The Role and Impact of WTO - Why are countries becoming members of the World Trade Organization? What are its roles and impact on the lives of businessmen?

1. THE ROLE AND IMPACT OF THE
WORLD TRADE ORGANIZATION

2. THE CONCEPT OF TRADE
Trade is defined as a single act of exchanging something for
something else. With a goal of obtaining an advantage.
dependent on calculation, evaluate decisions by becoming aware of
its value (cost vs benefit) as trading parties can be deceived having
different value systems or knowledge
Forms of Trade
Direct
Unstructured
Indirect

3. THE CONCEPT OF TRADE
Trade itself, or the act of trading becomes the economic and social tool and
takes place as a part of diplomacy and politics. So the items being
exchanged becomes the token.
As trade becomes complex, legal systems evolved.
Trade agreement was created to bind trade itself to the law.

4. GENERAL AGREEMENT ON TARIFFS AND
TRADE (GATT)
signed by 23 nations in Geneva on 30 October 1947
took effect on 1 January 1948
A legal agreement between many countries, whose overall
purpose was to promote international trade by reducing
or eliminating trade barriers such as tariffs or quotas.

5. WORLD TRADE ORGANIZATION (WTO)
Successor to GATT
Global international organization dealing with the rules of
trade between nations.
Established in January 1, 1995
Make Decisions by Consensus
Service By Secretariat – 625 staff
Based in Geneva

6. WTO FUNCTIONS
TRADE NEGOTIATIONS
IMPLEMENTATION AND MONITORING
DESPUTE SETTLEMENT
BUILDING TRADE CAPACITY
OUTREACH

7. WTO PRINCIPLES
NON-DISCRIMINATION
MORE OPEN to INVESTMENTS
PREDICTABLE AND TRANSPARENT
MORE COMPETITIVE
MORE BENEFICIAL FOR LESS DEVELOPED COUNTRIES
PROTECT THE ENVIRONMENT

8. WTO ROLES
1. Acting as Conductor - by Administering trade agreements and cooperating with other
international organizations
2. Trade Tribunal – Serves as a forum for trade negotiations and Handling trade disputes
3. Monitor - Reviewing national trade policies
4. Trainer – Provides Technical assistance and training for developing countries

9. IMPACTS OF WTO
 The WTO as a global organization has helped the developing nations to participate in world
economic arena.
 It is a forum to all types of developing countries to compete the quality of their goods and
services with those of others. Therefore, the overall quality of goods and services increases which
in turn improve the quality of life in a nation.
 Apart from strengthening economic relationship among countries, it has helped the trade and
development go hand in hand.
 it has helped in providing market for the manufacturing goods which has enhanced the exports
at a higher pace.
 It has also played significant role in providing technical assistance, knowledge of quality goods,
access to newer technologies to the developing nations.
 Because of multi-lateral rules and disciplines ,it is expected that fair trade conditions will be
created for developing nations, also the dispute settlement system will help to check the
disputes arising out of it.

10. IMPACTS OF WTO
 The WTO is dominated by leading industrialized countries and by the corporation of these
countries. The developing countries have a less say In this organization.
 The developing countries have fewer human and technical resources and therefore often enter
negotiations less prepared than their developed counterparts.
 The tariff peaks and escalations hamper developing countries' exports and their attempts in
export diversification.
 Through the various agreements signed under the WTO ,the developing nations have actually
foreclosed a wide range of development options.
 The domestic economy supporters often face neglect because of global competitive better
goods.
 The agendas of the WTO are often designed in the favor of the developed nations, sidelining
the interests of developing and the least developed countries.
 The rules which have uniformly applied on WTO members have brought about inequalities
because of the varied economic conditions of the countries.
 The developing countries have discovered that finding resources in the dispute settlement
system is costly and requires a legal expertise which they may not have.

11. ORGANIZATIONAL CHART

12. GATT AND THE WTO ROUNDS

13. WORLD MAP OF WTO PARTICIPATION

14. References
https://en.wikibooks.org
https://www.dti.gov.ph
https://www.wto.org
https://en.wikipedia.org
https://www.quora.com/
http://fordschool.umich.edu