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Seat No.: Enrolment
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA SEMESTER 3 EXAMINATION WINTER 2018
Subject Code: 3539291 Date:06/12/2018
Subject Name: WTO Multilateral Trading System and its Impact on Business

Time: 10:30am To 1:30pm Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.
No.
Marks
Q.1 Define the following with practical examples.
Non-discrimination
Dollarization
Reciprocity
Ad Valorem tariff
The International Fisher Effect
Binding enforceable commitments
Transparency
14
Q.2 Why GATT was considered as "rich man's club" in the earlier
years, by developing countries?
07
Write a note on Partnership Agreements between the European
Union and developing countries in Africa
07
OR
Define Technical Barriers to Trade and Sanitary Phytosanitary
Measures.
07
Q.3 Explain the various rules applicable to Valuation of goods for
customs Purposes with example.
07
Explain Import Licensing Procedures with technical regulations
and health sanitary regulations
07
OR
Q.3 Describe the improved discipline that would be adopted in the use
of subsidies in the agriculture sector in the Doha Round.
07
Write a detailed note on Safeguard, Anti-dumping and
Countervailing Measures in Trade. Also explain remedy
Measures of it.
07
Q.4 Tariffs should be reduced and non tariff measures eliminated by
participating in the rounds of negotiations held under the auspices
of WTO, justify this statement with suitable example.
07
Describe the various rules of GATT applicable to Exports, Also
explain export incentives, export taxes and export restrictions
07
OR
Q.4 What are the reasons for change in attitude of developing
countries and for increasing interest in participating WTO
discussions and negotiations? Explain in detail.
07
Write a note on MFN rule. Also explain exceptions to the MFN rule
provided by: (i)Preferential Trade Agreements (PTAs)
(ii)Generalized system of Preferences
07
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Q.5
CASE STUDY:
Uganda is heavily reliant on agricultural activities — in large part
dominated by smallholder farmers — and is a key player in
regional integration, bilateral and international negotiations as
developments in the multilateral trading system continue to evolve
rapidly. Uganda is a founding member of the WTO, Uganda
actively participates in these multilateral and bilateral trade
initiatives, which carry with them new opportunities and
challenges. The effective use of these trade initiatives depends very
much on how Uganda prepares for (and effectively participates in)
the negotiation process in order to articulate and defend its
interests. This is possible if preparations for (and the conduct of)
the trade negotiations are well structured, co-ordinated and include
all stakeholders, namely the government, the private sector, civil
society and academia.
Trade negotiations vary in scope and content but generally depend
on the structure of the economy of a particular country. Uganda,
like many other developing countries, is trying to diversify away
from traditional exports; the trade negotiations in which it is
involved are therefore aimed at securing markets for new products
(namely tea, tobacco and cotton), in addition to markets for the
traditional exports. Trade negotiations are also aimed at obtaining
the co-operation of trading partners on the technical and financial
assistance required to meet market preferences and to comply with
health and technical standards as well as other customs or entry
requirements. In the broader context of development support,
negotiations can also be targeted at obtaining assistance to
developing countries such as Uganda to address production and
supply constraints, so as to develop fully and increase their
production potential for both domestic and export markets.
An effective trade policy framework requires the formulation of
trade policy and strategy, the preparation and execution of
negotiating strategies, the implementation of agreements, and the
monitoring and evaluation of policies and agreements. This short
study attempts to identify Uganda's current capacity to prepare for,
and participate in, WTO trade negotiations. It considers the
processes taking place on national, regional and international levels
and how they affect the formulation and co-ordination of Uganda's
participation in trade negotiations. This study is expected to
contribute to a better understanding of the country's trade capacity
and its ability to co-ordinate and participate in trade development
negotiations. Policy actions to improve and strengthen capacity
among various stakeholders and the development of a sound trade
policy in Uganda are suggested.
Consultation processes in Uganda for trade negotiations
Consultations are important for formulating and executing an
effective trade policy, negotiating effectively, implementing trade
agreements, meeting ongoing trade obligations and defending the
country's trade-related rights (OECD 2003: 32). The consultation
process helps to ensure that Uganda's negotiating position is
realistic and pragmatic. Uganda's share in global trade is small and
cannot, therefore, influence the final outcome of trade negotiations;
however, the quality of the information obtained in the
consultation process could be of significant value in informing the
country's negotiating position. The consultation process ensures
that a country's position covers all areas and allows for an open
and transparent exchange of ideas among stakeholders.
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cannot, therefore, influence the final outcome of trade negotiations;
however, the quality of the information obtained in the
consultation process could be of significant value in informing the
country's negotiating position. The consultation process ensures
that a country's position covers all areas and allows for an open
and transparent exchange of ideas among stakeholders.
The consultation process often has a number of objectives,
including but not limited to seeking the views of stakeholders
on how the negotiations could help their various constituencies in
achieving their goals; building consensus among stakeholders
on key current and emerging issues affecting the country's
negotiating position; and keeping stakeholders informed of the
country's negotiating positions as they are being developed.
Interest-based discussions provide stakeholders with an
opportunity to discuss their needs, desires, concerns and fears, and
provide the potential for greater creativity and consensus on
common goals.
