The World Trade Organization

Prepared By : Bhakti P. Shelar SMBA-2 Roll No - 08

Introduction
WTO i.e. World Trade Organization - The successor of GATT ( General Agreement on Tariffs and Trade) is the only organization dealing with the rules of trade between the nations. GATT - Established in 1948 due to international desire for liberalized Trade. - Its an Agreement signed by bulk of worlds trading nations which guided International Trade by its rules and procedures. - GATT was transformed into WTO with effect from 1st Jan 1995 with more enlarged role and power than the GATT. WTO Established on 1st Jan 1995 at Geneva, Switzerland Created by Uruguay Round negotiations (1986-94) Membership is of 153 countries (on 23 July 2008) Budget is of 189 million Swiss francs for 2009 2007 Secretariat Staff : 625 Head : Director-General, Pascal Lamy. Main Goal: To Help producers of good and services, Exporters and Importers to conduct their Business and To improve the welfare of the peoples of the member countries. 2

World Trade Organization: Rounds

System was developed through a series of trade negotiations or rounds held under GATT.

Rounds of GATT Multilateral Trade Negotiations

No. 1-5 6 Years 1947-61 1964-67 Kennedy Name Accomplishments Reduced tariffs Tariffs + anti-dumping

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1973-79
1986-94 2001-?

Tokyo
Uruguay Doha

Tariffs + Non Tariff Barriers (NTBs)

Tariffs, NTBs, Services, Intellectual Property, Textiles, Ag., Dispute Settlement, Created WTO (Doha Development Agenda) Working on nonnegotiable tariffs, trade, environment and other issues in which developing countries finding difficulties while implementing WTO agreements.
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Objectives & Functions

Objectives : Ensuring full employment and large steadily growing volume of real income and effective demand Raising standard of living and income . Developing full use of resources of the world. Expansion of production and international trade. Functions : Administering and Implementing the multilateral trade agreements. Acting as a forum for multilateral trade negotiations . Seeking to resolve trade disputes. Monitoring national trade policies. Cooperating with other international institutions. Maintaining trade related database. Acting as a watchdog of international trade . Technical assistance and training for developing countries.

Structure
WTO Members : 153 members, accounting almost 95% world trade. Around 30 others are negotiating members. Decisions are made by entire membership. Structure: Ministerial Conference General Council - WTOs top level decision making body which meets at least once every two years. - Ambassadors and heads of delegation. Meets as a General Council and As a Trade policy Review Body and the Dispute settlement Body several times in a year in the Geneva Headquarters.

Goods, Services, and Intellectual Property (TRIPS) - Next Level to the General Council dealing with Councils. Various Issues relating to each category. Other Specialized Parties - Deals with Individual agreements and other areas such as Environment, Development, Membership applications and regional trade agreements. 5

SECRETARIAT
The WTO Secretariat, based in Geneva, has around 625 staff and is headed by a director General. The Secretariat does not have the decision-making role, since decisions are taken by members themselves. The Secretariats main duties are to supply technical support for the various councils and committees and the ministerial conferences, to provide technical assistance for developing countries, to analyze world trade, and to explain WTO a airs to the public and media. The Secretariat also provides some forms of legal assistance in the dispute settlement process and advises governments wishing to become members of the WTO. The annual budget is roughly 189 million Swiss francs.

WTO Agreements
Result of negotiations between the members. Current sets were outcome of 1986-94 Uruguay Round negotiations rules of GATT. which includes major

