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Global GrowthWorld Economic Outlook update JULY 2010.PDFGLOBAL GROWTHWORLD ECONOMIC OUTLOOK UPDATE JULY 2010.PDF AND WEO APRIL 2009 statistical appendixWEO 2009 Stat APPENDIX.PDF TABLE A (PAGE 9 OF 14).
In 2010, world output expected to rise by 4 percent. Sluggish recovery in advanced countries and vigourous recovery in emerging economies Recovery a result of extraordinary policy stimulus: Easy monetary policy and expansionist fiscal policy.
The global recovery off to a stronger start than anticipated earlier but proceeding at different speeds in the various regions .
GLOBAL GROWTH
Global growth slowed to 3.6% in 2007 from 3.9 in 2006. Most of it was caused by slow down in high-income countries. US growth fell to 2.2 in 2007 from 2.9 in 2006 Fall in global growth was cushioned to some extent by developing countries, which posted a robust 7.4% in 2007, just about same as in 2006. China and India are two fastest growing major economies of the world. World growth likely to slow down mainly due to global financial turmoil, high commodity and food prices.
WHAT IS WTO?
AN ORGANIZATION TO LIBERALISE TRADE. A NEGOTIATING FORUM FOR TRADE AGREEMENTS. PLACE TO SETTLE TRADE DISPUTES OPERATES A SYSTEM OF TRADE RULES OR CONTRACTS BINDING GOVERNMENTS TO KEEP THEIR TRADE POLICIES WITHIN AGREED LIMITS. DEALS WITH RULES OF TRADE BETWEEN MEMBER NATIONS BORN IN 1995 GATT, SINCE 1948, HAD PROVIDED THE RULES FOR THE SYSTEM.
WHAT IS WTO
WTO BORN OUT OF NEGOTIATIONS BULK OF WTOS CURRENT WORK COMES FROM 1986-94 NEGOTIATIONS CALLED URUGUAY ROUND EARLIER NEGOTIATIONS UNDER GATT CURRENT NEGOTIATIONS UNDER DOHA ROUND STARTED IN 2001
TRADE ROUNDS
Year 1947 1949 1951 1956 Place Geneva Annecy Torquay Geneva Subjects covered Tariffs Tariffs Tariffs Tariffs Countries 23 13 38 26
1960-61
26
1964-67
62
1973-79
102
1986-94
Geneva (Uruguay Tariffs, non-tariffs, services, intellectual property, dispute settlement, Round) textiles, agriculture and creation of WTO
123
FARM SUBSIDIES
Agricultural subsidy is the process whereby governments give large sums of money to agriculture traders and farmers to increase their overall profits; this allows these exporters to drastically reduce the prices of their goods U.S. producers will market crops at very low prices, and then have their incomes topped up by government transfers. These measures have allowed the U.S. to dump its farm surplus on world markets. For example, the U.S. exports corn at prices 20 percent below the cost of actual production, and wheat at 46 percent below cost. This has resulted in Mexican corn farmers being put out of business. Giant grain traders, such as the Cargill Corporation, will be able to buy commodities from farmers at artificially low prices and farmers will get fat government checks to make up for their losses.
TARIFF BARRIERS
CUSTOMS DUTY ON IMPORT OF GOODS BINDING TARIFFS:
The market access schedules are not simply announcements of tariff rates. They represent commitments not to increase tariffs above the listed rates the rates are bound. For developed countries, the bound rates are generally the rates actually charged. Most developing countries have bound the rates somewhat higher than the actual rates charged, so the bound rates serve as ceilings. Countries can break a commitment (i.e. raise a tariff above the bound rate), but only with difficulty. To do so they have to negotiate with the countries most concerned and that could result in compensation for trading partners loss of trade.
Percentages of tariffs bound before and after the 198694 talks Before After 78 99 21 73 73 98
NON-TARIFF BARRIERS
BARRIERS OTHER THAN CUSTOMS DUTY THAT RESTRICTS TRADE NTB INCLUDES IMPORT LICENSING SYSTEM RULES FOR THE VALUATION OF GOODS AT CUSTOMS PRESHIPMENT INSPECTION RULES OF ORIGIN: Laws, regulations and administrative procedures which determine a products country of origin. A decision by a customs authority on origin can determine whether a shipment falls within a quota limitation, qualifies for a tariff preference or is affected by an anti-dumping duty. These rules can vary from country to country. INVESTMENT MEASURES: LOCAL CONTENT REQUIREMENT AND TRADE BALANCING MEASURES
TRADING BLOCKS
FTA CUSTOMS UNION COMMON MARKET ECONOMIC UNION
ECONOMIC UNION
THIS GOES BEYOND A COMMON MARKET. BEYOND THE OBJECTIVES OF A COMMON MARKET, AN ECONOMIC UNION HARMONISES MACROECONOMIC POLICIES OF MEMBER COUNTRIES. THIS MEANS EXCHANGE RATES, TAXES, MONETARY POLICY AND THE LIKE.
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DR. RAMAKANT AGRAWAL XISS, RANCHI ramakantagrawal@yahoo.com Contact: 09431109076