M.Rashid Altaf (113315)
Intro to Microeconomics
Principles of the trading system
The Uruguay Round
The case for open trade
WTO and other organizations
WTO and Pakistan
What is WTO?
The World Trade Organization (WTO) is the only global
international organization dealing with the rules of trade between nations. At
its heart are the WTO agreements, negotiated and signed by the bulk of the
world‘s trading nations and ratified in their parliaments.
The WTO‘s work comes from the 1986–94 negotiations called the Uruguay
Round and earlier negotiations under the General Agreement on Tariffs and
Trade (GATT). The WTO is currently the host to new negotiations, under the
‗Doha Development Agenda‘ launched in 2001.
The Major Points :
-> Who we are
-> What we do
PRINCIPLES OF THE TRADING
The WTO agreements are lengthy and complex because they are legal texts
covering a wide range of activities.
A closer look at these principles:
1) Trade without discrimination
2) Freer trade: gradually, through negotiation
3) Predictability: through binding and transparency
4) Promoting fair competition
5) Encouraging development and economic reform
THE URUGUAY ROUND
It took seven and a half years, almost twice the original schedule. By the end, 123
countries were taking part. It covered almost all trade, from toothbrushes to
pleasure boats, from banking to telecommunications, from the genes of wild rice
to AIDS treatments. It was quite simply the largest trade negotiation ever, and
most probably the largest negotiation of any kind in history.
At times it seemed doomed to fail. But in the end, the Uruguay Round brought
about the biggest reform of the world‘s trading system since GATT was created at
the end of the Second World War. And yet, despite its troubled progress, the
Uruguay Round did see some early results. Within only two years, participants had
agreed on a package of cuts in import duties on tropical products — which are
mainly exported by developing countries. They had also revised the rules for
settling disputes, with some measures implemented on the spot. And they called
for regular reports on GATT members‘ trade policies, a move considered
important for making trade regimes transparent around the world.
THE CASE FOR OPEN TRADE
The economic case for an open trading system based on multilaterally
It is also supported by evidence.
During the first 25 years after the war, world economic growth averaged
about 5% per year.
Liberal trade policies.
Success in trade is not static
Experience shows that competitiveness can also shift between whole
WTO in brief:
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
Understanding the WTO:
WTO is a place where member governments go, to try to sort out the
trade problems they face with each other.
10 things the WTO can do:
-> Cut living costs and raise living standards
-> Settle disputes and reduce trade tensions
-> Stimulate economic growth and employment
-> Cut the cost of doing business internationally.
-> Encourage good governance.
-> Help countries develop.
-> Give the weak a stronger voice.
-> Support the environment and health.
-> Contribute to peace and stability.
-> Be effective without hitting the headlines.
The WTO Annual Report provides a comprehensive overview of
WTO activities over the past year and includes information on the WTO's
budget and staffing.
World Trade Report:
The World Trade Report is an annual publication that aims to deepen
understanding about trends in trade, trade policy issues and the multilateral
International Trade Statistics:
The WTO's databases and publications provide extensive
access to trade and tariff data.
WTO organization chart:
WTO structure: all WTO members may participate in all
councils, committees, etc. except Appellate Body and Dispute Settlement
The topmost decision-making body of the WTO is the
Ministerial Conference, which usually meets every two years. It brings together
all members of the WTO, all of which are countries or customs unions.
The current chairperson is H.E. Mr. Shahid BASHIR
(Pakistan).The General Council is the WTO‘s highest-level decision-making
body in Geneva, meeting regularly to carry out the functions of the WTO
Total members 159 up till March 2, 2013 (with dates of membership).
Afghanistan , Azerbaijan , Bhutan, Bosnia , Comoros, Holy See (Vatican) ,Iran,
Iraq, Kazakhstan, Lebanese Republic, Liberia, Republic of, Libya, Sao Tomé and
Principe, Serbia, Seychelles, Sudan, Syrian Arab Republic, Uzbekistan, Yemen.
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.
On 1 January 1995, the WTO replaced GATT, which had been in
existence since 1947, as the organization overseeing the multilateral trading
system. The governments that had signed GATT were officially known as ―GATT
contracting parties‖. Upon signing the new WTO agreements (which include the
updated GATT, known as GATT 1994), they officially became known as ―WTO
Secretariat common purpose:
The responsibility of the WTO Secretariat is to provide topquality, independent support to WTO member governments on all of the
Role of the Secretariat:The WTO Secretariat, with offices only in Geneva, has 629
regular staff and is headed by a Director-General. Since decisions are taken by
Members only, the Secretariat has no decision-making powers.
The WTO derives most of the income for its annual budget from
contributions by its Members. These are established according to a formula
based on their share of international trade.
Consolidated WTO Budget for the year 2013: CHF 197,203,900
The WTO Procurement Section is responsible for obtaining,
in a timely and cost-effective manner, goods and services which meet the
needs of the organization. These goods and services include informatics
software and hardware, security products and services, reprographic and
publishing equipment and material, various consulting services, as well as
goods and services related to the functioning of the WTO buildings in
WTO AND OTHER
The WTO works with a number of other international governmental
organizations under the banner of ―coherence‖, a term originating in the
―Decision on achieving greater coherence in global economic policymaking‖, which ministers agreed in Marrakesh, April 1994.
The WTO maintains extensive institutional relations with several other
international organizations; there are some 140 international organizations
that have observer status in WTO bodies.
WTO Secretariat maintains working relations with almost 200 international
organizations in activities ranging from statistics, research, standardsetting, and technical assistance and training
WTO AND PAKISTAN
Pakistan is one of the founder Members of the WTO since 1995, and its
predecessor organization the GATT set up in 1948.
Pakistan has been actively engaged in the Doha round of trade talks that
were launched in the Qatari capital in November 2001. Aptly named the
"Doha Development Agenda" (DDA).
Since 2001, there have two more ministerial conferences in Cancun in 2003
and Hong Kong in 2005 respectively.
There was a breakdown of talks in the summer of 2006 which led many
observers to be skeptical of the entire process
sustained efforts by the membership led to a partial resumption of the
talks in November 2006 and full resumption since January 2007 after the
annual meeting of the World economic forum at Davos.
This was the eleventh Trade Policy Review of the European Union and it
attracted a lot of interest from WTO Members with well over one
thousand questions were asked and responded by the EU.
As many delegations noted, the economic crisis in the EU has dominated
developments over the past two years.
. It was also widely noted by delegations that, despite the crises, the EU
has not resorted to introducing new protectionist measures which is a
positive indication of both the strength of, and the EU's commitment to,
the multilateral trading system.
Furthermore, as Peter Balas noted in his opening remarks, the recent
accession of Croatia is "another sign that the EU, the current economic
difficulties notwithstanding, remains a successful and attractive entity."
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