexampl e,theinvest
igati
onsal sohavetoendi fthevol
umeof
dumpedi mpor tsisnegli
gi bl
e(i.e.ift
hevolumef rom onecount ryisl
esst han3%oft ot
alimportsof
thatpr oduct—al thoughi nvesti
gationscanpr oceedifseveralcountr
ies,eachsupplyi
nglessthan3%
ofthei mpor ts,t
ogetheraccountf or7%ormor eoftotali
mpor ts).
Theagreementsaysmembercount r
iesmusti nformtheCommitt
eeonAnt i
-DumpingPracti
cesabout
al
lprel
iminar
yandf i
nal
anti
-dumpingactions,pr
ompt l
yandindet
ail
.Theymustalsoreportonal
l
i
nvesti
gati
onstwiceayear
.Whendi f
ferencesarise,membersar
eencouragedtoconsulteachot
her.
TheycanalsousetheWTO’sdisputesettlementprocedur
e.
Q3.
Expl
aint
heSt
ruct
ureoft
heWor
ldTr
adeOr
gani
zat
ion
I
ntr
oduct
ion:
-

Theset t
ingupoft heWor l
dTr adeOr gani
sati
on(WTO)wasagr eedtoby125countri
esinApr i
l,1994,
ataconf erencei nMarrakeshwhi chconcludedthestrenuousUruguayRoundofGATTnegot iations
aftermor ethansev enyearsofhar dbargaini
ng.ThenewWor l
dTradeOrgani
sati
onwhichr eplaces
Gener alAgreementonTar i
ffsandTr ade(GATT),hadcomei ntoeff
ectfr
om January1,1995,wi tht
he
backingofat least85foundingMember s,i
ncludi
ngIndiaandatpresentt
hereare144Member sason
1-1-2002.TheWTOnowcomesast hethir
deconomi cpil
larofworl
d-wi
dedimensionsalongwi ththe
Wor ldBank( I
BRD)andt heInter
nationalMonetaryFund(IMF).

STRUCTURE(
ARTI
CLEI
V)

TheWTOconsi
stsoft
hef
oll
owi
ngbodi
es:

1.MINISTERIALCONFERENCE:-ThereshallbeaMinister
ialConf
erencecomposedof
repr
esentati
vesofal
ltheMembers.Itshal
lmeetatleastonceineveryTwoy ears.I
tshallcar
ryout
thefunct
ionsofWTOandt akeacti
onsnecessaryt
ot hiseff
ect.I
tshallhav
et heauthori
tytotake
deci
sionsonallmatt
ersunderanyoftheMTA, i
fsor equest
edbyaMember .

2.GENERALCOUNCI L:-TheGeneralCouncilcomposedofr epresentati

vesofal lt
hemember smeet
asappropriat
e.Inthei nter
v al
sbetweenmeet i
ngsoftheMi nisteri
alConference,
itsfuncti
onsshall
be
conducted,bytheGener alCounci
landalsocarryoutthefunctionsassignedt oi
tbyt hi
sAgreement.
AspertheAr t.V,t
heGener alCounci
lshall
makear rangementf oreffect
iveco-operati
onwithother
i
nter-
gov er
nmental organisati
onsandnon- governmentalorganisati
ons.

3.THEDI SPUTESETTLEMENTB0DY: -Itmayhav eitsownChai

rmanandshal l
establ
ishsuchr
ulesof
procedureasitdeemsnecessar yforthef ul
fi
ll
mentofthoser
esponsi
bil
i
ties.I
tshall
beconvenedby
theGeneralCouncil
todischargetheresponsi bi
li
ti
esoftheDi
sput
eSettl
ementBodypr ovi
dedforin
theDisputeSett
lementUnderstanding( DSU)

4.TRADEPOLI CYREVIEW BODY:-

TheGeneralCounci
lconvenesi
ttodischar
get heresponsi
bil
i
tiesof
theTradePoli
cyRevi
ewBodypr ovi
dedfori
ntheTPRM.I tmayhaveit
sownChai rmanandshall
establ
ishsuchrul
esofpr
ocedureasitdeemsnecessaryfort
heful
fi
ll
mentoft hoseresponsi
bil
it
ies

5.ACOUNCI LFORTRADEI NGOODS, ACOUNCI LFORTRADEI NSERVICESANDACOUNCI LFOR

TRADE- RELATEDASPECTSOFI NTELLECTUALPROPERTYRI GHTS( COUNCI
LFORTRI Ps)
.-Theyshal
l
operateunderthegener
algui
danceoft heGeneralCounci
l.Thesecounci
l
sshal
lcarr
youtthe
functi
onsasassignedtothem bythei
rrespect
iveagreementsandtheGener
alCounci
l.

6.SUBSIDIARYBODI ES:
-TheCouncilforTradeinGoods, t
heCouncilforTradeinServi
cesandt he
Councilf
orTRIPsshallestabl
ishsubsidi
arybodiesasrequir
ed.Thesesubsidiar
ybodiesshall
establ
i
sht hei
rrespect
iverul
esofproceduresubjectt
ot heapprovalofthei
rrespect
ivecounci
ls.

7.ACOMMITTEEONTRADEANDDEVELOPMENT,ACOMMITTEEONBALANCEOFPAYMENT
RESTRI
CTI
ONSANDACOMMI TTEEONBUDGET,FI
NANCEANDADMINI
STRATION:
-TheMi
nist
eri
al
Confer
enceshal
lest
abl
i
sht
hesecommi
tt
ees,
whi
chshal
lcar
ryoutt
hef
unct
ionsassi
gnedt
othem by
theAgreement
.

8.BODIESPROVI DEDFORUNDERTHEPLURI LATERALTRADEAGREEMENTS. -Theyshallcarryout

thefunct
ionsassignedt
othem underthoseAgreement
sandshalloperat
ewi
thintheinst
itut
ional
frameworkoftheWTO.Thesebodi esshall
keeptheGener
alCouncili
nfor
medoftheiract
ivit
iesona
regul
arbasis.

Q4.
wri
tet
hebr
iefsummar
yonAgr
eementonagr
icul
tur
e.

I
ntr
oduct
ion:
TheAgreementonAgricult
ural(AOA)i
sanint
ernati
onal
treatyoftheworl
dtradeOrgani
sati
on.I
twas
negoti
atedduri
ngt
heUr uguayRoundoftheGeneralAgr
eementonTar if
fsandtrade(GATT),
and
enter
edintofor
cewit
hest abl
ishmentoft
heWTOonJanuar y1,1995.

TheAgr
eement
sonAgr
icul
tur
econst
it
utesoft
hreepi
l
lar
s--
--
--
-

 Domest
icsuppor
ts,

 Mar
ketaccess,
and

 Expor
tsubsi
dies.

a)Domest
icSuppor
ts:
-

Thefi
rstpi
ll
aroftheAOAis“domesti
csupport
”.TheAOAdivi
desdomesticsuppor
tint
o2cat
egor
ies-
-
--
--
--
1.t
radedist
orti
ngand2.
non-t
radedi
stor
ti
ng( ormi
nimal
tradedi
stor
ti
ng).

TheWTOAgr eementonAgri
cul
tur
enegoti
atedintheUruguayRound(1986-1994)i
ncludest
he
cl
assi
fi
cat
ionofsubsi
diesby‘
boxes’
dependingonconsequencesofprovi
dingandtrade:
  Amber
(mostdi
rect
lyl
i
nkedt
opr
oduct
ionl
evel
s),

 Bl
ue(pr
oduct
ion-
li
mit
ingpr
ogr
ammest
hatst
il
ldi
stor
ttr
ade)
,

 Gr
een(
mini
mal
dist
ort
ion)

1)Whi
lepayment
sintheamberboxhadt
ober
educed,
thosei
nthegr
eenboxwer
eexemptf
rom
r
educt
ioncommit
ments.

Detai
lsrul
esforgreenboxpay mentsaresetouti
nAnnex2oft heAOA.Howev er,al
lmustcomply
withthe“f
undament alr
equir
ement”inparagr
aph1,t
ocausenotmor ethanmi nimaldi
stor
ti
onof
tr
adeorproducti
on, andmusttobepr ovi
dedthr
oughaoft r
adeorproducti
on, andmusttobe
provi
dedthroughagov ernmentf
undedpr ogr
ammet hatdoesnoti
nvol
vetransferfr
om consumer
son
pri
cesupporttoproducers.

TheAOA’ sdomest i
csuppor tsyst
em curr
entl
yallowEuropeandunit
edstatestospend$380bill
iona
yearonagricul
turalsubsidi
es.TheworldbankdismissedtheEUandtheunitedstat
esargumentt hat
smallfar
mer sneededpr otect
ion,
nothi
ngthatmor ethanhalfoft
heEU’scommonAgr icul
tur
alpolicy
subsi
desgot o1%ofpr oducerswhil
eintheunit
edst at
es70%ofsubsidesgot o10%ofi t
sproducers,
mainlyAgri
businesses.

TheseSubsi
diesendupfloodi
nggl
obalmarket
swithbelow-
costcommoditi
es,
depr
essi
ngpr
icesand
under
standi
ngproducer
sinpoorcount
ri
es,
apr act
iceknownasdumping.

b)Mar
ketaccess:
-

Theaspectofmar ketaccessreferstothereducti
onoftarif
fs(ornon-tari
ff
)bar r
ierstotradebyWTO
member s.The1995Agr eementonAgr i
cul
ture(AOA)consistsoftari
ffsreducti
onsof36%av erage
reducti
on- developedcountri
es-withami ni
mum of15%pert arif
fsli
nereductionsinnext6y ears;24%
averager eduction–developi
ngcount ri
es-wit
hami ni
mum of10%pert ari
ffsli
ner educti
onsi nnext10
yearsandl eastdevel
opedcountr i
es(LDCS)wer eexemptf r
om t ar
if
fsreducti
ons, bytheyeitherhadto
conv er
tnon- tari
ffbar
ri
erstotari
ffs-aprocesscall
edt ar
if
fi
cation-or“bond”theirtari
ff
s,creatinga
ceil
ingthatcoul dnotbei ncr
easedi nfut
ure.

c)Expor
tsubsi
dies:
-

Exportsubsi
diesaret
hethir
dpil
lar
.The1995Agr eementonAgricul
tur
al(
AOA)requi
reddeveloped
countri
estoreduceexpor
tsubsidi
esbyatl
east36%( byval
ue)orby21%(byvol
ume)ov er6years.For
developi
ngcountri
es,t
heagreementrequi
redcut
swer e14%(byv ol
ume)and24%(byvalue)over10
years.

St
ruct
ural
mechani
sm f
orsaf
eguar
d

Aspeci
alSaf
eguardmechanism (
SSM)empower
sdevel
opi
ngcount
riestolev
yaddi
ti
onal
saf
eguar
d
dut
iesi
ntheeventofanabnormalsur
gei
nimpor
tsoft
heentr
yofunusuall
ycheapi
mport
s.

Mat
terofconcer
n
Subsidiesdeservetobepl acedinthegr eenorbl uebox, r
at herthantheamberbox, i
nsomet imesa
matterofcont ent
ionattheWTO. Withint hecurrentnegotiation,manydev elopingcount
rymember s
haveexpr essedconcernov er“
box-shi f
ti
ng”: t
hemov ementofsubsi diesfrom theambertot heblue
boxwi thoutsigni
fi
cantchangesint henat ureoft hesubsidy .TheG-20,agr oupof20developing
countryWTOmember s,haspushedf orrulesthatwouldhel pensur ethatamberboxsubsi desare
compl etel
ytransf
ormedbef oregainingaccesst othebluebox.

Q5.
Stat
eDi
sput
eSet
tl
ementMechani
sm i
nWTO.
I
NTRODUCTI
ON

TheWTO’ sprocedureisamechani sm whichi susedt osettl

et r
adedi sputeundert heDi spute
Set
tlementUnder standi
ng.A di sput
ear i
seswhenamembergov ernmentbel ievest hatanot her
membergov ernmenti sv i
olat
inganagr eementwhi chhasbeenmadei nt heWTO.Howev er,these
agr
eement sareconsequent i
altodialoguesbetweent hememberSt atesandhencet heyar et he
wri
tersofsuchagr eement.Incaseanydi sputear
ises,t
heult
imatedut ytoset t
lei
tliesint hehandsof
membergov ernmentt hroughDisputeSet tl
ementBody .Thi
ssy stem alreadyachi evedagr eatdeal
andpr ov
idi
ngsomeoft henecessar yattri
butesofsecuri
tyandpredictabil
itywhicht raderandot her
marketparti
ci
pant sneedandwhi chiscal l
edfori ntheDisputeSet tl
ementUnder standingunder
Art
icle3.

TheWTO’ sDisputeSet tlementUnderstandi

ng( DSU)advancedoutoft heineffecti
vemeansused
undert heGATTf orsett
lingdisagreementsamongmember s.UndertheGATT, proceduresforsettl
ing
disputeswerei neff
ectiveandt i
meconsumi ngsi nceasi ngl
enat ion,incl
udingt henationwhose
actionswast hesubj ectofcompl ai
ntcouldef f
ecti
vel
yblockordel ayev er
yst ageoft hedi spute
resoluti
onprocess.Itremai nstobeseenwhet hercount
ri
eswi llcompl ywiththenew WTOdi spute
settlementmechanism, butthusfartheprocesshasmetwi threl
ativesuccess.

Duri
ngthephaseof1980’smanynew i nter
estgroupsweref ascinatedbytheGATT’sprocedures
whi
chwer eheldasmodel,andi twasusedbyt hem f
orthepur poseofaccompl i
shi
ngthei
rgoal s.
However
,servi
cesector
sandi ntel
l
ectualpropert
ysector
swhowant edtoengageinmultil
ateral
agr
eementsthroughGATT’
sUr uguayroundconf er
encewereinfluencedduetothesuccessdispute
set
tl
ementprocedur
esandinroleinaugmentingthetr
eatyr
ulecompl iance.

