WORLD TRADE ORGANIZATION Group 3 Karki, Shiwir Khanal, Kritika Shrestha, Bijay Kumar Upreti, Prakriti
Table of Contents• Background and GATT• Introduction to WTO• Major Agreements• The Uruguay Round• The Doha Round• Purpose / Objectives• Functions of WTO• Principles of WTO• Benefits of WTO Trading System• Dispute Settlement• Opportunities and Challenges
Background and GATTThe WTO predecessor- GATT (General Agreement on Trade and Tariff) wasestablished after the World War II for international economic co-operation.The GATT was the only multilateral instrument governing international tradefrom 1948 until the WTO was established on January 1, 1995.GATT continued to operate for almost half a century as semi-institutionalizedmultilateral treaty regime on a provisional basis.The Final Act concluding the Uruguay Round and officially establishing theWTO regime was signed during the April 1994 ministerial meeting atMarrakesh, Morocco, and hence is known as the Marrakesh AgreementThe GATT still exists as the WTOs umbrella treaty for trade in goods, updatedas a result of the Uruguay Round negotiations.
Introduction to WTO continuedWorld Trade Organization(WTO) was officially commenced onJanuary 1st 1995.An association of 153 countries globally.All types of countries like socialists, capitalists, rich and poorcountries, very industrialized and developing countries are in WTO.The topmost decision making body of WTO is the MinisterialConference, which takes decision on all matters under any multilateraltrade agreements.Nepal received the member of WTO dated on 23rd April 2004 andbecame a 147th member of World Trade Organization WTO.
The Uruguay RoundIt was the 8th round of Multilateral TradeNegotiation (MTN) conducted within the frameworkof GATT spanning from 1986-1994 and embracing123 countries.The main objectives of this round were: to reduce agricultural subsidies to put restrictions on foreign investment, and to begin the process of opening trade in services like banking and insurance
The Doha RoundThe WTO launched the current round ofnegotiations, the Doha Development Agenda(DDA)Ambitious effort to make globalization moreinclusive and help the worlds poor The initial agenda comprised both furthertrade liberalization and new rule-making
Purpose / ObjectivesRejecting most forms of protectionism.Removing trade barriers and eliminating discriminatory treatment ininternational trade .Providing a fair, predictable and open rule-based trading system.Providing a mechanism for settling trade disputes.Integrates developing and least developed economies into the worldtrading system.
Purpose / Objectives continuedMission Statement“The World Trade Organization is theinternational organization whose primarypurpose is to open trade for the benefit ofall.”
Functions of WTO > Basic Functions > Additional Functions
Basic FunctionsTwo Most Important Functions overseeing the implementation, administration and operation of the covered agreements provides a forum for negotiations and for settling disputes
Additional FunctionsAdministers the Understandings on Rules andProcedures governing the Settlement of DisputesAdministers the Trade Policy Review Mechanism(TPRM)Cooperates with IMF and with the InternationalBank for Reconstruction and Development (WorldBank) and its affiliate agencies
Principles of WTO• Non-discrimination• More Openness• Predictable and Transparent• More competition• More beneficial for less developed countries.• Protect the environment.
10 Benefits of WTO Trading System Peace Disputes Rules Cost of living Choice Incomes Growth and jobs Efficiency Lobbying Good government
Dispute SettlementWTO’s procedure for resolving trade quarrelsHow disputes arise?The authors of these agreements are themember governments themselves.Ultimate responsibility
Opportunities of WTOEntry into sophisticated areas of trade such asinternational banking, telecommunications.More countries are involving in internationaltrade.Stability, Consensus, Dispute settlement,Balance, Transparency, Openness.
Challenges of WTOAccusations regarding widening the gap between rich and poorin claims of fixing it.Protectionism for the influential countries.Unfair negotiations and participation.Environmental and labor concerns.Marginalization by agreements such as TRIPs (Agreement onTrade Related Aspects of Intellectual Property Rights).