A brief presentation on WTO, its history, members, function, principle, structure, agreements and its impact on developing nation.

1. Presenting
World Trade Organization
Course Coordinator
Prof. Dr. A.H.M. Ziaul Haq
Course
Finance-206, Global Trade
Dept. of Finance
Rajshahi University

2. We Are Group 7
• 13 077 683 Muhammad Tahan Abdullah (GL)
• 13 237 611 Salma Sultana
• 13 207 613 Prapti Saha
• 13 087 631 Md. Nazmul Hossain
• 13 107 681 Anas Bin Rais
• 13 077 682 Md. Habibullah
• 13 237 699 Mst. Tanjila Akhter
• 12 227 602 Rojina Khatun
• 12 117 715 Md. Nazmul Hasan
• 12 217 726 Mst. Monira Binte Ahsan

3. Flow of Contents
 Introduction
 WTO at a Glance
 History of WTO
 Formation of the WTO
 Members of the WTO
 Structure of WTO
 Functions of the WTO
 Principles of WTO
 The WTO Agreements and Policies
 GATS, TRIPS, TRIMS, SPS, AOA, ADP
 Pros and Cons of the WTO
 WTO in Developing Nation
 End Note

5. The design is adapted from the logo originally
commissioned by the Government of
Singapore for the WTO's first Ministerial
Conference which was hosted by Singapore in
December 1996. In April 1997, the WTO
General Council accepted Singapore's offer to
transfer to the WTO the logo and its
copyright. The original logo was created by Su
Yeang Design, a Singapore-based graphic arts
company, and selected from over 200 entries
in a competition held by the Government of
Singapore. "A hint of the globe is suggested
by the six graphic arcs symbolizing world
trade with member nations meeting to forge
strategic alliances," according to Ms Su Yeang.
"Dynamism and optimism prevail as the
swirls integrate, encapsulating WTO's united
spirit of promoting fair and open trade."

8. Introduction
The World Trade Organization (WTO) is
the only global international
organization that intends to supervise
and liberalize international trade.
The WTO is a rules-based, member-
driven organization. All decisions are
made by the member governments and
the rules are the outcome of
negotiations among members.

9. WTO at a Glance
Established: 1st January 1995.
Created By: Uruguay Round negotiations of
GATT (1986-1994)
Headquarter: Geneva, Switzerland
Membership: 160 member states, 24
observer nations, 14 neither member nor
observer nations (till 2014)
Secretariat Staff: 640 (till 2014)
Head: Roberto Azevêdo (Director-General
2013-till now)
Budget: 196 million Swiss francs (approx)

10. In the 1940s, working with the
British government, the United
States developed two
innovations to expand and
govern trade among nations.
These mechanisms were called
the General Agreement on
Tariffs and Trade (GATT) and the
ITO (International Trade
Organization).
ITO>GATT WTO
History…...

11. ITO’s architects were greatly influenced by
John Maynard Keynes, the British
economist. The ITO represented an
internationalization of the view that
governments could play a positive role in
encouraging international economic
growth. But ITO never became popular.
The US Congress never brought
membership in the ITO to a vote, and when
the president announced that he would
not seek ratification of the Havana Charter,
the ITO effectively died.
ITO>GATT WTO
History…...

12. History…...
GATT was simply a temporary multilateral agreement
designed to provide a framework of rules and a forum to
negotiate trade barrier reductions among nations. From 1948
until 1993, GATT’s membership grew dramatically. During this
period, GATT sponsored eight trade rounds where member
nations, agreed to mutually reduce trade barriers.
ITO>GATT WTO
By the late 1980s, a growing number of nations
decided that GATT could better serve global
trade expansion if it became a formal
international organization. The result was the
World Trade Organization, (WTO), which was
established during the Uruguay Round (1986-
1993).

13. GATT Rounds

14. Formation
After Seven rounds of negotiations occurred under the GATT
in The Tokyo round during the 70s was the first major
attempt to tackle trade barriers that do not take the form of
tariffs and to improve the system but the agreements were
not accepted by all the member nations of GATT.
These agreements and policies were amended in URUGUAY
ROUND leading to acceptance by the member nations and
formation of WTO.
This final act concluding the Uruguay round and officially
establishing the WTO regime was signed in 1994 at
Marrakesh, Morroco and hence known as Marrakesh
Agreement.

