Introduction to International Trade Law What is the GATT? Historical background of the WTO: from GATT to WTO Primary goals of GATT The system of GATT GATT 1994’s Major Principles Special rules to GATT World Trade Organization (WTO) Purpose of (WTO) Main Functions of (WTO) Objectives of (WTO): Main Activities of WTO What is International Trade Law?

1. Introduction to International Trade Law
1
1. What is the GATT?
2. Historical background of the WTO: from GATT to WTO
3. Primary goals of GATT
4. The system of GATT
5. GATT 1994’s Major Principles
6. Special rules to GATT
7. World Trade Organization (WTO)
8. Purpose of (WTO)
9. Main Functions of (WTO)
10. Objectives of (WTO):
11. Main Activities of WTO
12. What is International Trade Law?

2. WHAT IS ''WTO''?
 WTO is the abbreviation for World Trade Organization. The WTO
came into being in 1995 and was created as a result of long intense
negotiations which took place under the auspices of the General
Agreement on Tariffs and Trade (GATT).
 The WTO is an organization for liberalizing trade. Trade
liberalization is the main approach that the WTO has adopted to
help Member countries achieve economic growth and raise
living standards.
 The WTO recognizes Members' right to maintain trade barriers,
subject to the conditions provided in the WTO Agreements.
 Such trade barriers are considered to serve legitimate objectives,
such as the protection of human, animal or plant life or health or the
protection of consumers.
 Who can be members of the WTO? International organizations are
normally made up of sovereign states, that is also the case for the
WTO. The vast majority of WTO Members are states.

3. Historical background of the WTO: from GATT to WTO
 While legally distinct from the GATT, you will see that the
WTO and the GATT are interrelated.
 WHAT IS THE GATT?
It is a abbreviation of General Agreement on Tariffs and
Trade
 The GATT is an international trade agreement concluded in
1947. It contains rules and obligations that governed trade in
goods for almost fifty years between its "CONTRACTING
PARTIES". From 1948 to 1994, before the WTO was created,
the GATT provided the legal framework for the bulk of
world trade.
 The negotiation of the GATT dates back to the 1940's. It was
part of the post-war project to reconstruct a multilateral system
of world trade through the elimination of discrimination, the
reduction of tariffs and the dismantlement of other trade
barriers.

4. Historical background of the WTO: from GATT to WTO
 The initial objective was to create an International Trade
Organization (the ITO) to handle the trade side of
international economic cooperation.
 The GATT was never intended to be an international
organization but only to be a minor agreement under the ITO
Charter. Nevertheless, the ITO did not appear and the GATT
came into force by means of a Provisional Protocol, signed on
30 October 1947 and effective since 1 January 1948.
 The signatory countries to the Protocol agreed to apply the
provisions contained in the GATT until the ITO could take over
its administration.
 Hence, for 47 years, the GATT served as a de facto international
organization, taking up some of the functions originally
intended for the ITO. The GATT developed rules for a
multilateral trading system (MTS) through a series of trade
negotiations or rounds.

5. Historical background of the WTO: from GATT to WTO
 From 1947 to 1994, the GATT CONTRACTING PARTIES
organized eight rounds of negotiations. The early rounds dealt
mainly with tariff reductions on goods, but later rounds
included other areas, such as, anti-dumping and non-tariff
barriers.
 The needs of GATT? Purpose:
1. Reducing tariff and nontariff barriers
2. Opening markets
3. Setting rules for promoting fairer trade
 GATT legal framework:
1) Provide an organized global legal structure
2) Improve the economic, political, and legal climate for trade,
investment, and development
 Primary goals of GATT :
1) creating free trade by removing artificial barriers and
restrictions imposed by self-serving national Governments

