ICAR – Indian Institute of Horticulture Research,

Hessarghatta, Bengaluru, 560089

Assignment topic: World Trade Organization (WTO)

Course Name: Intellectual Property and Its Management in Agriculture

Course No.: PGS-503 (1+0)

Submitted to;
Dr. Sridhar Gutam
Scientist,
IIHR, Bengaluru

Submitted by;
Manoj B P
Role No.: 12534
Ph.D. scholar 1st year
Division of vegetable crops
IIHR, Bengaluru
 World Trade Organization (WTO)

Introduction

The World Trade Organization (WTO) is an organization that intends to supervise and
liberalize international trade. The organization officially commenced on January 1, 1995, under
the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade (GATT),
which commenced in 1948. The organization deals with trade regulation between participating
countries; it provides a framework for negotiating and formalizing trade agreements, and a
dispute resolution process aimed at enforcing participants' adherence to WTO agreements signed
by representatives of member governments and ratified by their parliaments. Most of the issues
the WTO focuses on derive from previous trade negotiations, especially from the Uruguay
Round (1986–1994).

The organization is currently endeavoring to persist with a trade negotiation called the Doha
Development Agenda (or Doha Round), which was launched in 2001 to enhance equitable
participation of poorer countries that represent a majority of the world's population. However,
the negotiation has been dogged by "disagreement between exporters of agricultural bulk
commodities and countries with large numbers of subsistence farmers on the precise terms of a
'special safeguard measure' to protect farmers from import surges. At this time, the future of the
Doha Round is uncertain."

Subject to formal ratification of the three most recent members, the WTO has 157 members,
representing more than 97% of the world's population, and 26 observers, most seeking
membership. The WTO is governed by a ministerial conference, meeting every two years; a
general council, which implements the conference's policy decisions and is responsible for day-
to-day administration; and a director-general, who is appointed by the ministerial conference.
The WTO's headquarters is at the Centre William Rappard, Geneva, Switzerland.

Functions of WTO:

Among the various functions of the WTO, these are regarded by analysts as the most important:

 It oversees the implementation, administration and operation of the covered agreements.

 It provides a forum for negotiations and for settling disputes.

Additionally, it is the WTO's duty to review and propagate the national trade policies, and to
ensure the coherence and transparency of trade policies through surveillance in global economic
policy-making. Another priority of the WTO is the assistance of developing, least-developed and
low-income countries in transition to adjust to WTO rules and disciplines through technical
cooperation and training.

The WTO is also a center of economic research and analysis: regular assessments of the global
trade picture in its annual publications and research reports on specific topics are produced by
the organization. Finally, the WTO cooperates closely with the two other components of the
Breton Woods system, the IMF and the World Bank.
 More specifically, the WTO main activities are:

 Negotiating the reduction or elimination of obstacles to trade (import tariffs, other barriers to
trade) and agreeing on rules governing the conduct of international trade (e.g. antidumping,
subsidies, product standards, etc.)

 Administering and monitoring the application of the WTO agreed rules for trade in goods, trade
in services, and trade-related intellectual property rights.

 Monitoring and reviewing the trade policies of our members, as well as ensuring transparency of
regional and bilateral trade agreements.

 Settling disputes among our members regarding the interpretation and application of the
agreements.

 Building capacity of developing country government officials in international trade matters

 Assisting the process of accession of some 30 countries who are not yet member of the
organization.

 Conducting economic research and collecting and disseminating trade data in support of the
WTO other main activities.

 Explaining to and educating the public about the WTO, its mission and its activities.

The main mandates of the WTO include:

 Trade Liberalization: One of the primary mandates of the WTO is to promote and facilitate the
liberalization of international trade. It achieves this by reducing trade barriers, such as tariffs and
non-tariff measures, and by negotiating trade agreements among its member countries.
 Non-Discrimination: The WTO enforces the principles of most-favored-nation (MFN) treatment
and national treatment. This means that member countries are required to treat all other members
equally and not discriminate against foreign products or services.
 Dispute Settlement: The WTO provides a mechanism for resolving trade disputes between
member countries. This mandate ensures that trade conflicts are resolved through a rules-based
system, reducing the potential for trade wars or unilateral actions.
 Market Access: The WTO's mandate includes improving market access for goods and services in
member countries. This involves negotiations to reduce tariffs and other trade barriers that
restrict access to foreign markets.
 Transparency: Member countries are mandated to be transparent in their trade policies and
practices. They are required to notify the WTO about changes in their trade regulations and to
make their trade-related information readily available.
 Development and Special and Differential Treatment: The WTO recognizes the differing needs
and capacities of its member countries, particularly developing nations. It has a mandate to
provide special and differential treatment to these countries to help them integrate into the global
trading system and benefit from trade liberalization.
 Technical Assistance and Capacity Building: The WTO offers technical assistance and capacity-
building programs to help developing countries enhance their ability to participate in
international trade. This mandate includes training and support in trade-related matters.

