This document provides an overview of the World Trade Organization (WTO). It discusses that the WTO is the international organization that oversees global trade rules between nations. The WTO aims to ensure trade flows freely and predictably. It was established in 1995 but built upon the multilateral trading system originally set up under GATT over 50 years prior. The document outlines several key principles and agreements of the WTO system including most favored nation status, national treatment, and agreements on agriculture, services, intellectual property and other areas.

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. 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. 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. 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. 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. 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. 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. 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).

9. THE WTO AGREEMENTS

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. 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. 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. 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.  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. 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. 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. 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. WTO Organization Chart

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. 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.