TheDSUwasdesi gnedt odealwi tht hedi ff

icult
yofr educi ngandel i
mi natingnon- tarif
fbar r
ierst o
trade.Anon- tarif
ft radebar r
iercanbeal mostanygov ernmentpol icyorr egul ati
ont hathast heef fect
ofmaki ngitmor edi ff
icultorcost lyf orforeigncompet i
torst odobusi nessi nacount ry.Int heear l
y
yearsoft heGATT,mostoft hepr ogr essinr educingtradebar ri
ersf ocusedont radei ngoodsandi n
reducingorel iminat i
ngt het ari
ffl evelsont hosegoods.Mor er ecentl
y ,tarif
fshav ebeenal lbut
eliminatedinawi dev ari
etyofsect ors.Thishasmeantt hatnon- tar
if
ft radebar ri
ershav ebecome
mor ei mportantsi nce,i nt heabsenceoft ari
ffs,onl
ysuchbar r
ier ssignificantlydistortt heov eral
l
pattern of t rade-liberal
ization.Fr equent l
y,such non- tarifft r
ade bar riers ar et he i nadv ertent
consequenceofwel l-
meani ngat tempt storegul at
etoensur esafetyorpr otect i
onf ortheenv i
ronment ,
orot herpublicpol icygoal s.Inot hercases,count ri
eshav ebeensuspect edofdel iberatelycr eating
such r egul
ationsundert hegui seofr egulatoryint
ent ,butwhi ch hav et heef fectofpr otecting
domest i
cindust r
iesf r
om openi nt ernationalcompet i
t i
on,t ot hedet r
imentoft heinternationalf ree-
traderegime.
STAGESI
NWTO
Consul
tat
ions(
Art
icl
e4)
TheDSUper mit
saWTOMembert oconsul twi
thanot
herMemberr
egardi
ng“measuresaf
fect
ingt
he
operati
onofanycov er
edagreementt akenwithi
ntheter
ri
tor
y”ofthelatt
er.IfaWTO Member
request
sconsult
ati
onswit
hanotherMemberunderaWTOagr eement
,thelat
terMembermustenter
i
ntoconsul
tati
onswitht
hefor
merwi t
hin30days.

Ifthedi sput
eisnotr esol
vedwithi
n60day s,thecompl ai
ningpart
ymayr equestapanel.The
complainantmayrequestapanelbef
orethisperi
odendsiftheotherMemberhasf ail
edt
oenteri
nto
consul
tat i
onsori
fthedi
sputant
sagreethatconsul
tat
ionshavebeenunsuccessful
.

Est
abl
i
shi
ngaDi
sput
ePanel
(Ar
ti
cles6,
8)

Apanelr equest
,whichmustbemadei nwrit
ing,must“ i
dent
ifythespeci f
icmeasur esatissueand
provi
deabr i
efsummar yofthelegalbasi
sforthecompl ai
ntsuffi
cientt opr
esenttheprobl
em cl earl
y”
(Art
.6.2).UnderGATT andnow WTO di sputeset t
lementpractice,aMembermaychal lengea
measureofanot herMember“ assuch, ”“asapplied,
”orbot h.An“ assuch”claim chal
lengest he
measureindependentofit
sapplicat
ioninaspecifi
csituat
ionand,asdescr i
bedbyt heWTOAppel l
ate
Body,seekstopreventt
hedefendingMemberf rom engagingi
nident i
fiedconductbefor
ethef act.

Ifapanelisrequested,theDSBmustest abli
shitatt hesecondDSBmeet i
ngatwhi chther equest
appearsasanagendai tem,unlessi
tdecidesbyconsensusnott odoso.Thus,whi l
eadef ending
Membermaybl ockt heestabl
i
shmentofapanelt hef i
rstti
met hecomplainingMembermakesi ts
requestataDSBmeet i
ng,thepanelwil
lbeestabl
ished,v i
rt
uall
yautomati
call
y, thesecondt i
mesuch
ar equesti
spl
acedont heDSB’sagenda.Whil
eDSBor dinari
lymeetsonceamont h,thecompl ai
ning
Membermayr equestthattheDSBconv eneforthesol epur poseofconsideringt hepanelrequest.
Anysuchmeet i
ngmustbehel dwi t
hin15day saf terthecompl ai
ningMemberr equeststhatt he
meet i
ngbeheld.

Thepanelisordi
nari
lycomposedoft hreepersons.TheWTO Secr et
ariatproposest
henamesof
panel
ist
stothedisputi
ngparti
es,whomaynotopposet hem exceptfor“compelli
ngr
easons”(Ar
t.
8.
6).Ift
herei
snoagr eementonpanel
ist
swithin20day sfr
om thedatethatthepaneli
sestabl
i
shed,
ei
therdi
sputi
ngpart
ymayr equestt
heWTODi rect
or-Gener
altoappoi
ntthepanel members.

GoodOf
fi
ces,
Conci
l
iat
ionandMedi
ati
on

Unlikeconsultationi nwhi ch“ acompl ainanthast hepowert oforcearespondentt orepl yandconsul t

orf aceapanel ,”goodof fi
ces,conci li
ationandmedi ation“ areundert
akenv oluntari
lyift heparti
esto
thedi sputesoagr ee.”Nor equirement sonf orm,t ime,orpr ocedureforthem exi st.Anypar t
ymay
i
nitiateorterminat et hem atanyt i
me.Thecompl ainingpar t
ymayr equestthef ormat ionofpanel ,
”if
thepar ti
estothedi sput ejointlyconsidert hatthegoodof f
ices,conci
li
ati
onormedi ationpr ocesshas
fai
ledt osett
let hedi sput e.”Thust heDSUr ecogni zedt hatwhatwasi mportantwast hatthenat i
ons
i
nv olvedinadi sput ecomet oawor kableunder standi ngonhowt oproceed,andt hatsomet imesthe
formalWTOdi sputer esolutionpr ocesswoul dnotbet hebestwayt ofindsuchanaccor d.Sti
ll
,no
nationcouldsimpl yi gnor eitsobl i
gat i
onsunderi nternational t
radeagreement swithoutt akingtheri
sk
thataWTOpanel woul dt akenot eofi tsbehav iour.
Panel
Proceedi
ngs(
Art
icl
es12,
15,
Appendi
x3)

Aft
erconsi
der
ingwri
tt
enandor alar
guments,thepaneli
ssuesthedescr
ipt
ivepar
tofit
srepor
t(fact
s
andargument
)t ot
hedi sputi
ngparti
es.Aft
erconsider
inganycomment s,thepanelsubmit
st hi
s
por
tional
ongwit
hit
sfindingsandconcl
usi
onst ot
hedisputant
sasaninter
imreport
.

Fol l
owingar eview period,afi
nalreportisissuedtot hedisputi
ngpart
iesandlatercir
culatedtoall
WTOMember s.Apanelmustgener al
lypr ovi
deitsfi
nalreporttodi
sputant
swi t
hinsixmont hsafter
thepaneli scomposed,butmayt akel ongerifneeded;extensi
onsareusualincomplexcases.The
per i
odf r
om panelest abli
shmenttocirculati
onofapanelr eportt
oWTOMember sshoul dnotexceed
ninemont hs.Inpractice,panel
shav ebeenf oundtotakemor ethan13mont hsonav er
aget opubli
cly
circulat
erepor ts.

Appel
l
ateBodyRev
iew

TheDSBest abl
ishesast andingAppellat
eBodyt hatwil
lheartheappealsf rom panelcases.The
Appell
ateBody“ shal
lbecomposedofsev enpersons,threeofwhom shallserveonanyonecase. ”
Thoseper sonsser v
ingont heAppellateBodyar etobe“ personsofr ecognizedaut hori
ty,wit
h
demonst r
atedexperti
seinlaw, i
nter
nati
onalt
radeandt hesubjectmatt
eroft heCov eredAgreements
generall
y.
”TheBodyshal lconsideronly“issuesofl aw covered i
nt hepanelr epor
tand l egal
i
nterpret
ati
ons developed byt he panel.
”Its proceedi
ngs shallbe confi
denti
al,and i t
sr eport
s
anonymous.

 
Thi sprovisi
onisimport
antbecause,unli
kejudgesint
heUni tedStat
es,t
hemember softheappel late
paneldonotser vef
orlif
e.Thismeanst hatifthei
rdecisionswer epubli
c,theywouldbesubj ectt o
personalr et
ali
ati
onbygov er
nmentsunhappywi t
hdeci sions,thuscorruptingthefai
rnessoft he
process.Decisi
onsmadebyt heAppell
ateBody“mayuphol d, modify
,orr
ev ersethel
egalfi
ndingsand
conclusionsoft hepanel
.”TheDSBandt heparti
esshal laccepttherepor tbytheAppellateBody
withoutamendment s“unlesstheDSBdeci desbyconsensusnott oadoptt heAppell
ateBodyr eport
withinthir
tydaysfol
l
owingitscir
cul
ationtothemember s.”

Adopt
ionofPanel
Repor
ts/
Appel
l
ateRev
iew(
Art
icl
es16,
17,
20)

Withi
n60day saf t
erapanelr eportiscirculat
edtoWTOMember s,thereportistobeadopt edata
DSBmeet i
ngunl essadi sputi
ngpar t
yappeal sitort heDSBdeci desbyconsensusnott oadoptit.
Withi
n60day sofbei ngnotifi
edofanappeal( ext
endableto90day s)
,theAppellateBody(AB)must
i
ssuear eportthatuphol ds,r
ev erses,ormodi f
iesthepanelr eport
.TheABr eportistobeadoptedby
theDSB,anduncondi ti
onall
yaccept edbyt hedisputi
ngpar t
ies,unlesstheDSBdeci desbyconsensus
nottoadoptitwithin30day saf tercir
culati
ontoMember s.Theper iodoftimefrom thedatethepanel
i
sest abl
ishedt ot hedat etheDSBconsi dersthepanelr eportforadopt ionisnott oexceednine
months(12mont hswher ether eportisappealed)unlessotherwiseagr eedbythedisputi
ngparti
es.

I
mpl
ement
ati
onofPanel
andAppel
l
ateBodyRepor
ts(
Art
icl
e21)

I
ntheeventthattheWTOdecisi
onfindsthedefendingMemberhasv iol
atedanobl i
gat
ionundera
WTOagreement,theMembermustinformtheDSBofi tsimpl
ementat
ionplanswi t
hin30daysafter
t
hepanelreportandanyABreportareadopted.Ifi
tis“impr
acti
cabl
e”fortheMembert ocompl y
i
mmediatel
y,t
heMemberwill
havea“ r
easonableperi
odofti
me”todoso.TheMemberi sexpect
edt o
i
mplementtheWTOdecisi
onfull
ybyt heendofthisperi
odandtoactconsistent
lywitht
hedecisi
on
af
tertheperi
od expi
res.
10 Compl
i
ancemaybeachi eved bywithdr
awi
ng theWTO-
inconsi
stent
measureor
,al
ter
nati
vel
y,byi
ssui
ngarev
isedmeasur
ethatmodif
iesorr
epl
acesit
.

 
Undert heDSU, the“reasonableperi
odoft ime”is:(
1)t hatpr oposedbyt heMemberandappr ovedby
theDSB;( 2)absentappr ov al
,theperi
odmut uallyagreedbyt hedisput ant
swi t
hin45day safterthe
reportorreportsareadopt edbyt heDSB;or( 3)fai
li
ngagr eement ,theper i
oddet erminedbybi nding
arbit
rati
on.Arbitr
ati
oni st obecompl etedwithin90day saf t
eradopt ionofther eport
s.Toai dthe
arbit
ratorin deter
mining thel engt
h oft hecompl ianceper iod,theDSU pr ov i
desanon- bi
nding
guideli
neof15mont hsf rom thedateofadopt i
on.Ar bit
ratedcompl ianceperiodshav er angedf r
om
sixmont hsto15mont hsandoneweek.TheDSUenv i
sionst hatamaxi mum 18mont hswi l
lelapse
from thedateapanel isestabli
shedunti
l t
hereasonableper iodoft imei sdeter
mi ned. 

Compl
i
ancePanel
s(Ar
ti
cle21.
5)

Wheret hereisdi sagreementast owhet heraMemberhascompl ied—i

.e.,whet
heracompl i
ance
measureexi st
s,orwhet herameasur ethathasbeent akeni
sconsistentwiththeWTOdecisi
oni nthe
case—eitherdisputingpart
ymayr equestthatacompl i
ancepanelbeconv enedunderArt
icl
e21. 5.A
compli
ancepaneli sexpectedt
oi ssueitsreportwithi
n90day saft
erthedisputeisr
efer
redtoi t
,buti
t
mayext endt histimeper iodifneeded.Compl iancepanelreportsmaybeappeal edtot heWTO
Appell
ate Body and bot hreports are subjectt o adopt
ion by t
he DSB. 12 Compensation and
SuspensionofConcessi ons(Art
icle22)

Ift
hedefendi
ngMemberf ail
stocompl
ywi t
ht heWTOdeci si
onwithi
nt heest
abli
shedcompl
i
ance
per
iod,t
heprevai
li
ngMembermayr equestthatthedefendi
ngMembernegot i
ateacompensati
on
agr
eement.I
fsucharequesti
smadeandagreementisnotreachedwit
hin20day.

Remedi
es

Ther eareconsequencesf ort hememberwhosemeasur eort r

adepr acti
ceisf oundt oviol
atet he
Cov eredAgr eementsbyapanelorAppel l
ateBody .Thedi sputepanelissuesrecommendat i
onswi th
suggest i
onsofhowanat i
onist ocomei nt
ocompl iancewi ththetradeagreement s.Ifthemember
fail
st odosowi thi
nt hedet er
mined“ r
easonabl eper i
odoft i
me,”t hecompl ainantmayr equest
negot i
ati
onsf orcompensat i
on.Withi
nt wentyday saf t
ert heexpir
ationoft hereasonableper i
odof
ti
me,i fsatisfact
orycompensat i
onisnotagr eed,thecompl aini
ngpar ty“mayrequestaut horiz
ation
from t he DSB to suspend the appl
ication tot he memberconcer ned ofconcessi ons orot her
obli
gat i
onsundert heCoveredAgreement s.”

Retaliat
ion shal
lbef ir
stl
i
mi ted tot hesamesect or(
s).Ifthecompl aining partyconsi derst he
ret
aliati
oni nsuf
fi
cient,i
tmayseekr etali
ati
onacrosssectors.TheDSBshal lgrantauthor i
zati
ont o
suspendconcessi onsorot herobl i
gationswithinthi
rtydaysoft heexpiryoft her easonablet i
me
unlesstheDSBdeci desbyconsensust orej
ecttherequest
.Thedef endantmayobj ecttot helevelof
suspensi onproposed.Theoriginalpanel,i
fmember sareavail
able,oranar bitr
atorappoi ntedbyt he
dir
ect or
-general
”mayconductar bi
tr
ati
on.

