wto (world trade organization)

University of DhakaUniversity of DhakaDepartment of Management Information Department of Management Information

SystemsSystems

Course No: EMIS-512Course Title: International BusinessGroup Term PaperTitle: World Trade Organization (WTO)

Submitted By:I. Ashik Ahmed 03-026II. Md.Masud Kabir 03-048III. Siraj-ud-Dawlla 12-038IV. Lincoln Roy 14-035

What is WTOWhat is WTO

The World Trade Organization (WTO) is the only international organization dealing with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible.

History of WTOHistory of WTOThe World Trade Organization came into

being in 1995.

So while the WTO is still young, the multilateral trading system that was originally set up under GATT is well over 50 years old.

HISTORY OF WTOHISTORY OF WTO THE GATT YEARS: FROM HAVANA TO MARRAKESH THE GATT YEARS: FROM HAVANA TO MARRAKESH

Much of the history of those 47 years was written in Geneva. But it also traces a journey that spanned the continents, from that hesitant start in 1948 in Havana (Cuba) and finally to Marrakesh (Morocco) in 1994. During that period, the trading system came under GATT, salvaged from the aborted attempt to create the WTO.

SecretariatSecretariat   Location: Geneva, Switzerland

Established: 1 January 1995Created by: Uruguay Round negotiations (1986-94)   Membership: 153 countries on 10 February 2011 Budget: 196 million Swiss francs for 2011Secretariat staff: 640Head: Pascal Lamy (Director-General)

BANGLADESH BECOME MEMBER ON  1ST JANUARY 1995

Principles of the trading Principles of the trading systemsystemThe WTO agreements are lengthy and

complex because they are legal texts covering a wide range of activities. They deal with: agriculture, textiles and clothing, banking, telecommunications, government purchases, industrial standards and product safety and more.

A closer look at these principles:1.Most-favored-nation (MFN): Treating

other people equally2.2. National treatment: Treating

foreigners and locals equally

The case for open The case for open tradetrade

Both trade and GDP fell in the late 1920s, before bottoming out in 1932. After World War II, both have risen exponentially.

The WTO AgreementsThe WTO Agreements

The WTO’s rules — the agreements — are the result of negotiations between the members. The current set were the outcome of the 1986–94 Uruguay Round negotiations which included a major revision of the original General Agreement on Tariffs and Trade (GATT).

THE WTO AGREEMENTSTHE WTO AGREEMENTS

Developing CountriesDeveloping Countries

Development and tradeOver three quarters of WTO members are

developing or least-developed countries.The 2001 Ministerial Conference in Doha

set out tasks, including negotiations, for a wide range of issues concerning developing countries.

Tariffs :More Bindings & Tariffs :More Bindings & Closer To zeroCloser To zero

This is what a tariff-quota might look like

Tariff quotas are also called “tariff-rate quotas”.

  Technical Assistance and Technical Assistance and TrainingTraining

Technical regulations and standards are important, but they vary from country to country. Having too many different standards makes life difficult for producers and exporters. If the standards are set arbitrarily, they could be used as an excuse for protectionism.

10 benefits of the WTO trading 10 benefits of the WTO trading systemsystem

1. The system helps to keep the peace

Sales people are usually reluctant to fight

their customers

2. The system allows disputes to be handled constructively

Countries in dispute always aim to conform with the agreements

3. A system based on rules rather than power makes life easier for all

Smaller countries enjoy more bargaining power, and life is simpler for bigger countries

4.Freer trade cuts the cost of livingAccording to one calculation, consumers and governments in rich countries pay $350 billion per year supporting agriculture — enough to fly their 41 million dairy cows first class around the world one and a half times

5. It gives consumers more choice, and a broader range of qualities to choose from

Life with ... ... and without imports

6. Trade raises incomes

The fact that there is additional income means that resources are available for governments to redistribute

7. Trade stimulates economic growth, and that can be good news for employment

Careful policy-making harnesses the job-creation powers of freer trade

8. The basic principles make the system economically more efficient, and they cut costs

Discrimination complicates trade

9. The system shields governments from narrow interests

Governments are better placed to ward off powerful lobbies

10. The system encourages good governmentThe rules reduce opportunities for corruption.

WTO Organization ChartWTO Organization Chart

The WTO and other The WTO and other OrganizationsOrganizations

The WTO works with a number of other international governmental organizations under the banner of “coherence”, which ministers agreed in Marrakesh, April 1994.

The WTO maintains extensive institutional relations with several other international organizations; there are some 140 international organizations that have observer status in WTOIn all, the WTO Secretariat maintains working relations with almost 200 international organizations in activities ranging from statistics, research, standard-setting, and technical assistance and training bodies.

CONCLUSIONCONCLUSION

Although continuing the future challenges, the shared international experience of sixty years of the GATT/WTO is a positive story. Plenty of governments, non-state actors, commentators and critics want to improve the system, but very few would oppose its core contribution to a more stable and prosperous world. An exact look at the less than fully resolved issues of the past, the outstanding challenges, and the successes will stimulate thought on how best to manage the future.