The document provides information about the World Trade Organization (WTO) in several sections. It describes the WTO as an international organization that promotes and enforces rules of trade between nations. Key details include that the WTO has 153 member countries and was established in 1995 after negotiations during the Uruguay Round replaced the General Agreement on Tariffs and Trade (GATT). The document also outlines the principles of non-discrimination, reciprocity, binding commitments, transparency and exceptions that guide the WTO.

1. Seminar Work
Valter Telo
Erasmus Student

2. INDEX
1. Abstract ............................................................................................................... 3
2. World Trade Organization ................................................................................. 4
2.1. Description .................................................................................................. 4
2.2. Story ............................................................................................................. 5
2.3. Principles ..................................................................................................... 6
- Non-Discrimination ......................................................................................... 6
- Reciprocity ...................................................................................................... 6
- Binding and enforceable commitments ....................................................... 6
- Transparency................................................................................................... 6
- Safety valves ................................................................................................... 7
2.4. Evolution...................................................................................................... 7
2.5. Rounds.......................................................................................................... 8
3. Conclusion ........................................................................................................... 9
4. References......................................................................................................... 10
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3. 1. Abstract
I opted to choose this large subject which is "WTO - World Trade
Organization" because it’s a field that is present all over the world and has
tremendous influence both the government and society. WTO is designed to
promote the economic, financial and trade among member states, as an
essential condition to increase economic development. In this article I intend
to inform a little of this big organization and we are able to understand the
importance that the WTO has to trade market. The WTO is important because
since the decade of 1990 the trade increased at an average rate of 7%.
The WTO advantages are:
 The system promotes good governance;
 Trade increases the access;
 A freer trade means lower cost of living;
 The system helps promote peace.
About 75% of WTO members are Developing Countries, which allows WTO
members develop.
Pic.1) Map of WTO members.
Pic.1) Map of WTO members.
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4. 2. World Trade Organization
2.1. Description
The organization was founded January 1, 1995 with the purpose of
enforcing the rules established by the GATT, in particular as
respect the increase in living standards and real income, the
achievement of full employment, the optimization of global
resources and the preservation of environment. The WTO includes 127 countries, 153
members (more than 97% of total world trade and 30 observers) and operates through
a permanent International Conference and Ministerial Conference, its highest body,
where each country is represented by a minister. The most important decisions are
taken unanimously; the details of implementation of the measures are approved by
majority vote. The WTO headquarters is at Geneva, Switzerland.
Their objectives are:
1. To raise the levels of life;
2. To improve full employment;
3. To attain the objectives with sustainable development and environmental
protection;
4. To ensure the rich and poor countries benefit from fair deals for both.
Pic.2) WTO headquarters.
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5. 2.2. Story
At the end of World War II has been an
important step for global trade. WTO
arises from the junction of the
International Trade Organization and the
Havana’s letter, but was not accepted by
the North Congress of USA. The principles (of ITO - Havana’s letter) were
introduced into the GATT (1947, temporarily) aimed at removing trade
barriers so as to facilitate the exchange of products between countries.
There were 8 rounds of negotiations at GATT:
1. Genebra (1947); 6. Kennedy (1964/67);
2. Annecy (1949); 7. Tokyo (1973/79);
3. Torquay (1950/51); 8. Uruguai (1986/93);
4. Genebra (1955/56); 9. Doha (2001/…).
5. Dillon (1960/61);
That after the Uruguay Round (1995) was established WTO. The WTO
came into January 1, 1995. Slovenia joined the WTO on 30 July 1995. The
actual director-general of WTO are Pascal Lamy since 2005. The structure of
WTO is: The Ministerial Conference (council that makes decisions, meet
periodically for two years); The General Council (solves trade disputes among
members); The Councils on Trade in Goods; and The Secretariat and Director
General (does not take decisions only helps administratively).
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6. 2.3. Principles
 Non-Discrimination:
 Most favored nation (MFN):
– (Non-discrimination between countries in the WTO, the measures
taken by a member of WTO in relation to another, must be equal
to all other members).
 National treatment:
– (This treatment should be applied to services, products, which
require that there be no discrimination in domestic products and
products of a member state.
 Reciprocity – This principle assumes that, when Countries joins the
organization, reducing tariff barriers, also hopes that member countries do
the same.
 Binding and enforceable commitments – This principle provides that
trade agreements are listed in a "schedule" list of Concessions. If satisfaction
of a transaction is not successful, the country concerned may claim the
WTO.
 Transparency – This principle requires an internal transparency forcing
member states, to always notify the transactions of trade measures. There is
the Trade Policy Review Mechanism (TPRM) to supervise the transparency.
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7.  Safety valves – This principle requires WTO member may restrict trade
for member states if and only if for:
 Ensuring articles to "fair competition";
 Attain articles to non-economic finishes;
 Others (allow Intervention for Economic Reasons).
2.4. Evolution
After the World War II it was necessary to build an organization for economic
cooperation, at this time were created the IMF (International Monetary Fund) and
GATT. In December 1945 USA took advantage of the fact that already knew their
allies in war and therefore do business with low Tariffs, creating the ITO
(International Trade Organization).
In March 1948 letter from the ITO (Havana’s letter) was not successful,
because North American Congress never approved it. On October 30 of 1947, 23
Countries have signed (Final Act authentic of the General Agreement on Tariffs and
Trade).
From 1948 to 1995 the GATT was the only organization to deal with
international trade. After the Uruguay round of GATT was transformed to the WTO.
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8. 2.5. Rounds
Year Name Number of countries Issues
1947 Genebra (1947); 23 countries Tariffs
1949 Annecy (1949); 13 countries Tariffs
1950/51 Torquay (1950/51); 38 countries Tariffs
1955/1956 Genebra (1955/56); 26 countries Tariffs
1960/61 Dillon (1960/61); 26 countries Tariffs
1964/67 Kennedy (1964/67); 62 countries Tariffs, Antidumping measures.
Tariffs, Non-tariff measures, Export
1973/79 Tokyo (1973/79); 102 countries restrictions, Measures for controlling
the Proliferation.
Tariffs, Agriculture, Services,
1986/93 Uruguai (1986/93); 123 countries
Intellectual property, Textiles.
Industrial tariffs and Non-tariff
2001/… Doha (2001/…). 149 countries barriers, Trade remedies, Agriculture,
Services.
Evolution
160 149
140 123
120 102
100
Countries 80 62
60 38
40 23 26 26
13
20
0
Genebra Annecy Torquay Genebra Dillon Kennedy Tokyo Uruguai Doha
(1947); (1949); (1950/51); (1955/56); (1960/61); (1964/67); (1973/79); (1986/93); (2001/…).
Names
Pic.3) Table and graph of Rounds.

