World Trade Organization

AGREEMENT ON TEXTILE AND

CLOTHING
Presented to:
Dr. Harsh Pradhan
(Assistant Professor)

Presented By:
Pranav Chandra (20423BIB029)
Nikhil Bharti (20423BIB024)
Saumya Jaiswal (20423BIB046)
Liniya Jain (20423BIB022)
Ishita Agarwal (20423BIB065)
 Table of Contents

Restrictions and Aid for Trade

TRIMs Agreement 5
1 Development

Local Content Requirement 6 Enhanced Integrated Framework

2

Trade Balancing 7 Trade Facilitation

3

Foreign Exchange Balance 8 Trade Monitoring

4
Background of the Agreement on
TRIMs
The Agreement on Trade-Related Investment Measures (TRIMS) recognizes that
certain investment measures can restrict and distort trade. It states that WTO
members may not apply any measure that discriminates against foreign products or
that leads to quantitative restrictions, both of which violate basic WTO principles.
 Agreement on Trade-Related
Investment Measures (TRIMs)

PREAMBLE
“The expansion and progressive
liberalization of world trade and to
facilitate investment across
international frontiers so as to
increase the economic growth of all
trading partners, particularly
developing country members, while
ensuring free competition”
Local Content
Requirement
A ‘local content requirement’ under the WTO
Agreement on Trade-related Investment
Measures (TRIMs) refers to a government
obliging enterprises operating in its territory to
source all or part of the components of their
manufacturing processes from domestic
suppliers.
Trade
Balancing
The balance of trade is also referred to as
the trade balance, the international trade
balance, commercial balance, or the net
exports.
KEY TAKEAWAYS
Balance of trade (BOT) is the
difference between the value of
a country's imports and exports
for a given period and is the
largest component of a country's
balance of payments (BOP).
A a country that imports more
goods and services than it
exports in terms of value has a
trade deficit while a country that
exports more goods and services
than it imports has a trade
surplus.
In 2019, Germany had the largest
trade surplus followed by Japan
and China while the United
States had the largest trade
deficit, even with the ongoing
trade war with China, beating out
the United Kingdom and Brazil.
 BOT in Indian prospect
India trade deficit was revised lower to USD 10.97 billion in July of 2021 from a
preliminary of USD 11.23 billion.

In the long-term, the India

Balance of Trade is
projected to trend around
-7200.00 USD Million in
2022 and -10600.00 USD
Million in 2023, according
to the econometric
models.
Foreign
Exchange
Balance
The exchange balance refers to the
statistical record of transactions in
foreign exchange that are carried out
through intermediaries in the exchange
market.
KEY TAKEAWAYS
Balance is used by the Banco de
la República de Colombia, as an
instrument to describe the
external sector in the short term,
due to the frequency with which
the relationship between
monetary records and accounts
is published.
There are certain similarities The exchange balance only
between the exchange balance includes operations of real or
and the balance of payments, financial resources that imply an
since commercial operations, immediate income or payment.
capital movements, and also the
import or export of services are
related.
Restrictions and Aid for Trade
Development
 Quantitative Restrictions
Article XI of the GATT 1994 is the main provision
regulating quantitative restrictions (QRs).
WTO Members have notified that they maintain
quantitative restrictions measures such as
prohibitions or restrictions relating to trade in
nuclear materials, narcotic drugs, weapons, and
several measures to protect the environment.
When a Member introduces or maintains a
quantitative restriction, it must ensure that it is

administered in a non-discriminatory manner,

including the provisions of Article XIII of the GATT.
The QR Decision provides for the type of
information, format, and interval in which

Members need to notify the quantitative

restrictions they maintain, but also allows for the
possibility to notify measures imposed by other
members
 Prohibition

Prohibitions except under defined conditions

Indicative Global quotas

list of Global quotas allocated by country

Bilateral quotas
measures Non-automatic import licensing

to be QRs made effective through state trading operations

notified Mixing regulations

Minimum price
Voluntary export restraints
Measures not covered
by the QR Decision
SPS measures
TBT measures
Automatic import licensing
Tariff Rate Quotas (TRQs)
 Aid for Development
The Aid for Trade initiative was launched at the Hong Kong
Ministerial Conference in December 2005.
At the Tenth Ministerial Conference in Nairobi, Kenya, on
15-18 December 2015, ministers agreed the following text
on Aid for Trade as part of the Ministerial Declaration:
The WTO-led Aid-for-Trade Initiative encourages

developing country governments and donors to recognize

the role that trade can play in development.
Activities under the Aid-for-trade initiative are carried

out on the basis of a biennial work program.

