I Overview about WTO

_ The WTO has the full name of the World Trade Organization. This organization was established
and operated on January 1, 1995 with the goal of establishing and maintaining a free, facilitated
and transparent global trade.
_ Up to now, the WTO has 164 members out of a total of 195 countries and territories in the
world
_ On 7/11/2006, the admission ceremony of Vietnam to join the WTO was held at the WTO
headquarters in Geneva, Switzerland. Then, since January 11, 2007, Vietnam officially became
the 150th member of the world's largest trade organization.
1.The WTO was established with the following basic objectives and functions:
Establish a common international legal system (including 28 multilateral agreements and other
documents) regulating all commercial activities of the governments of the signatory countries
_ is a multilateral bargaining forum for countries to negotiate trade liberalization and
facilitation, including liberalization of trade in goods, services, trade-related investment and
intellectual property-related issues
To be an international court for governments to promptly and effectively resolve commercial
disputes between member states
In addition to the above 3 objectives and basic functions, the WTO also strengthens cooperation
with other international organizations to solve global economic problems, assist developing and
transitioning countries to participate in the world multilateral trading system
All WTO members may participate in WTO boards and committees, with the exception of the
Appellate Body, Dispute Settlement Panels and specific committees.

2. Organizational structure of the WTO

Top level: Ministerial Conference
The WTO's highest authority is the Ministerial Conference, which takes place at least once every
two years. The conference was attended by all WTO members. These members can be a country
or a customs union (such as the European Community). The Ministerial Conference may make
decisions on any issue in the WTO's multilateral trade agreements.

Second level: General Assembly

The day-to-day work of the WTO is handled by 3 agencies: the General Assembly, the Dispute
Settlement Council and the Trade Policy Review Council. Although the names are different, in
fact the composition of the 3 agencies is the same, including representatives (usually
ambassador-level or equivalent) of all member countries. The difference between them is that
they are convened to perform different WTO functions.

_ The General Assembly is the WTO's highest decision-making body in Geneva, meeting
regularly. The General Assembly consists of representatives (usually ambassador-level or
equivalent) of all member states and has the authority to decide on behalf of the ministerial
conference (which meets only once every two years) on all WTO affairs.
_ The Dispute Settlement Council is convened to review and approve dispute resolution rulings
submitted by the Panel or Appellate Body. The Council consists of representatives of all member
states (ambassadorial level or equivalent).
_ The Trade Policy Review Council is convened to carry out the review of trade policies of
member countries in accordance with the trade policy review mechanism. For members with
great economic potential, reviews take place approximately every two to three years. For other
members, the review may be conducted more sparingly.
Third level: Trade Councils
The Council of Trade operates under the authority of the General Assembly. There are three
Trade Councils: the Council for Trade in Goods, the Council for Trade in Services and the Council
for Aspects of Intellectual Property Rights in Relation to Trade. A council is in charge of a
separate field. Similar to the General Assembly, the councils consist of representatives from all
WTO member countries. In addition to these three councils, there are six other independent
committees and bodies responsible for reporting to the General Assembly on individual issues
such as trade and development, the environment, regional trade agreements, and other
regulatory issues. Notably, among these is the Working Group on Accession, which is
responsible for working with countries applying to join the WTO.

_ The Council for Trade in Goods is responsible for activities covered by the General Agreement
on Tariffs and Trade (GATT), i.e. activities related to international trade in goods.
_ The Council for Trade in Services is responsible for activities covered by the General
Agreement on Trade in Services (GATS), i.e. activities related to international trade in services.
_ The Council on Trade-Related Aspects of Intellectual Property Rights is responsible for
activities covered by the Agreement on Trade-Related Aspects of Intellectual Property Rights
(TRIPS), as well as coordinating with other international organizations in the field of intellectual
property rights.
Fourth Level: Committees and Agencies
Under the above councils are committees and bodies in charge of separate areas of expertise.

_ Under the Council for Trade in Goods are 11 committees, 1 working group, and 1 specific
committee.
_ Under the Services Trade Council are 2 committees, 2 working groups, and 2 specific
committees.
_ Under the Dispute Resolution Council (2nd level) are the Panel and the Appellate Body.
In addition, due to the negotiating requirements of the Doha Round, the WTO established the
Trade Negotiations Committee under the General Assembly to promote and facilitate
negotiations. This committee consists of many working groups related to different areas of
expertise.

