History

The Bretton Woods Conference of 1944 proposed the creation of an International Trade Organization (ITO) to establish rules and regulations for trade between countries !e"bers of the #$ Conference on Trade and %"plo&"ent in 'a(ana agreed to the ITO charter in !arch 194)* but ratification was bloc+ed b& the # , ,enate (WTO* -..4b) ,o"e historians ha(e argued that the failure "a& ha(e resulted fro" fears within the /"erican business co""unit& that the International Trade Organization could be used to regulate (rather than liberate) big business (0isa Wil+ins* 19912 'elen !ilner 1993) Onl& one ele"ent of the ITO sur(i(ed4 the 5eneral /gree"ent on Tariffs and Trade (5/TT) ,e(en rounds of negotiations occurred under the 5/TT before the eighth round 6 +nown as the #rugua& 7ound 8 which began in 19)9 and concluded in 199: with the establish"ent of the WTO The 5/TT principles and agree"ents were adopted b& the WTO* which was charged with ad"inistering and e;tending the" and appro;i"atel& 3. other agree"ents and resol(ing trade disputes between "e"ber countries #nli+e the 5/TT* the WTO has a substantial institutional structure

Mission
he WTO states that its ai"s are to increase international trade b& pro"oting lower trade barriers and pro(iding a platfor" for the negotiation of trade and to their business Principles of the trading system The WTO discussions should follow these funda"ental principles of trading <3= 1 3 4 : / trading s&ste" should be free of discri"ination in the sense that one countr& cannot pri(ilege a particular trading partner abo(e others within the s&ste"* nor can it discri"inate against foreign products and ser(ices / trading s&ste" should tend toward "ore freedo"* that is* toward fewer trade barriers (tariffs and non6tariff barriers) / trading s&ste" should be predictable* with foreign co"panies and go(ern"ents reassured that trade barriers will not be raised arbitraril& and that "ar+ets will re"ain open / trading s&ste" should tend toward greater co"petition / trading s&ste" should be "ore acco""odating for less de(eloped countries* gi(ing the" "ore ti"e to ad>ust* greater fle;ibilit&* and "ore pri(ileges

/ccording to WTO rules* all WTO "e"bers "a& participate in all councils* co""ittees* etc * e;cept /ppellate Bod&* ?ispute ,ettle"ent panels* and plurilateral co""ittees In practice* "ost of the WTO@s decisions are "ade in infor"al "eetings* often called A5reen 7oo"A "eetings* to which "ost "e"bers are not in(ited ,ee criticis"

Formal Structure
Highest level: Ministerial Conference The top"ost decision6"a+ing bod& of the WTO is the !inisterial Conference* which has to "eet at least e(er& two &ears It brings together all "e"bers of the WTO* all of which are countries or separate custo"s territories The !inisterial Conference can "a+e decisions on all "atters under an& of the "ultilateral trade agree"ents Second level: General Council The dail& wor+ of the "inisterial conference is handled b& three groups4 the 5eneral Council* the ?ispute ,ettle"ent Bod&* and the Trade Bolic& 7e(iew Bod& /ll three consist of the sa"e "e"bership 6 representati(es of all WTO "e"ber states 6 but each "eets under different rules 1 The 5eneral Council6 is the WTOCs highest6le(el decision6"a+ing bod& in 5ene(a* "eeting regularl& to carr& out the functions of the WTO It has representati(es (usuall& a"bassadors or eDui(alent) fro" all "e"ber go(ern"ents and has the authorit& to act on behalf of the "inisterial conference which onl& "eets about e(er& two &ears The council acts on behalf on the !inisterial Council on all of the WTO affairs The current chair"an is /"b %iri+ 5lenne ($orwa&) - The ?ispute ,ettle"ent Bod& 6 !ade up of all "e"ber go(ern"ents* usuall& represented b& a"bassadors or eDui(alent The current chairperson is ' % !r !uha"ad $oor Eacob (!ala&sia) 3 The Trade Bolic& 7e(iew Bod& (TB7B) 6 the WTO 5eneral Council "eets as the Trade Bolic& 7e(iew Bod& to underta+e trade polic& re(iews of !e"bers under the T7B! The TB7B is thus open to all WTO !e"bers The current chairperson is ' % !s Claudia #ribe (Colo"bia) Third level: Councils for Trade The Councils for Trade wor+ under the 5eneral Council There are three councils 6 Council for Trade in 5oods* Council for Trade67elated /spects of Intellectual Bropert& 7ights* and Council for Trade in ,er(ices 6 each council wor+s in different fields /part fro" these three councils* si; other bodies report to the 5eneral Council reporting on issues such as trade and de(elop"ent* the en(iron"ent* regional trading arrange"ents and ad"inistrati(e issues 1 Council for Trade in 5oods6 The wor+ings of the 5eneral /gree"ent on Tariffs and Trade (5/TT) which co(ers international trade in goods* are the responsibilit& of the Council for Trade in 5oods It is "ade up of representati(es fro" all WTO "e"ber countries The current chairperson is /"b Eono( Frederic+ /gah ($igeria)

