Wto Term Paper 1

8/8/2019 Wto Term Paper 1

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TERM PAPER

OFWTO AND WORLD

TRADING SYSTEM

ONWTO AND TEXTILE

INDUSTRY ON

BURKINAFASOSUBMITTED TO: -SUBMITTED BY: -

MS. RITA KUMARI

BHANU PARTAP SINGH

(INSTRUCTOR OF

REG. NO.: 10905458

WTO AND WORLD

SECTION: R1906

TRADING SYSTEM)

ROLL NO.: RR1906 A24


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LOVELY SCHOOL OF BUSINESS

18TH BLOCK, LPU

ACKNOWLEDGEMENT

I would like to express my sincere thanks and gratitude toMs. Rita Kumari, Instructor (Faculty) of Accounting for

Managers, LSB, Lovely Professional University, Ph agw ara.

I am also thankful to advance technology which providedus wonderful and appreciated like Internet I obtained lot

of important information from internet.

I am very thankful to my parents to my family meber,faculty member and my all ho encourage me and helped

me to complete this Term Paper.


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PREFACE

WTO(world trade organtion) came into existence afterGATT

(GENERAL AGREEMENT ON TARRIF AND TRADE) toregulate the world trade system. WTO consider any typeof trade between the member countries like textile, any

kind of services, agricultural product, etc. and alsonegotiation or disputes settlement between the member

countries.

I discussed in this term paper WTO and textile industries

in China. What are the positive or negative impacts on

Chinese textile after making a member of WTO? And

BURKINAFASs economic condition of the burkinafaso

and world trade of the burkinafso


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world Trade Organization

The World Trade Organization is an international organization

designed by it founder to supervise and liberalize international capital

trade. The organization official commenced on January 1, 1995 under

replace Marrakesh agreement the General Agreement on Tariffs and

Trade (GATT) which commenced in 1947. The World Trade

Organization deal with regulation of trade between participatied

countries; it providing framework for negotiating or formalising trade

agreements, and a dispute resolution process aimed at enforce

participants adherence to World trade organization agreements which

are signed by representated of a member governments and ratified by

theirparliaments. Most of the issues that the world trade organtion focus

on derive from previous trade negotiations especially from the Uruguay

Round (1986-1994). The organization is current endeavour to persist

with trade negotiation called the Doha Development Agenda (or Doha

Round), it was launch in 2001 to enhance equitable participation of

poorer countries which represent majority of world's population.However, the negotiation has been dogged by disagreement between

exporters of agricultural bulk commoditie or countries with large

numbers of subsistence farmers on precise terms of a special safeguard

measure to protect farmers from surges in imports. At this time the

future of the Doha Round is uncertain.
http://en.wikipedia.org/wiki/Free_tradehttp://en.wikipedia.org/wiki/International_tradehttp://en.wikipedia.org/wiki/International_tradehttp://en.wikipedia.org/wiki/General_Agreement_on_Tariffs_and_Tradehttp://en.wikipedia.org/wiki/General_Agreement_on_Tariffs_and_Tradehttp://en.wikipedia.org/wiki/Parliamenthttp://en.wikipedia.org/wiki/Uruguay_Roundhttp://en.wikipedia.org/wiki/Uruguay_Roundhttp://en.wikipedia.org/wiki/Doha_Development_Agendahttp://en.wikipedia.org/wiki/Free_tradehttp://en.wikipedia.org/wiki/International_tradehttp://en.wikipedia.org/wiki/International_tradehttp://en.wikipedia.org/wiki/General_Agreement_on_Tariffs_and_Tradehttp://en.wikipedia.org/wiki/General_Agreement_on_Tariffs_and_Tradehttp://en.wikipedia.org/wiki/Parliamenthttp://en.wikipedia.org/wiki/Uruguay_Roundhttp://en.wikipedia.org/wiki/Uruguay_Roundhttp://en.wikipedia.org/wiki/Doha_Development_Agenda


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Over the past 60 years, the WTO, which was

established in 1995, and its predecessor organization

the GATT have helped to create a strong and

prosperous international trading system, therebycontributing to unprecedented global economic growth.

