Institutional Dimensions of the

WTO
 Establishment of the WTO
• The Uruguay Round Ministerial Meeting,
which met on 15th of April at Morocco
adopted the Marrakesh Declaration
establishing the World Trade Organization,
with effect from 01 January 1995.
 WTO Agreements
• AGREEMENT ESTABLISHING THE WORLD TRADE ORGANIZATION,
1994
ANNEX 1
• ANNEX 1A: Multilateral Agreements on Trade in Goods

• General Agreement on Tariffs and Trade, 1994

• Agreement on Agriculture
• Agreement on the Application of Sanitary and Phytosanitary
Measures
• Agreement on Textiles and Clothing
• Agreement on Technical Barriers to Trade
• Agreement on Trade-Related Investment Measures
• Agreement on Implementation of Article VI of the General
Agreement on Tariffs and Trade, 1994
 Contd.
• Agreement on Implementation of Article VII of the General
Agreement on Tariffs and Trade, 1994
• Agreement on Preshipment Inspection
• Agreement on Rules of Origin
• Agreement on Import Licensing Procedures
• Agreement on Subsidies and Countervailing Measures
• Agreement on Safeguards

• ANNEX 1B: General Agreement on Trade in Services and

Annexes

• ANNEX 1C: Agreement on Trade-Related Aspects of

Intellectual Property Rights
 Contd.
• ANNEX 2: Understanding on Rules and Procedures Governing
the Settlement of Disputes.

• ANNEX 3: Trade Policy Review Mechanism

• ANNEX 4: Plurilateral Trade Agreements

• Agreement on Trade in Civil Aircraft
• Agreement on Government Procurement
• International Dairy Agreement
• International Bovine Meat Agreement
 Objectives of the WTO
1. International economic relations should be conducted
with a view to raising standards of living, ensuring full
employment, and a large and steadily growing volume
of real income and effective demand;
2. Expanding the production of trade in goods and
services;
3. While allowing for the optimal use of the world’s
resources in accordance with the objectives of
sustainable development, seeking both to preserve
the environment and to enhance the means of doing
so in a manner consistent with their respective needs
and concerns at different levels of economic
development.
• Member States are under an obligation to
implement all the WTO multilateral agreements.
• There is no scope for reservations on multilateral
agreements.
WTO: A Package Deal
• Whereas, Plurilateral Agreements of the WTO are
optional for Member States; however, once they
accept any of the Plurilateral Agreements, those
states are bound by the same.
 Functions of the WTO
• The WTO shall facilitate the implementation,
administration and operation, and further the
objectives, of this Agreement and of the
Multilateral Trade Agreements, and shall also
provide the framework for the
implementation, administration and operation
of the Plurilateral Trade Agreements.
 Contd.

• The WTO shall provide the forum for

negotiations among its Members concerning
their multilateral trade relations in matters
dealt with under the agreements in the Annexes
to this Agreement. The WTO may also provide a
forum for further negotiations among its
Members concerning their multilateral trade
relations, and a framework for the
implementation of the results of such
negotiations, as may be decided by the
Ministerial Conference.
 Contd.

• The WTO shall administer the Understanding

on Rules and Procedures Governing the
Settlement of Disputes (hereinafter referred
to as the "Dispute Settlement Understanding"
or "DSU") in Annex 2 to this Agreement.
• The WTO shall administer the Trade Policy
Review Mechanism (hereinafter referred to as
the "TPRM") provided for in Annex 3 to this
Agreement.
 Contd.

• With a view to achieving greater coherence in

global economic policy-making, the WTO shall
cooperate, as appropriate, with the
International Monetary Fund and with the
International Bank for Reconstruction and
Development and its affiliated agencies.
 Structure of the WTO

• Ministerial Conference: It is the highest

decision-making body comprising the
representatives of all WTO Members and
usually meets once in every two years.
• General Council: It is after the MC, the chief
decision and policy making body.
• Day-to-day work in between the ministerial
conferences is handled by the General
Council.
 Contd.