Principles of the WTO

 Non-discrimination:
_ National remuneration : Foreign goods and services and those who trade in such goods and
services shall not be treated less than those acquiring similar persons in the country.
_ Most Favored Nation Treatment: One member's trade preferences for another member must
also apply to all WTO members.

 Further free trade: gradually through negotiation

 Predictability through Federation and Transparency: Trade regulations and regulations
must be publicly disclosed and implemented in a stable manner.
 More incentives for developing countries: Give more advantages and incentives to
members who are developing countries within the framework of WTO designations.
 Establish a fair competitive environment for trade among member countries
WTO decision adoption process
Basically, decisions in the WTO are adopted by a consensus mechanism. This means that only if
no country votes against it will a decision or regulation be considered "adopted."

Therefore, most rules, principles or rules in the WTO are "contracts" between members, i.e.
they voluntarily accept rather than be imposed; and the WTO is not an institution above
member states.
However, in the following cases, the WTO decision is adopted by special voting mechanisms (the
principle of consensus does not apply):

Interpretation of the terms of the Agreements: Adopted if 3/4 votes are in favor;
Temporary suspension of WTO obligations for a member: Approved if 3/4 votes are in favor;
Amendments to Agreements (except amendments to most-favored-nation status provisions in
GATT, GATS and TRIPS): Adopted if 2/3 votes are in favor.
II the role and influence of the World Trade Organization on the integration and linkage of the
region, the world and Vietnam
The role of the WTO in regional economic integration and linkage

The WTO plays an important role in promoting regional economic integration and integration
through activities such as:

Mitigation of trade barriers: The WTO has helped reduce trade barriers, such as tariffs, quotas,
etc. This has contributed to boosting trade between countries in the region.
Ensuring fair and equitable trade: The WTO has helped ensure fair and equitable trade among
countries in the region, regardless of economic size or political power. This has contributed to
creating a healthy and equal competitive environment for businesses in the region.
Provides a Unified Legal Framework: The WTO has provided a uniform legal framework for trade
in the region. This has helped to reduce risks and costs for businesses in the region when
engaging in commercial activities.
The WTO has contributed to promoting regional economic integration and integration through
FTAs. FTAs are signed based on WTO rules and principles, helping to create a uniform legal
framework for trade between member countries. This contributes to promoting the circulation
of goods, services, investment and labor in the region, creating opportunities for member
countries to strengthen economic, trade and investment cooperation.
The influence of the WTO in regional economic integration and linkage

In Southeast Asia, the WTO has made an important contribution to promoting ASEAN economic
integration. WTO is the foundation for negotiating and concluding ASEAN FTAs with partner
countries, such as ASEAN-China FTA, ASEAN-Japan FTA, ASEAN-Korea FTA, ASEAN-India FTA, etc.
These FTAs have contributed to promoting trade, investment and economic cooperation in the
region, creating a driving force for the economic development of ASEAN countries.
Some specific examples of the WTO's influence on ASEAN regional economic integration and
linkage

ASEAN Free Trade Area (AFTA): AFTA is an FTA signed between ASEAN member countries in
1992. AFTA has helped eliminate tariffs on 99% of tariff lines between ASEAN countries,
contributing to boosting trade between countries in the region.
ASEAN Investment Area (AIA): AIA is an FTA signed between ASEAN member countries in 1998.
AIA has helped create a more open and favorable investment environment for investors in the
region, contributing to promoting investment among countries in the region.
ASEAN Comprehensive Economic Partnership (AEC): The AEC is an FTA signed between ASEAN
member countries in 2007. The AEC has helped promote trade, investment, services, labour and
economic cooperation among countries in the region.
The role of the WTO in international economic integration and linkage

The WTO plays an important role in promoting international economic integration and linkage
through activities such as:

Mitigation of trade barriers: The WTO has helped reduce trade barriers, such as tariffs, quotas,
etc. This has contributed to boosting trade between countries around the world.
Ensuring fair and equitable trade: The WTO has helped ensure fair and equitable trade between
countries, regardless of economic size or political power. This has contributed to creating a
healthy and equal competitive environment for businesses around the world.
Provides a Unified Legal Framework: The WTO has provided a uniform legal framework for trade
around the world. This has helped reduce risks and costs for businesses around the world when
engaging in commercial activities.
The impact of the WTO on international economic integration and linkage

The WTO has contributed to promoting international economic integration and linkage through
FTAs. FTAs are signed based on WTO rules and principles, helping to create a uniform legal
framework for trade between member countries. This contributes to promoting the circulation
of goods, services, investment and labor in the world, creating opportunities for member
countries to strengthen economic, trade and investment cooperation.

