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/