9. 3. Conclusion
With this work I concluded that an organization that promotes trade (in
this case the WTO) is important for international relations. We could not talk
about international trade without talking about the WTO. Currently, the
WTO is also target of criticism; in particular, do not respect the principle of
nondiscrimination. We must know that the WTO is not an independent
organization but an organization that makes a decision only when all
countries are into agreement.
We must also keep in mind that the less developed countries do not have
much influence in the organization, but also has the right to express their
opinion. It is indispensable the existence of the WTO, because if did not
exist, the trade was faced with a restriction products (less variety), as well
as their prices would be more expensive.
With this work, in the course of Economic Diplomacy, I wanted to make
known the importance of the WTO (members, rounds, principles, etc). The
organization goes far beyond what was written in this paper because of its
scale. Finally, referencing that protectionism is not a good policy for any
country.
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10. 4. References
 Websites:
 http://www.wto.org/english/thewto_e/whatis_e/whatis_e.htm;
 http://en.wikipedia.org/wiki/World_Trade_Organization;
 http://www.wto.org/english/thewto_e/whatis_e/tif_e/fact2_e.htm;
 http://www.globalissues.org/article/42/the-wto-and-free-trade.
 http://www.iisd.org/trade/handbook/3_1.htm
 Books:
 “An introduction to the WTO Agreements”, By Bhagirath Lal Das.
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