ROLE OF W.T.O. IN INDIAN

World Trade Organization is an international trade organization having set of rules and principles, mutually designed and agreed upon to promote international trade and reduction of tariff barriers and removal of import restrictions in particular In eighth round of General Agreement on Tariffs and Trade (GATT), popularly known as Uruguay Round, member nations of GATT.W.T.O was formed on first January, 1995. It took over GATT. Actually, W.T.O. is a new globally recognized trade organization with the new name succeeding GATT on renewed agreements and having a new vision and strong enforcement power to promote international trade. The W.T.O. provides opportunities for countries to grow and realize their export potentials, with appropriate domestic policies in place. The provisions of W.T.O. offered ample opportunities to India to expand its export market. Contrary to this, the price situation changed dramatically after 1996, which was the first year after implementation of Urguay Round Agreement and formation of W.T.O. International price of agricultural commodities have since then plummeted, because of which domestic price turned higher than international price, which made India an attractive market for import of most agricultural commodities. This situation resulted in a wide spread decline in agricultural export and had also pressure on domestic prices. The impact of W.T.O. on agriculture was severely felt by India as cheap imports have frequently hit the Indian market, causing shock waves among the agriculture producers. The changes in agricultural exports reveal that during pre W.T.O. period the increase was significantly remarkable while in the post W.T.O. period India has achieved small increase in agricultural exports, whereas it resulted in sharp and continuous increase in imports. This has adversely affected self reliance in agriculture. The foremost reason for this adverse effect is unprecedented decline in international prices, which in turn, was caused by attempts by almost all the countries to push exports and continuation of high level of domestic support and export subsidies by OECD countries.

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