World Trade

Organization
 Fact File
Location : Geneva, Switzerland
Established :1January1995
Created By : Uruguay Round negotiations
Membership: 159 countries (March 2013)
The Budget : 196 millionSwiss France for 2011
Secretariat Staff: 640
Director General (Head): Pascal Lamy
 Functions
It oversees the implementation,
administration and operation of the covered
agreements.
It provides a forum for negotiations and for
settling disputes.
It review and propagate the national trade
policies.
It provides assistance ofdeveloping, least-
developed and low-income countries in
transition.
It is the center of economic research and
analysis.
 Principles of the trading
system
1. Non-discrimination: It has two major
components: themost favoured nation (MFN) rule,
& thenational treatment policy.
2. Reciprocity: It reflects both a desire to limit the
scope offree-riding & to obtain better access to
foreign markets.
3. Binding and enforceable commitments: The
tariff commitments made by WTO members in a
multilateral trade negotiation and on accession
are enumerated in a schedule (list) of
concessions.
4. Transparency: The WTO members are required
to publish their trade regulations.
Members of the WTO
 The different Ministerial
Conferences
Singapore (1996) : Implementation of the Uruguay Round
Agreements
Geneva (1998) : E-commerce
Seattle (1999) : The negotiations were quickly overshadowed by
massive and controversial street protests (anti-globalization
movement)
Doha (2001) : To assist developing countries in implementing
WTO agreements, covering issues related to agriculture, industrial
tariffs, trade and competition policy
Cancun (2003) : Work under the Doha Development Agenda
Hong-Kong (2005) : Negotiations on agriculture and non-
agricultural market access
Geneva(2009): The Multilateral Trading System and the Current
Global Economic Environment.
Geneva(2011): Trade & development, Doha development Agenda.
 Disputes
What causes a dispute?
When a member country of the WTO believes
another member country is violating an
agreement or a commitment that has been set
within the WTO. Agreements are those
negotiated under the Rounds of WTO
How is it resolved?
The Dispute Settlement Body composed of
member governments (all WTO members) work
together to set an agreement.
 Doha Round UnResolved
Least Developed Countries:
- want Special and Differentiated Treatment monitored and
enforced
- G-20 of LDCs (Brazil, China, India) call for end of EU and
U.S. agricultural export subsidies
- North promised technical assistance not enough
Developed Countries:
- want LDCs reduce barriers to nonagricultural imports.
- strengthen and extend agreements for services trade
and intellectual property trade.
-Major DCs ( ex.EU and Japan) want to expand WTO to
new areas: government procurement, trade facilitation,
competition policy.
Fast Track Authority expired 2007
 WTOs Future
G-7: even with one nation one vote
system LDcs have less influence
Increase in Regional Trade
Agreements
Doha Round unresolved
Global Recession and Protectionism