Since its establishment in 1995, the WTO has contributed to the strong growth of world trade.
According to WTO data, the total value of world trade in goods and services has increased from
$4.6 trillion in 1995 to $22.5 trillion in 2022. The increase in world trade has contributed to
economic growth, poverty alleviation and improved lives of people worldwide.
Some specific examples of the WTO's influence on international economic integration and
linkage

North American Free Trade Agreement (NAFTA): NAFTA is an FTA signed between the United
States, Canada, and Mexico in 1994. NAFTA has helped eliminate tariffs on most goods traded
between the three countries, contributing to boosting trade between countries in the region.
European Union (EU): The EU is an economic and political union among its 27 member states.
The EU has helped eliminate tariffs and other trade barriers between member states,
contributing to boosting trade and economic cooperation among countries in the region.
Asia-Pacific Economic Cooperation (APEC): APEC is an economic cooperation organization
among 21 Asia-Pacific economies. APEC has helped promote trade and economic cooperation
among countries in the region.

The role and influence of the WTO on Vietnam economic integration and linkage
The deepest imprint of WTO participation and international integration for Vietnam is to
contribute to renovating policy thinking, perfecting state management standards, corporate
governance, shaping the legal framework and standards for the development of economic-trade
institutions, etc Create a solid legal basis as a bridge and positive impulse for the country to
gradually open up, expand the scale of markets for goods and services, improve the structure
and improve the efficiency of international trade activities according to committed multilateral
and bilateral agreements.
By 2023, Vietnam has 18 strategic partners and 6 comprehensive strategic partners; has
diplomatic relations with 192 countries, economic relations with 160 countries and 70
territories.

In particular, the WTO along with more than 500 bilateral and multilateral agreements in many
fields, including 19 free trade agreements (FTAs) that Vietnam has joined (16 signed, effective
and 3 under negotiation) are big doors, multidimensional for Vietnam to complete the
institutional framework for market economy development and confidently deepen, wider,
complete and more effective global integration.

In the top 20 largest commodity trading countries in the world

The WTO imprint is clearly recognized in turning Vietnam into a highly open economy, up to
200% of GDP and improving the trade balance of goods, shifting from trade deficit to trade
surplus for 6 consecutive years since 2016 up to now.

According to the General Statistics Office, if in 2006, the total import and export turnover of the
country was only 84.7 billion USD (export 39.8 billion USD), then by 2023, the total export and
import turnover of goods will reach 668.5 billion USD, an increase of more than 7 times
compared to 2006.

From 2016 to now, the trade balance has always reached a surplus with a gradual increase in
trade surplus over the years, from 1.77 billion USD (in 2016) to a record 24.61 billion USD in
2023
.

Many improved international ranking indicators

In 2019, before the outbreak of the COVID-19 epidemic in the world, Vietnam was considered a
country with a stable economy, leading the region and the world; rated by the IMF as among
the 20 economies with the largest contribution to global growth in 2019.

In 2023, the scale of Vietnam's GDP will rank 34th in the world, rank 4th in Southeast Asia and
average GDP per capita will rank 6th in the region.
Up to now, Vietnam has been recognized as a market economy by 72 countries and achieved
outstanding achievements in economic growth in recent years, and is likely to continue to
maintain high growth momentum in the medium term thanks to the modernized overall
investment framework, Business registration costs have been cut and facilitated foreign
investment, as well as business start-up activities
As one of the dynamic and accomplished members, Vietnam has also been negatively affected
by WTO challenges. In addition to agreements that bring many benefits to Vietnam, such as
EVFTA, RCEP, CPTPP, there are still many FTAs that have not been effectively utilized. The large
focus on a few markets has reduced the ability to achieve new market expansion goals, leading
to the risk of losing markets, making it difficult to develop sustainably and maintain high growth
rates. Vietnam is "anchored" at the low value-added stage in the global value chain