Higher School of management science

INTERNATIONAL TRADE INSTITUTIONS

BY KHALFALLAH AYMEN & ALLOUI MONCEF
SUPERVISED BY : Mrs ATIL ASIA
INTRODUCTION
International trade institutions play a pivotal role in shaping the global
economic landscape. From the World Trade Organization (WTO) to regional
trade blocs, these organizations foster cooperation, regulate trade practices,
and promote economic growth on a global scale. Join me on a journey through
the intricate web of international trade agreements, policies, and their
profound impact on nations and businesses worldwide.
So, what are the international trade institutions and what is their role ?
Plan de travail
Introduction
World trade organization (wto)
International monetary fund (imf)
Organization for economic cooperation and developement (oecd)
Conclusion
World trade organization (wto)
The World Trade Organization is‘member-driven’, with decisions taken by
General agreement among all member of governments and it deals with the
rules of trade between nations at global or near-global level..
They deal with: agriculture, textiles and clothing, banking, telecommunications,
government purchases, industrial standards and product safety, food sanitation
regulations, intellectual property,
The WTO agreements are lengthy and complex because they are legal texts
covering a wide range of activities.

HISTORY OF THE WTO

• The World Trade Organization (WTO) came into being on January 1st 1995. It
was the outcome of the lengthy (1986-1994) Uruguay round of GATT
negotiations. The WTO was essentially an extension of GATT.
• It extended GATT in two major ways. First GATT became only one of the three
major trade agreements that went into the WTO (the other two being the
General Agreement on Trade in Services (GATS) and the agreements on Trade
Related Aspects of Intellectual Property Rights (TRIPS)).
Second the WTO was put on a much sounder institutional footing than GATT.
With GATT the support services that helped maintain the agreement had come
into being in an ad hoc manner as the need arose. The WTO by
contrast is a fully fledged institution (GATT also was, at least formally, only an
agreement between contracting parties and had no independent existence of
its own while the WTO is a corporate body recognized under international law).
FACT FILE OF WTO
Location Geneva, Switzerland
Established 1 January 1995
Created by Uruguay Round negotiations (1986-94)
Membership 164 countries on 29 July 2016
Budget 189 million Swiss francs for 2009
Secretariat staff 625
Head Pascal Lamy (DirectorGeneral)
FUNCTIONS OF THE WTO
• Administering WTO trade agreements
• Forum for trade negotiations
• Handling trade disputes
• Monitoring national trade policies
• Technical assistance and training for developing
countries
• Cooperation with other international organizations
PRINCIPLES OF THE WTO
The basic principles of the WTO (according to the WTO):
• Trade Without Discrimination
1. Most-favoured-nation (MFN): treating other people equally Under the WTO
agreements, countries cannot normally discriminate between their trading
partners. Grant someone a special favour (such as a lower customs duty rate
for one of their products) and you have to do the same for all other WTO
members.
2. National treatment: Treating foreigners and locals equally Imported and
locally-produced goods should be treated equally — at least after the foreign
goods have entered the market. The same should apply to foreign and
domestic services, and to foreign and local trademarks, copyrights and patents.
• Freer trade: gradually, through negotiation Lowering trade barriers is one of
the most obvious means of encouraging trade. The barriers concerned include
customs duties (or tariffs) and measures such as import bans or quotas that
restrict quantities selectively
• Predictability: through binding and transparency Sometimes, promising not to
raise a trade barrier can be as important as lowering one, because the promise
gives businesses a clearer view of their future opportunities. With stability and
predictability, investment is encouraged, jobs are created and consumers can
fully enjoy the benefits of competition — choice and lower prices. The
multilateral trading system is an attempt by governments to make the business
environment stable and predictable.
• Promoting fair competition The WTO is sometimes described as a “free
trade” institution, but that is not entirely accurate. The system does allow
tariffs and, in limited circumstances, other forms of protection. More
accurately, it is a system of rules dedicated to open, fair and undistorted
competition.
• Encouraging development and economic reform. The WTO system
contributes to development. On the other hand, developing countries need
flexibility in the time they take to implement the system’s agreements. And the
agreements themselves inherit the earlier provisions of GATT that allow for
special assistance and trade concessions for developing countries.
ROLE OF THE WTO
• The main goal of WTO is to help the trading industry to become smooth, fair,
free and predictable. It was organized to become the administrator of
multilateral trade and business agreements between its member nations. It
supports all occurring negotiations for latest agreements for trade. WTO also
tries to resolve trade disputes between member nations.