GATT is now WTOs new Rule Book

Uruguay Round created new sets of rules for dealing with trade in services, relevant aspects of Intellectual Property, Disputes Settlement, and trade policy reviews. The complete set of rules is of 3000 pages containing of about 30 agreements and separate commitments ( called Schedules) made by individual members in specific areas such as lower customs duty rates and service market opening. Through these agreements, WTO members operate a non-discriminatory trading system that spells out their rights and their obligations. Each country receives guarantees that its exports will be treated fairly and consistently in other countries markets. Each promises to do the same for imports into its own market.
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WTO Coverage
GATT 1994 Multilateral Agreements GATT 1947 Rectifications, amendments and modifications which entered into force before 1.1.1995 (Protocols, Decisions of the CONTRACTING PARTIES). Protocols of Accession (to GATT) Understandings on (Art. II:1b, XVII, XXIV, XXVIII, BOP provisions, Waivers) Marrakesh Protocol Schedules of Tariff Concessions Agreements on Agriculture Textiles and Clothing TRIMs (Trade Related Investment Measures) Antidumping Subsidies and Countervailing Measures

on Trade in Goods

PSI Rules of Origin Safeguards Import Licensing Customs Valuation TBT SPS Decisions, Declarations
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WTO Coverage
General Agreement on Trade in Services
GATS PART I (Scope and Definitions) PART II (General Obligations and Disciplines) PART III (Specific Commitments) Schedules on Specific Commitments PART IV (Progressive Liberalization) PART V (Institutional Provisions) ANNEXES Annex on Article II (MFN) exemptions) Lists of Art. II (MFN) Exemptions Annex on Movement of Natural Persons Supplying Services under the GATS 3rd Protocol (1995) Annex on Air Transport Services Annex on Financial Services 2nd, 5th Protocol (1995, 1997) Second Annex on Financial Services Annex on Negotiations on Maritime Transport Services Annex on Telecommunications Annex on Negotiations on Basic Telecommunications 4th Protocol (1997) Decisions, Declarations
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WTO Coverage
Trade-Related Aspects of Intellectual Property Rights (TRIPS)
TRIPS PART I (General Provisions and Basic Principles) PART II (Standards concerning the availability, scope and use of IPR) Section 1: Copyright and Related Rights Section 2: Trademarks Section 3: Geographical Indications Section 4: Industrial Designs Section 5: Patents Section 6: Layout-designs (Topographies) of Integrated Circuits Section 7: Protection of Undisclosed Information (Trade Secrets) Section 8: Control of Anti-competitive Practices in Contractual Licenses PART III (Enforcement of IPR) PART IV (Acquisition and Maintenance of IPR and related Inter Partes Procedures) PART V (Dispute Prevention and Settlement) PART VI (Transitional Arrangements) PART VII (Institutional arrangements: Final Provisions) Decisions, Declarations
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Dispute settlement
The WTOs procedure for resolving trade quarrels under the Dispute Settlement Understanding is vital for enforcing the rules and therefore for ensuring that trade flows smoothly.

Countries bring disputes to the WTO if they think their rights under the agreements are being disobeyed.
Judgments by specially-appointed independent experts are based interpretations of the agreements and individual countries commitments. on

The system encourages countries to settle their differences through consultation. If consultations fail the complaining country can ask for a panel of experts to be appointed. And their final recommendations should be followed by complaining countries. Their findings are based on agreements mentioned. More than 300 cases are brought to WTO, hence confidence in system has increased.
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Developing Countries
DEVELOPMENT AND TRADE: A WTO Committee on Trade and Development, assisted by a Sub-Committee on Least-Developed Countries, looks at developing countries special needs. Its responsibility includes implementation of the agreements, technical cooperation, and the increased participation of developing countries in the global trading system. TECHNICAL ASSISTANCE AND TRAINING: The WTO organizes hundreds of technical cooperation missions to developing countries annually. It holds on average three trade policy courses each year in Geneva for government officials. Regional seminars are held regularly in all regions of the world with a special emphasis on African countries. Training courses are also organized in Geneva for officials from countries in transition from central planning to market economies.

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Facts and figures

In the period 1948-1994, the GATT received 123 notifications of Regional Trade Agreements (relating to trade in goods), and since the creation of the WTO in 1995, over 300 additional arrangements covering trade in goods or services have been notified. Evolution of Regional Trade Agreements in the world, 1948-2011

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