1 / 18

Overview of WTO

Overview of WTO. GATT : WTO ancestor. GATT : General agreement on tariffs and trade created in 1948, after the Bretton Woods conference 23 countries members to promote world trade liberalisation successive rounds of trade negotiations 8 rounds from 1947 to 1986 decrease of tariffs

christine-witt
Download Presentation

Overview of WTO

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Overview of WTO Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  2. GATT : WTO ancestor • GATT : General agreement on tariffs and trade • created in 1948, after the Bretton Woods conference • 23 countries members • to promote world trade liberalisation • successive rounds of trade negotiations • 8 rounds from 1947 to 1986 • decrease of tariffs • 40 % in 1947, 4 % in 1996 (average for industrial products) Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  3. The successive rounds Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  4. GATT's principles • Most favoured nation clause • each country has to applied to all of its partners the treatment applied to the most favoured partner. • National treatment clause • same treatment applied to domestic and import products. • Reciprocity • one country has to give to one partner the same advantages that the partner offers it. Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  5. Exception to the GATT’s principles • Special trade regime allowed by Developed countries to developing countries : GSP • Reciprocal free trade areas, which cover substantially all trade Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  6. Example : The Japanese GSP Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  7. The Uruguay Round • Launched in 1986. The longest (8 years), with 123 countries • Enlargement of the topics of negotiations • tariffs, non tariffs measures • services, intellectual property, textiles and clothes • agriculture : the hard point of discussion • The Marrakech Agreement, April 15th 1994, created the WTO : World trade organisation Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  8. The WTO Agreement • 29 agreements, memorandums, ministerial decisions, including GATT (principles still available) • Four main principles for the WTO Agreement • to facilitate access to the market of goods and services • to reinforce the system of trade rules • stability, predictability, transparency of world trade • to improve the system for settling trade disputes Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  9. The agreements • Agreement on agriculture (AoA) • Agreement on Sanitary and phytosanitary measures (SPS) • Agreement on Technical barriers to trade (TBT) • Trade related intellectual property rights Agreement (TRIPS) Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  10. The agreements (cont’d) • General agreement on trade of goods : • reduction of tariffs • Multifibre agreement (or textile agreement): • Since the beginning of the GATT, hard point of discussion • Phasing out of the tariffs quotas system (implemented since the 60s) • Tariffs only system since 1st January 2005 Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  11. WTO members • In September 2005 : 148 member states ( United Nations : 191 member states) • New members : Cambodia and Nepal (2003), Taiwan (2002), China, Lithuania, Moldova (2001) • 2/3 are developing countries – self selection basis • 32 are LDCs (UN list) • Countries negotiating membership are observers • Grouping : • The EU speaks with one voice in WTO, but it counts for 26 members • Negotiation groups Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  12. The WTO mandate • Created on January 1st 1995. • Ensuring the effective implementation of the UR conclusions • Administering the procedures for settling trade dispute • Acting as a forum for future trade negotiations • Managing the trade policy review mechanism • Co-operating with the Bretton Woods institution Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  13. The functioning of WTO (1) • Permanent multilateral institution. Principle of the single agreement • Decision-making bodies : members govern WTO • Top-level body : the Ministerial Conference. At least every two years • General Council : implementation of Conference decisions and day by day management • Three councils : trade in goods (including agriculture), trade in services, Trade-related intellectual property rights • Several committees on specific issues • WTO Secretariat Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  14. Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  15. The functioning of WTO (cont’d) • Decision-making rules • All members sit as equals - Every country has a vote • According to WTO statute, decision taken by majority. In fact, by consensus • Reality is contradictory : lack of transparency - power of negotiation linked to the economic weight • Limited participation of developing countries Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  16. The procedures for settling trade dispute • Guarantee of WTO credibility : possibility of applying sanctions • If a member thinks that another member infringes a point of the WTO agreement : • Procedures under the DSB • To be able to proof that interests are affected Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  17. The procedures for settling trade dispute (cont’d) • Steps • Consultation phase • If failed : DSB can appoint a panel to submit a report • Adoption of report – appeal possible • Final decision of the Appellate body • Implementation of the result • Implementation of the recommendations • If not : plaintiff is authorised to apply commercial sanctions Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  18. Brazil / US dispute on cotton • 3 october 2002: Brazil requests for consultation • 7 february 2003: request for establishment of the panel • 23 may 2003: establishment of the panel • 18 june 2004: publication of the report • 8 september 2004: adoption of the report : the USA are convicted • 20 october 2004: the US appeal to the decision • 3 march 2005: the appellate body report is published • 24 march 2005: adoption of the appellate report, the decision is confirmed • 20 april 2005 : the US stated they intention to comply with the recommendations Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

More Related