business law - wto presentation

8/17/2019 Business Law - WTO Presentation

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B U S I N E S S L A W

W O R L D T R A D E O R G A N I Z A

N A R E N D R A P - 3 5 9 2 3 3E DR I L L E E ZR A P - 3 5 9 2 5 1

AC H M AD FA I Z A L A - 3 6 1 1 6 0

T H E S A P E R F E C I A N A K - 3 61 1 8 0

T I M OT H Y J E V O N L - 3 6 1 2 0 0

M U H A M M A D R I S A N G - 3 6 1 2 0 8

I MA N UE L A BR I U - 3 6 5 4 5 8



W H AT I S T H E

?



WORLD TRADE ORGANIZ

• The World Trade Organization ( WTOintergovernmental organization whic

international trade.

• It was officially commenced on 1 January

the Marrakesh Agreement, signed by 115 April 1994, replacing the General Ag

Tariffs and Trade (GATT), which commen

• Most of the issues that the WTO focuses

from previous trade negotiations, especial

Uruguay Round (1986 – 1994).

GATT 1994 - Uruguay Round

GATT 1994 –

Marrakesh Agreement



HISTORY OF T



THE EARLY STAGE O

Bretton Woods Conference; Bothstrong advocates of a central-controlledinternational trade environment

Thus, recommended the establishminstitutions:

• the IMF (for fiscal and monetary issues

• the World Bank (for financial & structu

• the ITO (for international economic cooperat

Harry

White

JohnMaynard

Keynes



WTO AND ITS PREDECE

• Formed by the union of a number of plots of lan

1755 and 1893• In 1785, construction began on the Villa Rappard

• In 1921, the Swiss Confederation acquired the esoffered it to the League of Nations, which designfor construction of a headquarters for the InternatOffice.

•

Both bodies had been created in 1919 with the sigTreaty of Versailles.

• The GATT (General Agreement on Tariffs and Tbeing in 1947 as the result of Brenton Woods Co

Headquarter of WTO



GATT (GENERAL AGREEMENT O

AND TRADE) AND THE CREATION

The GATT still exists as the WTO's umbreltrade in goods, updated as a result of the Uruguanegotiations.

The agreements fall into a structure with six main p• The Agreement Establishing the WTO

• Goods and investment – the Multilateral Agreein Goods including the GATT 1994 and the Trad

Investment Measures (TRIMS)• Services — the General Agreement on Trade in

• Intellectual property – the Agreement on Tradeof Intellectual Property Rights (TRIPS)

• Dispute settlement (DSU)

• Reviews of governments' trade policies (TPRM

GATT Logo

GATT 1994 - Uruguay Round



THE KEY MINICONFERENCE ON MULTIL

TRADE AGREE• The inaugural ministerial conference (1996) was

Singapore.

• The second ministerial conference (1998) was heSwitzerland.

• The third conference (1999) in Seattle, Washington

• The fourth ministerial conference (2001) was heldPersian Gulf fourth nation of Qatar ; The conference

joining of China, which became the 143rd member t

• The fifth ministerial conference (2003) was held in Caiming at forging agreement on the Doha round.

• The sixth WTO ministerial conference (2005) was hKong; where tariff lines were then exempted.

The World Trade Organization

Ministerial Conference of

1998, in the Palace of Nations

(Geneva, Switzerland).

WTO Ministerial Conference -

Hong Kong



“ MORE THAN EVER BEFORE IN HUMAN HISTOR

SHARE A COMMON

DESTINY

. WE CAN MAST

ONLY IF WE FACE IT TOGETHER. AND THAT I

WE HAVE THE UNITED NATIONS.

Kofi AnnanA Ghanaian diplomat who served as the seventh Secretary-General of the United Nations from J

December 2006.



FUNCTIONS OF WTO

• Oversee the implementation, administration and operation of covered agreeme

• Forum for negotiation and settling dispute

• Review and propagate national trade policies

• Ensure coherence and transparency of trade policies through surveillance in glo

policy making

• Assisting the developing, least-developed and low-income countries to adjust to

technical cooperation and training



ADDITIONAL FUNCTION

• Facilitate the implementation, administration and operation and further the obje

agreement and of the Multilateral Trade Agreement

• Provide the framework for implementation, administration and operation of the

Trade Agreement

• Provide the forum for negotiations among its members concerning their multila

relations in matters dealt with under the Agreement in the Annexes to this Agre



• Administer the Understanding on Rules and Procedures Governing the Settlement o

• Administer Trade Policy Review Mechanism

• With a view to achieving greater coherence in global economic policy making, the Wcooperate, as appropriate, with the international Monetary Fund (IMF) and with the

Bank for Reconstruction and Development (IBRD) and its affiliated agencies



PRINCIPLES OF WTO

• Non-Discrimination

• Reciprocity

• Binding and Enforceable commitments

• Transparency

• Safety Valves



THE ORGANIZATIOSTRUCTURE



WTO structureAll WTO members may participate in all councils, committees, etc, except Appellate Body, Dispute Settlement panels, and plurilateral committees.

