WTO is an international organization designed by its founders to supervise and liberalize international trade.

The organization officially commenced on January 1, 1995 under the Marrakesh Agreement, replacing the GATT.

It deals with regulation of trade between participating countries. It provides a framework for negotiating and formalizing trade agreements, and a dispute resolution process.

Formation Headquarters

: January 1 1995 : Centre William Rappard, Geneva, Switzerland Membership : 153 members Director-General: Pascal Lamy Budget : 196 million Swiss francs (approx. 209 million USD)in 2011 Staff : 629

The need for a world trade body was felt much earlier. The International Trade Organization (ITO) was proposed to be set up along with the World Bank and the IMF on the recommendations of the Bretton Woods Conference in 1944. The ITO was not set up but in its place GATT was established by the US, UK, and some other countries in 1947. GATT was biased in favor of the developed countries and was appropriately called the rich mens club. The developing countries insisted on setting up of ITO.

DATE

NAME (ROUND)

OUTCOME

1947

GENEVA ROUND

45,000 tariff concessions representing half of world trade.

Modest tariff reductions. 25% tariff reductions in relation to 1948 level.

1949 1950-51

ANNECY ROUND TORQUAY ROUND

1955-56 1961-62
1963-67

GENEVA ROUND DILLON ROUND

KENNEDY ROUND

modest tariff reductions. modest tariff reductions.

Average tariff reduction of 35% of industrial products, only modest reduction for agricultural products, anti-dumping code. Average tariff reduction of 34% of industrial products, non tariff trade barrier code.

1973-79

TOKYO ROUND

DATE

NAME (ROUND)

OUTCOME

1986- 1994

URUGUAY ROUND

Tariff, non tariff measures, rules, services, intellectual property, disputes settlement, creation of WTO, etc. Two separate working parties set-up on investment , competition law. Working Group formed on Government Procurement, Trade Facilitation added to WTO agenda.

9-13 Dec. 1996

SINGAPORE MINISTERIAL

18-20 may 1998 30 Nov. to 3 Dec. 1999

GENEVA MINISTERIAL Work, program on Ecommerce launched. SEATTLE MINISTERIAL Market access, agriculture, services, trade facilitation, Ecommerce, new round. New round.

9-13 Nov. 2001

DOHA MINISTERIAL

Sept. 2003

CANCUM

No agreement reached.

It is an International organization to promote multilateral trade. It has replaced GATT. It promotes free trade by removing tariff and non-tariff barriers in international trade. It has fixed set of rules and regulations and it has a legal status. Its rules and regulations are mutually designed and agreed upon by member nations. WTO has a large secretariat and huge organizational set-up. Unlike IMF and WORLD BANK, WTO is not an agent of United Nations.

To improve standard of living of people in the member countries. To ensure full employment and broad increase in effective demand. To enlarge production and trade of goods. Realizing these aims consistently with sustainable development and environment protection. The above objectives were included in GATT, but WTO also included some other objectives which are: To enlarge production and trade of services. To ensure optimum utilization of world resources. To accept the concept of sustainable development. To protect environment.