The WTO world trade organisation world trade organisation

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WTO



Meaning

The World Trade Organization (WTO) is the only

international organization dealing with the

global rules of trade between nations. Its main

function is to ensure that trade flows as

smoothly, predictably and freely as possible

.



FACT FILE

• Location- Geneva (Switzerland)

• Established- 1 January 1995

•

Created By- Uruguay Round negotiations(1986-94)

• Membership- 157 countries on August 2012

• Budget- 189 million Swiss Francs for 2009

• Secretariat Staff - 625

•

Head- Pascal Lamy (Director-General)



OBJECTIVE

• To promote and ensure the international trade

in members countries with the mantra of LPG.

• Trade without discrimination.

• To set and enforce rules for international

trade.

•

To provide forum for negotiating andmonitoring the international trade.

• To resolve trade disputes.



Contd….

• To increase the transparency of decision

making processes.

• To cooperate with other major international

economic institution involved in global

economic management.

• To help developing countries benefit fully from

the global trading system.



OVERVIEW

• The WTO agreements cover goods, services and intellectualproperty.

• They spell out the principles of liberalization, and the

permitted exceptions.

• They include individual countries’ commitments to lowercustoms tariffs and other trade barriers, and to open andkeep open services markets.

• They set procedures for settling disputes.

• They prescribe special treatment for developing countries.



COND…..

• They require governments to make their trade policiestransparent by notifying the WTO about laws in forceand measures adopted, and through regular reports bythe secretariat on countries’ trade policies

• These agreements are often called the WTO’s trade

rules, and the WTO is often described as “rules-based”,a system based on rules. But it’s important to

remember that the rules are actually agreements thatgovernments negotiated.



In a nutshell

The basic structure of the WTO agreements: how the six main areas

fit together — the umbrella WTO Agreement, goods, services,

intellectual property, disputes and trade policy reviews.

Umbrella AGREEMENT ESTABLISHING WTO

Goods Services Intellectual

property

Basic principles GATT GATS TRIPS

Additional details Other goods

agreements and

annexes

Services annexes

Market accesscommitments

Countries’schedules of

commitments

Countries’ schedulesof

commitments(and

MFN exemptions)

Dispute settlement DISPUTE SETTLEMENT

Transparency TRADE POLICY REVIEWS



MINISTERIAL CONFERENCE •

First Ministerial Conference- in Singapore in 1996• Second Ministerial Conference- in Geneva in

1998

•

Third Ministerial Conference- in Seattle in 1999• Fourth Ministerial Conference- in Doha in 2001

• Fifth Ministerial Conference- in Cancun in 2003

•

Sixth Ministerial Conference- in Hong-Cong in2005

• Seventh Ministerial Conference- in Geneva in

2009



Doha Development Agenda: Negotiations,

implementation and development

• The November 2001 declaration of the Fourth MinisterialConference in Doha, Qatar, provides the mandate fornegotiations on a range of subjects and other work. Thenegotiations include those on agriculture and services, which

began in early 2000.

• In Doha, Ministers also approved a linked decision onimplementation — problems developing countries face inimplementing the current WTO agreements.

• Ministerial discussions have taken place in Cancún in 2003,Geneva in 2004, Hong Kong in 2005 and Geneva in 2006 and2008.



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.



BENEFITS OF W.T.O

1. This system helps in promoting peace.

2. Distributes are handled constructively.

3. Rules make life easier for all.

4. It provides more choice of product andqualities



Cont…

6. Trade raises income

7. Trade stimulate economics growth.

8.The basic principles make life more efficient.

9. Promotes better standard of living.

10. The system encourages good government.



LOOPHOLES IN WTO

1. There is a major problem of transmission to the

Ministerial Conference of drafts that are not approved by

members.

2. The holding of “informal”, undocumented and exclusive

meetings that undermine transparency and participation

3. The views of many members are ignored and not reflected or

not properly reflected in the negotiating texts.

Pascal Lamy,

director general, WTO.



Cont…

4. Members are also excluded from majordecisions of an administrative nature, e.g.extending the conference for an extra day.

5. The lack of a functional, operative generalcommittee or assembly that functions as adecision-making forum throughout theConference.



Proposals for reform

1. The consensus system should be applied in amanner that fully respects the views of developing of country members.

2. The views of every member must berespected in a decision involving consensusand explicit consensus, especially in the caseof important issues.

3. Developing countries should not besubjected to economic and political pressurerelating to negotiations



Cont…

4.Meetings, including “informal consultations”, should

be open to all members. The schedule of all meetings

should also be made known to all members.

5. Proper notice should be given for all

meetings and documents related to meetingsshould be distributed early enough.



conclusions

So we have learned:

• Trade opening and trade barriers is very

necessary to promote growth and development.• Its most legitimate system coz its fairest system of

all , as all the decisions are taken by memberswhether strong or week.

•

cannot ignore adjustment cost created up byopening of markets. It should not be relegated tofuture



Thank You

Documents

The WTO world trade organisation world trade organisation