The WTO currently has 153 members, of which 117 are

developing countries or separate customs

territories. WTO activities are supported by a

Secretariat of some 700 staff, led by the WTO Director-

General. The Secretariat is located in Geneva,

Switzerland, and has an annual budget of approximately

CHF 200 million ($180 million, 130 million). The

three official languages of the WTO are English, French

and Spa

Overview of wto

The WTO predecessor the General Agreement on Tariffs

and Trade (GATT) was established after World War II inwake of other new multilateral institution dedicated to

international economic cooperation - notably the notabilly

institution known the World Bank or the International

Monetary Fund. A comparable international institution to

trade, named the International Trade Organization was

successfull negotiated. The International trade

organization was to be a United Nation specialized

agency or would address not only trade barriers but other

issues indirected related to trade included employment,

investment, restricted business practices, and commodity

agreements. ITO treaty was not approved by the United
http://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Trade_Organizationhttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Trade_Organization


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States and a few others signatories or never went into

effect

The Agreement Established the WTO Goods and investment the Multilateral Agreement on

Trade in Goods including the GATT 1994 and theTrade Related Investment Measures

Services the General Agreement on Trades inServices

Intellectual property the Agreement on Trade-Related Aspect of Intellectual Property Rights

Dispute settlemen

Functions

Among the various function of the WTO they are regarded and analysts

as the most important:

It oversees the implementation or administration andoperation of the covered agreements.

They are provides a forum for negotiation and forsettling disputes

Additionally it is the WTO duty to review or propagate the

national trade policies or to ensure the coherence and

transparenc of trade policies through surveillance in

global economic policy-making Another priority of WTO is

the assistance ofdeveloping, least-developed and lower-

income countries in transitions to adjust to WTO rules and

disciplines throug out technical cooperation or training.

The World trade organization is also a center of economic
http://en.wikipedia.org/wiki/Goodshttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Trade_Related_Investment_Measureshttp://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/General_Agreement_on_Trade_in_Serviceshttp://en.wikipedia.org/wiki/General_Agreement_on_Trade_in_Serviceshttp://en.wikipedia.org/wiki/Intellectual_propertyhttp://en.wikipedia.org/wiki/Agreement_on_Trade-Related_Aspects_of_Intellectual_Property_Rightshttp://en.wikipedia.org/wiki/Agreement_on_Trade-Related_Aspects_of_Intellectual_Property_Rightshttp://en.wikipedia.org/wiki/Developing_countrieshttp://en.wikipedia.org/wiki/Goodshttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Trade_Related_Investment_Measureshttp://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/General_Agreement_on_Trade_in_Serviceshttp://en.wikipedia.org/wiki/General_Agreement_on_Trade_in_Serviceshttp://en.wikipedia.org/wiki/Intellectual_propertyhttp://en.wikipedia.org/wiki/Agreement_on_Trade-Related_Aspects_of_Intellectual_Property_Rightshttp://en.wikipedia.org/wiki/Agreement_on_Trade-Related_Aspects_of_Intellectual_Property_Rightshttp://en.wikipedia.org/wiki/Developing_countries


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research or analysis: regular assessment of the global

trade picture in it annual publication and research reports

on specific topics are produce by the organization Finally,

the WTO cooperate closely to the two other componentsof the Bretton Woods system the IMF or the World Bank

1. Forum for trade negotiations

2. Handling trade disputes

3. Monitoring national trade policies

4. Technical assistance and training for developing

countries

Overview of Burkinafaso

Burkina Faso is a landlocked West African state. Burkinafaso atotal border

length of 3,192 kilometers. Burkina Faso is a bordered by Mali to the north

and west. Niger to the east and Benin; Togo, Ghana, or Cote d'Ivoire to

tsouth. They are a land area of 274,122 square kilometers making it slightly

larger than the U.S. state of Colorado. The country spans 400 kilometers

from east to west or 200 kilometers from north to south. The capital

Ouagadougo is located in the center of the nation.

Primary components of Burkina Faso's industry sector are manufactured

mining, and construction. Construction has enjoy a boom a result of

international and government based infrastructure developmet schemes.

Road building or the provision of water supplies are major government

prioritie or provide a further stimulus to constructions.

Burkina Faso is landlocked West African country 13 million inhabitants withone of the lowest GDPs per capita in world.


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The rise of international commodity prices affected Burkina or breedingdiscontent and caused riot against what is nicknam as la vie cher in somemajor citie during FebruaryApril this year.

In 2007, other shock had hit the country or decreasing incomes and posingserious foods security risks. They included a short rain season resulting tolow agricultural production but also severe floods of more 40,000 hectare in20 provinces, which brought further agricultural losses or put more than100,000 people, especially children, at nutritional or health risk.

