Presentation on theme: "WTO: World Trade Organization WTO replaced GATT as the organization overseeing the multilateral trading system. Location:Geneva, Switzerland Established:1."— Presentation transcript:
WTO: World Trade Organization WTO replaced GATT as the organization overseeing the multilateral trading system. Location:Geneva, Switzerland Established:1 January 1995 as a new avatar of GATT Created by:Uruguay Round negotiations ( ) Membership: 157 countries on 24 August 2012 Secretariat staff: 640 Head: Pascal Lamy (Director-General) Functions: Administering WTO trade agreements Forum for trade negotiations Handling trade disputes Monitoring national trade policies Technical assistance and training for developing countries Cooperation with other international organizations
What Is the WTO? The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. WTO agreements are negotiated and signed by the trading nations and ratified in their parliaments. The goal: ‘to help producers of goods and services, exporters, and importers conduct and grow their business’.
Background Roots: GATT, 1948 by 23 members. India too 8 th round in Uruguay: came up with idea of WTO : WTO came up It included agreements on goods, services and IPR
Two important principles MFN: no discrimination among members National treatment clause: ensures equal treatment to imported and domestic products
Difference b/w GATT and WTO WTO includes: Goods services and IPR WTO and its agreements are permanent, GATT was adhoc WTO has trade policy review Dispute settlement body More democratic: ministerial body
Decision making process: Levels 1. Ministerial Conference: designated members of member countries 2. General council: dispute settlement and trade policy review body 3. 3 more councils: on goods, services and IPR 4. 3 above have statutory bodies: on goods have 11 bodies..
The Organization Chart
The Organization Committees on Trade and Environment Trade and Development… Working parties on Accessions Working groups Committees Textiles Monitoring Body Working parties on General Council Council for Trade in Goods Council for Intellectual Property Rights in Trade Council for Trade In Services GC: Dispute Settlement Body GC: Trade Policy Review Body Ministerial Conference
The WTO must teach the world the benefits of trade We have seen what Ricardo had to say about comparative advantage, and the strong consensus among those who seriously consider trade issues. Trade provides a large proportion of an economy’s jobs. Global trade provides a large and growing share of these jobs.
Principles of WTO Members make decision.. No veto power.. 4 principles are: 1. Extending trade concessions equally to all members 2. Aiming for freer global trade with lower tariffs everywhere 3. Making trade more predictable through rules 4. Bringing about more competition by cutting subsidies
Major WTO Functions Administering WTO trade agreements Forum for trade negotiations Handling trade disputes Monitoring national trade policies Technical assistance and training for developing countries Cooperation with other international organizations
How to Join the WTO: the Accession Process First, “tell us about yourself”. Second, “work out with us individually what you have to offer.” (Country to country negotiations bilaterally.) Third, “let’s draft membership terms.” Finally, “the decision.”
Criticisms of the WTO The WTO undermines state sovereignty It undermines representative democracy Member nations are prevented from protecting the environment Members are unable to uphold laws guaranteeing workers’ rights The WTO is controlled by the larger nations The WTO represents the interests of large corporations and wealthy citizens
The Doha, Qatar Initiatives A new trade round was launched November, 2001 For the first time, developing countries demanded capacity-building and technical assistance to take part meaningfully.
The Doha, Qatar Initiatives The Pledging Conference was convened in accordance with the December 2001 decision of the WTO General Council. In that decision, the General Council set a target for core funding of CHF 15 million plus support in kind, including training courses for trade officials.