Ar
bit
rat
ion

Member smayseekar bi
tr
ationwi thi
nt heWTO asanal t
ernat
ivemeansofdisputesett
lement“to
faci
l
itat
ethesol
uti
onofcertaindisputesthatconcer
nissuesthatar
eclearl
ydef
inedbybothpart
ies.
”
Thoseparti
esmustreachmut ualagreementtoarbit
rat
ionandtheprocedur
estobefol
lowed.Agreed
arbi
trati
onmustbenot i
fi
edtoal lmemberspri
ortot hebeginni
ngofthearbit
rati
onpr ocess.Third
parti
esmaybecomepar tytothearbi
tr
ati
on“onl
yupont heagreementofthepar
tiesthathaveagr eed
tohav erecoursetoar
bit
rati
on.”Thepart
iest
othepr oceedi
ngmustagreetoabidebyt hear bit
rat
ion
award.“Arbit
rati
onawardsshallbenoti
fi
edtotheDSBandt heCounci
lorCommi tt
eeofanyr el
evant
agreementwher eanymembermayr ai
seanypointr
elati
ngtheret
o.”

Q6.
Whatar
eal
lpr
ocedur
esf
ort
heGATTNegot
iat
ion.
TheFirstfiverounds, i.
e……..theGenev aRound, 1940, totheDi ll
onround, 1960-61.wereconducted
underan“ item-by-i
tem”pr ocedure,al
onglinesgener all
yest abl
ishedfoet hefirstroundat
Geneva,1947.Thi sGenev ar oundwast hefir
stmaj ormul ti
later
al r
oundofTar iffnegot i
ati
ons,butas
mightbeexpect ed,itconti
nuedanumberofpr acticest hatwer esimil
artot hebi l
ateraltr
ade
negoti
ationsofpr eviousy ears.I
nallt
radenegot iationr ounds,thefir
stimpor tantstephasbeent he
establ
i
shmentoft arif
fsnegot i
ati
oncommi ttee(TNC0, consi st
ingofar epresentativefrom eachof
thecount r
ieswhi char eparti
cipat
inginthenegot iations.

Thefi
rstfi
venegot
iati
ngroundswereconduct
edunderpr
ocedur
esf
oll
owi
nggener
all
ythose
est
abl
ishedbythefir
stroundandcanbesummarizedasfol
l
ow:

Fi
rststepwasf
oreachcountrytosubmita“Requestl
ist
”onwhichitdetai
l
edforev
eryother
part
ici
pantt
oconcessi
ons(specif
iedpr
oductbyproduct)whi
chitdesi
redtheot
hercountr
ytomake.

Next,eachcount
rywouldanalyzet
herequestsubmi
tt
edtoitandpreparean“ Offerli
st”whichwoul
d
i
ndicatewhattar
if
fsconcessionsi
twaswill
ingtomakeinexchangeforobtaini
ngf avourabl
e
tr
eatmentonits“Request
”.Eachofther
equestandoff
erli
stswouldbefurnishedbyev er
ycount
ry
part
ici
pati
nginthenegoti
ati
ons.

At hi
rdstepwasaser i
esofbi l
ater
alconf erencesbetweennegotiatingcountri
estobegintodev el
op
the“bargain“bet
weent hem.Theobj ect
ivewast oobtainconcessionsr oughl
yequival
entinvalueto
thosewhi chacountr
ygav eup.Ingeneral,offerwouldbeextendedf orpar
ti
cularpr
oductstothe
countrywhichwasthe“princi
palsuppli
er”ofthatproductf
ortheof feringcount
ry.

Gradual
l
y,t
owardstheendoftheconfer
ences,moreandmoreconcessi
onswouldfalli
ntoplaceand
t
hirdpar
tybenef
itwoul
dbereprobat
edast heci
rcl
eofbil
ater
alnegot
iat
ionswasextended.

Final
ly
,atsomepoi ntnearthedeadli
ne,al
lcountrieswoul dfi
nali
zetheirofferlists.Atthispoints,
eachcountrywouldhavet oeval
uatethetotalconcessionsofal l
otherspar t
icipant sintheconference,
toseewhetheritfel
tthatasawhol etheywer eequival
enti nval
uetotheconcessi onswhi chitwas
givi
ng.Ifi
tfel
tthiswasnott hecase,i
twoul dthennotifytheotherparti
cipant sthati twas
withdr
awingfrom someofi tsof
ferstoremov etheimbal ance.Needl
ess, tosay, withdrawalsfr
om
offi
cescouldextendthroughtheenti
renegotiati
onanddest r
oytheresultobt ainedsof ar
.

Q7.Whati
sGATT?St
atet
heSal
i
entf
eat
uresofGATT,
1994.
I
ntr
oduct
ion

The 
Gener
alAgr
eementonTar
if
fsandTr
adewasa 
fr
eet
radeagr
eement
 bet
ween23count
ri
est
hat
el
imi nated tari
ff
s andincreased i
nternationaltrade.I
twast hefir
stwor l
dwide multi
l
ateral
freetrade
agreement .Itwasineffectfrom Januar y1, 1948untilJanuary1,1995.Itendedwheni twasr eplaced
bythemor er obust Worl
dTr adeOr ganization. 
ThepurposeofGATTwast oeliminateharmful t
rade
protectioni
sm.Thathadsentgl obaltradedown65per cent 
duri
ngt he 
GreatDepression.
GATT  restoredeconomi cheal t
ht othewor l
daf tert
hedev ast
ati
onoft hedepressionandWor ldWarI I.

SALI
ENTFEATURESOFTHEGATT,
1994:

TheUr uguayRound, theei ghthandmostambi t

iousRoundofmul ti
l
ateraltradenegot i
ati
onsundert he
auspicesoftheGATTwhi chinvolved117count ri
esconcludedonDecember15, 1993,af
termor e
than7y earsofof t
encont enti
oust radet alks, TheFinalActwassi gnedatMar rakeshont hefi
fteenth
dayofApr il
,1994.Itcont ainsabout15separ ateagreement s,4annexes, 19deci si
onsand4
declarat
ionsandtunder standings.I nt
ot al,theFi nalActcompr i
ses18mul til
ateraland4Pluri
lateral
tradeagreement s.I
t,alongwi thothert hings, bringstradeinagricul
turalproducts,servi
ces,t
ext i
les
andclothing,andintell
ect ualpropertyright swi thi
ntheambi toftheWor ldTr adeOr gani
zati
on.
AccordingtoFr anci
sCher unil
am, themaj orthemesoft heFi nal
Actar easf oll
ows:

1.WORLDTRADEORGANI
SATI
ON(
WTO)

GATThasbeenconv ertedf r
om aprovisionalagreementi ntoaf ormali
nternati
onalorganisati
on
call
edWTO.Theor gani sati
onwi l
lserv
easasi nglei
nst it
ut ionalfr
amewor kencompassi ngGATTand
al
ltheresul
tsoftheRound.I twil
lbedirectedbyaMi nisterialConfer
encet hatwil
lmeetatl eastonce
everyt
woy earsanditsr egularbusi
nesswi ll
beov erseenbyaGener alCouncil.I
nordert obecome
WTOMember sallcount ri
esmustcompl etel
yacceptt her esultsoftheUruguayRound.TheWTOi sa
morepower f
ulbodyt hanGATT, andplaysamaj orrolei nt hef ut
ureworl
deconomi caffair
s

2.I
NDUSTRI
ALPRODUCTS(
MARKETACCESS)

Undertheagreement,tari
ff
soni ndustr
ialproductsaretobereducedbymor ethan1/3onav er
age.I
n
i
ndustri
alcountri
es,t
arif
fwoul dbeel i
mi natedinseveral
sector
s,forexample,
steel
,pharmaceuti
cal
s,
andwoodandpr oduct
s.Dev elopingcount r
ieswouldbothlowertheirt
ari
ffbar
ri
erssigni
fi
cantl
yand
i
ncreasethenumberoft heir'bound'tari
ffs(whichconsti
tut
esacommi tmentnottorai
sethem
wit
houtconsultati
onandcompensat i
on)

3.AGRI
CULTURALPRODUCTS

Membercount ri
esareencour agedtogi veagr i
cultural t
radeast rongermar ketor i
entati
on,primaril
y
by:(1)reduci
ngexpor tsubsidiesand( 2)conv erti
ngal lnon-tari
ffbarrierst otariffs("
tari
ffi
cation"
whichincreasesthetransparencyofsuppor t
)andt henst eadilyreducingt hel atterbyabout36%on
average.Subsidi
sedexpor tv olumeswi l
lber educedov ert
imeby21%.Bot ht hesubsi dyandt ari
ff
reducti
onsenv i
sagedar etobecompl etedwithi nsixy earsforindustr i
alcount r
iesandTeny earsfor
developingcountri
es,withthe" l
eastdevelopedcount ries"effecti
velyexempt edfrom such
commi tments.Sincethecut t
ingbackofsubsi diesisl i
kelytor educet hequant it
yofagr icul
tural
productsdumpedonwor ldmar ket
s,thereisapossi bili
tyofashor t
-termi ncr easeincostf or
developingcountri
escur r
entlyimporti
ngsubst anti
al quantit
iesofsubsi di sedf ood.Consequent l
y,a
specialdeci
sionisincludedthatprovidestransi t
ional helpthroughpossi blef oodaidandsuppor tfor
agri
cult
ural
development.TheFinal
Actrecognisesthat"
leastdevelopedcountr
ies"and"netfood-
i
mpor t
ingdevelopi
ngcountri
es"tot
heextentthattheyexperi
enceext er
nalpaymentsproblems,
wouldbeeligi
bletorecei
vefr
om theIMFandt heWor l
dBankf rom exist
ingandnewlyemer gi
ng
faci
l
iti
es.

4.SERVI
CES

Af r
amewor kagr eementi ncl udesbasi cobli
gat i
onsofal lmembercount riesoni nt
ernational tradei n
services,includingf inancialser v
ices,tel
ecommuni cati
ons, t
ransport,audio-visual,t
our i
sm and
professional services, aswel l ast hemov ementofwor kers.Amongt heobl igationsisamostf av oured
nati
on( MFN)obl igationthatessent i
all
ypreventscount r
iesf r
om discriminat i
ngamongf oreign
suppl i
esofser vi
ces.I naddi tion, countri
eshav emadespeci fi
ccommi tment sonl i
beralisingcer tai n
servicessect ors.Thesecommi t
ment sincl
udenat ionaltreatment(thatis, t
ot reatforeignsuppl iersof
serviceslikedomest icsuppl i
er s)andpr ovi
sionofmar ketaccess.Negot iationson
tel
ecommuni cations, audio-visual ,andmar i
timeser vi
cesar etoresumeaf t
ert hemi nisterialsigni ng
oftheFi nal Act.Fur thermor e, afterimplement at
ion,parti
cipantswillhavet heoppor t
uni tytot ake
exempt ionsf rom MFNobl igat ionsi nfi
nanci
al servi
ces.Thef ramewor kagreemental soest ablished
thebasi sforpr ogr essiveliberal i
sationofinternati
onaltradeinservicest hroughsuccessi ver oundof
negot i
ations, whichal soappl i
est ootheragreement sundert heFinal Act.

5.TEXTI
LESANDCLOTHI
NG

Undert heagreement,bi
lat
eralquotasnegot
iatedundert
heexist
ingMulti
-f
ibr
eAr rangement(MFA)
aretobecompl et
elyphasedoutov era10yearperi
odbeginni
ngwiththeentr
yi nt
of or
ceofthe
agreement .Thequotasthatremainduri
ngthisperi
odwil
lbeprogressi
vel
yincreasedtoall
owf ur
ther
mar ketaccess

6.I
NTELLECTUALPROPERTY

Thisagreementpr ov i
desf orimprovedl evelsofprotectionforther i
ghtsofowner sofal ltypesof
i
ntell
ectualproperty(forexampl e,patents,copyri
ght s,
trademar ksandtradesecrets).Thesel ev
els
areachievedpr i
ncipall
ybyr equiri
ngcount ri
es: (
1)togr antnationaltr
eatment;(2)topr ovidecert
ain
minimum standar dspr otecti
onforalltypesofi nt
ellect
ual property(f
orexample,20y earsfora
patent)
;and( 3)toinstituteproceduresandr emediesundernat ionallawssothatf oreignerscan
enforcetheirri
ght s

7.SUBSI
DIES

Theagr
eementdef
inest
hreecat
egor
iesofsubsi
dies:
-

1.Pr
ohibi
tedsubsi
dies-
-t
hosecont
ingentuponexpor
tper
for
manceort
heuseofdomest
ici
nst
eadof
i
mportedgoods;

2.Act
ionabl
esubsi
dies-
thoset
hathav
edemonst
rabl
yadv
erseef
fect
sonot
hermembercount
ri
es;
and

3.Non-
act
ionabl
esubsi
dies-
thosepr
ovi
ded(
wit
hst
ipul
atedl
i
mit
ati
ons)t
oindust
ri
alr
esear
chandpr
e
-
compet
it
ivedev
elopmentact
ivi
ty,
todisadvantagedr
egi
ons,
ort
oexi
sti
ngf
aci
l
iti
est
oadapt
t
hemsel
vestonewenvir
onmentalrequi
rements.

Theagreementalsoputsrestri
cti
onsont heuseofcounterv
aili
ngmeasur esi
ntr
oducedinrespectto
competi
tors'
subsidi
es.Topr eventunduehardshi
ps,dev
elopingcountr
iesandcountri
esintr
ansit
ion
fr
om centr
all
yplannedtomar keteconomi esareal
lowedextratimetobringt
heirsubsi
diesi
nto
conf
ormitywiththenewrules.

8.TECHNI
CALBARRI
ERS

Theagr eementseekst oensurethattechnicalnegoti

ati
onsandst andardsaswel lasrestingand
cert
ifi
cationprocedur esdonotcr eat
eunnecessar ybarri
erstotr
ade.Tot hi
send,itencourages
countri
est ousei nter
nati
onalstandards,butdoesnotobl i
geharmoni sationofstandards.Atthe
samet i
me, i
trecognisestheri
ghtofcount riestoestabl
ishprot
ectionforexampl e,f
orhuman, ani
mal,
orplantli
fe,health;andtheenvironment--
-atlevelt
heyconsiderappropriate,andspecif
iesthatthey
shouldnotbepr eventedfr
om ensur i
ngthatt hei
rdesir
edstandardsaremet .