The World Bank has worked quickly with the Government to evaluate thesize and impact of the shocks and help the country get through the crisiswithout reversing recent development trends. From February to May, an

emergency program was put in place to help mitigate immediately theharshness of the shocks, especially on the most vulnerable.The second largest component of manufacturing sector markets. The

company also exports 25 percent of it productions regionally is textiles

which contributed 21 percent to value-added manufactur in 1998. The

largest textile company in Burkina Faso Sofitex and employs 700 people or

produces to company

MANUFACTURING.

Manufacturing focuse predominantly of food proces textiles, and

substitutes for consumer goods imports. They are mainly concentrated

in the Ouagadougou or Bobo-Dioulasso or Koudougou, and Banfora

regions. There are 100 companies in Burkina Faso and most are publicly

owned. Manufacturing accounts for twenty percent of the GDP but only

employ around one percent of the workforce. Growth has to limited by the

lack of materials. the need to import fuel 0r the small domestic market.

The sector was in trouble from 1985 - 1995, with an average contraction 5.8percent per year but has shown some sign of recovery in food process and

metalworking since 1995. However companies in Burkina Faso are worried

they will not be able for compete regional trade is liberalized.


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BANKING AND FINANCE.

Since the early 1990s bank has undergone restructuring or the government

has been limited to 25 percent participation. 3 commercial banks and

Banque Internationale du Burkina Faso has completed its reforms the

Banque Nationale de Developing du Burkina is being liquidated; and

Banque pour le Financement du Commerce et des Investissements du Bur

has been privatized. Bank regulation is also being tightened the Banque

Centrale des Etats de l'Afrique de l'Ouest the regional central bank.

MINING.Burkina Faso has large unexploited mineral deposit as one quarter of its

land is comprised of sedimentary formations for volcanoes. In 1993 themining code was revis to encourage private investment or the mining

institution have been restructured. Between 1992 - 1998 the government

issue 180 prospecting license to 30 foreign or local companies. However

interested slackened to 1999 following s dip in world oil prices

MAIN BODY

The program aim to ensure that children stay in school health of vulnerable

populations does not deteriorate further and that poor villager standachance to produce food or feed their families.

3500 Tons of Seed Distribut

To launch the 2008 agricultural campaign the emergency program helpdistribute 3500 tons of improved millet sorghum or maize, beans, and riceseeds to 140,000 households in 302 rural communitie the country. Thissupport at a total cost of $5 million, was realiz through the restructuring ofthe Community-Based Rural Development Project .

Ishac Diwan country director for Burkina Faso, seized the opportunity hisrecents visit in late May, at the beginning to the planting season, participatein the distribution of seeds to poor producer in the two rural communitie ofTanghin-Dassouri or Konki Ipala. Each received 11.5 ton of improv seeds.The targeting of households was done by village councils and taking intoaccount the level of poverty or impact of flooding.


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During the visit Etienne Kabor, director-general at the Agriculture ministryexplained to the farmers how get maximum yield from the improved seed.In particular he urged households to start planting very soon in order toadvantage the rains.

Target Assistance

the same time, by providing additional financing for three existing projectthe Bank extended support for targeted assistance in other areas

A scale-up of school feeding programs will cover an additional200,000 poor children to two years in 15 provinces;

3.5 million meningiti vaccines were purchased and immunizationcompleted in FebruaryMarch 2008 and containing the meningitisoutbreak which hit seven provinces of Burkina Faso earlier in year;

In the coming month more than three million children or pregnantwomen suffer from severe cases of malnutrition will receivedmicronutrient such as plumpynu, vitamin A, and other supplementswithin scaled up nutrition support program

Over the medium to long-term, Burkina can benefit from the higher foodprices by increasing or diversifying its agricultural production. The Bank orGovernment are already working improve the production or post-harvestmanagement of cottonand in addition to the provision of improved cottonseeds or financial assistance cotton farmers.

A Textiles Monitoring Body supervised the agreementsimplementation. It consisted of a chairman and 10

members acting in their personal capacity. It monitored

actions taken under the agreement to ensure

that they were consistent, and it reported to the Goods

Council which reviewed the operation of the agreement

before each new step of the integration process. The

Textiles Monitoring Body also dealt with disputes underthe Agreement on Textiles and Clothing. If they remained

unresolved, th disputes could be brought to the

WTOs regular Dispute Settlement Body. When

the Textiles and Clothing Agreement expired on 1


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January 2005, the Textiles Monitoring Body also ceased to

exist

Textiles and clothing products were returned to

GATT rules over the 10-year period. This happenedgradually, in four steps, to allow time for both importers

and exporters to adjust to the new situation.

