2WTO: 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 A french
3What 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’.
4Background Roots: GATT, 1948 by 23 members. India too 8th round in Uruguay: came up with idea of WTO: WTO came upIt included agreements on goods, services and IPR
5Two important principles MFN: no discrimination among membersNational treatment clause: ensures equal treatment to imported and domestic products
6Difference b/w GATT and WTO WTO includes:Goods services and IPRWTO and its agreements are permanent, GATT was adhocWTO has trade policy reviewDispute settlement bodyMore democratic: ministerial body
7Decision making process: Levels Ministerial Conference: designated members of member countriesGeneral council: dispute settlement and trade policy review body3 more councils: on goods, services and IPR3 above have statutory bodies: on goods have 11 bodies..
9Ministerial Conference The OrganizationGeneral CouncilCouncil for Tradein GoodsCouncil for IntellectualProperty Rights in TradeIn ServicesGC: DisputeSettlement BodyGC: Trade PolicyReview BodyMinisterial ConferenceCommitteesCommitteesCommittees onTrade and EnvironmentTrade and Development…Textiles Monitoring BodyWorking parties onWorking parties on AccessionsWorking groups
10The 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.
11Principles of WTO Members make decision.. No veto power.. 4 principles are:Extending trade concessions equally to all membersAiming for freer global trade with lower tariffs everywhereMaking trade more predictable through rulesBringing about more competition by cutting subsidies
12Major WTO Functions Administering WTO trade agreements Forum for trade negotiationsHandling trade disputesMonitoring national trade policiesTechnical assistance and training for developing countriesCooperation with other international organizations
13How 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.”
14Criticisms of the WTO The WTO undermines state sovereignty It undermines representative democracyMember nations are prevented from protecting the environmentMembers are unable to uphold laws guaranteeing workers’ rightsThe WTO is controlled by the larger nationsThe WTO represents the interests of large corporations and wealthy citizens
15The Doha, Qatar Initiatives A new trade round was launched November, 2001For the first time, developing countries demanded capacity-building and technical assistance to take part meaningfully.
16The 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.