Basic Structure and Functions of WTO (1).pptx

It's about business. The infrastructure of a industry is bases on these firms

1. A Brief History of GATT and WTO

2. A Brief History of GATT United Nations conference of 1944 recommended the establishment of IMF (International Monetary Fund) World Bank ITO (International Trade Organization) GATT (General Agreement on Tariffs and Trade) came into existence in 1947. It was first discussed in United Nations conference on the topic of Trade and Employment in 1947, in Geneva.

3. To boost the economic activity across the nations, which was affected after World War II. Great depression period took over the world’s economy 1913. Reduced employment rate Inflation, etc . It was a treaty not an organization. Later it was transformed into WTO (World Trade Organization ) in 1995.

4. General Agreement on Tariffs and Trade It is a legal agreement between countries to promote international trade by reducing or eliminating trade barriers.

5. Objectives of GATT Raising living standards Ensuring full employment Developing full use of resources of the world Expansion of production and international trade. Reducing trade barriers. Tariffs Non-Tariffs Quotas

6. Principles of GATT Non-Discrimination Principle Prohibition of Quantitative Restrictions Consultation

7. Non-Discrimination Principle This principle states that no member/ country should discriminate between countries for conducting international trade.

8. Prohibition of Quantitative Restrictions GATT seeks to prohibit quantitative restrictions as far as possible and limit restrictions on trade to the less rigid tariffs. GATT also restricts the members to adopt dumping and export subsidies.

9. Consultations By providing a forum to the countries involved in international trade to resolve disagreement through consultation.

10. Exceptions in GATT Certain exceptions are granted to countries, confronted with balance of payment difficulties and to the developing countries. Giving subsidies to farmers and promoting agricultural trade and sector. Restriction on textile trade for developed countries.

11. World Trade Organization (WTO) In 1986, United nations held a meeting Uruguay in the context of international trade and discussed scope of international trade including new areas. GATS (General Agreement on Trade in Services) TRIPS (Trade Related Aspects of Intellectual Property Rights) GATT was then transformed into proper organization WTO, in 1995. Under WTO, GATT still exists as an agreement.

12. Basic Structure and Functions of WTO

13. The Basic Structure of WTO WTO is basically an intergovernmental organization (IGO) that is concerned with the regulation of international trade between countries. IGO is an organization which involves governments of more than one countries Broadly WTO has two largest parts of trade Products Services

14. The structure of WTO has 3 part: Basic principles Additional details Market access commitments There are five basic principles: GATT (General Agreement on Tariffs and Trade) GATS (General Agreement on Trade in Services) TRIPS (Trade-Related Aspects of Intellectual Property Rights) Dispute settlement TPRM (Trade Policy Review Mechanism)

15. General agreement on Trade in Services (GATS) A legal agreement between different countries whose overall purpose is to promote services across nations, by reducing trade barriers. Cross border movement of people Tourism Baking services Telecommunication

16. Trade- Related Aspects of Intellectual Property Rights (TRIPS) Intellectual property is any information with commercial value. TRIPS is an international legal agreement between the nations of WTO, whose purpose is to protect intellectual property of the nations. Patents Copyrights trademarks

17. Trademark Logo, symbol, brand name, colors, etc. Copyright A legal right of any business to create anything that expresses an idea. Patents A patent right protects the business for their products/ services being sold, created or used by another party without permission.

18. Dispute Settlement A system of WTO to tackle broken promises between countries, businesses and government. WTO members have agreed that if they believe that one nation of WTO has violated trade rules, they will use multi-lateral system instead of taking unilateral action.

19. Trade Policy Review Mechanism (TPRM) An instrument for surveillance of members’ trade policy. Its purpose is to make the trade policies between countries, transparent and smoother. Ensuring that all the rules and regulations of WTO are accepted by all the members.

20. Additional Details It deals with the special requirements for specific sectors and issues. Market Access Commitments Lengthy and detailed commitments made by individual member for giving access to the foreign supplier to their domestic market.

21. Non-Discrimination (in detail) Two major components Most-Favored Nation (MFN) Rule National Treatment Principle

22. Most Favored Nation (MFN) Rule It states that product made in one country be treated no less favorably than a similar product originated in an other country. This rule also states that if any concessions or privileges are given to one country Those privileges will be given to all the members of WTO. Giving equal rights

23. MFN is the pillar of WTO as it does not discriminate between nations and does not allow the importers/ exporters to discriminate between consumers. MFN ensures smaller countries that larger countries will not exploit the market. MFN reduces negotiation costs.