- Council for Trade67elated /spects of Intellectual Bropert& 7ights6 Infor"ation on intellectual propert& in the WTO* news and official records of the acti(ities of the T7IB, Council* and details of the WTOCs wor+ with other international organizations in the field 3 Council for Trade in ,er(ices6 The Council for Trade in ,er(ices operates under the guidance of the 5eneral Council and is responsible for o(erseeing the functioning of the 5eneral /gree"ent on Trade in ,er(ices (5/T,) ItCs open to all WTO "e"bers* and can create subsidiar& bodies as reDuired Fourth level: Subsidiary Bodies There are subsidiar& bodies under each of the three councils 1 The 5oods Council6 subsidiar& under the Council for Trade in 5oods It has 11 co""ittees consisting of all "e"ber countries* dealing with specific sub>ects such as agriculture* "ar+et access* subsidies* anti6du"ping "easures and so on Co""ittees include the following4

Infor"ation Technolog& /gree"ent (IT/) Co""ittee ,tate Trading %nterprises Te;tiles !onitoring Bod& 6 Consists of a chair"an and 1. "e"bers acting under it 5roups dealing with notifications 6 process b& which go(ern"ents infor" the WTO about new policies and "easures in their countries

- The ,er(ices Council6 subsidiar& under the Council for Trade in ,er(ices which deals with financial ser(ices* do"estic regulations and other specific co""it"ents 3 ?ispute ,ettle"ent panels and /ppellate Bod&6 subsidiar& under the ?ispute ,ettle"ent Bod& to resol(e disputes and the /ppellate Bod& to deal with appeals ther committees

Co""ittees on o Trade and %n(iron"ent o Trade and ?e(elop"ent (,ubco""ittee on 0east6?e(eloped Countries) o 7egional Trade /gree"ents o Balance of Ba&"ents 7estrictions o Budget* Finance and /d"inistration Wor+ing parties on o /ccession Wor+ing groups on o Trade* debt and finance o Trade and technolog& transfer

Chronology

19)961994 6 #rugua& 7ound of 5/TT negotiations cul"inating in the !arra+ech /gree"ent that established the WTO Ganuar& 1* 199: 6 The WTO ca"e into e;istence !a& 1* 199: 6 7enato 7uggiero beca"e director6general for a 46&ear ter" ?ece"ber 9 6 ?ece"ber 13* 1999 6 The inaugural "inisterial conference in ,ingapore ?isagree"ents between largel& de(eloped and de(eloping econo"ies e"erged during this conference o(er four issues initiated b& this conference* which led to the" being collecti(el& referred to as the A,ingapore issuesA !a& 1) 6 !a& -.* 199) 6 -nd "inisterial conference in 5ene(a* ,witzerland ,epte"ber 1* 1999 6 !i+e !oore beca"e director6general The post had been fiercel& contested2 e(entuall& a co"pro"ise was reached with !i+e !oore and ,upachai Banitchpa+di ta+ing half each of a si;6&ear ter" $o(e"ber 3. 6 ?ece"ber 3* 1999 6 3rd "inisterial conference in ,eattle* Washington* #,/ The conference itself ended in failure* with "assi(e de"onstrations and riots drawing worldwide attention $o(e"ber 9 6 $o(e"ber 13* -..1 6 4th "inisterial conference in ?oha* Hatar begins the ?oha round Issuance of the ?oha ?eclaration ?ece"ber 11* -..1 6 The Beople@s 7epublic of China >oined the WTO after 1: &ears of negotiations (the longest in 5/TT histor&) Ganuar& 1* -..- 6 Taiwan >oined under the na"e A,eparate Custo"s Territor& of Taiwan* Benghu* Iin"en and !atsuA ,epte"ber 1* -..- 6 ,upachai Banitchpa+di beca"e director6general ,epte"ber 1. 6 ,epte"ber 14* -..3 6 :th "inisterial conference in CancJn* !e;ico ai"s at forging agree"ent on the ?oha round /n alliance of -- southern states* the 5-. (led b& India* China and Brazil)* resisted de"ands fro" the $orth for agree"ents on the so6called A,ingapore issuesA and called for an end to agricultural subsidies within the %# and the #, The tal+s bro+e down without progress* although trade facilitation* one of the ,ingapore issues* re6e"erged with the support fro" both de(eloped and de(eloping countries in later ?oha trade round discussion /ugust -..4 6 5ene(a tal+s achie(e a fra"ewor+ agree"ent on the ?oha round ?e(eloped countries will lower agricultural subsidies* and in e;change the de(eloping countries will lower tariff barriers to "anufactured goods !a& -..: 6 Baris tal+s ai"ed at finalizing issues for agree"ent before the ?ece"ber -..: "inisterial conference in 'ong Iong are hung o(er technical issues The group of fi(e (# , * /ustralia* the %#* Brazil and India) fail to agree o(er chic+en* beef and rice France continues to protest restrictions on subsidies to far"ers O;fa" accuses the %# of dela&ing tactics which threaten to scupper the ?oha round $o(e"ber 11 6 WTO 5eneral Council successfull& adopts ,audi /rabiaCs ter"s of /ccession ?ece"ber 13 6 ?ece"ber 1)* -..: 6 9th "inisterial conference in 'ong Iong Gul& -4* -..9 6 The ?oha ?e(elop"ent /genda negotiations were suspended* because gaps between +e& pla&ers re"ained too wide

