Introduction to the WTO

Visit to the WTO Study Tour Russian Member Universities of UNCTADs Vi Network 14 April 2010
Gerardo T. Thielen Counsellor Institute for Training and Technical Cooperation gerardo.thielen@wto.org

From GATT to WTO

From a provisional agreement to an Organisation:
Havana Charter GATT (1 January 1948 31 December

1995)
23 Contracting Parties 123
8 Rounds of Negotiations WTO (1 January 1995)
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WTO: What is it?

An international Organization:
Organization created by the

Marrakesh Agreement
Sui generis organisation (independent

from the United Nation system)

Replaces the GATT (created in 1947)

WTO: What is its purpose?

WTO Objectives:
Raising standards of living
Ensuring full employment Ensuring growth of real income and

demand
Expanding production and trade Sustainable development Protection of the environment
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WTO: What is its purpose?

WTO Functions:
Administer and implement the WTO

agreements Forum for negotiations Administer Settlement of Disputes Administer Trade Policy Review Mechanism Technical Assistance to developing countries

WTO: How does it work?

Set of rules
The negotiated legal rules included in the various WTO agreements cover the following topics:

Trade in Goods Trade in Services Trade-related aspects of intellectual property rights Dispute Settlement Trade Policy Reviews
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Marrakesh Agreement
Annex 1 Annex 1A
Agreement on Trade in Goods

General Interpretative Note GATT 1994 - 6 Understandings (on the interpretation of various GATT provisions) - Marrakesh Protocol to the GATT 1994 + Schedules of Tariff Concessions Specific Agreements (11)

Annex 1B Annex 1C

Agreement on Trade in Services (GATS)

Schedules of specific commitments MFN exemptions

Trade-related aspects of Intellectual Property Rights (TRIPS) ! Refer also to pertinent Convention on Intellectual Property Rights (WIPO)

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Marrakesh Agreement
Annex 2 Annex 3 Annex 4 Understanding on Rules and Procedures Governing the Settlement of Disputes Trade Policy Review Mechanism Plurilateral Trade Agreements

Decisions and Declarations adopted at Marrakesh

Decisions and Declarations adopted afterwards (-> Evolving legal framework) Agreements hierarchy
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WTO: How does it work?

WTO Structure
Ministerial Conference TPRB General Council DSB Appellate Body Dispute Settlement Panels

Goods Council Committees

Services Council Committees

TRIPS Council
Director-General Secretariat

Investment, competition, Government Procurement)

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CTD (Development) CTE (Environment) CRTA (Regionalism) BOP Budget WG (Accessions,

WTO: How does it work?

Secretariat
About 750 staff Headed by a Director-General (DG) Budget 2009: 190 millions Swiss

francs + extra-budgetary funds (about 24 millions Swiss francs)

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WTO: How does it work?

Decision making
Member-driven organisation Consensus (GATT practice), even if

voting procedures exist

Consensus when no Member formally

object to a decision
Negative consensus

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WTO: How does it work?

Meetings
Type of meetings (formal, informal,

special sessions, consultations, multi/pluri- /bilateral)

All WTO Bodies open to all Members

(specificities for panels and Appellate Body)

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WTO Coverage
GATT 1994 Multilateral Agreements GATT 1947 Rectifications, amendments and modifications which entered into force before 1.1.1995 (Protocols, Decisions of the CONTRACTING PARTIES). Protocols of Accession (to GATT) Understandings on (Art. II:1b, XVII, XXIV, XXVIII, BOP provisions, Waivers) Marrakesh Protocol Schedules of Tariff Concessions Agreements on Agriculture Textiles and Clothing TRIMs Antidumping Subsidies and Countervailing Measures

on Trade in Goods

PSI Rules of Origin Safeguards Import Licensing Customs Valuation TBT SPS Decisions, Declarations
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WTO Coverage
General Agreement on Trade in Services
GATS PART I (Scope and Definitions) PART II (General Obligations and Disciplines) PART III (Specific Commitments) Schedules on Specific Commitments PART IV (Progressive Liberalization) PART V (Institutional Provisions) ANNEXES Annex on Article II (MFN) exemptions) Lists of Art. II (MFN) Exemptions Annex on Movement of Natural Persons Supplying Services under the GATS 3rd Protocol (1995) Annex on Air Transport Services Annex on Financial Services 2nd, 5th Protocol (1995, 1997) Second Annex on Financial Services Annex on Negotiations on Maritime Transport Services Annex on Telecommunications Annex on Negotiations on Basic Telecommunications 4th Protocol (1997) Decisions, Declarations
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WTO Coverage
Trade-Related Aspects of Intellectual Property Rights (TRIPS)
TRIPS PART I (General Provisions and Basic Principles) PART II (Standards concerning the availability, scope and use of IPR) Section 1: Copyright and Related Rights Section 2: Trademarks Section 3: Geographical Indications Section 4: Industrial Designs Section 5: Patents Section 6: Layout-designs (Topographies) of Integrated Circuits Section 7: Protection of Undisclosed Information (Trade Secrets) Section 8: Control of Anti-competitive Practices in Contractual Licenses PART III (Enforcement of IPR) PART IV (Acquisition and Maintenance of IPR and related Inter Partes Procedures) PART V (Dispute Prevention and Settlement) PART VI (Transitional Arrangements) PART VII (Institutional arrangements: Final Provisions) Decisions, Declarations
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Evolution of WTO framework