24. National Treatment Principle It states that if the nation provides special treatment and privileges to its citizens Then it should also provide same privileges to foreign citizens living in that nation. Same rule applies to foreign products imported in that nation. It provides a sense of security to the foreign suppliers.

25. Structural Body of WTO as an Organization The WTO is run by the governments of its members/ countries. All major decisions are made by the members as a whole, either by ministers ambassadors Decisions are normally taken by consensus.

26. WTO enforces rules on every countries’ policies, after negotiations which are the result of agreed consensus. So that bureaucracies do not affect the countries' policies. The main advantage of taking decisions through consensus is that it is acceptable by all the members.

27. Levels of Authority Highest authority: The Ministerial Conference Second level: General Council in Three Guises Third level: Councils for Each Broad Area of Trade and more Fourth level: Down to Nitty -Gritty

28. Highest authority: The Ministerial Conference Countries make decision through different councils and committees. Top most committee/ council is the ministerial conference Consisting of ministers from each country. Trade minister Foreign Minister Which needs to be held at least once every 2 years.

29. Third level: Councils for Each Broad Area of Trade and more Three councils for different broad areas of trade report to The General Council Goods Council Services Council TRIPS Council

30. Second level: General Council in Three Guises Overlooks and coordinate day-to-day work between ministerial conference by three bodies. The General Council The Dispute Settlement Body The Trade Policy Review Body

31. Fourth level: Down to Nitty -Gritty Each higher level of councils have subsidiary bodies. The goods council have further 11 committees Agriculture, Market access Anti-dumping Textile monitory policy Import licensing, etc. The services councils’ subsidiary bodies deals with Financial services Domestic regulations Transportation

32. HODs and BODs: the need for informality Formal meetings are conducted by higher authorities. Informality plays an important role. Before formal meetings, informal meetings are conducted and important topics are filtered out. These informal meetings include HODs (Head of Delegations)

33. Informal meetings conducted in smaller groups 20-30 members It is necessary to keep the informal meetings held with sensitivity and transparency. Green Room is a phrase used for conducting meetings by HODs Proper reports are prepared for follow up.

34. In order to increase the bargaining power countries form coalition and alliance. To achieve the agreement on decisions through consensus is an art to strike an appropriate balance.

35. Structural Body of WTO as an Organization The WTO is run by the governments of its members/ countries. All major decisions are made by the members as a whole, either by ministers ambassadors Decisions are normally taken by consensus.

36. WTO enforces rules on every countries’ policies, after negotiations which are the result of agreed consensus. So that bureaucracies do not affect the countries' policies. The main advantage of taking decisions through consensus is that it is acceptable by all the members.

37. Levels of Authority Highest authority: The Ministerial Conference Second level: General Council in Three Guises Third level: Councils for Each Broad Area of Trade and more Fourth level: Down to Nitty -Gritty

38. Highest authority: The Ministerial Conference Countries make decision through different councils and committees. Top most committee/ council is the ministerial conference Consisting of ministers from each country. Trade minister Foreign Minister Which needs to be held at least once every 2 years.

39. Second level: General Council in Three Guises Overlooks and coordinate day-to-day work between ministerial conference by three bodies. The General Council The Dispute Settlement Body The Trade Policy Review Body

40. Third level: Councils for Each Broad Area of Trade and more Three councils for different broad areas of trade report to The General Council Goods Council Services Council TRIPS Council

41. Fourth level: Down to Nitty -Gritty Each higher level of councils have subsidiary bodies. The goods council have further 11 committees Agriculture, Market access Anti-dumping Textile monitory policy Import licensing, etc. The services councils’ subsidiary bodies deals with Financial services Domestic regulations Transportation

42. HODs and BODs: the need for informality Formal meetings are conducted by higher authorities. Informality plays an important role. Before formal meetings, informal meetings are conducted and important topics are filtered out. These informal meetings include HODs (Head of Delegations)

43. Informal meetings conducted in smaller groups 20-30 members It is necessary to keep the informal meetings held with sensitivity and transparency. Green Room is a phrase used for conducting meetings by HODs Proper reports are prepared for follow up.

44. In order to increase the bargaining power countries form coalition and alliance. To achieve the agreement on decisions through consensus is an art to strike an appropriate balance.