General Agreement On Tariffs And Trade Upsc

From the beginning of the Silk Road, to the creation of the General Agreement on Tariffs and Trade (GATT) and the creation of the WTO, trade has played an important role in supporting economic development and promoting peaceful relations between nations. According to the ATC, industrialized countries would gradually place larger quantities of textile products in the normal customs disciplines of the gatt. It was recognized that developed countries (like any other country) needed time to ”adapt structurally”. The time was especially necessary for the internal acceptance of structural changes in these economies. It was therefore decided that by 1 January 2005, all textile trade would be exempt from quotas. What was the real experience? The Association of Southeast Asian Countries (ASEAN), the European Union, the North American Union, etc., are some associations that allow other member countries more liberal and fluid access to member markets. This goes against the objectives of the WTO, which aims to create a rules-based global trading system with minimal barriers. However, it is almost impossible to accept a common trading system for so many different countries at different stages of socio-economic development. As a result, countries come together with a group of like-minded countries and aspire to a symbiotic agreement that guarantees a win-win agreement for all participants. But the United States avoids this provision with its export credit guarantee program.

In doing so, the U.S. government provides subsidized loans to the purchaser of U.S. agricultural products that will be repaid for long periods of time. This is generally the case for food aid programmes such as (public law-480), where food aid is sent massively to underdeveloped countries. India also received this aid in the 1960s. But it`s only at interest rates and credit options. But this leads to a permanent dependence on foreign cereals in the recipient countries and destroys their local agriculture. They are therefore also trade-distorting subsidies, which are not currently under the WTO AOA. Maximum tariffs have been set, as requested by the WTO, under which a higher portion of tariffs are set in a percentage that should never be exceeded. In general, actual rates are well below this high limit.

This makes the user policy transparent and rates cannot be set arbitrarily. India needs to improve its diplomatic capabilities. At the recent meeting in Nairobi, it was found that industrialized countries spoke unisono, but that there was no unity in developing countries.