Decisions and Declarations (few examples)
1996 Singapore ministerial conference Singapore Topics Trade Facilitation, Investments, Competition, Transparency in Government Procurement Information Technology Initiative 1998 Geneva ministerial conference Electronic Commerce 1999 Seattle ministerial conference

2001 Doha ministerial conference Doha Development Agenda

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Doha Development Agenda

14 Nov. 2001: Doha Ministerial Declaration
Define the mandate for the negotiations on various topics as well as other work (implementation)

1 Feb. 2002: First TNC Meeting

Establish the structure and the main principles for the negotiation

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Doha Development Agenda

14 Nov. 2001: Doha Ministerial Declaration
Define the mandate for the negotiations on various topics as well as other work (implementation)
47. [...] the conduct, conclusion and entry into force of the outcome of the negotiations shall be treated as parts of a single undertaking. [...] (DDA, paragraph 47)

Single undertaking: Nothing is agreed until everything is agreed

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Doha: Work Programme

Implementation (12) Agriculture (13-14) Services (15) Market Access for Non-Agricultural Products (16) TRIPS (17-19) Trade and Investment (20-22) Trade and Competition Policy (23-25) Transparency in Government Procurement (26) Trade Facilitation (27) WTO Rules (28-29) Dispute Settlement (30) Trade and Environment (31-32) Electronic Commerce (34) Small Economies (35) Trade, Debt and Finance (36) Trade and Transfer of Technology (37) Technical Cooperation and Capacity Building (38-41) Least-Developed Countries (42-43) Special and Differential Treatment (44)

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Doha Negotiations:
Negotiating groups meet during special sessions of existing WTO bodies, at the exception of (*) for which new Negotiating Groups have been created. General Council

Structure

Trade Negotiations Committee Chairman: WTO DG (ex officio)

Goods - Agriculture - NAMA (*) - Trade Facilitation (*) - Cotton

Services - Services

TRIPS - Geographical Indications

Other Issues

- Dispute Settlement
- Development - Environment

July Decision

- Rules (*)
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Doha Development Agenda

14 Sep. 2003: Cancun Ministerial Statement
Mid-term review : Existence of important divergences and delays in relation with program established at Doha

Dec. 2003: General Council Decision Priority given to four issues:

Agriculture (modalities) Non agricultural Market Access [NAMA] (modalities) Singapore issues Cotton (initiative from 4 African countries)

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Doha Development Agenda

1 August 2004: Adoption of the July Package

Negotiations start again ( framework )

Singapore issues clarified (only trade facilitation included in Doha Round). Cotton issue included in agricultural negotiations (Subcommittee)

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Doha Development Agenda

Dec. 2005: Hong Kong Ministerial Declaration
Limited Progress but in the right direction
Deadline for all agricultural export subsidies Agreement on cotton Duty-free/quota-free access for the 32 LDC Members Agriculture and NAMA: framework for full modalities Progress in relation with services negotiations

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Doha Development Agenda

June 2006: Decision on transparency for RTAs
July 2006: Negotiations suspended December 2006: General Council Decision on transparency for RTAs February 2007: DG: We have resumed negotiations fully across the board

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Doha Development Agenda

April 2008: DG signals start of horizontal process

May 2008: Services Chair issues report and draft text

Since July 2007: Draft texts, and revisions, on modalities for Agriculture and NAMA circulated by the chairmen (2008...2009...2010)

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Doha Development Agenda

March 2010: We are not where we wanted to be by now Informal consultations (regional groups, small groups in variable geometry and with individual Members) Members committed to the mandate of the Round and to its successful conclusion.
into full scale protectionism.

Value of the system (e.g. global economic crisis- MTS has prevented a descent

Sense of frustration at the slow pace of the negotiations, but there is a clear catalogue of gaps

Picture is more blurred is regarding the size of some of these gaps (Blue Box in

agriculture or in Trade Facilitation). Size of gaps much less clear in NAMA or Fishery Subsidies.

Next steps: mix of technical and political preparations to start devising the contours of a package
and maintaining the development dimension of the Round.

Need to build on what is already on the table (Chairs' texts), avoid backtracking,

A "cocktail" approach: Chair-led processes within the Negotiating Groups, maintaining an overview of the entire negotiating landscape (transparency and inclusiveness), and smaller groups in variable geometry and bilateral contacts remain necessary and essential moving towards a more horizontal view of the issues (negotiating groups and the TNC remaining the anchor of the negotiating process) Ministerial involvement: make productive use of up-coming gatherings (e.g. Cairns Group, APEC and OECD) , possible Ministerial engagement if needed

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