Page 249 - International Marketing

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BRILLIANT'S Export Management 251

3. It provides the forum for negotiations among its members
concerning then multilateral trade relations in matters relating to
the agreements and framework for the implementation of the result
of such negotiations, as decided by the Ministerial conference.
4. It administers the understanding on rules and procedures governing
the settlement of disputes of the agreements.
5. It cooperates with the IMF and the World Bank and its affiliated
agencies with a view to achieving greater coherence in global
economic policy making.
Major Implications of WTO
1. Security of Access to International Markets: In addition to tariff
reductions agreed under the Uruguay Round, a large number of tariff lines
in trade in goods among the member countries have bound against further
increases. Such bindings ensure that improved access to international
markets resulting from tariff reductions is not disrupted by sudden in-
crease in the rate of import duties or imposition of other restrictions by
importing countries. Thus, the binding enables international marketing firms
to prepare investment and production plans under conditions of certainty
resulting from secured access to international markets.
2. Stability of Access to International Markets: The WTO system
also provides stability of access to international markets by instructing all
member countries to apply at their respective borders the uniform set of
rules proposed in various agreements. The adoption of such uniform rules
helps international marketing firms to eliminate dissimilarities in the re-
quirements of different markets.
3. Implications for Importers of Raw Materials and Other In-
puts: A firm operating in international markets often has to import raw
materials and intermediate products and services for export production
purposes. The basic rule requiring imports to be allowed in without further
restrictions upon payment of duties and obligation to ensure that the other
national regulations applied at the border conform to the uniform rules laid
down by the agreements facilitate imports.
WTO Agreement
The Agreement establishing the WTO consists of the following which
embody the results of the Uruguay Round of the Multilateral Trade Nego-
tiations:
1. Multilateral Agreements on Trade in Goods : GATT Rules 1994.
2. Agreement on Trade Related Aspects of Intellectual Property Rights
(TRIPS)