What is the WTO?

The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the worlds trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business. WTO Established Jan 1, 1995 Created by : Uruguay round negotiation(1986-1994) Members: 159 Most recent: Russia 2012, Vanuatu 2012,Tajikistan 2013 Headquarters: Geneva, Switzerland

Who we are
There are a number of ways of looking at the World Trade Organization. It is an organization for trade opening. It is a forum for governments to negotiate trade agreements. It is a place for them to settle trade disputes. It operates a system of trade rules. Essentially, the WTO is a place where member governments try to sort out the trade problems they face with each other.

What we do
The WTO is run by its member governments. All major decisions are made by the membership as a whole, either by ministers (who usually meet at least once every two years) or by their ambassadors or delegates (who meet regularly in Geneva).

Why gatt replaced by wto ?: Reasons : Gatt rules applied to trade only in merchandise goods. 2. Gatt dispute settlement system is slow 3. Gatt was just provisional agreement. STRUCTURE OF WTO : STRUCTURE OF WTO The WTO is run by its member governments. All major decisions are made by the membership as a whole, either by ministers ,who meet at least once every two years, Decisions are normally taken by consensus. the WTO is different from some other international organizations such as the World Bank and International Monetary Fund. In the WTO, power is not delegated to a board of directors or the organizations head . Highest authority: : Highest authority : The countries make their decisions through various councils and committees, whose membership consists of all WTO members. The Ministerial Conference can take decisions on all matters under any of the multilateral trade agreements. CHART OF THE WTO STRUCTURE

Ministerial

Conference

General Council

Dispute Settlement Body

Trade Policy Review Body

Council for Trade in Goods

Council for Trade in Services

Intellectual Property rights

1 1. Council for Trade in Goods: 1 1. Council for Trade in Goods Since 1995, the updated GATT has become the WTOs umbrella agreement for trade in goods. It has dealing with specific sectors such as agriculture and textiles, and with specific issues such as state trading, product standards, subsidies and actions taken against dumping. For example : JAPAN is better than INDIA at making automobiles, and INDIA is better than JAPAN at making Agriculture and Textile product . It is obvious that both would benefit if JAPAN specialized in automobiles and INDIA specialized in Agriculture and Textile and they traded their products. That is a case of absolute advantage. Absolute advantage: Absolute advantage JAPAN produce Automobile product. INDIA produce Agriculture and textile product. 2. Council for Trade in Services : 2 . Council for Trade in Services Banks insurance firms telecommunications companies tour operators hotel chains transport companies Example of Telecommunication services: : Example of Telecommunication services : The telecommunications sector has a dual role: it is a distinct sector of economic activity; and it is an underlying means of supplying other economic activities for example: electronic money transfers 3. INTELLECTUAL PROPERTY : 3. INTELLECTUAL PROPERTY The WTOs Intellectual Property Agreement amounts to rules for trade and investment in ideas and creativity. The rules state how Copyrights patents trademarks geographical names used to identify products industrial designs intellectual property should be protected when trade is involved. 4.DISPUTE SETTLEMENT : 4.DISPUTE SETTLEMENT The WTOs procedure for resolving trade quarrels under the Dispute Settlement. Understanding is vital for enforcing the rules and therefore for ensuring that trade flows smoothly. How long to settle a dispute? 60 days = Consultations mediation 45 days = Panel set up panelists appointed 6 months = Final panel report to parties 3 weeks = Final panel report to WTO members 60 days = Dispute Settlement Total = 1 year = (without appeal) 6090 days = Appeals report 30 days = Dispute Settlement Total = 1year 3month 5. TRADE POLICY REVIEW : 5. TRADE POLICY REVIEW The Trade Policy Review Mechanisms purpose is to improve transparency, to create a greater understanding of the policies that countries are adopting, and to assess their impact.

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 WTO's main activities are: negotiating the reduction or elimination of obstacles to trade (import tariffs, other barriers to trade) and agreeing on rules governing the conduct of international trade (e.g. antidumping, subsidies, product standards, etc.) administering and monitoring the application of the WTO's agreed rules for trade in goods, trade in services, and trade-related intellectual property rights monitoring and reviewing the trade policies of our members, as well as ensuring transparency of regional and bilateral trade agreements settling disputes among our members regarding the interpretation and application of the agreements building capacity of developing country government officials in international trade matters assisting the process of accession of some 30 countries who are not yet members of the organization conducting economic research and collecting and disseminating trade data in support of the WTO's other main activities explaining to and educating the public about the WTO, its mission and its activities.

DEVELOPING COUNTRIES THE WTO DEALS WITH THE SPECIAL NEEDS OF DEVELOPING COUNTRIES IN THREE WAYS : THE WTO DEALS WITH THE SPECIAL NEEDS OF DEVELOPING COUNTRIES IN THREE WAYS 1. WTO Agreements 2. WTO Committees 3. WTO Technical Cooperation 1. WTO AGREEMENTS : 1. WTO AGREEMENTS In the agreements: more time, better terms Legal assistance: a Secretariat service Least-developed countries: special focus A maison in Geneva: being present is important, but not easy for all 2. WTO COMMITTEES : 2. WTO COMMITTEES Trade and Development Committee Sub-committee on Least-Developed Countries The Doha agenda committees 3. WTO TECHNICAL COOPERATION : 3. WTO TECHNICAL COOPERATION Training Seminars workshops SOME ISSUES RAISED: SOME ISSUES RAISED Participation in the system: opportunities and concerns Erosion of preferences The ability to adapt: the supply-side Ministerial Conference: Ministerial Conference First ministerial conference at Singapore on December 9-13,1196. Second ministerial conference at Geneva on May 18-20,1998 Third ministerial conference at Seattle on November 30- december 3,1999. Fourth ministerial conference at Doha on November 9-13,2001. Fifth ministerial conference at Cancun on September 10-14,2003 . Sixth ministerial conference at Hong Kong on December 13-18,2005.

