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Presented by: P. Karthik

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Locatio

n: Geneva, SwitzerlandEstablished: 1 January 1995

Created by: Uruguay Round negotiations

(198694)

Membership: 153co

untries (since 23 July

2008)

Budget: 194 million Swiss francs for 2010

Secretariat staff: 637

Head: Pascal Lamy (Director-General)

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Introduction to WTO

WTO was formed on 1st jan,1995.

It tookover GATT (General agreement ontariffs & trade). In 8th round of GATT,popularly known as Uruguay Round,

member nations

of GATT de

cided t

oset up anew organization, World Trade

Organization in place of GATT.

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1. What is the World Trade

Organization?Simply put: The World Trade Organization

(WTO) deals with the rules of trade between

nations at a global or near-global level. But

there is more to it than that.

There are a numberof ways of looking at the

WTO. Its an organization for liberalizing trade.Its a forum for governments to negotiate trade

agreements. Its a place for them to settle trade

disputes.Itoperates a system

of trade rules.

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OBJECTIVES OF WTOThe primary aim of WTO is to implement the newworld trade agreement.

To promote multilateral trade .

To promote free trade by abolishing tariff & non-tariff barriers.

To enhance competitiveness among all tradingpartners so as to benefit consumers.

To increase the level of production & productivitywith a view to increase the level of employment inthe world.

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To expand & utilise world resources in the mostoptimum manner.

To improve the level of living for the globalpopulation & speed up economic development of themember nations.

To take special steps for the development of poorestnations.

WTO is an internatio

nal tradeo

rganisation havingset of rules & principles, mutually designed & agreed

upon to promote international trade in general &reduction of tariffs barriers & removal of importrestrictions in particular.

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Functions of WTO

Implementing WTO agreements & administering theinternational trade.

Coo

perating withIMF

& Wo

rld Bank & its assoc

iatesfor establishing coordination in Global Trade Policy-Making.

Settling trade related disputes among member nations

with the help of its Dispute Settlement

Reviewing trade related economic policies of membercountries with help of its Trade Policy Review Body(TPRB).

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Providing technicalassistance & guidancerelated to management offoreign trade & fiscalpolicy to its member

nations.

Acting as forum for tradeliberalization.

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Argument inF

avo

urof WTO

Increase in foreign trade.

Increase in agricultural exports.

Increase in inflow of foreign investment.

Improvement in services.

Benefits forclothing & textile industry.

Inflow of better technology & better qualityproducts.

Benefits of multilateral trade system.

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Benefits of multilateral tradesystem.

Benefits of using quality

seeds & new varietieso

f plants.Restricts dumping.

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Ho

w lo

ng to

settle a dispute?These approximate periods for each stage

of a dispute settlement procedure are

target figures the agreement is flexible.In addition, the countries can settle their

dispute themselves at any stage. Totals are

also approximate.

60 days - Consultations, mediation, etc

45 days - Panel set up and panel lists

appointed

6 months - Final panel report to parties

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3 weeks Final panel report to WTO members

60 days Dispute Settlement Body adopts report(if no

appeal)

Total = 1 year (without appeal)

6090 days Appeals report

30 days Dispute Settlement Body adopts appeals

report

Total = 1y 3m (with appeal)

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