6. Historical background of the WTO: from GATT to WTO
 The system of GATT produces:
1. An international legal system with rules
2. A mechanism for interpreting those rules
3. Procedures for resolving disputes under them
 GATT 1994’s Major Principles:
1. Multilateral Trade Negotiations (Art.II)
2. Predictability of Trade Opportunities (Art.II)
3. Non-discrimination and unconditional Most-favoured-nation trade (Art.I)
4. National Treatment (Art.III)
5. Elimination of Quotas and other Non-tariff barriers (Art.XI & XIII)
 Special rules to GATT :
1. Promote trade with developing nations
2. Allow the establishment of free-trade areas and customs
3. unions (Examples?)
4. Allow restrictions on Imports when necessary to:
5. Protect public health and safety
6. Domestic firms from unfair trade practices

7. Historical background of the WTO: from GATT to WTO
 The system of GATT produces:
1. An international legal system with rules
2. A mechanism for interpreting those rules
3. Procedures for resolving disputes under them
 The last round lasted from 1986 to 1994 and is generally
known as the "Uruguay Round", which led to the creation of
the WTO in 1994.
 The Uruguay Round brought about the biggest reform to the
world trading system since the GATT was established.
 Since 1995, the WTO has performed the role of an international
organization for trade rules.

8. World Trade Organization (WTO)
 Established 1 January 1995
 Membership: 154 countries as at 29 April 2012
 Purpose of (WTO):
1) To help trade flow as freely as possible – as this is important for
economic development & well-being
2) Ensuring individuals, companies & governments know what trade
rules are around the world
3) Giving them confidence that there will be no sudden changes of
policy
 Main Functions of (WTO):
1) Administering WTO trade agreements
2) Forum for trade negotiations
3) Handling trade disputes
4) Monitoring national trade policies
5) Technical assistance and training for developing countries
6) Cooperation with other international organizations

9. World Trade Organization (WTO)
 Objectives of (WTO):
 In the Introduction to the Agreement Establishing the WTO, the
parties to the Agreement recognize the objectives they wish to attain
through the MTS (Multilateral Trade System):
1) Raise living standards;
2) Ensure full employment;
3) Ensure a large and steadily growing volume of real income and
effective demand;
4) Expand the production of and trade in, goods and services, while
allowing for the best use of the world's resources in accordance with
the objective of sustainable development.
 The Agreement also recognizes the need for “positive efforts to
ensure that developing countries, and especially the least-
developed among them, secure a share in the growth in
international trade.”

10. Main Activities of WTO
1) Negotiating the reduction or elimination of obstacles to
trade & agreeing on rules governing the conduct of
international trade
2) Administering & monitoring the application of the WTO’s
agreed rules for trade in goods, services and IP rights
3) Monitoring and reviewing trade policies of the member
nations & ensuring transparency of regional and bilateral
trade agreements
4) Settling disputes among member nations (especially in
interpretation and application of the agreements)
5) Building capacity of developing country government
officials in international trade matters
6) Assisting the process of accession of some 30 countries
who are not yet members of the organization

11. International trade law : introduction
What is International Trade Law?
International trade law is the set of laws and agreements
that govern commerce between countries. International
trade laws create the rules that countries and businesses
must follow in order to do business across borders..
Generally, international trade law includes the rules and
customs governing trade between countries.
 The body of rules and norms that regulates activities
carried on outside the legal boundaries of nations. It
regulates three international relationships:
1) Those between states and states.
2) Those between states and persons.
3) Those between persons and persons.

12. International trade law : introduction
 International Trade Law (ITL) is the law regulating
international commerce.
 It has two aspects: public and private.
1) The public aspect of ITL seeks to coordinate
commercial policies of states; and it is a part of Public
International Law.
2) The private aspect of ITL governs international
commercial transactions between the people belonging
to different states. This is substantially covered under
Private International Law.
3) The purpose of ITL has been to foster free trade among
nations. Free trade in this context means that people
should be free to buy and sell goods cutting across
national frontiers.

13. International trade law : introduction
 In other words, a person should be free to buy a product
from anywhere in the world wherein he can get the best
quality at the cheapest possible price. Similarly, he
should be free to sell his product anywhere in the world
at the highest possible price.