PRESENTATION

ON
ROLE OF WTO
IN INTERNATIONAL
BUSINESS
Presented by -

Mahendra
Amol ,
Praveen ,
Rakesh .
 INTRODUCTION

Definition of WTO

World Trade Organization. An international agency which encourages trade

between member nations, administers global trade agreements and resolves
disputes when they arise.

WTO officially commenced on January 1, 1995 under the Marrakesh Agreement

replacing the General Agreements on Tariffs and Trade (GATT), which
commenced in 1947.

The WTO's headquarters is at the

Centre William Rappard, Geneva, Switzerland
The WTO has 153 members, representing more than 95% of total world trade
India is founder member since ,1 January 1995.

Pascal Lamy Director-General of WTO

Budget : approx. 182 million USD in 2009.

Secretariat staff : 625

The WTO is governed by a ministerial conference,
meeting every two years

 How is the WTO replaced GATT

• Objective

• Provisional Basis

• Contracting Parties

• Dispute Settlement System

 Structure of the WTO
 Achievements of WTO

The WTO has several achievements as listed below:

1- Enhanced the value and quantity of trade.

2- Eradicated trade and non trade barriers.
3- Broadened the trade governance scope to trade in investment,
services and intellectual property.
4- Emerged as a greater institution than GATT.
5- Expanded the WTO agenda by including developmental policies.
6- Eased settlement of disputes by enforcing improved rules.
7- Improved monitoring by introducing the Trade Policy Review and
the World Trade Report
8- Increased transparency
9- Encouraged sustainable trade development
 Principles of WTO

• Encouraging development and economic reform

• Promoting fair competition

• Comparative advantage

• Freer trade: gradually, through negotiation

• Trade without discrimination

• Predictability: through binding and transparency

 Objectives of the WTO

• Removing trade barriers

• Eliminating discriminatory

• Integrates developing and least developed economies .

• Optimum use of world’s resources

• Facililate development of society

 Function of WTO

• Administering World Trade Organization (WTO) trade agreement Forum the

trade negotiation

• Handling trade disputes

• Monitoring national trade policy

• Technical assistance and training for developing countries

• Co-operation with other international organization (like help from World Bank
and IMF).
 Four Basic Rules

• Binding of Tariffs

• Protection to Domestic Industry Through Tariffs

• Most Favoured-Nation(MFN) Treatment:

• National Treatment Rule:

 conclusion

In this period of increased financial uncertainty around the world,

the rules-based trading system of the WTO provides a hugely
important source of economic stability for governments, for business
and for consumers.

It played that role very well ten years ago during the Asian financial
crisis, acting as a shock absorber between the financial and the real
sectors of the world economy.

By keeping international trade in goods and services flowing, at the

time the WTO system contributing to ensuring that the financial
shock would not deteriorate into a far worse economic recession
worldwide.
Thank you