9.ANTI
-DUMPI
NGRULES

Theagreementprovidesgreat
ercl ar
ityandmor edetai
ledrulesconcerningt hemet hodof
deter
mi ni
ngdumpingandi nj
ury,thepr ocedurestobef ol
lowedi nanti
-dumpi nginvestigat
ions,and
thedurati
onofanti
-dumpingmeasur es.Ital
socl ar
if
iesther ol
eofdispute-settl
ementpanel sin
confl
ict
srelat
ingt
oant i
-dumpingact ionstakenbynat i
onal authori
ti
es.Anumberofi ssuest hatcoul
d
notbesor t
edouthavebeendel egatedt otheCommi tt
eeonAnt i
-dumpingf orresol
ution

10.TRADE-
RELATEDI
NVESTMENTMEASURES(
TRI
Ms)

Theagreementrequi
r estheel
imi nati
onofcer
tainrest
ri
cti
vemeasures(suchaslocal
cont
entand
forei
gnexchangebalancerequirements)t
hatviol
ateGATTprinci
plesofnati
onal
treat
mentand
prohi
bit
ionofquanti
tati
verestr
ictions

11.GOVERNMENTPROCUREMENT

TheFinal Actcontainsproceduresdesignedt ofacil

itatethemember shi
pofdev elopingcountri
esin
theexisti
ngGov er
nmentPr ocurementAgr eement .Inadditi
on, negotiati
onsonanewAgr eementon
GovernmentPr ocurement ,notfor
mallypar toftheUr uguayRound, areproceedingandar eexpected
toconcludeinthenearf uture.Theobjecti
v esofthesenegot iati
onsincludebroadeni ngthecov er
age
oftheAgr eementt oincl
udeser vi
cesaswel las(alr
eadycov ered)goodsandt oi ncludepr ocur
ement
bylevelsofgovernmentandsubor di
natetot heCent ralGov ernment s.

12.SAFEGUARDACTI
ONS

Art
icleXIXoftheGATal l
owsmember stotakesaf
eguardsact i
ons-i
mportrestr
ict
ionst oprot
ecta
domesticindustr
yf r
om t
henegat i
veeff
ectsofanunforeseenimportsurge-i
fadomest i
cindust
ryis
thr
eatenedwi t
hser i
ousi
njury.Thenewagreement,
howev er,pr
ohibi
tstheuseofsuchact i
vit
ies
wheretheyconstitut
egrey-ar
ea"measures,i
ncl
udi
ngv olunt
aryexportr
estrai
nts,orderlymarket
ing
agreements,orothersi
milarmeasuresappli
edoneit
herexpor t
sorimpor t
s.Grey-area"measures
current
lyineff
ectaret obephasedoutwi t
hinfoury earsafterest
abli
shmentoft heWTO.Fur ther
more,
theagreementprovidesdiscipli
neontheuseofal lsafeguardmeasur estakenunderAr t
icl
eXIX
i
ncludingtimeli
mits,requi
rement sf
orsafeguardinvestigat
ion,andnon-discr
iminat
ion(general
ly
)
amongt hesourcesofsuppl y.Devel
opingcountri
eswoul dbegrantedprotect
ionagainstthe
i
ntroducti
onofsafeguar dactionsbythei
rtr
adingpar tnerswherethedevelopingcountry
'sshareof
thepartner'
sdomest i
cmar ketisrel
ati
vel
ysmal l
.

13.BALANCEOFPAYMENTSPROVI
SIONS

TheFinalActspecifi
esthatmembercount r
iesimposingtraderestr
ictionsforbal
anceofpay ments
purposesshoulddosoi nawayt hatcausesmi ni
mum disrupti
ontoi nternat
ional
t r
ade.Tothi
send,
pri
ce-basedmeasur essuchasimportsurchargesandimpor tdepositsshouldbepr ef
erredt
o
quantit
ati
verest
rict
ions.TheFi
nalActalsostrengthenscurr
entprocedur esthatrequi
recountr
ies
usi
ngsuchr estr
icti
onstoconsul
twi t
htheGATT

14.DI
SPUTESETTLEMENT

TheFi nal Actpr ovidesf orfurtherst rengt heningt heexi stingdi sputeset tlementsy stem oft heGATT.
Thi ssy stem hadal readybeenst rengt henedandst reaml i
nedasar esul toftheMi d-ter m Rev iew
Mi nisterialMeet i
ngont heUr uguayRound, whi chwashel dinMont real i
nDecember ,1988.I tleadsto
great eraut omat i
cit
yt otheadopt ionoft hef i
ndi ngsofbot hpanelschar gedwi t
hset tlingt rade
disput esandoft henewAppel lateBodydesi gnedt ohearappeal sofpanel fi
ndings.I tal sopr ov i
des
forcr oss- r
etaliati
on"( withdrawal ofbenef it
sinonesect orf orv i
olationofr ul
esi nanot hersect or
).The
broadenedcov erageofwor ldt radeundert heFi nalActandt heWTO' sreli
anceonsi ngl edisput e
settlementsy stem woul dconsi der abl yincreaset hesy st em' simpor tance.Theunder standi ngal so
seekst ol i
mi tunilateraldetermi nationst hattrader uleshav ebeenv iolated(byaf f
irmi ngt hat
member sshal lnotthemsel vesmakedet erminat i
onst hatav i
olati
onhasoccur red) ,andi nstead
promot et heuseoft heWTOdi sput e-set t
lementr ulesandpr ocedur est oseekr edress.The
under st andingal somakesspeci alpr ovisionsf orprot ect ionoft hei nterestsofbot hdev eloping
count riesandl eastdev elopedcount ries.Finally,i
tpr ov idesr ecour sef ormember swhof eel thattheir
benef itsar ebei ngnul li
fi
edori mpai red, albei
twi thoutanydi rectv i
olat i
onofobl igati
on.

15.COHERENCEI
NGLOBALPOLI
CYMAKI
NG

TheFinalActnot est hatgreaterexchangeratestabil

it
ybasedonmor eorder l
yunderlyingeconomi c
andfinancialconditi
onsshoul dcontributet
ot heexpansionoftrade,sustai
nablegrowt hand
devel
opment , andthet i
mel ycorr
ectionofglobalimbalances.Recognizi
ngt heimportancel i
nkages
betweent r
adepol icyandot hereconomi cpolici
esandt heneedforthem tobemut uall
yconsi stent
,
theFinalActcal l
sont heWTOt ost r
engthenitsco-operat
ionwiththeBrettonWoodsi nsti
tuti
ons.It
suggeststhatt heDirector-
Generaloft heWTOr eviewswiththeManagi ngDi r
ectoroftheIMFandt he
Presi
dentofWor ldBankt heimpl i
cationsoftheWTO' sfutur
eresponsibil
i
t i
esforit
sco- operationwith
thetwoBr ett
onWoodsi nsti
tuti
ons.

Q8.
Gener
alAgr
eementonTr
adei
nSer
vices(
GATS)
.
I
ntr
oduct
ion

TheGener alAgreementonTr adeinSer vices(GATS)camei ntoforceinJanuary1995asar esultof

theUruguayRoundnegot i
ati
ons.Itpr ovi
desext ensi
onofthemultil
ateral
tradi
ngsystem toser
vices.
Toachieveapr ogressi
v el
yhigherlevelofliber
alizat
ion,
WTOmember sarecommi t
tedtoenter
ingint
o
fur
therroundsofser vi
cesnegot i
ations.Thef i
rstsuchroundstar
tedinJanuary2000.Allmember sof
theWorldTradeOr ganizati
onaresi gnatori
estot heGATSandhav etoassumet heresul
ti
ng
obli
gati
ons.

Basi
cPur
poses

TheGATSi sintendedtocontributetotr
adeexpansi on“undercondi
ti
onsoft r
ansparencyand
progressi
veli
ber al
izati
onandasameansofpr omot i
ngtheeconomicgrowthofalltr
adingpartners
andthedev el
opmentofdev el
opi ngcountri
es”.Tradeexpansionist
husnotseenasanendi ni
tself
,
assomecr i
ti
csar gue,butasani nstr
umentt opromot egrowthanddevelopment.Thelinkwith
developmenti sfurt
herrei
nforcedbyexplici
treferencesinthePreambletotheobjecti
veofincreasi
ng
parti
cipat
ionofdev elopi
ngcount ri
esinservi
cest radeandtothespeci
aleconomi csit
uationandthe
development,tradeandf i
nancialneedsofthel east-
devel
opedcountri
es.

Ty
peofser
vicescov
eredunderGATS

Businessser vices( i
ncludi
ngprofessional servi
cesandcomput erservices),Communi cati
onservi
ces,
Const r
uct i
onandr el
atedengineeringser vi
ces,Dist r
ibuti
onser vices,Educat i
onalservices,
Environment alser vi
ces,Fi
nancialservices(incl
udi nginsuranceandbanki ng),
Health-relat
edand
socialservices, Touri
sm andtravel-r
elatedser v
ices, Recreati
onal ,cul
turalandsportingser vi
ces,
Transpor tservices,Otherser
vicesnoti ncludedel sewher e.Thesesect or sarefurt
hersubdi vi
dedinto
atotal ofsome160sub- sect
ors.Undert hi
sclassificati
onsy stem, anyser vi
cesectormaybei ncl
uded
i
namember ’
sschedul eofcommi tment swi t
hspeci f
icmar ketaccessandnat i
onaltreatment
obli
gat i
ons.

Modeofpr
ovi
dingser
vice

TheGATShasf or
mulat
edf
oll
owi
ngf
ourdi
ff
erentmodest
ounder
taket
radei
nser
vicesamong
di
ff
erentcount
ri
es.

(1)Cross-
bordersuppl
yisdefi
nedtocoverser
vicesf
lowsfrom t
heterri
tor
yofonemembercount
ry
i
ntotheter
rit
oryofanothermember(e.
g.banki
ngorarchi
tectur
alser
vicestr
ansmi
tt
edvi
a
t
elecommunicati
onsormai l
).

(2)Consumpti
onabr
oadrefer
stosit
uati
onswhereaser
viceconsumer(
e.g.t
our
istorpat
ient
)mov
es
i
ntoanothermember
'st
err
it
orytoobtai
naserv
ice.

(3)Commer cial
presencei
mpli
est hataserv
icesuppl
ierofonememberestabl
ishesat er
ri
tor
ial
presence,
includingthr
oughownershiporl
easeofpremises,i
nanothermember'ster
ri
torytoprov
ide
aservice(
e.g.domest i
csubsi
diar
iesofforei
gninsur
ancecompaniesorhot
elchains).

(
4)Pr
esenceofnat
ural
per
sonsconsi
stsofper
sonsofonememberent
eri
ngt
het
err
it
oryofanot
her
membert osupplyaservi
ce(e.g.accountant
s,doctor
sort
eacher
s).I
nhighereducat
ionservi
ces
tr
adeispossibl
ethroughallt
hesef ourmodesoft r
adeamongnati
ons.Hencethereareopport
uni
ti
es
galor
eforIndi
anhighereducati
onser vi
ceprovi
ders.

General
Pri
nciples
Thesearebasicrul
est
hatappl
ytoal
lmember
sandt
oal
lser
vices.

1.MFNTr eatment
 
UnderAr ti
cleIIoft heGATS, “EachMembershal laccor dimmedi atelyanduncondi t
ional l
ytoser vi
ces
andser v i
cesuppl i
er sofanyot herMembert r
eatmentnol essf av our ablet hani taccor dst oli
ke
servicesandser vi
cesuppl i
ersofanyot hercount ry”
.Howev er,
amemberi sper mitt
edt omai nt
ai na
measur einconsi stentwi ththegener al MFNr equirementi fithasest ablishedanexcept i
on.Howev er
,
allexempt i
onsar esubj ecttorev i
ewandt heyshoul dinprinciple,notl astl ongert han10y ears.
2.Transpar ency
 
TheGATSr equi r
eseachmembert opubl ishpr ompt l
y“ al
lrelevantmeasur esofgener al appli
cat i
on”
thataf f
ectoper ati
onoft heagr eement .Member smustal sonot i
fyt heCounci lforTradei nServicesof
neworchangedl aws, r
egulationsoradmi nistr
ati
v eguideli
nest hataf fecttr adeinser vicescov er edby
theirspeci fi
ccommi tment sundert heagr eement .Eachmemberi srequi redt oest ablishanenqui r
y
point,tor espondt orequest sfrom ot hermember sforinformat ion.
3.SpecificObl i
gat ions
 
 Obl i
gations, whichappl yont hebasi sofcommi tment s,l
aiddowni ni ndividual countryschedul es
concer ningmar ketaccessandnat ional treatmenti nspecifical
lydesi gnatedsect ors.These
requirement sappl yonlyt oschedul edsect ors.
4.Mar ketAccess
Mar ketaccessi sanegot i
atedcommi tmenti nspeci f
iedsect ors.TheGATSal soset soutdi f
ferent
formsofmeasur eaf fectingfreemar ketaccesst hatshoul dnotbeappl iedt ot heFor eignSer vi
ceor
i
tssuppl i
erunl esst heirusei sclearlyprov idedforint heschedul e.Theyar e:

 Limi tati
onsont henumberofser vi
cesuppl ier
s.
 L i
mi tati
onsont hetotalval
ueofservicestransacti
onsorassets
 L i
mi tati
onsont hetotalnumberofser vi
ceoper at
ionsorthetotal
quantit
yofser vi
ceoutput.
 L i
mi tati
onsont henumberofper sonst hatmaybeempl oyedinapart
icularsectororbya
par ti
cularsuppli
er
 Me asurest hatr
estri
ctorrequi
resupplyoft heservicet
hroughspeci
fi
ct ypesoflegalenti
tyor
jointv enture
 Pe rcentagel i
mitat
ionsont hepar
ti
cipationofforeigncapit
al,
orli
mit
ationsont hetotalv
alueof
foreigni nvestment.
 