15. Members & Observers

16.  The WTO is composed of 160 countries which represents 96.4% of
world trade & 96.7% of global GDP.
 Of these, 123 were signed during the Uruguay round
 WTO members do not have to be full-sovereign nation members.
Instead, they must be a custom territory with full autonomy in their
external relations.
 Over 3/4th of WTO members are developing or least developed
countries.
 There are 24 countries that are not members known as Observers.
These countries are currently negotiating membership. The biggest of
these is Iran.
 There are 14 non-member countries, ex. North Korea.
 Yemen became the newest member on June 26, 2014
Members & Observers

17. WTO Structure

18. Functions of WTO
 Acting as a forum for multilateral trade
negotiations.
 Seeking to resolve trade disputes.
 Acting as a watchdog of international trade.
 Maintaining trade related database.
 Cooperating with other international
institutions involved in global economic policy
making.
 Acting as a management consultant for world
trade.
 Technical assistance and training for developing
countries.

19. Principles of WTO

20. Agreements & Policies
The WTO’s agreements are the result of
negotiations between the members. The
current set were the outcome of the 1986–
94 Uruguay Round negotiations which
included a major revision of the original
General Agreement on Tariffs and Trade
(GATT).
The WTO oversees about 60 different
agreements which have the status of
international legal texts. They deal with:
agriculture, textiles and clothing, banking,
telecommunications, government
purchases, industrial standards, product
safety and many more.

21. Agreement: GATS
General Agreement on Trade in Services or
GATS is the first and the only comprehensive
multilateral discipline covering international
trade in Services.
According to GATS, WTO services are divided
into 12 areas and sub divided into 164 areas.

22. Agreement: TRIPS
It is the GATT Uruguay Round Agreement
on Trade Related Intellectual Property.
It deals with the protection & enforcement
of “Trade-Related” intellectual property
“rights".
Intellectual property comprises 2 distinct
forms:
1. Literary & Artistic Works- Books,
paintings, musical compositions, plays,
operas, movies, radio/ TV programs,
performances, & other artistic works
2. Industrial Property- Patented objects,
trade secrets, geographical indications.

23. Agreement: TRIMS
Trade related Investment Measures does not provide
any new language, but It concentrates on 2 major
articles. Article III & Article IX which talks about
National Treatment and Trade Restrictions respectively.
ARTICLE III
●National treatment of imported
product, unless specified in other
agreements.
●Subjects the purchase or use by
an enterprise of imported products
to less favorable conditions than
the purchase or use of domestic
products.
ARTICLE IX
●Prohibition of quantitative
restrictions on imports and
exports.
●Part of the general trend in
textiles and agriculture to phase
out the use of quantitative
restrictions.

24. Agreement: SPS
Sanitary and Phyto-Sanitary (SPS)
agreement was negotiated during the
Uruguay Round, and entered into
force with the establishment of the
WTO in1995.
The WTO sets constraints on
member-states policies relating to
food safety (bacterial contaminants,
pesticides, inspection and labeling) as
well as animal and plant health
(imported pests and diseases).

25. Agreement: AOA
The most important agreement
follows. The Agreement on
Agriculture came into effect with
the establishment of the WTO at
the beginning of 1995
The AoA has three central
concepts, or "PILLARS":
1. Domestic support
2. Market access
3. Export subsidies

26. Agreement: ADP
A product is considered to be dumped if
the export price is less than the price
charged for the same product in the
exporting country, or it is sold for less
than its cost of production.
The WTO agreement on anti-dumping
allows governments to act against
dumping where there is genuine
(‘material’) injury to the competing
domestic industry.

27. PROS
• Promotes free-er trade
• Raises world output levels via
specialization
• Establishes a standard rule by law
and terms of trade for greater
efficiency
• Updates all participating countries
and banks to international standards
and efficiency in terms of trade and
commerce.

28. CONS
• Industrialized countries benefit more than poor
countries
• Don’t allow the participation of developing countries.

29. Developing nations & WTO
 Rich countries are able to maintain high import duties and quotas
in certain products, blocking imports from developing countries
(e.g. clothing).
 The increase in non-tariff barriers such as anti-dumping measures
allowed against developing countries.
 The maintenance of high protection of agriculture in developed
countries while developing ones are pressed to open their
markets.
 Many developing countries do not have the capacity to follow the
negotiations and participate actively in the Uruguay Round.
 The TRIPs agreement which limits developing countries from
utilizing some technology that originates from abroad in their local
systems (including medicines and agricultural products).

30. End Note
Although the stated aim of the WTO
is to promote free trade and
stimulate economic growth, some
believe that globally free trade
results in rich (both people and
countries) becoming richer awhile
the poor getting poorer.
It will be able to help weak and poor
countries if it frames rules
accordingly.

31. THANK
YOU