WTO-Chapter-1

ChapterOneGATT/WTO：HistoryofMultilateralSystemTopicsforChapterOneDescribeofWTOFactFileofWTOSixfunctionsofWTOThereasonsforestablishingGATT/WTOChapter1:WhatisWTO？TheWorldTradeOrganization(WTO)istheonlyglobalinternationalorganizationdealingwiththerulesoftradebetweennations.AtitsheartaretheWTOagreements,negotiatedandsignedbythebulkoftheworld’stradingnationsandratifiedintheirparliaments.TheWorldTradeOrganizationcameintobeingin1995.Thereare159membersonMarch2013,whenthelastonejoined.TheWTOisthesuccessortotheGeneralAgreementonTariffsandTrade(GATT)establishedinthewakeoftheSecondWorldWar.Itsmainfunctionistoensurethattradeflowsassmoothly,predictablyandfreelyaspossible.FACTFILEEstablished:1January1995Createdby:UruguayRoundnegotiationsofGATT(1986-94)Location:Geneva,SwitzerlandSecretariatstaff:640Membership:159countrieson2March2013Budget:197,203,900Swissfrancsfor2013HeadofSecretariat:RobertoAzevêdoRobertoAzevêdoisthesixthDirector-GeneraloftheWTO.Hisappointmenttookeffecton1September2013forafour-yearterm.GATTEricWyndhamWhite1948–1968GATTOlivierLong1968–1980GATTArthurDunkel1980–1993GATT/WTOPeterSutherland1993–1995WTORenatoRuggiero1995–1999WTOMikeMoore1999–2002WTOSupachaiPanitchpakdi2002-2005WTOPascalLamy2005-20136Functions:•AdministeringWTOtradeagreements•Forumfortradenegotiations•Handlingtradedisputes•Monitoringnationaltradepolicies•Technicalassistanceandtrainingfordevelopingcountries•CooperationwithotherinternationalorganizationsWhywehaveWTO?(RefertoSupplementaryReadingMaterial2)Reason1EscapingtragedyofwarTocutdowntariffsToavoidcompetitivedepreciationofcurrencyTomoveawaynon-tariffbarriersReason2BeliefinthecaseofopentradeWhenandhowweestablishmultilateraltradesystem?Thefirstthingistotalk.Bretton-Woodsconference(refertosupplementaryreadingMaterial1)TraderoundTheGATTtraderoundsYearPlace/nameSubjectscoveredCountries1947GenevaTariffs231949AnnecyTariffs131951TorquayTariffs381956GenevaTariffs261960–1961Geneva(DillonRound)Tariffs261964–1967Geneva(KennedyRound)Tariffsandanti-dumpingmeasures621973–1979Geneva(TokyoRound)Tariffs,non-tariffmeasures,“framework”agreements1021986–1994Geneva(UruguayRound)Tariffs,non-tariffmeasures,rules,services,intellectualproperty,disputesettlement,textiles,agriculture,creationofWTO,etc123Thesecondthingistobeboundbyagreement,andkeepuptoprinciplesNo.1TradewithoutdiscriminationMost-favoured-nationNationaltreatmentNo.2.Freetrade,graduallythroughnegotiationsNo.3Predictable,throughbindingandtransparencyTheUruguayRoundincreasedbindingsPercentagesoftariffsboundbeforeandafterthe1986–94talksBeforeAfterDevelopedcountries7899Developingcountries2173Transitioneconomies7398(Thesearetarifflines,sopercentagesarenotweightedaccordingtotradevolumeorvalue)No.4PromotingfaircompetitionNo.5Encouragingdevelopmentandeconomicreform