 Nati
onal Treatment

Acommi tmenttonat
ionaltr
eatmentmeanst hati
nt hesector scover
edbyitsschedule,subj
ectedto
anycondit
ionsandqual
ifi
cati
onssetoutintheschedule,eachmembershal lgi
vet r
eatmenttoforei
gn
servi
cesandservi
cesuppli
erstr
eatment,
inmeasur esaffectingsupplyofser
v i
ces,nolessfavorabl
e
thanitgi
vestoit
sownser vi
cesandsuppli
ers.Agai
n, t
heext ensionofnati
onaltreat
menti nany
part
icul
arsectormaybemadesubj ecttocondit
ionsandqual i
fi
cat
ions.Member sarefr
eetotai
lorthe
sectorcover
ageandsubst ant
ivecontentofsuchcommi tmentsast heyseef
it.Thecommitment s
thustendtorefl
ectnat
ionalpoli
cyobjecti
vesandconstraint
s,over
allandini
ndividual
sect
ors.While
someMember shavescheduledlessthanahandf ulofservi
ces,ot
hershaveassumedmar ketaccess
andnat i
onalt
reat
mentdiscipl
inesinover120outofat otalof160-oddservi
ces.

Exempt
ions

Member sinspecifiedci r
cumst ancesar eallowedt oint
r oduceormai ntainmeasur esincont r
aventi
on
oftheirobligati
onsundert heAgr eement ,
includingtheMFNr equirementorspeci fi
ccommi tments.
Theseci rcumstancecov ermeasur esnecessar ytoprotectpubl icmor al
sormai ntainpubl i
corder,
protecthuman, animal orplantli
feorheal thorsecur ecompl iancewi thlawsorr egulat
ionsnot
i
nconsi stentwiththe–Agr eementi ncluding,amongot hers,measur esnecessar ytoprev ent
decept i
veorf r
audul entpractices.Also,i
nt heev entofser i
ousbal ance-of-pay
ment sdiffi
culti
es,
member sar eal
lowedt ot empor ari
lyrestr
icttrade,onanon- discri
minatorybasis,despitethe
existenceofspecificcommi t
ment s.

Q9.
Mer
it
sandDemer
it
sofI
nter
nat
ional
trade.

I
ntr
oduct
ion:
-

AsperHal sbur
y'
sLawsofEngl and,t
hewor d'trade'bearsthemeani ng:(a)exchangeofgoodsf or
goodsorgoodsf ormoney ;(
b)anybusi nesscar r
iedonwi thav i
ewt oprofi
t,whethermanual or
mer canti
le,asdisti
nguishedfrom theli
beralartsorlearnedpr of
essionsandf r
om agr i
cult
ure.Now
'
trade' meanslending,mov ement sofgoods,transactionsli
nkedwi t
hmer chandiseorf l
owofgoods,
thepr omot i
onofbuy i
ngandsel l
ingadvance,borrowings,discounti
ngbill
sandmer canti
ledocument
s
bankingandot herf or
msofsuppl yoffunds.Thewor d'busi
ness'isawidertermt hant r
adeandit
i
ncludesanyoccupat i
on.

Int
ernat
ionalt
radeisthetradebetweenStat
esornationsenti
rel
yfor
eignt
oeachother
.Thetrade
acrosst
hebor der
soft hecountri
eshasbeencarr
iedonsincet i
mesimmemori
al.I
nter
nat
ionaltr
ade
ref
erstotradebetweenther esi
dent
softwodif
ferentcountr
ies.

Adv
ant
ageofi
nter
nat
ional
trade:
-

Thegai
nsf
rom i
nter
nat
ional
trademaybesummedupasf
oll
ows:

(
i)I
nter
nat
ional
tradeencour
agest
hedev
elopmentoft
hemostef
fi
cientsour
cesofsuppl
y.

(i
i)Int
ernat
ionaltr
adeenabl
esspeci
ali
sat
iononalargescal
ebecauseoftheexpandedmarket
,whi
ch
enablesthereali
sati
onofeconomi
esofscale.Whenthesi
zeofthemarketi
slimit
ed,cer
tai
n
i
nv est
mentsar euneconomical
.

(i
ii
)Int
ernat
ional
speci
ali
sat
ionandt
heeconomi
esi
npr
oduct
ionmakegoodsav
ail
abl
ecompar
ati
vel
y
cheaper.
(i
v)I
nter
nati
onalt
radeincreasesreali
ncomesandconsumpt
ion.Thi
scoul
dleadt
oexpansi
onof
employmentandoutputandf ost
ereconomi
cgrowth.

(
v)Tr
adeonagl
obal
scal
emakesav
ail
abl
eev
engoodst
hatcannotbedomest
ical
l
ypr
oduced.

(
vi)Tr
adeenabl
esacount
ryt
oconser
vecert
ainscal
eresour
cesascommoditi
eswhi
chembody
t
hesescar
ceresour
cesmaybei
mportedf
rom count
ri
eswheretheyar
eabundant
.

Di
sadv
ant
agesorPr
obl
emsofI
nter
nat
ional
Trade:
-

I
nter
nat
ional
tradehascer
tai
ndi
sadv
ant
agesaswel
l
:

(
1)Oneimpor
tantpr
obl
em i
sthatthegai
nsf r
om t
radear
enotequal
l
ydi
str
ibut
ed.Ther
eisagener
al
f
eel
ingt
hatamajorpar
toft
hegainsfrom t
radear
ecorner
edbytheNor
th,
i.
e.,
devel
opedcount
ri
es.

(2)Int
ernati
onal
t r
adesometi
mesleadstofastexhausti
onofnon-r
epleni
shabl
eresources.Thi
sis
especiall
ysointhecaseofSout
h,i
.e.
,devel
opingcountr
ieswhoseexport
saremostlynatural
resourcesorcommodi t
iesembodyi
ngnaturalresour
ces

(
3)I
nter
nat
ional
tradesomet
imesr
uinsdomest
ici
ndust
ri
esandcompet
it
ion.

(4)I
nter
nat
ionalt
radesometimesdi
stur
bsdomest
iceconomi
cinst
it
uti
onsandst
ruct
ures,
aswel
las
soci
alandpoli
ti
calsetups.

Q10.
DiscussAboutt
het
hreesi
ster
s-set
ti
ngi
nter
nat
ional
standar
dsofSPSAgr
eement
.

TheThr
eeSi
ster
s—set
ti
ngi
nter
nat
ional
standar
dsf
orSPSmeasur
es

Internati
onalPlantProtecti
onConventi
onTheInter
nati
onalPl
antPr
otecti
onConvent
ion(I
PPC)isa
l
egallybindingtreat
yonpl antheal
thadmini
ster
edbytheFoodandAgricul
tur
eOrgani
zati
on(FAO)but
i
mpl ement edthroughthecooperati
onofmembergov ernment
sandRegionalPl
antProt
ecti
on
Organizati
ons.

ThegoaloftheI
PPCi st
ocoordi
nateworkt
oprev
entthespreadandint
roduct
ionofpest
sofplants
andpl
antproduct
s,andtopr
omot eappr
opr
iat
emeasuresforthei
rcont
rol
,wit
hmi ni
maldisr
upti
onto
tr
ade.

TheI PPCdev elopsInternati

onalStandardsforPhytosani
taryMeasur es(ISPMs) .Over25ISPMShav e
beenpublishedt odateincluding:
ISPM 1whi choutli
nesthepr i
nciplesfortheprotecti
onofplantsand
theappli
cationofphy t
osani t
arymeasur esinint
ernati
onaltr
ade; andISPM 5whi chi sagl
ossaryof
phyt
osanitaryterms.Af ulll
istofISPMsi sl
ocatedattheInternationalPhytosani
taryPort
al,whichis
aforum forreporti
ngandexchangi ngofinf
ormat i
onbygov ernment s.

Wor
ldOr
gani
sat
ionf
orAni
mal
Heal
th

TheWorl
dOrgani
sat
ionforAnimalHealt
h(OIE)wasf
ormedbyani
nter
nat
ional
agreementi
n1924
wi
th28membercountr
ies.Theor
ganisat
ionhasnowgr
ownto167membercountr
ies.
It
sobjecti
vesi
ncludeensuringtr
ansparencyintheglobalani
maldiseaseandzoonosissituat
ion,
publ
i
shinghealt
hst andardsfort
radeinanimalsandani malpr
oducts,pr
omot i
ngv et
eri
naryskil
ls,
i
mprov i
ngthesafetyoffoodofanimalorigi
nandpr omot i
ngani
mal welf
arethroughascience-based
appr
oach.

OIE’
sstandar
ds,
guideli
nesandrecommendationsar econt
ainedintheTer
restr
ial
AnimalHeal
th
Code,t
heManualofDiagnosti
cTestsandVaccinesforTerrest
ri
alAnimal
s,theAquat
icAnimal
Heal
thCodeandtheManual ofDi
agnosti
cTestsf orAquati
cAnimals.

CodexAl
i
ment
ari
usCommi
ssi
on

TheCodexAl
i
ment ar
iusCommi
ssion(t
he‘f
oodcode’
)isabodyoft
heJoi
ntFoodSt
andards
Progr
ammeoftheFoodandAgr
icul
tur
eOrgani
zat
ion(
FAO)andtheWorl
dHealt
hOrgani
zati
on
(WHO).

Codexdev el
opsandencouragesimplementat
ionofstandards,codesofpract
ice,
guidel
inesand
recommendat i
onscover
ingal
laspectsoff
oodsafety,
includinghandli
nganddistr
ibut
ion.Inset
ti
ng
i
nternat
ional
standardsf
orfood,Codexhasadualmandat etopr ot
ecttheheal
thofconsumer sandto
ensurefai
rpracti
cesint
hefoodtrade.

Codexhasdev
elopedawider
angeofspeci
fi
ctext
scov
eri
ngv
ari
ousaspect
soff
oodsaf
etyand
qual
it
y,whi
chcanbefoundontheCodexwebsi
te.

Q11.
MostFav
our
edNat
ion(
MFN)
.

I
ntr
oduct
ion

MostFav ouredNation 
stat
usisaneconomicposit
ioninwhi chacountr
yenj oy
sthebestt
radeterms
givenbyitstradi
ngpartner
.Thatmeansitr
ecei
vest helowest t
ari
ff
s,t
hef ewesttr
adebar
ri
ers,and
thehighestimportquotas(ornoneatal
l
).I
notherwor ds,al
lMostFavouredNat i
ontr
adepart
ners
mustbet reatedequall
y.

The MostFavour edNati
onclause 
i
nt het
wocountri
es'
 f
reetradeagreements 
conferst
hatst
atus.
Thatclauseisalsousedinloanagreementsandcommer ci
altr
ansacti
ons.I
nthef or
mer,i
tmeans
thati
nterestr
atesonasubsequent  
loanwon'
tbelowerthanont hepri
maryone.Inthel
att
er,
itmeans
thesel
lerwon'tof f
erabett
erdealtoanot
herbuyer
.

Advantages
MFNst atusiscrit
icall
yimport
antforsmalleranddevel
opingcountri
esf orsever
alr
easons.I
tgives
them accesstothel ar
germarket.I
tlowersthecostoftheir
 expor
ts 
sincetradebar
ri
ersarethe
l
owestgi ven.Thatmakest hei
rproductsmor ecompeti
ti
ve.

Thecountr
y'
sindust
ri
eshaveachancetoimprovet
heirpr
oductsast
heyserv
icethi
slargemarket
.
Thei
rcompanieswil
lgr
owt omeetincr
easeddemand.Theyrecei
vet
hebenefi
tsof 
economiesof
scal
e.That
,intur
n,i
ncr
easesthei
rexport
sandthei
rcount
ry'
seconomicgr
owth.

I
tal
socutsdownonr edt
ape.Di
ff
erentt
ari
ff
sandcust
omsdon'
thav
etobecal
cul
atedf
oreach
i
mportsi
ncetheyar
eallt
hesame.
Bestofall
,i
treducestheil
leff
ect
sof 
tr
adeprotect
ioni
sm.Eventhoughdomest
icindust
ri
esmaynot
l
iketolosethei
rprot
ectedstat
us,t
heywil
lbecomehealthi
erandmorecompeti
ti
veasar esul
t.

Disadv
antages
ThedownsideofMostFav oredNationstat
usisthecount r
ymustal
sograntt
hesamet oallot
her
member softheagreementort he 
Wor l
dTradeOr gani
zati
on.Thi
smeanstheycannotpr
otecttheir
countr
y'
sindustr
iesfrom cheapergoodsproducedbyf orei
gncount
ri
es.Someindust
ri
esgetwi ped
outbecausetheyjustcan'
tcompet e.I
t’
soneofthe  di
sadvant
agesoff
reetr
adeagreements

Withouttarif
fs,sometimescountr
iessubsi
dizetheirdomesti
cindustri
es.Thatal
lowst hem t
oexport
them forincredi
blycheappri
ces.Thisunf
airpracti
cewill
putcompani esoutofbusinessinthetr
ade
partner'
scount r
y.Oncethathappens,t
hecount r
yreducesthesubsidy,pri
cesri
se,butnowt her
e'sa
monopol y.Thispracti
ceisknownas dumping.Thiscangetacount ryintr
oublewit
ht heWTO.

Manycount
ri
eswer eexcit
edtogetMostFav or
edNat i
onSt atus,sotheycouldexportgoodscheaply
tot
heU.S.market
,onlytofi
ndtheylosttheirl
ocalagri
cultur
al i
ndustr
y.Localfarmerscoul
dnot
compet
ewithsubsidi
zedU.S.andtheEur opeanUnionf ood.Manyf armershadt omovetot heci
ti
es
tof
indj
obs.Then,when f
oodprices 
escalatedthanksto commodi ti
es t
rader
s,ther
ewer efoodri
ots.

Examples
All159membersoftheWTO r
ecei
vet
heMostFav
oredNat
ionst
atus.Thatmeanst
heyal
lrecei
vet
he
samet r
adebenef
it
sasall
othermember
s.

Theonlyexcept i
onsaredevel
opingcountries,regi
onal t
radeareas,andcustomsuni
ons.Devel
opi
ng
countri
esreceivepref
erent
ial
treatmentwithouthav i
ngt oret
urnit,
sot hei
reconomi
escangrow.That
i
si nthebestinter
estofthedevelopedcountriesinthelongrun.Consumerdemandf ori
mportswil
l
growalongwi ththeseeconomies.Thatprovidesabi ggermarketforthedevel
opedcount
ri
es'
products.
 

TheUnit
edStateshasreci
procal
MostFavoredNat
ionStatuswithal
l 
WTOmembers.Thatmeans37
count
ri
esar
el eftout
.Noneofthesecount
ri
eshas 
bil
ater
al t
radeagr
eement
s wi
tht
heUnitedSt
ates.

