The World Trade Organization (WTO) was established in 1995 to oversee and liberalize international trade. It aims to provide all countries access to global markets by reducing trade barriers and distortions. The WTO grew out of GATT negotiations after World War II to establish a rules-based global trading system and prevent trade wars. It administers agreements to facilitate trade, promote fair competition, and sustainable development.

1. 1

2. WTO intends to supervise and liberalize international
trade
The organization officially commenced on January 1, 1995
replacing the GATT (General Agreement on Tariffs and
Trade)
The World Trade Organization (WTO) is the only global
international organization dealing with the rules of trade
between the nations
2

3. It tries to provide market access to countries for their
products and services and promotes friendly investment
policies by eliminating:
trade distortions between countries
trimming down tariff and non-tariff barriers
removing quotas
abolishing subsidies in a phased manner
WTO has rules to address quality issues, labor standards,
environmental aspects, government regulation, and legal
frameworks
3

4. The need for an institution to promote rule based
trade was felt when in 1930s world suffered through
the Great Depression and World War II
This economic issue started with the 1929 Stock
Market Crash wiping out savings of people and
creating unemployment of the highest level in
Western World
That great Depression further resulted into WWII and
destroyed many European countries
4

5. In January 1948, 23 nations organized the GATT in Geneva
providing opportunity to start the tariff negotiations
This first round resulted in 45,000 tariff concessions
affecting $10 billion (about 1/5th of the world trade)
The WTO replaced GATT as the world's global trading body
in 1995
GATT trading regulations established between 1947 and
1994 remain the primary rule book for multilateral trade in
goods
5

6.  Raising standards of living
 Ensuring full employment
 Expanding production of goods and services
 Sustainable development
 Securing share in trade of developing and least
developed countries
 Designing reciprocal and mutually advantageous
arrangement directed to substantial reduction of
discriminatory treatment in international trade
relation
6

7. Protection to Domestic Industry through Tariffs
Member countries can protect their domestic
industry/production through tariffs only
It prohibits the use of quantitative restrictions, except in a
limited number of situations
Binding of Tariffs
The member countries are urged to eliminate protection to
domestic industry/ production by reducing tariffs and removing
other barriers to trade in multilateral trade negotiations
7

8. Most Favored-Nation (MFN) Treatment
 The rule lays down the principles of non-discrimination amongst
member countries
 Tariff and other regulations should be applied to imported or exported
goods without discrimination among countries
 Exceptions to the rules are to regional arrangements subjected to
preferential or duty free trade agreements, Generalized System of
Preferences (GSP) where developed countries apply preferential or
duty free rates to imports from developing countries
 4. National Treatment Rule
 The rule prohibits member countries from discriminating
between imported products and domestically produced goods in
the matter of internal taxes and in the application of internal
regulations.
8

9. National Treatment Rule
The rule prohibits member countries from discriminating
between imported products and domestically produced
goods in the matter of internal taxes and in the application
of internal regulations
9

10. At the heart of WTO are WTO agreements, negotiated
and signed by a large number of the world’s trading
nations and ratified by their parliaments
Agreement on trade related aspect of intellectual property
rights (TRIPS)
Agreement on agriculture (AOA)
Agreement on Sanitary and phytosanitary measures (SPS)
Technical barriers to trade (TBT) agreement
10
WTO AgreementsWTO Agreements

11.  Intellectual property rights
 Copyrights
 Patent trade marks
 Geographical names
 Industrial designs
 Trade secrets
11
Agreement on TRIPSAgreement on TRIPS

12.  Food safety through CAC
 Plant health standards
 Animal health standards specific towards;
 Additives, contaminants and toxic substances in
food
 Pesticides & drug residues and MRL compliance
12
Agreement on Application of Sanitary andAgreement on Application of Sanitary and
Phytosanitary Measures (SPS)Phytosanitary Measures (SPS)

13.  Food Certification (HACCP and GMP)
 Labeling requirements
 Plant and animal quarantine requirements
 Disease and Pest control
13

14.  Inspection, testing and certification
 Custom procedures
 High custom duties
 Violation of intellectual property rights
 Investment restrictions
14
Technical Barriers to Trade (TBT)Technical Barriers to Trade (TBT)

15.  Indiscriminate use of pesticides and chemicals results residues
in food
 Food additives are creating toxicity
 Chemicals generated during food processing- prolonged
heating of fats generates carcinogens
 Repeatedly deep fried foods are injurious to health
15

16.  Toxicity from packaging material
 Sewage, sludge, untreated industrial waste water
polluting ground water and used for vegetable
growing
 Poultry, beef and mutton- feed additives, hormones
and antibiotics
 Clean water is unavailable to the masses
16

17.  1947-1960’s
 1960’s-70’s
 1970’s-80’s
 1980’s-90’s
 1990’s-2000 17
 Craftsmanship, where quality was
built into products
 Quality control took the shape of
Inspection activity
 Introduction of Statistical Quality/
Process control in a few key industries
 Introduction of Quality circles
 Introduction of TQM, ISO-9000,
Structuring of PNAC and PSQCA
Quality Era’s in PakistanQuality Era’s in Pakistan

18.  Good Manufacturing Practices (GMP)
 Hazard Analysis Critical Control Points (HACCP)
 Quality Assurance Standards
(ISO-22000 And ES-29000)
18
Present RequirementsPresent Requirements

19.  More stringent Food Safety Standards imposed in
countries like Pakistan
 Food Laws, standards, procedures, testing
infrastructure, nutrition and labeling methods are
dreadfully primitive and ineffective
 Pakistan's food is merely exported as a commodity
rather than as value added foods
19

20.  Limited export-due to non compliance of WTO
regulations
 Increased imports
 Reduced Industrialization
 Less Employment – 10% unemployment
 Loss in economic sovereignty
20