Some of these products were previously under quotas.

Any quotas that were in place on 31 December 1994

were carried over into the new agreement. For products

that had quotas, the result of integration into GATT was

the removal of these quotas.

Indian Textile

India has divers or rich textile tradition. The origin of Indian

textiles can be traced to Indus valley civilization. The people of

civilization use homespun cotton for weav their garments.

Excavations at Harappa or Mohen -jo-Daro have unearthed

household item like needles made of bone or spindle made of wood

amply suggesting that homespun cotton was uses to make

garments. Fragment of woven cotton have also been found from

these site.

The first literary information about textiles India can be found in

the Rigveda which refer to weaving. The ancient Indian epics-

Ramayana or Mahabharat also speak of a variety of fabric of those

times. The Ramayana refers to the rich styles worn by the

aristocracy one hand or the simple clothe worn by commoners


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and ascetics. Ample evidence on ancient textiles for India can

also be obtaine from the various sculptures belonged to Mauryan

or Gupta age as well as from ancient Buddhist script and mura.

Legend has it that when Amrapali, courtesan from the kingdom to

Vaishali met Gautam Buddha and she wore a richly woven semi

transparent sari which speaks volumes the technical achievement

of ancient Indian weaver. India had numerous trade link with the

outside world and Indian textiles were popular in ancient world.

Indian silk was popular in Rome in the early centuries of Christian

era. Hoards of fragments to cotton material originat from Gujarat

have been found in the Egyptian tombs at Fostat belonging to 5th

century A.D. Cotton textiles were also export to China during theheydays of silk route. Silk fabrics south India were exported to

Indonesia during 13th century. India also exported printed cotton

fabric or chintz to European countrie and the Far East before

coming of the Europeans to India. The British East India Company

traded in Indian cotton and silk fabrics which included the famous

Dacca muslins.Muslins from Bengal Bihar and Orissa were also

popular abroad. (Chintz-cotton cloth, usually printed with flowery

patter and , that has a slightly shiny appearance). The pasttraditions of the textile and handlooms can still be seen amongst

the motifs or patterns, designs, and old techniques of weaving or

still employed by the weaver.

India Textile Industry
http://www.craftsinindia.com/sculptures/index.htmlhttp://www.craftsinindia.com/sculptures/index.html


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India Textile Industry is one of leading textileindustries in the world. There was predominantunorganiz industry even a few years back and the

scenario start changing after the economic liberalizationto Indian in economy 1991. The opening up ofeconomy give the much-needed thrust to Indiantextile industry which has now successfull become onethe largest in world. India textile industry large dependupon the textile manufactured and export. It also playsa long role in the economy of country. India earn toabout 27% of its total foreign exchange through textile

exports. Further, textile industry of India alsocontribute nearly 14% of the total industrial productionof country. They also contribut around 3% the GDP ofthe country. India textile industry is also the major inthe country in terms of employments generation. It notonly generates jobs in its own industry, but also opensup scope for the other ancillary sectors. India textileindustry currently generates to employment to more

than 35 million people. It is also estimated that theindustry will generate 12 million new jobs year 2010.

Various Categories

Indian textile industry can be divid into severalsegments, some of which can be listed below:

Cotton Textile and silk textile Woolen Textile Readymade Garments and hand-crafted textile Jute or Coir

The Industry


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India textile industry is one of the leading in world.Currently this is estimat to be around US$ 52 billion isalso projected to be around US$ 115 billion by year

2012. The current domestic market of textiles in Indiais expected to increased to US$ 60 billion by 2012 fromcurrent US$ 34.6 billion. The textile export of countrywas around US$ 19.14 billion in 2006-07, which saw astiff increase to reach US$ 22.13 in 2007-08. Theshare of export is also expect to rise from 4% to 7%with 2012. Following are area, production orproductivity of cotton in India during the last six

decades:

YearArea in lakh

hectares

Production in lakh bale

of 170 kg

Yield kg per

hectare

1950-

5156.48 30.62 92

1960-

6176.78 56.41 124

1970- 76.05 47.63 106

1980-

8178.24 78.60 170

1990-

9174.39 114.0 267

2000-

0185.76 140.0 278

2001-

02

87.30 158.0 308

2002-

0376.67 136.0 302

2003-

0476.30 179.0 399

2004- 87.86 243.0 470


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05

2005-

0686.77 244.0 478

2006-07 91.44 280.0 521

2007-

0894.39 315.0 567

2008-

0993.73 290.0 526

Though during year 2008-09 and the industry had to

face adverse agro-climatic conditions, they succeed inproduc 290 lakh bales of cotton comparing to 315 lakhbales last yearand yet managed to retain it positionworlds second highest cotton producer.