The 
General
Agr
eementonTradeandTar
if
fswast
hef
ir
stmul
ti
lat
eral
tradeagr
eementt
obest
ow
MostFavour
edNat
ionst
atus.
 

Q12.
Ori
ginofWTO.

Wor ldTr adeOr gani

zati
on( WTO) ,
 
international organizat i
on establishedt osuper viseandl i
beral
ize
wor ldtrade.TheWTOi st hesuccessort ot he General Agr eementonTar if
fsandTr ade(GATT),which
wascr eatedin1947i ntheexpect ationt hati twouldsoonber eplacedbyaspeci alizedagencyof
the UnitedNat ions(UN)tobecal l
edt heI nternati
onal Tr adeOr ganizat i
on( I
TO) .AlthoughtheITO
nev ermat eri
ali
zed,theGATTpr ov edr emar kablysuccessf uli
nl i
ber ali
zingwor ldtradeov erthenext
fi
v edecades.Byt helat
e1980st herewer ecal lsforast rongermul ti
lateralorganizationtomoni t
or
tradeandr esolvetr
adedi sputes.Followingt hecompl et i
onoft heUr uguayRound( 1986–94)of
mul ti
lateraltr
adenegotiations,theWTObeganoper ationsonJanuar y1,1995.
Or i
gins
TheI TOwasi niti
all
y 
envisaged, al
ongwi tht he I
nternational Monet aryFund  (
IMF)andt he 
WorldBank,
asoneoft hekeypill
arsofpost -Wor l
dWarI I 
reconstruct i
onand  economi cdev el
opment .I
nHav anain
1948, theUNConf er enceonTr adeandEmpl oy mentconcl udedadr af tchar terf ort heI TO, knownas
the Hav anaChar ter, whi chwoul dhav ecr eat edex t
ensi ver ulesgov er ningt rade,  inv est ment ,services,
andbusi nessandempl oy mentpr act i
ces.Howev er,theUni tedSt at esf ail
edt or at ifyt heagr eement .
Meanwhi le, anagr eementt ophaseoutt heuseofi mpor t 
quot as  andt or educe  tariffs onmer chandi se
trade, negot iatedby23count ri
esi n Genev a in1947, camei ntof or ceast heGATTonJanuar y1, 1948.
Althought heGATTwasexpect edt obepr ov isional ,i
twast heonl ymaj oragr eement
gov er ning  internat ional tr ade unt ilthecr eat ionoft heWTO.TheGATTsy stem ev olv edov er47y ears
tobecomeadef actogl obal  
tradeor ganizat iont hatev entual lyi nv olvedappr oximat ely130count ri
es.
Thr oughv ar iousnegot i
at i
ngr ounds, theGATTwasext endedormodi fiedbynumer ous
suppl ement arycodesandar rangement s, inter pretations, wai vers, repor tsbydi sput e-settlement
panel s, anddeci sionsofi tscounci l.
Dur ingnegot iati
onsendi ngi n1994, theor iginal GATTandal lchangest oitintroducedpr i
ort othe
Ur uguayRoundwer er enamedGATT1947.Thi ssetofagr eement swasdi st i
ngui shedf rom GATT
1994, whi ch  compr ises  themodi fi
cat ionsandcl arif
icat i
onsnegot i
ateddur ingt he  Ur uguay
Round( refer redt oas“ Under standi ngs” )plusadozenot hermul tilater al agreement sonmer chandi se
trade.GATT1994becamean  i
nt egr alpar toft heagr eementt hatest abl i
shedt heWTO.Ot hercor e
component si ncludet heGener alAgr eementonTr adei nSer vi
ces( GATS) ,
whi chat tempt edt o
super viseandl i
ber alizet rade; theAgr eementonTr ade- Rel atedAspect sof  I
ntel l
ect ual Proper ty
Right s( TRI PS) ,whi chsoughtt oi mpr ovepr ot ectionofi ntellect ual proper tyacr ossbor der s;the
Under st andi ngonRul esandPr ocedur esGov er ningt heSet tlementofDi sput es, whi chest abl i
shed
rulesf orr esol vingconf l
ict sbet weenmember s; t
heTr adePol i
cyRev i
ewMechani sm, whi ch
document ednat ional tr
adepol i
ciesandassessedt hei rconf ormi tywi thWTOr ul es; andf our
plurilater al agr eement s,si gnedbyonl yasubsetoft heWTOmember shi p,onci vil aircraft, gov ernment
procur ement ,dai rypr oduct s,andbov i
nemeat( thought hel attert wower et ermi nat edatt heendof
1997wi tht hecr eat ionofr elatedWTOcommi ttees).Theseagr eement swer esi gnedi n  Mar rakech,
Mor occo, inApr il1994, and, followi ngt heirr at i
ficati
on, thecont ract i
ngpar ti
est ot he
GATT  tr
eat y  becamechar termember soft heWTO.Byt he2010st heWTOhadmor et han160
member s.

Q13.Obj
ect
ivesofWTO.

Obj
ect
ivesofWTO
1.Thepr i
maryai m ofWTOi st oimpl ementt henewwor l
dt radeagr eements.
2.Topr omotemul til
at eraltradei.e.tradeamongmanynat ions.
3.Topr omotefreet radebyabol i
shingt ari
ffandnont ariffbar r
iers.
4.Topr omotewor ldt radei namannert hatbenef i
tsev erymembercount ry.
5.Toensur ethatdev elopingcount riesgetabet tershar eint headv ant
agesr esul
ti
ngf r
om the
expansionofi nt
ernat ional tr
adecor respondi ngtot heirdev elopmentneeds.
6.Tor emoveal lhur dlest oanopenwor l
dt radi
ngsy stem andusewor ldtradeasanef f
ect
ive
instr
umenttoboosteconomi cgr owt h.
7.Toenhancecompet it
ivenessamongal ltradingpar tnerssoast obenef
itconsumers.
8.Toexpandandut i
lizewor l
dr esour cesi nthemostopt i
mum manner .
9.Toi mprovethelev elofl ivingfort hegl obalpopul ationandspeedupeconomi cdevelopmentof
themembernat ions.
10.
Tot akespecialstepsf orthedev el opmentofpoor estnat ions.
Q14.
Funct
ionsofWTO.
Funct
ionsofWTO
1.Lay i
ngdowncodeofconductai mingatr educi
ngt ar
if
fandnon- tar
if
fbar ri
ersi
ni nternati
onal
trade.
2.Impl ement i
ngWTOagr eement sandadmi nister
ingtheinternati
onalt
rade.
3.Cooper at
ingwi thIMFandWor l
dBankandi tsassociatesf orestabl
ishingcoor dinati
oni n
Global TradePol i
cy-Making
4.Set t
lingtrader el
ateddi sputesamongmembernat i
onswi thhelpofi t
sDi sputeSet tl
ement
Body( DSB) .
5.Rev iewingt raderel
atedeconomi cpoli
ciesofmembercount ri
eswi t
ht hehelpofi tsTr ade
Pol i
cyRev iewBody( TPRB) .
6.Pr ovidi
ngt echni
calassistanceandguidancer el
atedtomanagementoff orei
gntradeandf i
scal
pol i
cyt oi
tsmembernat ions.
7.Act i
ngasf ormfortradeliberal
i
zati
on.

Q15.
Phy
to-
sani
tar
yMeasur
es.

TheAgr
eementont
heAppl
i
cat
ionofSani
tar
yandPhy
tosani
tar
y(SPS)Measur
es

Foodsaf etyandani mal andplantheal

thregulati
ondatesbacktotheGATT( 1947).Art
icl
eI,Most
FavoredNat ion(MFN)cl auseobli
gesnon-discri
minator
ytr
eatmentofimportedproductsfrom
di
fferentf
or eignsuppliersandAr t
icl
eII
I(NationalTreat
ment)requi
resthati
mportedproductsbe
tr
eatednol essf avorablythandomest i
cproducedgoodswi threspectt
oanylawsorr equi
rements
aff
ectingtheirsale.Suchr ulesappli
edtoapplicati
onofSPS-rel
atedmeasures.

Howev er,
theGATTr ulesal socontainedani mpor t
antexception:Arti
cleXX: bpermi tt
edcount riesto
takemeasur esnecessar y,evenift
heywer emor estri
ngentthancompar abledomest i
cmeasur es,on
i
mpor tedpr oductstopr otectplant
,animal andhumanheal th.Theconcl usi
onoft heUr uguayRound
AgreementonAgr icul
tur e(URAA)andt heWTO’ sSPSAgr eementsoughtt of i
l
l t
hisloophol eby
overseeingthecondi t
ionsunderwhi chnat i
onalregulat
oryaut hori
ti
esmaysetandenf orcehealt hand
safetystandardsthatdi rectl
yorindirectl
yaffectint
ernati
onal tr
ade.Inpar t
icular,
itappl i
estoany
measur e,regardl
essoft hespeci fi
cfor mitmayt ake,adoptedwi ththeaim( SPSAnnexA, par
a.1( a),
(b),(
c)and( d)):

i
. Toprot
ecthumanoranimal
lif
efrom r
isksari
singf
rom addi
ti
ves,
cont
ami
nant
s,t
oxi
ns,
or
di
seasecausi
ngor
ganismsinfoodandf eed.

i
i
. Topr
otecthumanl
i
fef
rom pl
antorani
mal
car
ryi
ngdi
sease.

i
i
i. Topr
otectani
mal
orpl
antl
i
fef
rom pest
s,di
seases,
ordi
sease-
causi
ngor
gani
sms.
i
v. Toprev
entotherdamageswi
thi
nthet
err
it
oryoft
hecount
ryf
rom t
heent
ry,
est
abl
i
shmentor
spr
eadofpest
s.

v
. Topr
otectheal
thoff
ishandf
aunaaswel
lasf
orest
sandwi
l
dfl
ora

Sev
eral
keyf
eat
uresoft
heSPSAgr
eementi
ncl
ude:

a.Justi
fi
cat
ionofMeasures–whil
etheagr
eementper
mitscount
ri
estoadoptthei
rownnat
ional
regul
ati
onsandstandar
ds,measur
esshal
lbebasedonobj
ecti
vesci
enti
fi
cdata

b.Harmoni zati
on–Member sareencour aged(alt
houghnotobl
igated)t
oestabl
ishmeasur es
consi
stentwi t
hint
ernati
onal standards,namely,t
hoseadvocat
edbyCodexAl imentari
us
Commi ssion(Codex),t
heInternationalPlantProt
ecti
onConventi
on( I
PPC),
andtheWor ld
Organi
sat i
onforAnimal Health(OIE).I
nternat
ionalst
andar
dsareexpectedtobeconsistentwit
hthe
SPSagr eementandt heprocessofadopt i
ngthesestandar
dsisoftenref
err
edtoast he
“har
moni zati
on”ofstandards.

c.Regi
onal
izati
on–SPSmeasur escanvar
ydependi
ngont hecount
ryofori
ginorev
enregi
ons
wi
thi
nacount r
ybecauseofdi
ff
erencesi
ncli
mate,bi
ologi
calandexi
sti
ngpestanddi
seaser
isksor
f
oodsafet
yconditi
ons.

d.Equival
ency–acceptabl
ef ood,
ani
mal andplantheal
thri
sklevel
scanbeachievedindif
fer
ent
ways.I
fpartnercount
ri
escandemonst r
atethati
tsmeasuresensurethesamelevelofaccept
edri
sk,
i
mpor t
ingMember sshal
lacceptal
ter
nati
vemeasur esasequiv
alent
.

e.RiskAssessment–theSPSAgr eementencouragestheuseofriskassessmentappropri
atetot
he
ci
rcumstanceandifr
equestedt
omakeknownt heriskassessmentproceduresandthelev
el of
accept
ableri
sk.Ri
skassessmentshall
berequir
edi fst
andardsexceedint
ernati
onal
standards.

f.Tr
ansparency–theAgreementrequi
resMemberstonoti
fyothercountri
esofanynewormodifi
ed
SPSmeasur ewhi
chmayaf fectt
radeandest
abl
ishenqui
rypointst
or espondtorequest
sformor
e
i
nfor
mation.Membersareallowedtocommentandhavetheircomment stakeni
ntoaccount.

g.Temporary‘
provi
sional’
Measures–t heSPSAgreemental
lowsprovi
sionalmeasureswhen
sci
enti
fi
cevidencei
si nsuf
fici
ent
,incl
udi
ngimmediatemeasureswhi
chcanbet akeninemergency
si
tuat
ions.Membersshal lr
evi
ewt hesci
enti
fi
cbasi
sofmeasur eswi
thi
nar easonableper
iodoftime.

h.Disput
eSet
tl
ement–Thepr
ovi
sionscont
ainedi
ntheSPSAgr
eementshal
lbesubj
ectt
oDi
sput
e
Set
tl
ement.

