WTO - World Trade Organization

WTO - World Trade Organization
We can look at WTO in several ways. WTO happens to be an organization

responsible for liberalizing trade. It’s a forum to negotiate trade agreements for
various governments. It’s a place where trade disputes are settled. It operates a
system of trade rules.
 One of the most important features is that it is a forum where results come
out after serious negotiations.
 Essentially, the WTO is a place where governments who are members go, in
order to sort out the trade problems they face with each other.
 The first step is to talk. The WTO was born out of negotiations, and
everything the WTO does is the result of negotiations.
 The bulk of the WTO’s current work comes from the 1986-94 negotiations
called the Uruguay Round.
The negotiations have helped to liberalize trade where countries have faced trade
barriers and wanted them to be lowered. But the WTO is not just about liberalizing
trade, and in some cases, its rules are such that trade barriers get support— for
example, to protect consumers.
History of WTO
The WTO started functioning on 1 January 1995, but its trading system is half a
century older. Since 1948, the General Agreement on Tariffs and Trade (GATT)
had given the rules for the system. (The second WTO ministerial meeting, held in
Geneva in May 1998, included a celebration of the 50th anniversary of the system.)
 It did not take long for the General Agreement to give birth to an unofficial,
extant international organization, also known informally as GATT.
 Over the years, GATT evolved through several rounds of negotiations.
 The General Agreement on Tariffs and Trade (GATT) had its last round in
1986 and it lasted till 1994.
 This was known as the Uruguay Round and it led to the formulation of the
World Trade Organization (WTO).
While GATT mostly dealt with trade in goods, the WTO and its agreements could
not only cover goods but also trade in services and other intellectual properties like
trade creations, designs, and inventions.
The WTO has 164 members and 23 observer governments. Afghanistan became
the 164th member in July 2016. In addition to states, the European Union, and each
EU country in its own right is a member.
Functions of the World Trade Organization (WTO)
The WTO’s overriding objective is to help trade flow smoothly, freely, fairly, and
predictably. It does this by:
 Administering WTO trade agreements

 Conducting forum for trade negotiations
 Handling trade disputes
 Monitoring national trade policies
 Providing technical assistance and training for developing countries
 Cooperation with other international organizations
Ministerial Conferences of WTO

Ministerial
Place Year Description
Conferences
Ministers of finance, trade, foreign, and agriculture
from more than 120 countries participated and the
following issues were in discussion.
 trade and investment

MC1 Singapore 1996
 trade facilitation
 transparency in government procurement
 trade and competition
These are known as the Singapore Issues.

Discussions on the implementation of Singapore
Issues.
Geneva,
MC2 1998
Switzerland
Further discussions for the next round related to
Export subsidies, market access, etc.
The Uruguay Roundwas discussed.
Further discussions on agricultural and services

MC3 Seattle, USA 1999 mandated at the last Ministerial.
The Ministerial Conference ended without a

conclusion though.
MC4 Doha, Qatar 2001 The Doha Round was discussed.
Discussions on the progress of the Doha
Cancún,
MC5 2003 Development Agenda and other negotiations from
Mexico
the last Ministerial.
MC6 Hong Kong 2005 Discussions on aiming to conclude the Doha Round
by 2006.
Adoption of the ‘Swiss Formula’ to cut down tariffs

on non-agricultural goods (NAMA) by both
developed and developing countries with different
coefficients.
This meeting didn’t revolve around the Doha Round.
Ministers discussed various other ideas for further

Geneva, development.
MC7 2009
Switzerland
The theme of MC7 was ‘The WTO, the Multilateral
Trading System and the Current Global Economic
Environment’
Discussions on multiple topics for least developed
nations and trade policy reviews.
Geneva, WTO approved Montenegro, Russian Federation,

MC8 2011
Switzerland and Samoa accessions.
Doha Round was discussed to make the mandate

more effective, operational, and precise.
The ‘Bali Package’ was adopted by the WTO that
aimed at the following points:
 Boosting trade in the least developed

countries (LDCs)
 Higher food security provisions for
Bali,
MC9 2013 developing countries
Indonesia
 Streamlining trade
The Bali Package is a selection of issues from the

broader Doha Round negotiations.
Yemen became a part of WTO.

Discussion on agriculture, cotton, and issues of
LDCs.
Nairobi,
MC10 2015
Kenya The Nairobi Packagewas adopted by WTO that
delivered beneficial commitments to WTO’s poorest
members.
Buenos Discussions on e-commerce duties, fisheries
MC11 Aires, 2017 subsidies, and other commitments to negotiations in
Argentina all sectors.
Nur-Sultan,
MC12 2021 Postponed due to pandemic situation.
Kazakhstan
Doha Declaration
The Doha Declaration is the November 2001 declaration that came out of the 4th
Ministerial Conference of the WTO, that took place in Doha, Qatar.
 This declaration gives the mandate for negotiations on an array of topics
including issues concerning the implementation of the previous agreements.
 This is called the Doha Declaration on the TRIPS Agreement and Public
Health.
 There were disagreements between developed and developing countries.
 The major bones of contention were agriculture, non-tariff trade barriers,
industrial tariffs, services, and trade remedies.
 The Bali Ministerial Declaration was achieved in 2013 which is the first
agreement under the Doha Round, and also the first unanimous agreement
under WTO.
Dispute Settlement of the World Trade Organization

 WTO is an international body that also deals in Dispute Settlements.
 The member country will approach the WTO’s dispute settlement body
when a country fails to comply with WTO rules.
 All the members are encouraged to settle the disputes through consultation
or a panel if the consultation fails.
 The constituted panel will circulate the verdict of the dispute settlement
amongst WTO members who can decide to reject the ruling.
 If the ruling is approved, the member country that violated the rules must
change rules in line with the WTO Agreement.
 In the case of failure to do so, the complaining country and the violating
country may determine a mutually-acceptable compensation, failing which,
the complaining country may retaliate suitably.

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WTO - World Trade Organization

We can look at WTO in several ways. WTO happens to be an organization

 Administering WTO trade agreements

Ministerial Conferences of WTO

 trade and investment

These are known as the Singapore Issues.

Further discussions on agricultural and services

The Ministerial Conference ended without a

Adoption of the ‘Swiss Formula’ to cut down tariffs

Ministers discussed various other ideas for further

Geneva, WTO approved Montenegro, Russian Federation,

Doha Round was discussed to make the mandate

 Boosting trade in the least developed

The Bali Package is a selection of issues from the

Yemen became a part of WTO.

Dispute Settlement of the World Trade Organization

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