• Multi-lateral agreements are always made between several countries in the
past. Because of this, such agreements become very difficult to negotiate but
are so powerful and influential once all the parties agree and sign the multi-
lateral agreement. WTO acts as the administrator. If there are unfair trade
practices or dumping and there is complain filed, the staff of WTO are expected
to investigate and check if there are violations based on the multi-lateral
agreements.
RELEVANTS OF THE WTO
• The system helps promote peace.
• The system allows disputes to be handled constructively.
• A system based on rules rather than power makes life easier for all.
• Freer trade cuts the cost of living.
• It gives consumers more choice and a broader range of qualities to choose
from.
• Trade raises incomes.
• Trade stimulates economic growth and that can be good
news for employment
• The basic principles make the system economically more efficient, and
they cut costs.
INTERNATIONAL MONETARY FUND (IMF)
IMF is the intergovernmental organization that oversees the global financial
system by following the macroeconomic policies of its member countries, in
particular those with an impact on exchange rate and the balance of payments.
It is an organization formed with a stated objective of stabilizing international
exchange rates and facilitating development through the enforcement of
liberalising economic policies on other countries as a condition for loans,
restructuring or aid.
The IMF was created to support orderly international currency exchanges and
to help nations having balance of payment problems through short term loans
of cash.
Its headquarters are in Washington, United States.
PURPOSES OF IMF
Promote international monetary cooperation.
Expansion and balanced growth of international trade.
Promote exchange rate stability.
The elimination of restrictions on the international flow of capital.
Make resources of the Fund available to members Help establish
multilateral system of payments and eliminate foreign exchange
restrictions.
Shorten the duration and lessen the degree of
disequilibrium in international balances of payment.
Foster economic growth and high levels of employment.
Temporary financial assistance to countries to help the balance of payments
adjustments.
ROLE OF IMF
Promoting research in various areas of international economics and monetary
economics.
Providing a forum for discussion and consultation among member countries.
Being in the center of competence.
Focusing on its core macroeconomic and financial areas of responsibility.
Working in a complementary fashion with other institutions established.
FUNCTIONS OF IMF
Surveillance (like a doctor) Gathering data and assessing economic policies of
countries.
Technical Assistance (like a teacher) Strengthening human skills and
institutional capacity of countries.
Financial Assistance (like a banker) Lending to countries to support reforms
IMF RELATIONS
The IMF collaborates with
the World Bank,
the regional development banks,
the World Trade Organization,
United Nations agencies, and other international bodies.
Each of these institutions has its own area of responsibility and specialization
and its particular contribution to make to the world economy.
ORGANIZATION OF ECONOMIC COOPERATION AND DEVELOPEMENT
is a unique forum where the governments of 30 market democracies work
together to address the economic, social and governance challenges of
globalization as well as to exploit its opportunities.
*The Organization provides a setting where governments can compare policy
experiences, seek answers to common problems, identify good practice and co-
ordinate domestic and international policies.
The OECD helps governments to foster prosperity and fight poverty through
economic growth, financial stability, trade and investment, technology,
innovation, entrepreneurship and development co-operation.
*For more than 40 years, the OECD has been one of the world’s largest and
most reliable sources of comparable statistical, economic and social data.
HISTORY OF OECD
The OECD grew out of the Organisation for European Economic Cooperation
(OEEC), which was set up in 1948 with support from the United States and
Canada to co-ordinate the Marshall Plan for the reconstruction of Europe after
World War II .
*Created as an economic counterpart to NATO, the OECD took over from the
OEEC in 1961 and, since then, its mission has been to help governments
achieve sustainable economic growth and employment and rising standards of
living in member countries while maintaining financial stability, so contributing
to the development of the world economy.
ROLE OF OECD
*The OECD provides a setting for reflection and discussion, based on policy
research and analysis that helps governments shape policy that may lead to a
formal agreement among member governments or be acted on in domestic or
other international fora.
*The OECD’s way of working consists of a highly effective process that begins
with data collection and analysis and moves on to collective discussion of
policy, then decision-making and implementation.
*Crucial analytical work and consensus-building on trade issues, such as trade
in services, feed into the success of international trade negotiations.
OECD IN DETAIL
DEVELOPMENT
OECD donor countries grouped in the Development Assistance Committee
(DAC) account for more than 90% of official development assistance (ODA)
worldwide. The Development Co-operation Directorate (DCD) supports the
work of the DAC and of the OECD as a whole by assisting with policy
formulation, policy co-ordination and information systems for development.
ECONOMICS AND GROWTH
The Economics Department examines economic and financial developments in
OECD countries and selected non-member economies.
