121 Seminar on World Trade Organization

8/7/2019 121 Seminar on World Trade Organization

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Seminar on worldSeminar on world

trade organizationtrade organization



Born in 1995, but not so youngBorn in 1995, but not so young

The WTO began life on 1 January 1995, but its tradingThe WTO began life on 1 January 1995, but its tradingsystem is half a century older. Since 1948, the Generalsystem is half a century older. Since 1948, the GeneralAgreement on Tariffs and Trade (GATT) had providedAgreement on Tariffs and Trade (GATT) had providedthe rules for the system. (The second WTO ministerialthe rules for the system. (The second WTO ministerialmeeting, held in Geneva in May 1998, included ameeting, held in Geneva in May 1998, included acelebration of the 50th anniversary of the system.)celebration of the 50th anniversary of the system.)

It did not take long for the General Agreement to giveIt did not take long for the General Agreement to givebirth to an unofficial,birth to an unofficial, de factode facto international organization,international organization,also known informally as GATT. Over the years GATTalso known informally as GATT. Over the years GATTevolved through several rounds of negotiations.evolved through several rounds of negotiations.



it¶s a negotiating forumit¶s a negotiating forum

the WTO is a place where member the WTO is a place where member governments go, to try to sort out the tradegovernments go, to try to sort out the trade problems they face with each other. The first problems they face with each other. The first

step is to talk. The WTO was born out of step is to talk. The WTO was born out of negotiations, and everything the WTO does isnegotiations, and everything the WTO does isthe result of negotiations. The bulk of thethe result of negotiations. The bulk of theWTO's current work comes from the 1986WTO's current work comes from the 1986--9494negotiations called the Uruguay Round andnegotiations called the Uruguay Round andearlier negotiations under the Generalearlier negotiations under the GeneralAgreement on Tariffs and Trade (GATT).Agreement on Tariffs and Trade (GATT).



It¶s a set of rulesIt¶s a set of rules

WTO agreements, negotiated and signed byWTO agreements, negotiated and signed by

the bulk of the world¶s trading nations. Thesethe bulk of the world¶s trading nations. Thesedocuments provide the legal grounddocuments provide the legal ground--rules for rules for

international commerce.international commerce.



it helps to settle disputesit helps to settle disputes

This is a third important side to the WTO¶sThis is a third important side to the WTO¶s

work. Trade relations often involve conflictingwork. Trade relations often involve conflictinginterests. Agreements, including thoseinterests. Agreements, including those

painstakingly negotiated in the WTO system, painstakingly negotiated in the WTO system,

often need interpreting.often need interpreting.



Principles of the trading systemPrinciples of the trading system

NonNon--DiscriminationDiscrimination..

It has two major components: theIt has two major components: the most favouredmost favoured

nationnation (MFN) rule, and the(MFN) rule, and the national treatmentnational treatment policy. Both are embedded in the main WTO policy. Both are embedded in the main WTO

rules on goods, services, and intellectualrules on goods, services, and intellectual

property, but their precise scope and nature property, but their precise scope and nature

differ across these areas .differ across these areas .



1. Most1. Most--favouredfavoured--nation (MFN): treatingnation (MFN): treating

other people equallyother people equally Under the WTOUnder the WTO

agreements, countries cannot normallyagreements, countries cannot normallydiscriminate between their trading partners.discriminate between their trading partners.

Grant someone a special favour (such as aGrant someone a special favour (such as a

lower customs duty rate for one of their lower customs duty rate for one of their

products) and you have to do the same for all products) and you have to do the same for allother WTO members.other WTO members.



2. National treatment: Treating foreigners and2. National treatment: Treating foreigners and

locals equallylocals equally Imported and locallyImported and locally--produced produced

goods should be treated equallygoods should be treated equally ² ² at least after theat least after the

foreign goods have entered the market. The sameforeign goods have entered the market. The sameshould apply to foreign and domestic services, and toshould apply to foreign and domestic services, and to

foreign and local trademarks, copyrights and patents.foreign and local trademarks, copyrights and patents.

This principle of ³national treatment´ (giving othersThis principle of ³national treatment´ (giving others

the same treatment as one¶s own nationals) is alsothe same treatment as one¶s own nationals) is alsofound in all the three main WTO agreementsfound in all the three main WTO agreements



R eciprocityR eciprocity. It reflects both a desire to limit. It reflects both a desire to limit

the scope of the scope of freefree--ridingriding that may arise becausethat may arise because

of the MFN rule, and a desire to obtain better of the MFN rule, and a desire to obtain better

access to foreign markets.access to foreign markets.



Binding and enforceable commitmentsBinding and enforceable commitments. The. The

tariff commitments made by WTO members intariff commitments made by WTO members in

a multilateral trade negotiation and ona multilateral trade negotiation and on

accession are enumerated in a schedule (list) of accession are enumerated in a schedule (list) of

concessions.concessions.



TransparencyTransparency. The WTO members are. The WTO members are

required to publish their trade regulations, torequired to publish their trade regulations, to

maintain institutions allowing for the review of maintain institutions allowing for the review of

administrative decisions affecting trade, toadministrative decisions affecting trade, to

respond to requests for information by other respond to requests for information by other

members, and to notify changes in trademembers, and to notify changes in trade

policies to the WTO. policies to the WTO.



Safety valvesSafety valves. In specific circumstances,. In specific circumstances,

governments are able togovernments are able to restrict traderestrict trade. There. There

are three types of provisions in this directionare three types of provisions in this direction



Thank uuuu« have a nice day«..Thank uuuu« have a nice day«..

121 Seminar on World Trade Organization

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