Uganda's preparation and participation in WTO trade negotiations
take place at WTO meetings abroad (most often in Geneva) or in
the capital, Kampala, where the lead ministries on WTO issues are
to be found, as well as the various domestic stakeholder institutions
in the private sector, academia and among civil society groups. A
link has been established between representatives taking part in the
negotiations abroad and ministry officials and support institutions
in the capital. The latter are expected to provide timely information
in support of the negotiating positions adopted, to enable Uganda's
representatives in Geneva, or elsewhere abroad, to argue the
country's positions. The support groups are briefed on the twists
and turns of the negotiations and are expected to provide feedback
and input to the negotiators regarding the way forward.
The process of preparing for trade negotiations in Uganda is
largely a consultative process co-ordinated by the Interinstitutional
Trade Committee which includes government
institutions, the private sector, academia and civil society
organizations. The IITC is a broad-based national body that
formulates trade policy and negotiating positions for Uganda; its
members are expected to present the views of the constituencies
they represent. The Ministry of Tourism, Trade and Industry
which chairs the IITC and acts as its secretariat, is the
chief government negotiator. It co-ordinates the negotiation
process by consulting stakeholders during the formulation of the
country's negotiating positions, linking stakeholders with the
government (before, during and after the negotiations), and
articulating and defending Uganda's interests during the
negotiation process. The MTTI is also responsible for the
implementation of the WTO Agreements.
The way in which consultations are structured and co-ordinated,
however, is as important as the seriousness with which the
stakeholders regard the process; participants should represent the
views of their constituencies faithfully and ensure that the
consultations serve to inform the trade policy process.
The key objective of the stakeholder consultations in Uganda is to
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reach a consensus on national development goals and the means
available to achieve them, as well as to refine the negotiations
strategy in response to progress and changing circumstances in the
negotiations. To get a sense of the actual preparation and
development of the negotiation process in Uganda, views on this
were sought from stakeholders using structured interviews and
focused group discussion. The following section presents the
challenges for trade negotiations by Uganda as identified through
these interviews.
The way forward
Trade negotiations are an integral part of international and national
development strategies. The capacity to prepare adequately for
such negotiations and the level and manner of participation have an
important bearing on the outcome of trade negotiations for any
economy. It is not the trade negotiation per se that can drive an
economy to development, but rather the post-negotiation handling
or adjustments that are made to take advantage of the opportunities
created by negotiations. For example, all the WTO agreements
have longer transition periods for, and give special and differential
treatment to, LDCs. However, most LDCs, including Uganda,
seem not to have taken full advantage of, or benefited from, these
opportunities. This is largely attributable to the failure of these
countries to reorient national policies in a direction that can help
them tap the opportunities arising from trade negotiations, such as
tariff cuts under the Uruguay Round, the use of subsidies in one of
the boxes (specifically, the green box) under the Agreement on
Agriculture, and so forth.
Uganda's current Poverty Eradication Action Plan for
example, does not have trade issues as a priority so as to tap trade
opportunities created by the Uruguay Round. Tapping these
opportunities had not been a national priority since the first PEAP
was developed in 1997. Only in the recently concluded PEAP
revision exercise of 2003/2004 was trade issues included in
national development plans. The way forward is for Uganda to
prepare its development policies in such a way as to enable the
country to benefit from the trade opportunities arising from
numerous trade negotiations. Mainstreaming trade development
strategies in the overall national development policy framework, a
process that has just begun, should be strengthened.
The government's handling of trade negotiations is still wanting.
This could partly be due to the fact that trade issues have not yet
been placed at the centre of national development objectives. It is
important that the government views trade negotiations as an
important development tool in which it needs to invest. There is a
need to provide technical expertise in missions to trade bodies so
the members of such missions can handle a number of issues at the
same time, while also coordinating in time with the ministry
(MTTI).
The government needs to fund its own negotiators so that their
capacity and the attention paid to negotiations are not
compromised. Foreign-funded and facilitated negotiators affect the
preparation process: if the funding body delays confirmation of
funding, the negotiator has the uncertainty of not knowing whether
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he or she will be able to attend the negotiations.
The diverse composition of the IITC is good for the consultation
process, but the knowledge base of the members is still wanting. It
is imperative that they are trained in trade issues, specifically on
the multilateral trading system, so that they can adequately push
for the interests of their constituents and properly advise
government during the consultation phase in preparation for trade
negotiations.
The need also exists for increasing awareness of the importance of
WTO negotiations among stakeholders, particularly the private
sector and civil society. Manufacturing and farmers' associations
(e.g. the Uganda Manufacturers' Association) could be targeted in
the process of raising awareness. Stakeholders should be well
informed as to WTO requirements and their implications, so as to
obtain a good understanding of the negotiation process.
Explain trade negotiation policy of Uganda in context with cotton.
07
Describe various strategies consultation process adopted by
Uganda.
07
OR
Q.5 Explain in detail the challenges opportunities of Uganda other
developing countries.
07

Describe the poverty removal strategies adopted by Uganda. Also
give your suggestion.
07