First ministerial conference at Singapore on December 9-13,1196. : First ministerial conference at Singapore on December 9-13,1196. To strengthen the WTO as a forum as a forum for negotiation. Assess the implementation of commitments under WTO agreements. Examine developments in the world economy. Address the challenges of an evolving world economy. Second ministerial conference at Geneva on May 18-20,1998 : Second ministerial conference at Geneva on May 18-20,1998 Ministers agreed to work together in the WTO as in the IMF and the World Bank to improve the coherence of international economic policy making with view to maximising the contribution that open, rule based trading system can make to stable growth for economies at all levels of development. Third ministerial conference at Seattle on November 30-december 3,1999: Third ministerial conference at Seattle on November 30-december 3,1999 The meeting of Washington, USA was suspended without adopting any declaration. Fourth ministerial conference at Doha on November 9-13,2001. : Fourth ministerial conference at Doha on November 9-13,2001. In the light of the global economic slowdown , the ministers expressed determination to maintain the process of reform and liberalization of trade policies , thus ensuring that the system plays in full part in promoting recovery , growth and development objectives set out in the marrkesh agreement establishing the WTO and pledged to reject the use of protectionism. The Doha Round: The Doha Round The Doha Round is the latest round of trade negotiations among the WTO membership. Its aim is to achieve major reform of the international trading system through the introduction of lower trade barriers and revised trade rules. The work programmed covers about 20 areas of trade. The Round is also known semiofficially as the Doha Development Agenda as a fundamental objective is to improve the trading prospects of developing countries. Fifth ministerial conference at Cancun on September 10-14,2003. : Fifth ministerial conference at Cancun on September 10-14,2003. Ministers launched at doha successfully by the date of 1 st january,2005. Ministers welcomed the decision on implementation of doha declaration on the TRIPS agreement and public health. Sixth ministerial conference at Hong Kong on December 13-18,2005. : Sixth ministerial conference at Hong Kong on December 13-18,2005. The ministerial declaration includes, progress on negotiations and further actions in the areas of environment, dispute settlement understanding, special & differential treatment, matters relating to implementation, trips small economies trade, debt and finance, trade & transfer of technology, E-commerce and least developed countries. Impact on India:: Impact on India: Problems faced Commitments made Potential solutions to existing problems Problems faced by India in WTO and its implementation:: Problems faced by India in WTO and its implementation: Predominance of developed nations in negotiations Non-tariff barriers being created by developed nations. Regional cooperation groups posing threat to utility of WTO agreement itself, which is multilateral encompassing all member countries Poor implementation of Doha Development Agenda Pressure to dismantle MFA ( Muti Fibre Agreement) Under TRIPS question of high cost Indias committment to WTO:: Indias committment to WTO: Reduction in tariff and non-tariff barriers Amendment in Patent Act; Trade Related Intellectual Property rights (TRIPs) Sui generis system Trade related investment measures (TRIMs) General Agreement on Trade services (GATS) What India should do?: What India should do? Should speed up internal reforms in building up world-class infrastructure Should focus on R&D in important fields Helping textile and garment Industry go multinational Invoking reforms facilitating major FDI infows Should downsize non-plan expenditure in Subsidies Lots of potential in renewable energy generation business The 10 benefits 1. The system helps promote peace 2. Disputes are handled constructively 3. Rules make life easier for all 4. Freer trade cuts the costs of living 5. It provides more choice of products and qualities 6. Trade

raises incomes 7. Trade stimulates economic growth 8. The basic principles make life more efficient 9. Governments are shielded from lobbying 10. The system encourages good government Criticisms Of WTO: Criticisms Of WTO 1> WTO is the fundamentally undemocratic 2> WTO will not make us safer 3> WTO tramples labour and Human Rights 4> WTO Would privatize essential services 5> WTO is increasing inequality 6> WTO is increasing hunger 7> WTO hurts poor ,small countries in favour of rich powerful nations WTO is fundamentally undemocratic: WTO is fundamentally undemocratic -> Environmental ,Human Rights, labour organization is consistently ignored Example: Industry sector advisory committees WTO will not make us safer : WTO will not make us safer -> The Domination of the international trade by rich countries for the benefit of the individual interest Example : Agriculture Export WTO tramples labour And human rights: WTO tramples labour And human rights -> WTO has ruled that it is a illegal for government to ban a product based on the way It is produced such as a good produced with a child labour. -> It has also rules that government can not take into account non commercial value such as human rights WTO Would privatize essential services : WTO Would privatize essential services -> Educations, healthcare, Energy and water -> Elder and childcare ,park maintenance , telecommunication, shipping, postal service, and tourism -> Working Class Communities and communities of colors are suffer the most WTO is increasing inequality : WTO is increasing inequality -> The united nation development program reports that the richest 20% of the world population consume 86% of the world resources while The poorest 80% consume just 14% WTO is increasing hunger : WTO is increasing hunger -> Corporate control of food distribution as many as 800 Million people worldwide suffer from chronic malnutrition. WTO hurts poor, small countries in favor of rich powerful nations: WTO hurts poor, small countries in favor of rich powerful nations -> Many important decision get made in process whereby poor countries negotiators are not even invited to closed door metting and there agreements are announced that poor countries did not even know where being discussed. ->