2. INTRODUCTION TO WTO
The World Trade Organization (WTO) is the global
international organization dealing with the rules of trade
between nations.
The goal is to help producers of goods and services,
exporters, and importers to conduct their business
smoothly, predictably and freely as possible
It is a forum for member governments to negotiate trade
agreements and settle trade related disputes they face with
each other.
WTO agreements, negotiated and signed by the bulk of
the world’s trading nations and ratified in their parliaments
3. HISTORYOF WTO
The WTO’s creation on 1 January 1995 marked the
biggest reform of international trade since the end of the
Second World War.
In 1948, the General Agreement on Tariffs and Trade
focused on reducing tariffs, anti-dumping, and non-tariff
measures. From 1986 –1994 the Uruguay Round round of
negotiations led to the formal creation of the WTO.
In 1997, the WTO brokered agreements promoting trade
in telecommunications services among 69 countries. It
also removed tariffs on information technology products
between 40 members.
It improved trade of banking, insurance, securities and
financial information between 70 countries.
4. GAT AND WTO
Before the WTO trade was done under GATT. GATT
mainly dealt with trade in goods.
From 1948 to 1994, the GATT provided the rules for
much of world trade and presided over periods that saw
some of the highest growth rates in international
commerce. but it was a provisional agreement and
organization.
The WTO and its agreements also cover trade in services
and intellectual property. The birth of the WTO also
created new procedures for the settlement of disputes.
5. GATT and WTO Directors-General
The first Director-General of the GATT was Eric
Wyndham White, who held office from 1948 to 1968.
Roberto Azevêdo is the sixth Director-General of the
WTO. His appointment took effect on 1 September 2013
for a four-year term.
In February 2017, WTO members agreed to appoint Mr
Azevêdo for a second four-year term, starting on 1
September 2017.
6. MEMBERSAND OBSERVERS OF
WTO
WTO has over 160 members representing 98 per cent of
world trade. Over 20 countries are seeking to join the
WTO.
Some of the member countries of WTO are following
Argentina — 1 January 1995
Australia — 1 January 1995
Bangladesh — 1 January 1995
Canada — 1 January 1995
China — 11 December 2001
Pakistan — 1 January 1995
India — 1 January 1995
7. OBSERVORS OF WTO
Observers have access to the main WTO document series and
may also request technical assistance from the Secretariat in
relation to the operation of the WTO system in general, as well
as to negotiations on accession to the WTO Agreement
Some of the observers of WTO are following:
Iran
Iraq
Lebanese Republic
Libya
SaoTomé and Principe
Serbia
Somalia
South Sudan
Sudan
8. Accessions
To join the WTO, a government has to bring its economic
and trade policies in line
Any state or customs territory having full autonomy in the
conduct of its trade policies may become a member
(“accede to”) the WTO, but all WTO members must agree
on the terms.
This is done through the establishment of a working party
of WTO members and through a process of negotiations
9. STRUCTURE OF WTO
The Ministerial Conference (MC) is at the top of the
structural organization of the WTO. It is the supreme
governing body which takes ultimate decisions on all
matters.
It is constituted by representatives of (usually, Ministers of
Trade) all the member countries.
The General Council (GC) is composed of the
representatives of all the members. It is the real engine of
the WTO which acts on behalf of the MC.
It also acts as the Dispute Settlement Body as well as the
Trade Policy Review Body.
10. OBJECTIVES OF WTO
Raising standards of living
Ensuring full employment
Realizing these aims consistently with sustainable
development and environmental protection
Ensuring that developing countries, especially the least
developed countries (LDCs), secure a proper share in the
growth of international trade.
11. BENEFITS OF TRADING WITH WTO
The system helps promote peace
Disputes are handled constructively
Rules make life easier for all
Free trade cuts the costs of living
It provides more choice of products and
qualities
Trade raises incomes
Trade stimulates economic growth
The system encourages good government
12. FEATURES OF WTO:
•Non-discrimination:
•Every member state of international
organisation can treat each different member state equally .