 Trade Facilitation: The WTO promotes trade facilitation by seeking to simplify and streamline
customs procedures, reduce trade costs, and enhance the efficiency of cross-border trade.
 Intellectual Property Protection: The WTO mandates the protection of intellectual property rights
through the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). It
establishes minimum standards for the protection and enforcement of intellectual property rights.
 Preservation of Biodiversity: The WTO, through the Agreement on Trade-Related Aspects of
Intellectual Property Rights (TRIPS) and the Agreement on the Application of Sanitary and
Phytosanitary Measures (SPS), includes mandates that relate to the preservation of biodiversity
and the regulation of trade in biological resources and products.

These mandates collectively guide the activities of the WTO and are aimed at creating a rules-
based international trading system that promotes fair, transparent, and mutually beneficial trade
among member countries.

Principles of the trading system

The WTO establishes a framework for trade policies; it does not define or specify outcomes.
That is, it is concerned with setting the rules of the trade policy games. Five principles are of
particular importance in understanding both the pre-1994 GATT and the WTO:

1. Non-Discrimination. It has two major components: the most favored nation (MFN) rule, and the
national treatment policy. Both are embedded in the main WTO rules on goods, services, and
intellectual property, but their precise scope and nature differ across these areas. The MFN rule
requires that a WTO member must apply the same conditions on all trade with other WTO
members, i.e., a WTO member has to grant the most favorable conditions under which it allows
trade in a certain product type to all other WTO members. "Grant someone a special favor and
you have to do the same for all other WTO members. National treatment means that imported
goods should be treated no less favorably than domestically produced goods (at least after the
foreign goods have entered the market) and was introduced to tackle non-tariff barriers to trade
(e.g., technical standards, security standards et al. discriminating against imported goods).
2. Reciprocity. It reflects both a desire to limit the scope of free-riding that may arise because of
the MFN rule, and a desire to obtain better access to foreign markets. A related point is that for a
nation to negotiate, it is necessary that the gain from doing so be greater than the gain available
from unilateral liberalization; reciprocal concessions intend to ensure that such gains will
materialize.
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. These schedules establish "ceiling bindings": a country can change its bindings, but
only after negotiating with its trading partners, which could mean compensating them for loss of
trade. If satisfaction is not obtained, the complaining country may invoke the WTO dispute
settlement procedures.
4. Transparency. The WTO members are required to publish their trade regulations, to maintain
institutions allowing for the review of administrative decisions affecting trade, to respond to
requests for information by other members, and to notify changes in trade policies to the WTO.
These internal transparency requirements are supplemented and facilitated by periodic country-
specific reports (trade policy reviews) through the Trade Policy Review Mechanism (TPRM).
The WTO system tries also to improve predictability and stability, discouraging the use of quotas
and other measures used to set limits on quantities of imports.
5. Safety valves. In specific circumstances, governments are able to restrict trade. There are three
types of provisions in this direction: articles allowing for the use of trade measures to attain non-
economic objectives; articles aimed at ensuring "fair competition"; and provisions permitting
intervention in trade.

Importance of WTO:

 Promoting International Trade: The WTO facilitates the flow of goods and services across
borders by reducing trade barriers, fostering greater predictability, and promoting rule-based
trade.
 Conflict Resolution: The WTO's dispute settlement system provides a means for resolving trade
conflicts in a fair and transparent manner, reducing the potential for trade wars and unilateral
actions.
 Supporting Economic Development: The WTO's principles of non-discrimination and
transparency can support economic growth, particularly in developing countries, by providing
them with a level playing field in international trade.
 Rule-Based System: The WTO enforces a rule-based international trading system, which
contributes to a stable and predictable global trading environment.
 Capacity Building: The WTO offers technical assistance and capacity-building programs to help
developing countries participate effectively in international trade.

In summary, the WTO plays a crucial role in promoting and regulating international trade,
fostering economic growth, and resolving trade disputes. Its principles and functions aim to
create a fair and predictable global trading environment.