An international

organization designed to
supervise and liberalize
international trade also
responsible for
negotiating and
implementing new trade
Eye openers
Location: Geneva, Switzerland

Established: 1 January 1995

Created by: Uruguay Round negotiations (1986-94)  

Membership: 151 countries on 27 July 2007

Budget: 182 million Swiss francs for 2007

Secretariat staff: 625

Head: Pascal Lamy (Director-General)

 Formation of WTO
 Uruguay September 1986
 87 months 123 countries
 Subjects covered: Tariffs, non-tariff measures, rules, services,
intellectual property, dispute settlement, textiles, agriculture,
creation of WTO, etc

 ACHIEVEMENTS: The round led to the creation of WTO on 1st

January 1995, and extended the range of trade negotiations,
leading to major reductions in tariffs (about 40%) and
agricultural subsidies, an agreement to allow full access for
textiles and clothing from developing countries, and an
extension of intellectual property rights.
 The body no longer
exists.
 It covers trade in goods
only.
 It was ad hoc &
provisional.
 It did not have any
significant function.
 It was controlled by a
power lobby.
 The body is in
existence.
 It covers trade in
goods, services & IPR.
 Its agreements are
permanent.
 It has two significant
function- TPRM & in-
built mechanism to
settle disputes.
 It is more democratic in
character.
MISSION & FUNCTIONS
 To improve the welfare of the peoples
 To ensure that trade flows as smoothly, predictably and freely as
possible
 Implementation, administration & operation of covered
agreements, a forum for negotiations and for settling disputes.
 To review national trade policies,& to ensure coherence &
transparency of trade policies through surveillance in global
economic policy-making
 Assistance of developing, least-developed and low-income
countries in transition to adjust to WTO rules and disciplines
through technical cooperation and training.
 To carry economic research and analysis: regular assessments of
the global trade picture
Principles of the trading system
 Nondiscrimination
 Reciprocity.
 Binding and enforceable commitments
 Transparency
 Safety valves
WTO agreements

 Agriculture
 TRIMs
 TRIPs
 Services
 Market access
 Dispute settlement body
 November 2001
 141 countries
 Subjects covered:
Tariffs, non-tariff
measures, agriculture,
labor standards,
environment,
competition, investment,
transparency, patents
etc
 Status: The round is not
yet concluded
Singapore summit
 Pro-development policies discussed at the summit
included allowing exporters in the poorest countries
quota-free and tariff-free access to world markets.

 No concrete commitment on aid for trade or product

coverage on duty-free access."
 Third-world countries said the deal means they will
have to open their economies to competition from
the rich nations and received only trivial concessions
in return.
 Liberalization of agriculture
 Developing new multilateral disciplines
on Singapore issue
 Issue of agriculture subsidies
 Singapore issues
 Post Cancun Developments
India’s commitments to WTO
 Tariff lines
 Quantitative restrictions
 TRIPs
 TRIMs
 GATS
The WTO Public Forum – “What WTO for the
XXIst Century”
 This year’s theme “What WTO for the XXIst Century?”,
encouraged a frank exchange of ideas and reflections among
all participants on the type of WTO they would like to see in
the future.
 The 2006 public forum attracted over 1,000 participants.
Discussion at the forum took place in 36 topical sessions, in
which the WTO system was scrutinized, criticized and analyzed
with the common objective of making the system more fair and
more balanced, to strengthen its role as a facilitator and arbiter
of international trade.
 The presence of so many representatives of WTO Members,
civil society, parliaments, the media and the academic world,
reinforces the conviction that international cooperation and
multilateralism is the only way forward.
A Summary of Trade
Developments in 2006-2007
 8% expansion in merchandise trade
 Least-developed countries’ trade grew by about 30%, fuelled by
higher prices for petroleum and other primary commodities.
 Commercial services exports were up by an estimated 11% and
reached $2.71 trillion
 The Middle East, Africa, the Commonwealth of Independent
States – CIS – and South and Central America) again recorded
the strongest annual export rise
 China’s merchandise exports grew by 27%
 China, India and Bangladesh performed well also means that
millions of low-income workers benefited.
Recent happenings
 wealthy countries to eliminate farm export subsidies by 2013, paving the way for
a broader agreement to cut trade barriers across various sectors

 Developing nations say the government farm payments to promote exports

undercuts the competitive advantage of poor farmers.
 Cutting farm and industrial tariffs and subsidies a key step toward forging a
sweeping global free trade treaty by the end of next year.
 Wealthy nations to allow duty-free and quota-free privileges to at least 97
percent of products exported by the so-called least developed countries by
2008.
 Dispute-settlement course ends: Seventeen officials completed, on 5
October 2007, a five-day immersion course into the rules and procedures of the
WTO dispute settlement system.
WTO Secretariat budget
for 2007

 Grand Total$176,865,250 US
 Work Years, Temporary Assistance,
Communications, Building Facilities,
Permanent Equipment, Expendable,
Contractual Services, Trade Policy Courses
bibliography
 www.wto.org
 Official disclosures by ‘contact us’
section of WTO