WTO

The General Agreement on Tariffs and Trade (typically

abbreviated GATT) was the outcome of the failure of
negotiating governments to create the International
Trade Organization (ITO). The Bretton Woods
Conference had introduced the idea for an organization
to regulate trade as part of a larger plan for economic
recovery after World War II.
Once the ITO failed in 1950, only the GATT agreement
was left. The GATT's main objective was the reduction of
barriers to international trade. This was achieved through
the reduction of tariff barriers, quantitative restrictions
and subsidies on trade through a series of agreements.
The GATT was a treaty, not an organization. The
functions of the GATT were taken over by the World
Trade Organization which was established during the
final round of negotiations in the early 1990s.
GATT and the World Trade Organization
In 1993 the GATT was updated (GATT 1994) to include
new obligations upon its signatories. One of the most
significant changes was the creation of the World Trade
Organization (WTO). The 75 existing GATT members and
the European Communities became the founding
members of the WTO on January 1, 1995. The other 52
GATT members rejoined the WTO in the following two
years (the last being Congo in 1997). Since the founding of
the WTO, 21 new non-GATT members have joined and 29
are currently negotiating membership. As of October 2007,
there were a total of 151 member countries in the WTO.
Whereas GATT was a set of rules agreed upon by
nations, the WTO is an institutional body. The WTO
expanded its scope from traded goods to trade within
the service sector and intellectual property rights.

WTO arrangements are generally a multilateral
agreement settlement mechanism of GATT

Meaning

The World Trade Organization (WTO) is the
only international organization dealing with
the global rules of trade between nations. Its
main function is to ensure that trade flows as
smoothly, predictably and freely as possible
.

The World Trade Organization (WTO) deals with the
rules of trade between nations at a global or near-
global level. But there is more to it than that.
FACT FILE
Location- Geneva (Switzerland)
Established- 1 January 1995
Created By- Uruguay Round negotiations
(1986-94)
Membership- 159 countries
Budget- 197,203,900Swiss Francs for
2013
Secretariat Staff- 625
Head- Roberto Azevdo (Director-
General)
OBJECTIVE
To promote and ensure the international
trade in members countries with the mantra
of LPG.
Trade without discrimination.
To set and enforce rules for international
trade.
To provide forum for negotiating and
monitoring the international trade.
To resolve trade disputes.
Contd.
To increase the transparency of decision
making processes.
To cooperate with other major international
economic institution involved in global
economic management.
To help developing countries benefit fully
from the global trading system.
OVERVIEW
The WTO agreements cover goods, services and
intellectual property.

They spell out the principles of liberalization, and the
permitted exceptions.

They include individual countries commitments to lower
customs tariffs and other trade barriers, and to open and
keep open services markets.

They set procedures for settling disputes.

They prescribe special treatment for developing countries.
COND..
They require governments to make their trade
policies transparent by notifying the WTO about
laws in force and measures adopted, and
through regular reports by the secretariat on
countries trade policies

These agreements are often called the WTOs
trade rules, and the WTO is often described as
rules-based, a system based on rules. But its
important to remember that the rules are actually
agreements that governments negotiated.
Key


Reporting to General Council
(or a subsidiary)

Reporting to Dispute
Settlement Body


Plurilateral committees
inform the General
Council or Goods Council
of their activities,
although these
agreements are not
signed by all WTO
members

Trade Negotiations
Committee reports to
General Council
The General Council also meets as the Trade Policy Review Body and
Dispute Settlement Body.
The WTO establishes a framework for trade policies; it
does not define or specify outcomes. That is, it is
concerned with setting the rules of the trade policy
games.
Specifically, TRIPS contains requirements that
nations' laws must meet for: copyright rights,
including the rights of performers, producers of
sound recordings and broadcasting organizations;
geographical indications, including appellations of
origin; industrial designs; integrated circuit layout-
designs; patents; monopolies for the developers of
new plant varieties; trademarks; trade dress; and
undisclosed or confidential information. TRIPS also
specifies enforcement procedures, remedies, and
dispute resolution procedures.
MINISTERIAL CONFERENCE
First Ministerial Conference- in Singapore in 1996
Second Ministerial Conference- in Geneva in 1998
Third Ministerial Conference- in Seattle in 1999
Fourth Ministerial Conference- in Doha in 2001
Fifth Ministerial Conference- in Cancun in 2003
Sixth Ministerial Conference- in Hong-Cong in 2005
Seventh Ministerial Conference- in Geneva in 2009
Ministerial Conferences
> Bali, 3-6 December 2013
> Geneva, 15-17 December 2011
> Geneva, 30 November - 2 December 2009
> Hong Kong, 13-18 December 2005
> Cancn, 10-14 September 2003
> Doha, 9-13 November 2001
> Seattle, November 30 December 3, 1999
> Geneva, 18-20 May 1998
> Singapore, 9-13 December 1996