A new Aid-for-Trade Work Programme for 2020-2022
was issued on 11 February 2020. Under the theme of
"Empowering Connected, Sustainable Trade"
The WTO works in cooperation with, and encourages
coordination among, a number of key players in the Aid

for Trade initiative to take forward the Task Force

recommendations.
Role of WTO
Encourage additional flows of Aid for Trade from bilateral, regional, and
multilateral donors to support requests for trade-related capacity building
from beneficiary countries
Support improved ways of monitoring and evaluating the initiative
Encourage mainstreaming of trade into national development strategies by
partner countries.
Enhanced
Integrated
Framework

 Introduction

The Enhanced Integrated Framework (EIF) is the only multilateral

partnership dedicated exclusively to assisting least developed countries
(LDCs) in their use of trade as an engine for growth, sustainable
development and poverty reduction.

Formation - January 1, 2007

Headquarters - Geneva, Switzerland

Official language - English, French, Portuguese

Executive Director - Ratnakar Adhikari

Introduction

Partnership of 51 countries, 24 donors
and 8 partner agencies. (46 LDC's and 5
recently graduated countries)

The partnership leverages its collective

know-how, outreach and experience to
tackle the world’s most pressing trade-
for-development issues.

The Enhanced Integrated Framework's

work with Least Developed Countries
supports the achievement of a wide
variety of Sustainable Development
Goals.
Aim of the EIF
Creates partnerships

supporting Least Developed Countries' own drive to:

1. Mainstream trade into national development strategies

2. Set up structures needed to coordinate the delivery of trade-related technical
assistance
3. Build capacity to trade, which also includes addressing critical supply side constraints.

EIF and Aid for Trade

LDCs can use the EIF as a vehicle to coordinate donors' support and to lever more Aid
for Trade resources, whereas

donors can sign up to the EIF as a vehicle to deliver on
their Aid for Trade commitments.
 The EIF Trust Fund

The EIF programme is

supported by a Multi-
Donor Trust Fund with
contributions from 24
donors.

The United Nations

Office for Project
Services (UNOPS) acts
as the EIF Trust Fund
Manager in support of
the programme.
 Who the EIF works with?

Six core partner agencies -

International Monetary Fund (IMF)

International Trade Centre (ITC)
United Nations Conference on Trade and Development (UNCTAD)

United Nations Development Programme (UNDP)

World Bank and the WTO

United Nations Industrial Development Organization (UNIDO) :

Observer Agency
Who does what?

At the Global Level - EIF

consists of a Steering
Committee, the EIF Board
and the EIF Executive
Secretariat.

At the National Level (In

LDCs) - EIF presence in the
LDCs consists of Focal
Points, Donor Facilitators
and National Steering
Committees.
 Functioning
An LDC is in one of the following three stages:

Pre-DTIS phase - In this stage, a country requests membership in the

programme.

DTIS phase - The Diagnostic Trade Integration Study is a comprehensive

analysis of an LDC's economic and trade environment and aims at identifying
constraints to competitiveness, supply chain weaknesses and sectors of
greatest growth and/or export potential.

Implementation phase -
1. Strengthening of in-country EIF institutions
2. Building supply side capacities
TRADE FACILITATION
It is more important than ever to achieve trade facilitation to enhance
administrative efficiency and effectiveness, reduce costs and time to
markets, and increase predictability in global trade.
WTO members concluded negotiations at the 2013 Bali Ministerial
Conference on the Trade Facilitation Agreement (TFA)
Enforced on 22 February 2017.
 TRADE MONITORING

WTO members monitor how WTO agreements are being implemented by

conducting peer reviews of countries’ trade policies — known as Trade Policy
Reviews — and through periodic reports on trade mesures around the world.
The WTO currently produces two series of “trade monitoring reports”:

WTO-wide reports on trade-related developments covering the whole WTO

membership and observers
Joint reports with the Organisation for Economic Co-operation and
Development (OECD) and the UN Conference on Trade and Development
(UNCTAD) on trade and investment measures taken by G-20 economies.
Reference
https://www.wto.org/english/tratop_e/invest_e/invest_info_e.htm

https://www.trade.gov/trade-guide-wto-trims

https://www.indianeconomy.net/splclassroom/what-is-trade-related-investment-
measures-trims/
https://www.wto.org/english/tratop_e/markacc_e/qr_e.htm

https://www.statista.com/statistics/263633/trade-balance-of-india/
Thank You!