WTO World Trade Organization / Organisation mondiale du Commerce Set up in 1995, follower to the GATT (General Agreement on tariffs and trade, initiated in 1947) An international organization designed to supervise and liberalize international trade –150 member countries –97% of world trade

Negotiate and implement trade agreements –Rules or agreements are the results of negotiations between member countries  consensus Supervise the execution –There exists a procedure for resolving trade quarrels (“Dispute settlement understanding”) WTO (2)

Ministerial conference –Representatives for member countries Governments; agreements have to be ratified by national parliaments in order to be valid General Council –Ambassadors, heads of delegation, experts Specialized committees, working groups Secretariat WTO (3)

Objects of negotiations Lower or reduce trade barriers –Tarifs –Subsidies –Restrictions –Technical standards –Etc…

Principles Most favoured nation clause Transparency  publish trade regulations Predictability  no arbitrary changes to existing rules Negotiation and consensus  everybody agrees Dispute settlement procedures Simplification, standardization

Dispute settlement Procedure for resolving trade quarrels Vital for enforcing rules Specially appointed judges and experts Settling differences through consultation

Benefits Every advantage linked to multilateral cooperation Lowers the price of consumption Gives more choice Stimulates economic growth, employment Raises incomes and standard of living