WORLD TRADE ORGANISATION

RAJENDRA K.KHETAN Vice President WTO CELL ~FNCCI

WTO
BRIEF HISTORY

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

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

FUNDAMENTAL PHILOSOPHY

Rule based International trading System Member driven Organization

Trade with global market access at competitive price of best quality product
Harmonization of tariff - fusion with InfoTech Protection only through Tariff Trade Liberalization MFN to all members Quantity and quota restricted

General agreement on trade & services (GATS)

SUSTAINABLE DEVELOPMENT THROUGH GLOBALISATION

Integrating Nepalese economy to global economy Strengthening domestic policies and institutions gear up for MFN

Credibility and stability of policies to the outsiders

Extended and secured market Enhancing capability

STATUS OF ACCESSION EFFORTS

Under GATT (1989) Application submitted Working Party established Memorandum submitted

Under WT0 (1995) Application submitted Working Party established Observer status

STATUS OF ACCESSION EFFORTS

Memorandum submitted ('98) Questions and replies ('99)

Initial Tariff offers ('00)

Initial commitments in services ('00)

First Working Party meeting (May '00)

Bilateral consultations (Sept '00)

Additional questions and replies(Sept '02)

STATUS OF ACCESSION EFFORTS (2002)

Revised tariff offers

Revised services commitment

Legislative action plan

Second Working Party and Bilateral Meeting held in GENEVA, from 9 to 13 Sept. '02

APPROACH FOR CONCESSIONS AND COMMITMENTS

National constraints and capability

Interests of Nepalese Producers

Goodwill of international community Commercial interest of WTO members Compatibility with national objectives

GOODWILL OF INTERNATIONAL COMMUNITY

WTO decisions in favor of LDCs

Third UN conference on LDCs

Consensus on Quadrangle countries

Doha declaration

REVISED OFFER AND COMMITMENTS

Offered tariff bindings lowered both in

Agriculture
Non-agriculture

Services sector commitments widened

11 sectors / sub-sectors included in offer for market access

STRENGTHS & OPPORTUNITIES

Part of global family of trade and legislation Global market access

Completed most accession requirements

Diversification of products and markets possible Priority to LDCs
SAPTA / SAFTA / QUADRANGLE / REGIONAL

Inherent & Indigenous Products Dispute settlement mechanism

WEAKNESS & THREATS

Small economy / limited resources Lack competitive & comparative edge

Lack of capital, technology & H.R.

Big players in competition Weak implementation & Traditional approach Global compact Brain drain Opening of trade and investment boundaries

Present drive

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

Potential Area

MODERN AGRI FARMING INTELLECTUAL PROPERTIES BIO DIVERSITY (HERBS,FORESTRY,AYURVED,SPICES) TOURISM

(FLORA,FAUNA,HEALTH,SPORTS,RELIGIOUS,EDUCATION,SAARC HUB)

FINANCIAL & OFFSHORE CENTER SERVICE SECTOR & SEZ INFORMATION TECHNOLOGY HUMAN RESOURCES ENERGY POWER GLOBAL LANDMARKS (MT.EVEREST,LORD BUDHA, SITA)

FUTURE COURSE

TRIPS (patent Copyrights, Trademark Designs, Geographical Indications) - new laws and implementation required Rule based transparent business

Agriculture - Protecting the rights of Farmers

Opening of the diverse, new & service sector Technical assistance for enhancing competitive strength Identification and development of thrust \ core sectors Competition Law & facilitating mechanism Investment friendly law & policy Transparency in govt. procurements Safeguard measures anti dumping \ counter veiling duty