•No discrimination will be done by a member of state
between different trading states who are also members of
WTO.
•However, some exceptions have been provided in this
regard, for example, in case regional trade agreements exist.
•Foreign goods, services, trademarks, patents and
copyrights shall be given the same treatment as is given to
nationals of a country.
13. Free trade:
The objective of WTO, is to promote free trade among nations
through negotiations.
For this purpose WTO has to work for progressive liberalization
of trade through reduction in tariffs and removal of quantitative
restrictions on imports by member countries.
Stability in the Trading System:
Under WTO agreements member states are committed not to raise
tariff and non-tariff trade barriers arbitrarily.
This provides stability and predictability to the trading system.
14. Special Concern for Developing Countries:
WTO has shown special concern for the developing countries as it
has given them more time to adjust to agreements under it and also
some special privileges.
It would deal with not only the disputes in the area of trade in goods
but a whole range of issues such services and intellectual property
rights.
Decision at the Ministerial Level Meeting:
Another feature of WTO agreement is that it has upgraded decision-
making at the ministerial level.
Important decisions regarding trade related matters are to be taken at
the Ministerial level meetings.
Ministerial level meetings have now been incorporated in the legal
structure of WTO.
15. Wider Range of Issues:
Another important feature of WTO is that it will deal with
not only issues and disputes relating to trade in goods
But also the whole range of issues concerning trade in
services and intellectual property rights.
Promotion of Fair Competition:
WTO provides for transparent, fair and undistorted
competition among the various countries.
Rules such as Most Favoured Nation (MFN) treatment to
all trading parties, equal treatment to foreign goods,
patents and copyrights as with nationals ensure fair
competition among trading countries.
16. Multilateral Trading System:
The most important features of WTO is that it seeks to
establish just and fair multilateral system of international
trade
Wherein the developed countries, the developing
countries, and the least developing countries all have equal
opportunities for market access of their products in foreign
countries
The discriminatory trade barriers and unjust Government
support to exports by different countries have to be
eliminated.
17. Functions:
The world organization has key functions below:
Administering WTO trade agreements.
Handling trade disputes.
Monitoring national trade policies.
Cooperation with international organizations.
Reviewing national trade policies.
to set and enforce rules for international trade
18. Functions:
to supply a forum for negotiating
and watching more trade relaxation.
to resolve trade disputes
to extend the transparency of decision-making processes
to collaborate with alternative major international
economic establishments concerned in international econo
mic management
to assist developing countries profit totally from global
trading system.
19. Agreements:
Agreement on the applying of sanitary and Phytosanitary
(SPS) Measures:
This agreement establishes tetramerous frameworks for the
design, adoption and implementation of sanitary and
phytosanitary .
It take measures to stop such measures from getting
used for arbitrary or inexcusable discrimination or
for unseeable restraint on international trade and to reduce their
adverse effects on trade
20. Agreement on Textiles and article of clothing Textile
trade:
It was ruled by the Multi-Fiber Arrangement (MFA) since
1974. However, the UN agency principles had been
undermined by import protection policies, etc.
The agreement provides that textile trade ought to be
deregulated by bit by bit integration it into UN
agency disciplines over a 10-year
transition amount, that invalid at the top of 2004
21. Agreement onTechnicalBarriers toTrade (TBT)
Standards and conformity assessment systems, like industrial
standards and safety/environment laws, could become trade
barriers if they're excessive or abused.
This agreement aims to stop such systems from turning
into uncalled-for trade barriers by securing their transparency
and harmonization with international standards.
Conclusion :WTO gives a proper platform for all countries to
trade in a business environment with minimum barriers Hence
increasing the overall trade opportunities across the world.
Having an organization managing international trade is a good
sign to encourage new entrants which can act as a source of
guidance for them.