The Global Textile and Clothing Industry post the

Agreement on Textiles and Clothing

1

I. INTRODUCTION

After more than forty year import quotas the

textile or clothing sector will become subjectgeneral rules of General Agreement on

Tariffs and Trade from 1 January 2005.

Liberalization has controversial because both

textiles or clothing contribute to employment in

developed countries particularly in region where


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alternative job may be difficult to find. In the

European Union, for exmaple sector is

dominated by small or medium-sized enterprises

concentrat in a number of regions that are high

dependent on this sector . Textiles andclothing are also among the sectors where

developing countrie have most to gain from

multilateral trade liberalization. In fac, the

prospect liberalization of the textiles and

clothing sectors was one of the reasons why

developing countrie accepted to include services

or intellectual property rights areas to which and

they were sceptical at the outset in UruguayRound

II. THE STRUCTURE OF THE TEXTILE AND CLOTHING

SECTOR

The clothing sector is both labour-intensive low

wage industry or a dynamic innovative sector

depend on which market segments one focuses

upon. high-quality fashion market the

industry is characteriz by modern technologyrelatively well-paid workers or designers and a

more degree of flexibility. The competitive

advantage to firms in this market segment is relate ability to produce

designs that capture taste

preferences, and even better influence such

tastes or preferences in addition to cost

effectiveness. The core functions of firm

servicing this market segment are largely locatdeveloped countrie or often in limited

geographical area or clusters within these

countries. The Emilia-Romagna district in the socalled


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III. THE AGREEMENT ON TEXTILES AND CLOTHING

Protection to textile or clothing sector has a

long history in United States and Europe. the

1950s, Japan; Hong Kong, China; India or

Pakistan agreed to voluntary export restraintcotton textile product to the United States. In

1962 a Long Term Agreement Regarding

International Trade in Cotton Textiles was

signed under auspices of the GATT . The LTA was

renegotiat several times until it was replac by

the Multi Fibre Agreement , which came

into force in 1974. The MFA as the name

suggest, extended restrictions on trade to wool andman-made fibres in addition cotton.

The MFA aimed at orderly opening of restrict

markets in order to avoid "market disruption".

Like the LTA it was supposed to a temporary

measure. The science quantitative trade policy

analysis was not very well developed to the 1970s.

CONCLUSION

Burkinafaso World Trade Organization accession will

have major and better implications for burkinafaso and

present both opportunities and challenges for East

Asia. Ianchovichina and Walmsley assess the possible

channels through which China's accession to the

WTO could affect East Asia and quantify these

effects using a dynamic computable general equilibrium

model.

Problems of communication or poor facilitie mean mass tourism

is not yet an option in Burkina Faso. However the country does

have some attractions of offer visitors; it is host of the Biennial


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BIBLIOGRAPHY

1: http://www.indexmundi.com/china/economy_overview.html

2: http://www.china.org.cn/english/BAT/169519.htm

3:http://www.ingentaconnect.com/content/mcb/284/2004/000000

08/00000002/art00008

4: http://ideas.repec.org/p/wbk/wbrwps/3109.html

5: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=636471

6: http://cje.oxfordjournals.org/cgi/content/abstract/28/6/937

NOTE

Short data available of textile industry in burkinafaso
http://www.indexmundi.com/china/economy_overview.htmlhttp://www.china.org.cn/english/BAT/169519.htmhttp://www.ingentaconnect.com/content/mcb/284/2004/00000008/00000002/art00008http://www.ingentaconnect.com/content/mcb/284/2004/00000008/00000002/art00008http://ideas.repec.org/p/wbk/wbrwps/3109.htmlhttp://papers.ssrn.com/sol3/papers.cfm?abstract_id=636471http://cje.oxfordjournals.org/cgi/content/abstract/28/6/937http://www.indexmundi.com/china/economy_overview.htmlhttp://www.china.org.cn/english/BAT/169519.htmhttp://www.ingentaconnect.com/content/mcb/284/2004/00000008/00000002/art00008http://www.ingentaconnect.com/content/mcb/284/2004/00000008/00000002/art00008http://ideas.repec.org/p/wbk/wbrwps/3109.htmlhttp://papers.ssrn.com/sol3/papers.cfm?abstract_id=636471http://cje.oxfordjournals.org/cgi/content/abstract/28/6/937

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