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Unit IV Copy 1
Unit IV Copy 1
Unit IV Copy 1
1
GATT – Original 23 signatories. Australia, Belgium, Brazil, Burma, Canada, Ceylon, Chile, China, Cuba,
Czechoslovakia, France, India, Lebanon, Luxembourg, Netherlands, New Zealand, Norway, Pakistan, Southern
Rhodesia, Syria, South Africa, the United Kingdom and the United States.
The World Trade Organisation (WTO) oversees a multilateral system that deals with
the rules of trade between nations on a global level. The working of the WTO is largely based
on the Uruguay Round of negotiations that took place from 1986 to 1994.
The WTO has its origins in the General Agreement on Tariffs and Trade of 1947 and
subsequent round of negotiations. Trade rounds took place between 1947 and 1994, in which
focus was put on tariffs in the first five rounds. In the later rounds, non-tariff issues, non-
tariff barriers, anti-dumping measures were negotiated. In the final round the following
subjects were covered–
Tariffs, non-tariff measures, rules, services, intellectual property, dispute settlement, textiles,
agriculture, creation of WTO.
GATT had mainly dealt with trade in goods; the WTO agreements cover trade in
services and in intellectual property besides dispute settlement procedures.
The WTO agreements include agriculture, textiles and clothing, banking,
telecommunications, government purchases, industrial standards and product safety, food
regulations, and more.
Though there have been several Ministerial Conferences after Uruguay Round, the
objectives of a new round of negotiations were formulated only under the “Doha
Development Agenda” launched in 2001 at the fourth Ministerial Conference at Doha, Qatar.
Though the GATT, over a period of 47 years – from 1948 to 1994, provided the rules
for much of world trade, it remained a provisional agreement.
The World Trade Organisation is envisaged to build on GATT which had gone
through stresses and strains in the journey for over four decades. The WTO in Article III,
indicates a very important fact. It is that the legal instruments and the agreements are binding
on all the members. Earlier, members of the GATT as they liked, had option, to go out of
certain provisions under the Agreement. For WTO, it is a total package and members have to
either take it as a package or be out of the system. This is expected to lead to strengthening of
the organisation.
• Entering or Withdrawing
Any State or separate customs territory possessing full autonomy in the conduct of its
external commercial relations may accede to the WTO on terms to be agreed between other
members and itself.
Any member can withdraw from the organisation and it comes into effect upon the
expiry of six months from the date of the member’s withdrawal notice given to the Director
General of WTO.
• Decision Making
The decision to amend the basic principles such as Most Favoured Nation (MFN) or
National Treatment has to get the unanimous consent of all members.