Q16.
Agr
eementonSaf
eguar
dmeasur
es.
I
nvest
igat
iveRequi
rement
s
Newsaf eguardmeasur esmaybeappl iedonl y f
oll
owi ngani nvesti
gation conductedbycompet entauthori
ti
es
pursuantt o pr
ev i
ousl ypubli
shedprocedur es.Althought heAgr eementdoesnotcont aindet ai
ledprocedural
requi
rement s,i
tdoesr equi
rereasonable publicnotice ofthei nvesti
gat i
on, andthati nterestedparti
es( i
mporters,
exporters,producer s,etc.
)begi v
enthe oppor tunit
yt opr esenttheirviews  andtor espondt othev i
ewsofot hers.
Amongt het opicsonwhi chviewsaretobesoughti swhet herornotasaf eguardmeasur ewoul dbeinthepubl i
c
i
nterest.Ther elevantaut hori
ti
esareobl i
gat edtopubl ishar eportpresent ingand ex plainingtheirfi
ndi
ngsonal l
perti
nenti ssues,includingademonst rati
onoft herelev anceoft hefact or
sexami ned.TheAgr eementalsocont ai
ns
specif
icr ulesforthehandl ingofconfi
dent ialinfor
mat ioni nthecont extofani nvest i
gat ion.
Appl
i
cat
ionofMeasur
es
Safeguardmeasur esmayonl ybeappli
edtotheextentnecessaryto remedyorpr event ser
iousinjuryandt o
faci
li
tateadjustment ,wit
hincer
tai
nlimi
ts.I
fthemeasur etakesthef orm ofaquantitati
v er
estr
icti
on, thelevelmust
notbebelowt heact ual
importlev
elofthemostrecentthr
eer epresentat
iveyears,unlessthereiscl earj
usti
f i
cat
ion
fordoingother wise.Rul
esalsoapplyastohowquot asharesaret obeal l
ocatedamongsuppl iercount r
ies,
ast o
compensat i
ont oMember swhoset r
adeisaff
ected,andast oconsul t
ati
onswi t
haf f
ectedMember s.
The maximum durat
ionofanysafeguardmeasureisfoury
ears,unl
essi
tisextendedconsist
entwi
ththe
Agreement'sprov
isi
ons.I
nparti
cular,ameasur
emaybeext endedonlyi
fit
s conti
nuationisf
oundtobenecessar
y
topreventorremedyseri
ousinj
ury,andonl
yifevi
denceshowsthatthe 
i
ndustryisadjusti
ng.
The i
nit
ialperi
odofapplicat
ionplusanyex tensi
onnor mallycannotexceedeightyear s.
 I
naddit
ion,
safeguar
d
measuresi nplacef
orlongerthanoney earmustbe  progressi
velyl
iberal
i
zed 
atr egularint
erv
alsduri
ngtheperi
odof
appl
icati
on.Ifameasur eisextendedbeyondt heini
tialperi
odofapplicat
ion,
itcanbenomor erest
ri
cti
veduri
ngthi
s
peri
odthani twasattheendoft heini
ti
al peri
od,andi tshoul
dcontinuetobel i
berali
zed.
Any 
measur
eofmor et
hant
hreeyear
sdur
ati
onmustberevi
ewedatmid-
ter
m.Ifappropr
iatebasedont
hatr
evi
ew,
theMemberappl
yi
ngthemeasur
emustwit
hdrawi
tori
ncreaset
hepaceofit
sli
beral
i
z at
ion.
Under 
cri
ti
calcir
cumstances,def
inedascir
cumstanceswheredel
aywouldcausedamaget hatwoul dbedif
fi
cul
tto
repai
r,
 pr
ovi
sionalmeasuresmaybei mposed.Suchmeasuresmaybeintheform of
 t
ari
ffi
ncr easesonl
y,andmay
bekeptinplacefora 
maximum of200day s.I
naddit
ion,t
heperi
odofappl
icat
ionofanyprovisionalmeasur
emust
beincl
udedinthetotalperi
odofappli
cat
ionofasafeguardmeasur
e.
Repeat
edappli
cat
ionofsaf
eguar
dswithr
especttoagivenproducti
sl i
mited 
bytheAgr
eement
.Ordi
nari
ly
,a
saf
eguardmaynotbeappli
edagai
ntoaproductunt
ilaperi
odequal tothedurat
ionoft
heor
igi
nal
safeguardhas
el
apsed,sol
ongastheperi
odofnon-
appl
icat
ioni
satleasttwoy ear
s.
Nonet
heless,
ifanewsafeguar
dmeasur ehasadurati
onof180daysorless,itmaybeappl
iedsolongasoneyear
hasel
apsedsincethedat
etheorigi
nalsaf
eguardmeasurewasint
roduced,andsolongasnomoret hant
wo
saf
eguar
dmeasur eshavebeenappli
edont hepr
oductduri
ngt
hefiveyearsimmediatel
ypr
ecedi
ngthedateof
i
ntr
oduct
ionofthenewsafeguardmeasure.

Q17.Nul
l
ifi
cat
ion

Nul
l
ifi
cat
ionori
mpai
rment–(
Art
icl
eXXI
II
)

Ifanycont
racti
ngpar t
yshoul dconsi
derthatanybenefi
taccr
uingt
oitdi
rect
lyori
ndi
rect
lyundert
his
agreementisbeingnull
ifi
edorimpairedorthattheat
tai
nmentofanyobj
ecti
onoftheagreementis
beingi
mpededast heresultof

(
a)t
hef
ail
ureofanot
hercont
ract
ingpar
tyt
ocar
ryouti
tsobl
i
gat
ionsundert
hisagr
eement
,or

(b)
theappl
i
cati
onbyanotherbyanot
hercont
racti
ngpar
tyofanymeasur
es,
whet
herornoti
t
confl
i
ctswit
hthepr
ovi
sionsofthi
sagreement,
or
(c)
theexist
enceofanyot hersi
tuati
on,thecontract
ingpart
ymay ,wit
hav i
ewtot hesat
isfactor
y
adj
ustmentoft hematter,
makewr it
tenr epr
esentat
ionsorproposalt
otheothercontr
actingpartyor
part
ieswhichitconsi
derstobeconcer ned.Anycont r
act
ingpartyt
husapproachedshallgive
sympatheti
cconsider
stiontotherepresentat
ionorproposalmadetoit.

Ifnosat isfactoryadj ustmentisef fectedbet weent hecont racti

ngpar t
iesconcer nedwi thina
reasonabl et i
me, ori fthediffi
cultyisoft het ypedescr ibedi npar agr aph1( c)oft hisar ticle,t
hemat t
er
mayber eferredtot hecont racti
ngpar t
ies.Thecont ractingpar ti
esshal l pr
ompt lyinv estigateany
mat tersor eferredtot hem andshal l makeappr opr iater ecommendat ionst ot hecont ractingparti
es
whicht heyconsi dert obeconcer ned,orgivear ulingont hemat ter ,asappr opr iate.Thecont r
acti
ng
partiesmayconsul twi thcontractingpar ti
es, wi tht heeconomi candsoci alcounci loft heuni t
ed
nationsandwi t
hanyappr opri
atei nter-
gover nment alorgani sati
oni ncaseswher etheyconsi dersuch
consul t
at i
onnecessar y.I
fthecont r
actingpar tiesconsi dert hecircumst ancesar eser iousenought o
j
ustifysuchact ion,theymayaut horizeacont ract ingpar tyorpar ti
est osuspendt heappl icati
ontoany
othercont r
act i
ngpar tyorparti
esofsuchconcessi onsorot herobl igationundert hisagr eementas
theydet ermi netobeappr opri
atei ntheci r
cumst ances.I ftheappl icationt oanycont ract i
ngpar tyof
anyconcessi onorot herobl i
gatingisi nfactsuspendedt hatcontract ingpar tyofanyconcessi onor
otherobl igationisinf actsuspended, thatcont r act i
ngpar t
yshall thenbef ree, notlat erthansi xt
y
daysaf tersuchact ioni staken,togi vewr i
ttennot i
cet ot heexecut ivesecr etar yt ot hecont r
acti
ng
partiesofi tsintenti
ont owithdrawf rom thisagr eementandsuchwi thdr awalf rom t hisagr eement
andsuchwi thdrawal shallt
akeef fectupont hesi xtiethdayf oll
owi ngt hedayonwhi chsuchnot i
ceis
receivedbyhi m.

Q18.
enumer
atet
hebasi
cri
ght
sandObl
i
gat
ionsunderAr
ti
cle2ofSPSAgr
eement
.

TheSPSAgr eementisadmini
steredbytheCommi t
teeonSanitar
yandPhytosani
tar
yMeasur es(the
‘
SPSCommi tt
ee’
),i
nwhichall
WTOmember scanpart
ici
pate.TheSPSCommi tt
eeisaf or
um for
consul
tat
ionswhereWTOmember sr
egularl
ycometogethertodi
scussSPSmeasur esandtheir
eff
ectsontrade,
tooverseei
mpl ementat
ionoftheSPSAgreement,andtoseektoavoidpotent
ial
di
sputes.

SPSAgr
eement
,Ar
ti
cle2—Basi
cri
ght
sandobl
i
gat
ions

1.Membershavet heri
ghttotakesanit
aryandphyt
osanit
arymeasuresnecessaryforthepr
otect
ion
ofhuman,ani
mal orplantl
i
feorhealth,pr
ovi
dedthatsuchmeasuresarenotinconsist
entwi
ththe
prov
isi
onsofthi
sAgr eement.

2.Member sshal
lensur
ethatanysanit
aryorphytosani
tar
ymeasur ei
sappl
i
edonlytotheext
ent
necessar
ytoprot
ecthuman,animalorpl
antlif
eorhealt
h,isbasedonsci
ent
ifi
cpri
nci
plesandisnot
maintai
nedwit
houtsuff
ici
entsci
ent
ifi
cevidence,
exceptasprovidedf
ori
nparagr
aph7ofAr t
icl
e5.

3.Membersshall
ensurethattheirsani
taryandphyt
osanit
arymeasuresdonotar bi
trar
il
yor
unj
ust
if
iabl
ydiscr
iminatebet
weenMember swherei
denti
calorsimil
arcondit
ionsprevai
l,
incl
udi
ng
bet
weentheirownterr
it
oryandt hatofotherMembers.Sanit
aryandphytosanit
arymeasuresshal
lnot
beappl
i
edi
namannerwhi
chwoul
dconst
it
uteadi
sgui
sedr
est
ri
cti
ononi
nter
nat
ional
trade.

4.Sanit
aryorphytosani
tarymeasur
eswhichconf
ormt ot herel
evantpr
ovi
sionsofthisAgr
eement
shal
lbepr esumedtobei naccor
dancewit
htheobli
gationsoftheMember sundertheprov
isi
onsof
GATT1994whi chrel
atetotheuseofsani
tar
yorphytosanitar
ymeasures,
inparti
culart
heprovi
si
ons
ofArti
cleXX(b).

WTOmember sbenef
itfr
om act
ivepar
ti
cipat
ioni
ntheSPSCommi t
tee.TheSPSCommi
tt
eehas
var
iousact
ivi
ti
estohelpmember si
mplementtheSPSAgreement
.

Q19.
Obj
ect
ivesoft
heGATT1947.

OBJECTI
VESOFTHEGATT1947:
-

Theprimaryobject
iveofGATT1947,i
stoexpandi
nter
nati
onal
tradebyli
berat
ingtradesoastobr
ing
aboutall
roundeconomi cpr
osper
it
y.Thepr
eambleoftheGATTment i
onsthefoll
owingasit
s
i
mpor t
antobjecti
ves:

(
i)r
aisi
ngt
hest
andar
dofl
i
ving;

(i
i
)ensur
ingf
ull
empl
oymentandl
argeandst
eadygr
owi
ngv
olumeofr
eal
incomeandef
fect
ive
demand;

(
ii
i)bet
terut
il
isat
ionoft
her
esour
cesoft
hewor
ld;
and

(
iv)expansi
onofpr
oduct
ionandi
nter
nat
ional
trade.

Q20.
Techni
cal
Bar
ri
ersonTr
ade.

St
ruct
ureoft
heTBTAgr
eement

TheTBTAgreementappl
i
estotechni
cal
regulat
ions,st
andards,
andconfor
mityassessment
pr
ocedur
es.Theyar
eeachtr
eat
edinseparat
epor t
ionsoftheTBTAgreement.

Technicalr
egulati
onsar edealtwithi
nArti
cles2and3oftheTBTAgr eement.
.Standar
dsare
gover
nedbyAr t
icle4.Articl
e4, however
,makesanexpl
ici
trefer
encetoAnnex3oft heAgreement
.
Annex3oft heAgr eementcontainstheCodeofGoodPracti
ceforthePrepar
ati
on,Adopti
onand
Appli
cati
onofSt andards(“CodeofGoodPr acti
ce”
).

Thi
s“Code”isv
er yi
mportant
.Itisi
ntheCodewhereal
mostall
ofthesubst
anti
veprov
isi
ons
gover
ningt
hetreatmentofst
andardsaref
ound.Conf
ormi
tyassessmentpr
ocedur
esaredeal
twi
thi
n
Art
icl
es5and9oft heTBTAgr eement.

Thepr i
nci
plesandrulesdiscussedinArticl
es10through15oft heTBTAgr eementareappli
cabl
eto
eachoftheseareas.Therearehowev ercert
ainminordiff
erencesinscopeandtreat
ment.IntheWTO
Agreement,i
mportantprovisi
ons,i
npar t
icul
ardef
ini
tions,arefoundi
nAnnexes.IntheTBT
Agr
eement
,Annex1pr
ovi
desdef
ini
ti
onsandAnnex3cont
ainst
heCodeofGoodPr
act
ice.

Appl
i
cabi
l
ityoft
heTBTAgr
eementatVar
iousGov
ernment
alandNon-
Gov
ernment
alLev
els

TheTBTAgr eementappli
estovari
ousgov ernmentalandnon-governmentalorganizat
ionsatdif
fer
ent
l
ev el
sofsociety.Thi
sisbecausetechnical
8r egul
ati
ons,st
andards, andconformit
yassessment
proceduresarenotonlyadmini
steredbynationalaut
hori
ti
es,butalsobyinternati
onal,regi
onal
and
l
ocal aut
hori
ties,aswell
asnon-gov er
nmentalorgani
zati
ons.

TheTBTAgr eementsetsforthrulesanddi scipl

inesappli
cabl
et oint
ernat i
onal
,regional,
governmental andnon-
government al organizati
ons.Theapplicati
onoft hebasicTBTr ulesdif
fer
s
sli
ghtl
ydependi ngontheregulatorylevel atissue,andwhethertechnical r
egul
ations,standards,
or
conformit
yassessmentpr ocedur esar einvolved.Withi
ntheli
mi t
sofwhati spoli
tical
lyacceptable,
theTBTAgr eementhasawi defieldofappl i
cati
on.Thisisevi
dentf r
om t hebroaddef i
nitionsof
centr
al,l
ocal andnongover
nment albodiesf oundi nAnnex1andr eproducedbel ow.

Techni
cal
Regul
ati
ons

TechnicalRegulati
onsPursuantt
oArti
cle2oftheTBTAgreement
,Member
shav eanobl
igat
iont
o
ensurethatcent
ral gov
ernmentbodi
esabidebythepr
ovi
sionsoft
heTBTAgreementgov
erni
ng
techni
calregul
ations.

A“centr
algov er
nmentbody ”isdef i
nedi nAnnex1as: [
a]centralgov er
nment,i
tsmi ni
str
iesand
depar
tmentsorany bodysubjecttot hecontrolofthecent
ralgov ernmentinrespectoftheacti
vi
tyi
n
quest
ions.Withonl
yv er
ymi norexcept ions,
pursuanttoArti
cle3oft heTBTAgreement ,Members
haveanobligati
ontotakereasonabl emeasur estoensurethatlocal gover
nmentalandnon-
gover
nment albodi
eswithi
nt hei
rt err
itori
esalsocomplywithther ulessetfor
thintheTBTAgr eement
gover
ningthet r
eat
mentoft echnical r
egulat
ions.