• The same General Council meets as the

Dispute Settlement Body, and the Trade Policy
Review Body to oversee procedures for
settling disputes between members and to
analyze members’ trade policies.
• Besides, there are specialized councils and
committees that report to the General
Council.
 Contd.
1. Council for Trade in Goods: there are 11
committees under the jurisdiction of the
Goods Council each with a specific task. All
members of the WTO participate in the
committees. The Textiles Monitoring Body is
separate from the other committees but still
under the jurisdiction of Goods Council. The
Body has its own chairman and only 10
members.
 Contd.
2. Council for Trade-Related Aspects of Intellectual
Property Rights: The Council for TRIPS is the body,
open to all members of the WTO, that is responsible
for administering the TRIPS Agreement, in particular
monitoring the operation of the Agreement.
3. Council for Trade in Services: The Council for Trade
in Services operates under the guidance of the
General Council and is responsible for overseeing
the functioning of the GATS. It is open to all WTO
members, and can create subsidiary bodies as
required.
 Contd.
4. Trade Negotiations Committee: The Trade
Negotiations Committee (TNC) is the
committee that deals with the current trade
talks round. The committee is currently tasked
with Doha Development Round.
5. Secretariat: It looks after the day-to-day
affairs of the administration, which is headed
by a Director General who is appointed by the
Ministerial Conference.
 Method of Decision-making
(Article IX, WTO Agreement)

• Decisions in the WTO are to be arrived at by

consensus.
• In case of failure to reach consensus, the matter at
issue has to be decided by voting.
• Each Member of the WTO has one vote at both the
Ministerial Conference and the General Council.
• Decisions of the Ministerial Conference and the
General Council shall be taken by a majority of the
votes cast, unless otherwise provided in WTO
Agreement or in the relevant Multilateral Trade
Agreement.
 Contd.
• The Ministerial Conference and the General
Council shall have the exclusive authority to
adopt interpretations of WTO Agreement and of
the Multilateral Trade Agreements.
• The decision to adopt an interpretation shall be
taken by a three-fourths majority of the
Members.
• In exceptional circumstances, the Ministerial
Conference may decide to waive an obligation
imposed on a Member by the Agreement on the
recommendations of the three fourths of the
Members, if consensus is not achieved.
 Amendments: (Article X, WTO Agreement)
• “Any Member of the WTO may initiate a proposal to amend
the provisions of this Agreement or the Multilateral Trade
Agreements in Annex 1 by submitting such proposal to the
Ministerial Conference. The Councils listed in paragraph 5 of
Article IV may also submit to the Ministerial Conference
proposals to amend the provisions of the corresponding
Multilateral Trade Agreements in Annex 1 the functioning of
which they oversee. Unless the Ministerial Conference
decides on a longer period, for a period of 90 days after the
proposal has been tabled formally at the Ministerial
Conference any decision by the Ministerial Conference to
submit the proposed amendment to the Members for
acceptance shall be taken by consensus. Unless the provisions
of paragraphs 2, 5 or 6 apply, that decision shall specify
whether the provisions of paragraphs 3 or 4 shall apply….”
• “… If consensus is reached, the Ministerial
Conference shall forthwith submit the proposed
amendment to the Members for acceptance. If
consensus is not reached at a meeting of the
Ministerial Conference within the established period,
the Ministerial Conference shall decide by a two-
thirds majority of the Members whether to submit
the proposed amendment to the Members for
acceptance. Except as provided in paragraphs 2, 5
and 6, the provisions of paragraph 3 shall apply to
the proposed amendment, unless the Ministerial
Conference decides by a three-fourths majority of
the Members that the provisions of paragraph 4 shall
apply”.
 Membership, Accession and Withdrawal
• The original WTO membership consists of all
GATT contracting parties as of the entry into
force of the WTO Agreement on 1st January
1995. (Article XI)
• The least-developed countries recognized as
such by the United Nations will only be
required to undertake commitments and
concessions to the extent consistent with their
individual development, financial and trade
needs or their administrative and institutional
capabilities.
 Contd.
• Any State or separate customs territory
possessing full autonomy in the conduct of its
external commercial relations and of the other
matters provided for in WTO Agreement and
the Multilateral Trade Agreements may
accede to WTO Agreement, on terms to be
agreed between it and the WTO. (Article XII)
• The Ministerial Conference shall approve the
agreement on the terms of accession by a
two-thirds majority of the Members of the
WTO.
 Contd.

• Accession to a Plurilateral Trade Agreement shall

be governed by the provisions of that Agreement.
• Any Member may withdraw from this Agreement.
Such withdrawal shall apply both to WTO
Agreement and the Multilateral Trade
Agreements and shall take effect upon the
expiration of six months from the date on which
written notice of withdrawal is received by the
Director-General of the WTO. (Article XV)