TNC and its bodies

Committees onTrade and EnvironmentTrade and Development

Property RightsRegionalTrade AgreementsBalance of Payments Committees on

Trade in Financial ServicesSpecific Commitments

Budget, Finance andAdministration

AgricultureSanitary and Phytosanitary MeasuresTechnicalBarriers to TradeSubsidies and Countervailing MeasuresAnti-Dumping PracticesCustoms ValuationRules of OriginImport LicensingTrade-Related Investment MeasuresSafeguards

Working parties onDomestic RegulationGATS Rules

Working parties onAccession

Working groups onTrade, debt and financeTrade and technology

transfer(Inactive:(Relationship between

Trade and Investment(Interaction betweenTrade and CompetitionPolicy

(Transparency inGovernment Procurement)

Working party onState-Trading Enterprises

Last printed 31/03/2006 3:00 PM

KeyReporting to General Council (or a subsidiary)

Reporting to Dispute Settlement Body

Plurilateral committeesinform the General Council or Goods Council of their activities, although these agreements are not signed by all WTOmembers

Trade Negotiations Committee reportsto General Council

The General Council also meets as the Trade Policy ReviewBody and Dispute Settlement Body

PlurilateralInformation Technology Agreement

Committee

PlurilateralsTrade in Civil Aircraft

CommitteeGovernment Procurement

Committee

Subcommittee on Least-Developed Countries

Council for

Trade in Goods

Council for

Trade-Related Aspects

of Intellectual

Council for

Trade in Services

Restrictions Market Access Committees on

Doha Development

Trade Negotiati

Committee

Special Sessions ofServices CouncilTRIPS Council

Dispute Settlement BodAgriculture Committee

Cotton Sub-CommitteTrade and DevelopmenTrade and Environment

Negotiating groups oMarket AccessRulesTrade facilitation

Ministerial Conference

General Council meeting as General Council meeting as

Dispute SettlementBody

General Council Trade Policy ReviewBody

Appellate BodyDispute Settlement panels



HOW ARE DECISIONS

MADE

?



The WTO is run by its member governments. All major decis

are made by the membership as a whole, either by ministers

meet at least once every two years) or by their ambassador

delegates (who meet regularly in Geneva). Decisions are norm

taken by consensus

When WTO rules impose disciplines on countries’ policies, th

the outcome of negotiations among WTO members. The rules

enforced by the members themselves under agreed procedu

procedures that they negotiated, including the possibility of possibility of trade sanctions. But those sanctions are impos

member countries, and authorized by the membership as a w



Topmost is the ministerial conference which has to meet at

once every two years. The Ministerial Conference can take de

on all matters under any of the multilateral trade agreem

Highest authority:

The Ministerial Conference



Second level:General Council in three guises

Day-to-day work in between the ministerial conferences is ha

by three bodies:- The General Council- The Dispute Settlement Body- The Trade Policy Review Body

All three are in fact the same — the Agreement Establishing thstates they are all the General Council, although they meet un

different terms of reference. Again, all three consist of all WTOmembers. They report to the Ministerial Conference.The General Council acts on behalf of the Ministerial Conferenall WTO affairs. It meets as the Dispute Settlement Body andTrade Policy Review Body to oversee procedures for settlingdisputes between members and to analyze members’ trade

policies.



Third level:Councils for each broad area of trad

and moreThree more councils, each handling a different broad area of trade, report to General Council:

- The Council for Trade in Goods (Goods Council)- The Council for Trade in Services (Services Council)- The Council for Trade-Related Aspects of Intellectual Property Rights (TRI

Council)

As their names indicate, the three are responsible for the workings of the Wagreements dealing with their respective areas of trade . Again they consist WTO members. The three also have subsidiary bodies. The scope of theircoverage is smaller, so they are “committees”. But they still consist of all WTOmembers. They cover issues such as trade and development, the environmenregional trading arrangements, and administrative issues. The SingaporeMinisterial Conference in December 1996 decided to create new working groto look at investment and competition policy, transparency in governmentprocurement, and trade facilitation.



Fourth level:Bottom-level committees

- Each of the higher level councils has subsidiary bodies. The Goods Couhas 11 committees dealing with specific subjects (such as agriculture, maaccess, subsidies, anti-dumping measures and so on). Again, these consiall member countries. Also reporting to the Goods Council is the TextilesMonitoring Body, which consists of a chairman and 10 members acting inpersonal capacities, and groups dealing with notifications (governments

informing the WTO about current and new policies or measures) and statrading enterprises.- The Services Council’s subsidiary bodies deal with financial services,domestic regulations, GATS rules and specific commitments.- At the General Council level, the Dispute Settlement Body also has twosubsidiaries: the dispute settlement “panels” of experts appointed toadjudicate on unresolved disputes, and the Appellate Body that deals witappeals.



