WTO (World Trade Organization)


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WTO (World Trade Organization)

  1. 1. University of Dhaka Department of Management Inf ormation Systems Course No: EMIS-512 Course Title: International Business Group Term Paper Title: World Trade Organization (WTO) Submitted By: I. Ashik Ahmed II. Md.Masud Kabir III. Siraj-ud-Dawlla IV. Lincoln Roy 03-026 03-048 12-038 14-035
  2. 2. What is WTO 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.
  3. 3. History of WTO The World Trade Organization came into being in 1995. So while the WTO is still young, the multilateral trading system that was originally set up under GATT is well over 50 years old.
  4. 4. HISTORY OF WTO THE GATT YEARS: FROM HAVANA TO MARRAKESH  Much of the history of those 47 years was written in Geneva. But it also traces a journey that spanned the continents, from that hesitant start in 1948 in Havana (Cuba) and finally to Marrakesh (Morocco) in 1994. During that period, the trading system came under GATT, salvaged from the aborted attempt to create the WTO.
  5. 5. Secretariat  Location: Geneva, Switzerland Established: 1 January 1995 Created by: Uruguay Round negotiations (198694)   Membership: 153 countries on 10 February 2011 Budget: 196 million Swiss francs for 2011 Secretariat staff: 640 Head: Pascal Lamy (Director-General) B ANGLADESH B ECOME MEMB ON  1ST  JANUAR 1995 ER Y
  6. 6. Principles of the trading system The WTO agr eement s ar e lengt hy and complex because t hey ar e legal t ext s cover ing a wide r ange of act ivit ies. They deal wit h: agr icult ur e, t ext iles and clot hing, banking, t elecommunicat ions, gover nment pur chases, indust r ial st andar ds and pr oduct saf et y and mor e. A closer look at t hese pr inciples: 1. Most- f avored- nation (MFN): Treating other people equally 2. 2. National treatment: Treating f oreigners and locals equally
  7. 7. The case for open trade  Bot h t r ade and GDP f ell in t he lat e 1920s, bef or e bot t oming out in 1932. Af t er Wor ld War I I , bot h have r isen exponent ially.
  8. 8. The WTO Agreements The WTO’s r ules — t he agr eement s — ar e t he r esult of negot iat ions bet ween t he member s. The cur r ent set wer e t he out come of t he 1986–94 Ur uguay Round negot iat ions which included a maj or r evision of t he or iginal Gener al Agr eement on Tar if f s and Tr ade (GATT).
  10. 10. Developing Countries Development and trade Over three quarters of WTO members are developing or least-developed countries. The 2001 Ministerial Conference in Doha set out tasks, including negotiations, for a wide range of issues concerning developing countries.
  11. 11. Tarif f s : More B indings & Closer To zero This is what a t ar if f -quot a might look like Tar if f quot as ar e also called “t ar if f -r at e quot as”.
  12. 12.  Technical Assistance and Training Technical r egulat ions and st andar ds ar e impor t ant , but t hey var y f r om count r y t o count r y. Having t oo many dif f er ent st andar ds makes lif e dif f icult f or pr oducer s and expor t er s. I f t he st andar ds ar e set ar bit r ar ily, t hey could be used as an excuse f or pr ot ect ionism.
  13. 13. 10 benefits of the WTO trading system 1. The system helps to keep the peace  Sales people are usually reluctant to fight their customers 2. The system allows disputes to be handled constructively Countries in dispute always aim to conform with the agreements
  14. 14.  3. A system based on rules rather than power makes life easier for all Smaller countries enjoy more bargaining power, and life is simpler for bigger countries 4.Freer trade cuts the cost of living According to one calculation, consumers and governments in rich countries pay $350 billion per year supporting agriculture — enough to fly their 41 million dairy cows first class around the world one and a half times
  15. 15. 5. It gives consumers more choice, and a broader range of qualities to choose from Life with ... ... and without imports 6. Trade raises incomes The fact that there is additional income means that resources are available for governments to redistribute
  16. 16. 7. Trade stimulates economic growth, and that can be good news for employment Careful policy-making harnesses the job-creation powers of freer trade 8. The basic principles make the system economically more efficient, and they cut costs Discrimination complicates trade
  17. 17. 9. The system shields governments from narrow interests Governments are better placed to ward off powerful lobbies 10. The system encourages good government The rules reduce opportunities for corruption.
  18. 18. WTO Organization Chart
  19. 19. The WTO and other Organizations  The WTO works with a number of other international governmental organizations under the banner of “coherence”, 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 WTOIn all, the WTO Secretariat maintains working relations with almost 200 international organizations in activities ranging from statistics, research, standard-setting, and technical assistance and training bodies.
  20. 20. CONCLUSION Although continuing the future challenges, the shared international experience of sixty years of the GATT/WTO is a positive story. Plenty of governments, non-state actors, commentators and critics want to improve the system, but very few would oppose its core contribution to a more stable and prosperous world. An exact look at the less than fully resolved issues of the past, the outstanding challenges, and the successes will stimulate thought on how best to manage the future.