EDUCATION
The Directorate for Education helps member countries achieve high-quality
learning for all that contributes to personal development, sustainable
economic growth and social cohesion
EMPLOYMENT AND SOCIAL COHESION
The Directorate for Employment, Labour and Social Affairs oversees work on
the inter-related policy areas that can promote employment and prevent social
exclusion. Its activities are focused on four main themes: employment and
training, health, international migration and social issues.
ENERGY
Energy issues are handled by two specialised agencies:- The International
Energy Agency (IEA) which consider means of improving energy supply and
enhancing efficient energy use; integrating energy and environmental policies;
and opening dialogue between energy producers and consumers within and
beyond its own membership
The Nuclear Energy Agency (NEA) helps its 28 members to maintain and
develop through international co-operation, the scientific, technological and
legal bases required for the safe, environmentally friendly and economical use
of nuclear energy for peaceful purposes.
ENTREPRENEURSHIP AND LOCAL DEVELOPMENT
The OECD’s Centre for Entrepreneurship, SMEs and Local Development fosters
the development of an entrepreneurial society, capable of innovating, creating
jobs and seizing the opportunities provided by globalisation while helping to
promote sustainable growth, integrated development and social cohesion.
ENVIRONMENT
The Environment Directorate helps member countries to design and implement
efficient, effective policies to address environmental problems and to manage
natural resources in a sustainable way.
FINANCIAL AND ENTERPRISE AFFAIRS
The Directorate for Financial and Enterprise Affairs takes up public policy
challenges of direct concern to business to enhance economic growth and
development, ensure financial stability and promote the effective integration of
nonOECD countries in the global economy.
PUBLIC GOVERNANCE
The Public Governance and Territorial Development Directorate helps countries
to adapt their government systems and territorial policies to the changing
needs of society.
SCIENCE, TECHNOLOGY AND INDUSTRY
The Directorate for Science, Technology and Industry helps OECD countries
understand and shape the evolution of a knowledge-based economy, in order
to achieve the highest innovation potential and adapt national policies to
opportunities provided by globalisation.
STATISTICS
The Statistics Directorate collects economic statistics from across the OECD.
These are standardized to make them internationally comparable and are
published in both printed and electronic form.
TAXATION
The Centre for Tax Policy and Administration examines all aspects of taxation,
including tax policy and tax administration. It also fosters dialogue with non-
OECD economies, thereby promoting international co-operation in taxation.
TRADE AND AGRICULTURE
The work of the Directorate for Trade and Agriculture provides support for a
strong, rules-based multilateral trading system (MTS), and advice to help OECD
and non-member governments design and implement policies in both the trade
and agriculture domains that achieve their goals, in effective, efficient and least
marketdistorting ways.
GLOBAL RELATIONS
*Over time, the OECD’s focus has broadened to include extensive contacts with
non-member economies and it now maintains co-operative relations with more
than 100 of them. These contacts aim to further economic integration by
making the OECD’s experience available to other countries and enabling the
OECD to profit from the insights and perspectives of nonmembers.
*The Centre for Co-operation with Non-Members develops and oversees the
strategic orientations of the OECD’s global relations with non-members. It
coordinates a number of programmes linked to the key themes of OECD work
in areas such as improving the investment climate, public and corporate
governance, trade, agriculture, competition and taxation.
OECD AND THE PUBLIC
Effective communication is essential to enable the OECD to fulfill its mission to
promote intergovernmental co-operation, as well as to explain its activities to a
broad range of audiences and stakeholders from policy makers to business
representatives, academia, labour, civil society, the media and the general
public.
The OECD Centres in Berlin, Mexico, Tokyo and Washington organize lectures,
seminars and other events to disseminate the Organization’s work, often
helping to bridge language gaps.
The OECD Observer, the Organization’s public magazine, also keeps readers up
to date on key issues related to OECD work.
CONCLUSION
In conclusion, this presentation has highlighted the significant roles played by
the
World Trade Organization (WTO), the International Monetary Fund (IMF), and
the Organisation for Economic Co-operation and Development (OECD) in the
global landscape. These international organizations have each contributed to
shaping and regulating international trade, economic stability, and policy
coordination. While the WTO promotes fair trade and resolves disputes, the
IMF stabilizes economies through financial assistance and policy advice, and
the OECD fosters economic growth and cooperation among developed nations.
Their collective efforts contribute to a more interconnected and prosperous
world, addressing the complex challenges of the global economy.
BIBLIOGRAPHIE
http://www.oecdbetterlifeindex.org/
http://www.oecd-ilibrary.org/