Prepared by

Anuj Basnet
Sanjit Khadka
Nitesh Shrestha
Susan Bista
 Introduction to GATT and WTO
 GATT Principles
 WTO over GATT
 WTO power and functions
 Roles of WTO and organization structure
 Criticism of the organization
 General Agreement on Tariffs and Trade (GATT) began in 1947 with
23 nations.
 It was a legal agreement between many countries, whose overall
purpose was to promote international trade by reducing or eliminating
trade barriers like tariffs and other trade barriers.
 It was first discussed during the United Nation Conference on Trade
and Employment and was the outcome of the failure of negotiating
governments to create the International Trade Organization (ITO).
 GATT was signed by 23 nations in Geneva on October 30, 1947, and
took effect on January 1, 1948.
 It remained in effect until the signature by 123 nations in Marrakesh
on April 14, 1994, of the Uruguay Round Agreements, which
established the World Trade Organization (WTO) on January 1,
1995. It began in 1986 in Uruguay, so it is sometimes called the
Uruguay round
Following the Uruguay Round agreement, GATT was
Converted from a provisional agreement into a formal international
organization called WORLD TRADE ORGANIZATION (WTO), which
came into effect from January 1,1995 to ensure that trade flows as
smoothly, predictably and freely as possible. The WTO deals with
regulation of trade in goods, services and intellectual property
between participating countries by providing a framework for
negotiating trade agreements and a dispute resolution. All was not
going perfectly under the GATT and world trade was becoming
more complex .GATT was not able to deal with it.
 Market principle: free market should rule
 Exchange principle: benefits on both sides
 National treatment: foreign entities treated same as
domestic entities
 Transparency principle: tariffs and prices available
to all
 Consultation principle: open discussions for conflict
resolution
 Dispute settlement: use of arbitrator to settle
disputes.
 Members of GATT agree to apply the principle of
“Most Favored Nation” to all import and export
duties.
• Ministerial conference—every 2 years
• General Council (also meets as dispute settlement
body and trade policy review body)—made up of
ambassadors and heads of delegations
• Councils for Trade in Goods, Trade in Services, and
trade-related aspects of intellectual property
• Specialized committees and working groups
• Secretariat: located in Geneva, headed by director
general and four deputies
•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 organizations

•Maintaining trade related database

 The WTO launched the current round of negotiations, the Doha
Development Round, at the fourth ministerial conference
in Doha, Qatar in November 2001. This was to be an ambitious
effort to make globalization more inclusive and help the world's
poor, particularly by slashing barriers and subsidies in farming.
 The initial agenda comprised trade liberalization.
• Agricultural subsidies
• Conflicts between trade liberalization and
• Environmental protection
• Competition policy
• Foreign investment protection
• Trade remedy laws (subsidies and dumping)
 Transparency
(The WTO members
are required to
publish their trade
regulations and set
limits on quantities
Environment of imports
Protection
MFN
Treatment
Competition on
Balance of payment (a WTO
member must
Principles apply the
same
Treatment Of conditions on
WTO all trade with
For LDCs other WTO
members)

National
Treatment
(imported goods
Rule Based should be treated
no less favorably
Trading than domestically
produced goods)
System
• The system helps promote peace
• Disputes are handled constructively
• Rules make life easier for all
• Freer trade cuts the costs of living
• It provides more choice of products and
qualities
• Trade raises incomes
• Trade stimulates economic growth
• The basic principles make life more efficient
• Governments are shielded from lobbying
• The system encourages good government
 It is described as a free trade institute but it doesn’t allow
tariff in certain circumstances.
 Rich countries are able to maintain high import duties and
quotas in certain products, blocking imports from
developing countries.
 Bias towards rich countries and multi national
organization, harming smaller nations which have lower or
less negotiation power.
 Maintenance of agriculture development in developed
nations while developing countries are restricted from
opening their markets.
 Decision making : The lack of transparency is often seen
as a problem for democracy.
 Labor and environment factors are extensively ignored,
condemn the labor rights and exceeding trade profit than
environment cost.
WTO WEBSITE:
https://www.wto.org/english/thewto_e/thewt
o_e.htm
WIKIPEDIA :
https://en.wikipedia.org/wiki/World_Trade_O
rganization