Criticism
The stated ai" of the WTO is to pro"ote free trade and sti"ulate econo"ic growth !an& people argue that free trade does not "a+e ordinar& people@s li(es "ore prosperous but onl& results in the rich (both people and countries) beco"ing richer WTO treaties ha(e also been accused of a partial and unfair bias toward "ultinational corporations and wealth& nations Critics contend that s"all countries in the WTO wield little influence* and despite the WTO ai" of helping the de(eloping countries* the influential nations in the WTO focus on their own co""ercial interests The& also clai" that the issues of health* safet& and en(iron"ent are steadfastl& ignored !artin Ihor argues that the WTO does not "anage the global econo"& i"partiall&* but in its operation has a s&ste"atic bias toward rich countries and "ultinational corporations* har"ing s"aller states which ha(e less negotiation power ,o"e e;a"ples of this bias are4

7ich countries are able to "aintain high i"port duties and Duotas in certain products* bloc+ing i"ports fro" de(eloping countries (e g clothing)2 The increase in non6tariff barriers such as anti6du"ping "easures allowed against de(eloping countries2 The "aintenance of high protection of agriculture in de(eloped countries while de(eloping ones are pressed to open their "ar+ets2 !an& de(eloping countries do not ha(e the capacit& to follow the negotiations and participate acti(el& in the #rugua& 7ound2 and The T7IBs agree"ent which li"its de(eloping countries fro" utilizing so"e technolog& that originates fro" abroad in their local s&ste"s (including "edicines and agricultural products)

Gagdish Bhagwati* although pro6free trade and pro6globalization* has strongl& criticized the introduction of T7IBs (foru" shifting) into the WTOK5/TT fra"ewor+ 'is fear is that other non6trade agendas "ight o(erwhel" the organization@s function !an& non6go(ern"ental organizations* such as the World Federalist !o(e"ent* are calling for the creation of a WTO parlia"entar& asse"bl& to allow for "ore de"ocratic participation in WTO decision "a+ing <)= ?r Caroline 0ucas reco""ended that such an asse"bl& Aha(e a "ore pro"inent role to pla& in the for" of parlia"entar& scrutin&* and also in the wider efforts to refor" the WTO processes* and its rulesA <9= 'owe(er* ?r 7aoul !arc Gennar argues that a consultati(e parlia"entar& asse"bl& would be ineffecti(e for the following reasons <1.=4

It does not resol(e the proble" of Linfor"al "eetingsM whereb& industrialized countries negotiate the "ost i"portant decisions2

It does not reduce the de facto ineDualit& which e;ists between countries with regards to an effecti(e and efficient participation to all acti(ities within all WTO bodies2 It does not rectif& the "ultiple (iolations of the general principles of law which affect the dispute settle"ent "echanis"

The WTO has 149 "e"bers (al"ost all of the 1-3 nations participating in the #rugua& 7ound signed on at its foundation* and the rest had to get "e"bership) Nietna" will beco"e the 1:.th "e"ber in Ganuar&

Sixth ministerial conference

Main article: WTO Ministerial Conference of 2005 The si;th WTO Conference !inisterial was held in 'ong Iong fro" ?ece"ber 13 6 ?ece"ber 1)* -..: It was considered (ital if the four6&ear6old ?oha ?e(elop"ent /genda negotiations were to "o(e forward sufficientl& to conclude the round in -..9 In this "eeting* countries agreed to phase out all their agricultural e;port subsidies b& the end of -.13* and ter"inate an& cotton e;port subsidies b& the end of -..9 Further concessions to de(eloping countries included an agree"ent to introduce dut& free* tariff free access for goods fro" the 0east ?e(eloped Countries* following the %(er&thing But /r"s initiati(e of the %uropean #nion 6 but with up 3O of tariff lines e;e"pted Other "a>or issues were left for further negotiation to be co"pleted b& the end of -..9