2. WTO intends to supervise and liberalize international
trade
The organization officially commenced on January 1, 1995
replacing the GATT (General Agreement on Tariffs and
Trade)
The World Trade Organization (WTO) is the only global
international organization dealing with the rules of trade
between the nations
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3. It tries to provide market access to countries for their
products and services and promotes friendly investment
policies by eliminating:
trade distortions between countries
trimming down tariff and non-tariff barriers
removing quotas
abolishing subsidies in a phased manner
WTO has rules to address quality issues, labor standards,
environmental aspects, government regulation, and legal
frameworks
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4. The need for an institution to promote rule based
trade was felt when in 1930s world suffered through
the Great Depression and World War II
This economic issue started with the 1929 Stock
Market Crash wiping out savings of people and
creating unemployment of the highest level in
Western World
That great Depression further resulted into WWII and
destroyed many European countries
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5. In January 1948, 23 nations organized the GATT in Geneva
providing opportunity to start the tariff negotiations
This first round resulted in 45,000 tariff concessions
affecting $10 billion (about 1/5th of the world trade)
The WTO replaced GATT as the world's global trading body
in 1995
GATT trading regulations established between 1947 and
1994 remain the primary rule book for multilateral trade in
goods
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6. Raising standards of living
Ensuring full employment
Expanding production of goods and services
Sustainable development
Securing share in trade of developing and least
developed countries
Designing reciprocal and mutually advantageous
arrangement directed to substantial reduction of
discriminatory treatment in international trade
relation
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7. Protection to Domestic Industry through Tariffs
Member countries can protect their domestic
industry/production through tariffs only
It prohibits the use of quantitative restrictions, except in a
limited number of situations
Binding of Tariffs
The member countries are urged to eliminate protection to
domestic industry/ production by reducing tariffs and removing
other barriers to trade in multilateral trade negotiations
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8. Most Favored-Nation (MFN) Treatment
The rule lays down the principles of non-discrimination amongst
member countries
Tariff and other regulations should be applied to imported or exported
goods without discrimination among countries
Exceptions to the rules are to regional arrangements subjected to
preferential or duty free trade agreements, Generalized System of
Preferences (GSP) where developed countries apply preferential or
duty free rates to imports from developing countries
4. National Treatment Rule
The rule prohibits member countries from discriminating
between imported products and domestically produced goods in
the matter of internal taxes and in the application of internal
regulations.
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9. National Treatment Rule
The rule prohibits member countries from discriminating
between imported products and domestically produced
goods in the matter of internal taxes and in the application
of internal regulations
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10. At the heart of WTO are WTO agreements, negotiated
and signed by a large number of the world’s trading
nations and ratified by their parliaments
Agreement on trade related aspect of intellectual property
rights (TRIPS)
Agreement on agriculture (AOA)
Agreement on Sanitary and phytosanitary measures (SPS)
Technical barriers to trade (TBT) agreement
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WTO AgreementsWTO Agreements
11. Intellectual property rights
Copyrights
Patent trade marks
Geographical names
Industrial designs
Trade secrets
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Agreement on TRIPSAgreement on TRIPS
12. Food safety through CAC
Plant health standards
Animal health standards specific towards;
Additives, contaminants and toxic substances in
food
Pesticides & drug residues and MRL compliance
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Agreement on Application of Sanitary andAgreement on Application of Sanitary and
Phytosanitary Measures (SPS)Phytosanitary Measures (SPS)
13. Food Certification (HACCP and GMP)
Labeling requirements
Plant and animal quarantine requirements
Disease and Pest control
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14. Inspection, testing and certification
Custom procedures
High custom duties
Violation of intellectual property rights
Investment restrictions
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Technical Barriers to Trade (TBT)Technical Barriers to Trade (TBT)
15. Indiscriminate use of pesticides and chemicals results residues
in food
Food additives are creating toxicity
Chemicals generated during food processing- prolonged
heating of fats generates carcinogens
Repeatedly deep fried foods are injurious to health
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16. Toxicity from packaging material
Sewage, sludge, untreated industrial waste water
polluting ground water and used for vegetable
growing
Poultry, beef and mutton- feed additives, hormones
and antibiotics
Clean water is unavailable to the masses
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17. 1947-1960’s
1960’s-70’s
1970’s-80’s
1980’s-90’s
1990’s-2000 17
Craftsmanship, where quality was
built into products
Quality control took the shape of
Inspection activity
Introduction of Statistical Quality/
Process control in a few key industries
Introduction of Quality circles
Introduction of TQM, ISO-9000,
Structuring of PNAC and PSQCA
Quality Era’s in PakistanQuality Era’s in Pakistan
18. Good Manufacturing Practices (GMP)
Hazard Analysis Critical Control Points (HACCP)
Quality Assurance Standards
(ISO-22000 And ES-29000)
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Present RequirementsPresent Requirements
19. More stringent Food Safety Standards imposed in
countries like Pakistan
Food Laws, standards, procedures, testing
infrastructure, nutrition and labeling methods are
dreadfully primitive and ineffective
Pakistan's food is merely exported as a commodity
rather than as value added foods
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20. Limited export-due to non compliance of WTO
regulations
Increased imports
Reduced Industrialization
Less Employment – 10% unemployment
Loss in economic sovereignty
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Notas del editor
Pesticides and Drug Residues have become a major concern relating the Food Sfety