WTO &IMF

WTO
World Trade Organization 
A rules-based, member-driven organization.
“Its main function is to ensure that trade flows as
smoothly, predictably and freely as possible.”
Created in 1995 by 120 nations
Now:
148 member nations (over 97% of world trade).
32 ‘observer’ countries.
replacing the General Agreement on Tariffs and
Trade(GATT), which commenced in 1948
deals with regulation of trade between participating
countries
Formation : 1 January 1995
Purpose : Regulate international trade
Headquarters : Centre William Rappard, Geneva,
Switzerland
164 member states
Official language : English, French, Spanish
Director : Roberto Azevêdo
Deals with : agriculture, textiles, banking,
telecommunications, government purchases,
industrial standards and product safety, intellectual
property rights etc.
OBJECTIVES
To ensure the reduction of tariffs and other barriers to trade.
To eliminate discriminatory treatment in international trade
relations.
To facilitate higher standards of living, full employment, a
growing volume of real income and effective demand
Increase in production and trade in goods and services of the
member nations.
To make positive effect that reflects the needs of their
economic development.
To facilitate the optimal use of the world’s resources for
sustainable development.
To promote an integrated, more viable and durable trading
system incorporating all the resolutions of the Uruguay
Round’s multilateral trade negotiations.
FUNCTIONS OF WTO
Administering WTO trade agreements.
Forum for trade negotiations
Handling trade disputes
Monitoring national trade policies
Technical assistance and training for developing
countries
Cooperation with other international organization
PRINCIPLES OF WTO
Trade without discrimination
Free trade through negotiation
Predictability through binding and transparency
Promoting fair competition
Encouraging development and economic reforms
ORGANISATIONAL STRUCTURE
CRITICISMS OF THE WTO
 The WTO undermines state sovereignty
 It undermines representative democracy
 Member nations are prevented from protecting the
environment
 Members are unable to uphold laws guaranteeing workers’
rights
 The WTO is controlled by the larger nations
 The WTO represents the interests of large corporations
and wealthy citizens
IMF
IMF
International monetary fund
IMF is an international organization of 188 member
countries
It was established to promote international monetary
cooperation
conceived in Bretton woods conference July 1944
Formation: 27 December 1945
Type : International financial institution
Headquarters : Washington, United States
To foster global monetary cooperation
FUNCTIONS OF IMF
Surveillance over members of economic policies.
Financing BOP problems
International liquidity
Combating poverty in low income countries
Strengthening IMS
Increase global supply of international reserves
Technical assistance to member countries
Provide credit facilities
Dissemination of information and research
OBJECTIVES
Promote international monetary cooperation
To facilitate international trade
Promote exchange rate stability
Establish multilateral system of payment
Promote employment
Eliminate foreign exchange restrictions
Eliminate exchange controls
Eliminate BOP disequilibrium
IMF RESOURCES
1. Quotas
Subscription paid by member countries to IMF
based on number of factors reflecting economic
status. (25% of gold)
2. Loans
IMF LENDING FACILITIES
1. Reserve tranche & credit tranche
2. Stand by arrangement
3. Extended fund facility
4. Supplementary reserve facility
5. Compensatory financing facility
6. Emergency assistance
7. Poverty reduction & growth facility
8. Exogenous shocks facility
Thank you