I
naddit
ion,Membersarenotal
l
owedtotakemeasuresthatwoul
drequi
reorencour
agelocal
gov
ernmentornon-gover
nmental
bodi
estoacti
nconsist
entl
ywit
htherul
esgoverni
ngthetreat
ment
oft
echnical
regul
ati
ons.

A“ localgov er
nmentbody ”isdefi
nedinAnnex1as: [
a]governmentotherthanacentr
algover
nment
(e.
g.stat es,
provinces,Lander,cant
ons,municipali
ti
es,et
c.)i
tsminist
ri
esordepartmentsorany.A
“nongov ernmentalbody ”isdefi
nedas:[a]bodyotherthanacentralgovernment
albodyoralocal
government albody ,i
ncludinganongovernment al
bodywhi chhaslegalpowertoenfor
ceatechnical
regulat
ion.

Art
icl
e3oft heTBTAgreementestabl
ishestwoexceptions.AMemberi snotresponsi
blefort
aki
ng
r
easonablemeasurest
oensurethatnongovernment
al bodies,
andlocalgover
nment al
bodiesbey
ond
t
heleveldi
rect
lybel
owthecentr
algovernmentbody,compl ywitht
herequir
ementt onoti
fya
techni
cal
regul
ati
ont
oot
herMember
sthr
ought
heWTOSecr
etar
iat
,aspr
ovi
dedf
ori
npar
agr
aph9.
2
and10.1ofArt
icl
e2.

Q21.
TRI
Ms

Tr
adeRel
atedI
nvest
mentMeasur
es(
TRI
MS)

TheWTOpr ohi biti

nvestmentrestr
icti
ngmeasuresthatdi scr
iminatesforei
gni nvestment.The
argumentofWTOi sthatsuchi nvestmentrest
ri
cti
ngst epsarev i
olati
ngt r
adei t
self(WTOi san
i
nst it
uti
onf ormedt opromotetrade).Hist
ori
cal
lycountri
esi mposemeasur esthatrestr
ictforei
gn
i
nv estment( calledasinvestmentmeasur esandWTOt ermt hi
sasTr adeRel atedinvest
ment
Measur es).UnderTRI Ms,theWTOnamesThel i
stofinvestmentmeasur esthatdiscri
mi natesf
orei
gn
i
nv estmentandhencev iol
atesthebasicWTOpr inci
pleofNat ionalTreat
ment .Thesemeasur es
i
ncl ude-local contentrequir
ement ment,domesti
cempl oy ment,t
echnologyt r
ansferrequirementet
c.

TheAgr eementonTRI Msoft heWTOi sbasedont hebeli

eft hattherei sst r
ongconnect ionbet ween
tradeandi nvestment .Restricti
vemeasur esoni nv estmentar et r
adedi storting.Several r
estrictive
measur esoni nv estmentar epr ohibi
tingt radeandhencear enotal lowabl e.Accor di
ngt ot heTRI Ms
prov i
sion,count riesshoul dnotadoptt hei nvestmentmeasur eswhi chr estrictanddistorttrade.
I
nv estmentmeasur esar ethosest epsusedt raditi
onal l
yagai nstforeigninv estmentbyhostcount ri
es.
Her e,theTRI Msi nstructthatWTOmember smaynotappl yanymeasur et hatdiscri
mi natesagai nst
foreigni nvestmentt hatviol
at esbasi cWTOpr inciples(li
ket heMFN) .WTOgi vesalistofpr ohi bit
ed
i
nv estmentmeasur esorTRI Msl ikelocal contentr equirement ,exportobl i
gat i
on,technologyt ransfer
requirementet c.Thatv i
olatest rade.Fewexempt i
onst odev elopingcount ri
esar ealsopr ovidedunder
TRI Ms.TheCommi tteeonTRI Msmoni torst heoper at
ionandi mpl ement ationoft heTRI Ms
Agr eementandof f
er sconsul t
at i
onf ormembercount ri
es.Theobj ectiv
eofTRI Msistoensur ef air
treatmentofi nvest menti nal lmembercount ries.Fur t
her,aspert heTRI MsAgr eement ,member sare
requiredt onot i
fyt heWTOCounci lf
orTr adei nGoodsoft heirexisti
ngTRI Mst hatarei nconsi stent
wi t
ht heagr eement .

TRIMsandForei
gnInvest
mentPoli
cychangesinI
ndi
a:-
Indi
ahasmadesev eralf
oreigninv
estment
l
iber
ali
zat
ionmeasuressi
ncethel
aunchoftheNewIndustri
alPol
i
cyin1991.Regulati
onsforbot
hFDI
andFPIweresi
mplif
iedandnowforei
gninvest
menti
sallowedinalmostal
lsect
ors.

Q22.Def
ineRi
skAssessmentUnderSPS.
Ri
skassessment

TheSPSAgr eementrequi
resWTOmember st obasetheirSPSmeasur esonari
skassessment ,as
appropr
iat
etothecir
cumst ances.I
nconducti
ngsuchr iskassessmentsWTOmember sarerequir
ed
totakei
ntoaccountr
iskassessmenttechniquesdevelopedbyr el
evanti
nter
nat
ional
organisat
ions.

ThereasonWTOmember sconductariskassessmentist
odeterminet
heSPSmeasur estoapplyto
animporti
nordert
oachievetheirALOP.Howev er
,theSPSmeasureswhichaWTOmemberadopt s
mustnotbemor et
rade-
restr
ict
ivethanrequi
redtoachi
evethei
rALOP,taki
ngi
ntoaccounttechni
cal
andeconomi
cfeasi
bil
i
ty.

Themeani
ngofr
iskassessmenti
sdef
inedi
ntheSPSAgr
eementas:

 theeval
uationoft
helikel
i
hoodofent
ry,
establ
i
shmentorspreadofapestordiseasewithi
n
theter
ri
toryofanimporti
ngWTOmemberaccor di
ngtotheSPSmeasur eswhichmightbe
appl
ied,andoftheassoci
atedpot
ent
ial
biol
ogical
andeconomicconsequences
(OR)

 theevaluat
ionofthepotent
ial
foradverseef
fect
sonhumanoranimalheal
thari
singfr
om the
presenceofaddit
ives,
contaminant
s,toxi
nsordi
sease-
causi
ngor
gani
smsinf ood,bev
erages
orfeedstuf
fs.
Inpr acti
calt
erms, ariskassessmenti sessentiall
yt hepr ocessofgatheri
ngscienti
fi
cevidenceand
relevanteconomi cfactorsont heri
sksinvolvedinal lowingapar t
icul
arimporttoenteracount r
y.An
i
mpor ti
ngmemberi slikel
ytoseeki nf
ormationonmat t
erssuchast hepestsordiseasesthatmight
beassoci at
edwi ththecommodi t
yforwhichper missi ont oimpor
thasbeensought ,andiftheyare
presentintheex porti
ngcount ry.Thetypesofquest i
onst hatmightbeaskedi ncl
ude:Doest hepestor
diseaseoccuri nyourcount ry?Havethepest sordi seasesbeencont r
oll
ed?Ar et
heyrestri
ctedto
par t
icul
arpartsofthecount r
y?Howef fect
ivear ethepr oceduresappliedtoensurethatproductsfor
expor taref
reef r
om pest s,di
seasesandot hercont ami nants?

WTOmember smayadoptprovi
sional
SPSmeasur eswheretherei
sinsuff
ici
entsci
enti
fi
cevi
denceto
complet
ear i
skassessment
.Howev er
,insuchcir
cumstancesWTOMember sarerequi
redt
oseekt o
obt
aintheaddit
ional
inf
ormati
onnecessaryforamoreobject
iveri
skassessmentwithi
nareasonabl
e
per
iodofti
me.

I
nter
nat
ional
standar
dsf
orr
iskassessment

TheThreeSister
shavedevel
opedvari
ousr
iskassessmentt
echniqueswhi
chareoutl
i
nedbelow.
Fur
therdetai
lscanbefoundonthei
rwebsi
tes.I
PPChasissuedthreest
andar
dsspeci
fical
l
ydeal
i
ng
wit
hriskanalysi
s:

 I
SPM 2.Gui
del
i
nesf
orpestr
iskanal
ysi
s(PRA)
 I
SPM 11.PRAf
orquar
ant
inepest
sincl
udi
nganal
ysi
sofenv
ironment
alr
isks
 I
SPM 21.PRAf
orr
egul
atednon-
quar
ant
inepest
s.
TheOI Edeal
swithri
skanaly
sisi
nitsHandbookonimportri
skanal
ysi
sforani
mal
sandani
mal
productsandter
rest
ri
alandaquat
icani
mal heal
thcodes.

Codexhadpubli
shedPri
nci
plesandguidel
i
nesfort
heconductofmicrobiol
sogi
cal
riskassessment
andPr
inci
plesf
orther
iskanaly
sisoff
oodsderi
vedfrom moder
nbiotechnol
ogy.

Q23.
Char
act
eri
sti
csofI
nter
nat
ional
Trade.
(
i)
.Separ
ati
onofBuy
ersandPr
oducer
s:
I
ninl
andt r
adeproducer
sandbuy
ersar
efr
om t
hesamecount
rybuti
nfor
eignt
radet
heybel
ongt
o
di
ff
erentcount
ri
es.

(
ii
)For
eigncur
rency
:

Forei
gntr
adeinv
olvespay
ment si
nforei
gncur
rency
.Di
ff
erentf
orei
gncur
renci
esar
einv
olv
edwhi
l
e
tr
adingwi
thtr
adingwit
hothercount
ri
es.

(
ii
i)Rest
ri
cti
ons:

I
mportandexpor
tinv
olv
eanumberofr estr
ict
ionsbutbydif
fer
entcountri
es.Normall
y,impor
tsf
ace
manyimpor
tduti
esandr est
ri
cti
onsimposedbyi mport
ingcountr
y.Si
milarl
y,var
iousr
ulesand
r
egul
ati
onsaretobefol
lowedwhi l
esendinggoodsoutsidet
hecountry
.

(
iv)Needf
ormi
ddl
emen:

Therul
es,Regulat
ionsandprocedur
esinvol
vedinfor
eignt
radearesocompl
icat
edthatther
eisa
needtotakethehelpofmiddlemen.Theyrendert
hei
rserv
icesforsmoot
hconductoftr
ade.

(
v)Ri
skEl
ement
:

Ther
iskinv
olvedi
nfor
eignt
radei
smuchhi
ghersi
ncet
hegoodsar
etakent
olongdi
stancesandev
en
cr
osstheoceans.

(
vi)Lawofcompar
ati
veCost
:

Acountrywill
speci
ali
zeintheproducti
onofthosegoodsinwhi
chithascostadv
antage.Suchgoods
ar
eexpor t
edtoothercount
ries.OntheOtherhand,i
twil
li
mportthosegoodswhichhavecost
di
sadvantages ori
thasnospeci f
icadvant
age.

(
vii
)Gov
ernment
alCont
rol
:

Inever
yonecount
ry,gover
nmentcontr
olst
hefor
eigntrade.I
tgi
vespermi
ssi
onf ori
mportsand
export
smayinfl
uencethedeci
sionaboutt
hecountr
ieswithwhi
chtradei
stotakeplace.
 I
nter
nat
ionalTr
adeLawQuest
ionBankB.
A.LL.
B/B.
Com.
LL.
B(Hons.
)

1.Di
scusst
hei
mpor
tanceofi
nter
nat
ional
tradei
n21stcent
ury
.

2.Whati
sdumpi
ngandant
i-
dumpi
ngi
nint
ernat
ional
trade?

3.Ex
plai
nthest
ruct
ureoft
heWor
ldTr
adeOr
gani
zat
ion.

4.Wr
it
eabr
iefsummar
yonAgr
eementonAgr
icul
tur
e.

5.St
atedi
sput
eset
tl
ementmechani
sm i
nWTO.

6.Whatar
eal
lthepr
ocedur
esf
ort
heGATTNegot
iat
ions?

7.Whati
sGATT?St
atet
hesal
i
entf
eat
uresofGATT,
1994.

8.GENERALAGREEMENTONTRADEI
NSERVI
CES(
GATS)
.

9.Mer
it
sandDemer
it
sofI
nter
nat
ional
Trade

10.Di
scussaboutt
het
hreesi
ster
s-set
ti
ngi
nter
nat
ional
Standar
dsofSPSagr
eement

11.MostFav
our
edNat
ion(
MFN)
.

12.Or
igi
nofWTO.

13.Obj
ect
iveofWTO.

14.Funct
ionsofWTO.

15.Phy
to-
sani
tar
yMeasur
es.

16.Agr
eementonSaf
eguar
dmeasur
es

17.Nul
l
ifi
cat
ion.

18.Enumer
atet
hebasi
cri
ght
sandobl
i
gat
ionsunderAr
t.2ofSPSAgr
eement
.

19.Obj
ect
iveoft
heGATT1947.

20.Techni
cal
Bar
ri
ersonTr
ade

21.TRI
Ms.

22.
Riskassessment
.

23.char
act
eri
sti
csofi
nter
nat
ional
trade.

24.I
ndi
adoesnotment i
on‘
spacetranspor
t’i
nitsschedul
esofspeci
fi
ccommitment
sunderGATS.Whet
herUScanf
orce
I
ndi
afori
nter
nat
ional
tradeconcer
ningspacetranspor
tunderWTOagreement
?
25.IandParetwomemberstat
esunderWTOtreat
y.Thecountr
yPdidnotrecogni
zethecount
ryIunderMFNst
atus.
Whet
hercount
ryPisboundt
ocomplyal
lthet
ermsandconditi
onsfori
nter
nati
onalt
radewit
hcountr
yI?

26.Therei
sdisputerel
atedwit
hfishi
ngbet
weenIndiaandBangl
adesht
hathasimpactoninter
nat
ional
trade.I
ndi
afil
es
complai
ntbef
oretheprescri
bedauthor
it
yagai
nstBangl
adeshunderWTOtreat
y.WhetherSr
iLankacanjoinwit
hIndi
aas
par
ti
estothedispute?

Q1mj
kej
fckeS