A C C E S S I O N T

T H E W T O



HOW TO APPLY

• Who can apply

•The request for accession

• Submission of a memorandum on the foreign trade regim

• Conditions of entry

• Bilateral negotiations

• The final accession package

• Approval of the accession package

• Becoming a full member



WHO CAN APPLY?

Any state or customs territory having full autonom

conduct of its trade policies is eligible to accede to

WTO on terms agreed between it and WTO Memb

(Article XII of the WTO Agreement).



THE REQUEST FOR ACCESSION

•The accession process commences with

submission of a formal written request f

accession by the applicant government



SUBMISSION OF AMEMORANDUM ON THE FOREIGN

TRADE REGIME• The applicant government presents a

memorandum covering all aspects of its trade

and legal regime to the Working Party. This

memorandum forms the basis for detailed fac

finding by the Working Party



CONDITIONS OF ENTRY

• After examining all aspects of the existing trade an

regimes of the acceding government the Working

goes into the substantive part of the multilateral

negotiations involved in accessions. This determineterms and conditions of entry for the applicant

government.



BILATERAL NEGOTIATIONS

• At the same time, the applicant government engag

bilateral negotiations with interested Working Par

members on concessions and commitments on m

access for goods and services. The results of thesenegotiations are consolidated into a document wh

part of the final “accession package.



THE FINAL ACCESSION PACKAGE

The “accession package” consists of two documewhich represent the results of both the multilater

bilateral phases outlined above. These are:

• A Report of the Working Party containing a summ

proceedings and conditions of entry and a ProtocAccession.

• Schedules of market access commitments in good

services agreed between the acceding governmen

WTO Members.

APPROVAL OF THE ACCESSION PAC



APPROVAL OF THE ACCESSION PAC

Two final documents will be issued:• The Decision of the General Council

• The Protocol of Accession of the new entrant a P

of Accession annexed to the Report which states

country accedes to the WTO Agreement, defines Schedules and outlines final provisions for timing o

acceptance of the Protocol and full membership o

WTO.

BECOMING A FULL MEMBER



BECOMING A FULL MEMBER

• Once approved by the General Council of Ministe

Conference, the applicant is then free to sign the P

of Accession stating that it accepts the approved

“accessions package” subject to ratification in its n

parliament.



W O R L D T R A D EO R G A N I Z A T I O NDI SPUT E SE T T LE ME NT A ND

A GRE E ME NT SYST E M



IMPORTANCE OF THE WTO DISP

SETTLEMENT SYSTEM

• helps to prevent the detrimental effects of unreso

international trade conflicts

• mitigate the imbalances between stronger and we

players



THE DISPUTE SETTLEMENT

UNDERSTANDING

• The current dispute settlement system was create

of the WTO Agreement during the Uruguay Roun

• embodied in the Understanding on Rules and Pro

Governing the Settlement of Disputes



FUNCTIONS OBJECTIVES AND K

FEATURES OF THE DISPUTE SETTLE

SYSTEM

• Providing security and predictability to the multilateral trading syst

• Preserving the rights and obligations of WTO Members

• Clarification of rights and obligations through interpretati

• “Mutually Agreed Solutions” as “Preferred Solution”

• Prompt settlement of disputes

• Prohibition against unilateral determinations

• Exclusive jurisdiction

• Compulsory nature



W T O

C R I T I C I S M



R T SM

Benefits developed

countries than developing

countries

Destroying the

environment



Centre William Rappard

Rue de Lausanne 154, Geneva, Switzerland

WTO’s Office

FIRST DIRECTOR GENERAL OF W



FIRST DIRECTOR GENERAL OF W

Peter Sutherland

In 1993, he became Director General of

the General Agreement of Tarrifs and

Trade (now the World Trade

Organization). Later Mickey Kantor, the

US Trade Minister, credited him with

being the father of globalization and saidthat without him there would have been

no WTO.



Roberto Azevêdo

In May 2013 Azevêdo was announced

to be the sixth Director-General of

the WTO. During his time as Director

General, Ambassador Azevêdo has

overseen two successful WTO

Ministerial Conferences – in Bali in2013 and Nairobi in 2015 – which

delivered a series of significant

outcomes in support of growth and

development.

CURRENT DIRECTOR GENERAL O



T H E E N D

THANKS A LOT FOR THE

ATTEN TIO N THAT HAS BEEGIV EN TO OUR PRE SEN TATIO

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