WORLD TRADE ORGANIZATION-: Overview of the Multilateral Trading System and Introduction to the basic principles of the WTO WORLD TRADE ORGANIZATION- Said El Hachimi External Relations Division WTO


Slide2: What is the WTO? WTO major contribution is Dispute Settlement Principles WTO as a Forum for negotiations WTO Decision making WTO and other Stakeholders: Parliamentarians Non-Governmental Organizations.


Slide3: 500 pages of (Agreements) Rules/ 23,000 pages of Commitments What is the WTO? A set of International Trade Rules agreed by Members through Negotiations


Only Multilateral Set of Trade Rules: Only Multilateral Set of Trade Rules General Agreement on Tariffs and Trade 1994. General Agreement on Trade in Services. Trade-Related Aspects of Intellectual Property. Dispute Settlement Understanding. Trade Policy Review Mechanism. Plurilateral Agreements.


Slide5: WTO major contribution is Dispute Settlement


WTO: Dispute Settlement: WTO: Dispute Settlement Enforcement of trade rules. Cases brought up by Members Basis of any case is violation of commitments by a Member vis a vis other Member in the WTO


WTO: Dispute Settlement Clear rules and timetables.: WTO: Dispute Settlement Clear rules and timetables. How long to settle a dispute? 60 days Consultations, mediation, etc 45 days Panel set up and panellists appointed 6 months Final panel report to parties 3 weeks Final panel report to WTO members 60 days Dispute Settlement Body adopts report (if no appeal) Total = 1 year (without appeal) 60–90 days Appeals report 30 days Dispute Settlement Body adopts appeals report Total = 1y 3m (with appeal)


WTO: Dispute Settlement: WTO: Dispute Settlement Priority: Settle disputes through consultations. Dispute Settlement Body. Panel process. Appellate Body. Rulings are binding and automatically adopted.


WTO: Principles: WTO: Principles


WTO: Principles: WTO: Principles Non-discrimination: Members cannot discriminate between trade partners. Exceptions: Free trade agreements, tariff preferences for developing-country products, GATT Article XX and trade remedies. National treatment: Imported and domestic goods should be treated equally. Applies only when the product or service has entered the market.


WTO: Principles: WTO: Principles Freer trade: Through negotiations. Gradually lower trade barriers. Progressive liberalization. Stability and Predictability: Improves business and investment environment. Commitments at the WTO are binding. Transparency requirements.


WTO: Principles: WTO: Principles Promoting fair competition: Rules on dumping and subsidies. Encourage development and reform: Flexibilities for developing countries and economies in transition. Transition periods. Technical assistance.


Slide13: WTO is above all a Forum for Negotiations


Slide14: Negotiations on Specific Subjects: Agriculture Trade in Services Intellectual Property Round of Negotiations: Several issues negotiated simultaneously. Everything is derived from the results of the negotiations.


Without the WTO: Without the WTO 1929 1930 1931 1932 1933 $3.0bn $0.9bn The effect of protectionism on world trade, 1929–33 Trade figures: per month Preliminaries


With the WTO: With the WTO Value of world trade 1948–2003 US$ trillion, current prices 1997 MORE trade? Of course, but … … look at the STABILITY > If 67% had been wiped out Preliminaries


Slide17: The first step is to talk. Somewhere to negotiate and apply the results This is where governments go to try to sort out their trade problems. WTO: not just for liberalizing trade. Sometimes the rules support trade barriers — e.g. to protect consumers or prevent the spread of disease. What is the WTO? Somewhere to talk Skip >>>


Slide18: Foremost: The WTO is a forum for negotiations Current negotiations launched: 4th WTO Ministerial Conference, Doha, November 2001 Previous round: Uruguay Round 1986–1994 Eighth ‘round’ under GATT, since 1948 Result: In 1995 ... • Rules expanded: goods (GATT) + services (GATS) + intellectual property (TRIPS) • WTO formed, replacing GATT Somewhere to talk


Slide19: Foremost: The WTO is a forum for negotiations Doha Development Agenda: Launched at Doha Ministerial Conference November 2001. Most to end 1 January 2005 • negotiations: ~ 20 subjects • problems with ‘implementation’ of existing agreements see ‘Understanding the WTO’ page 77 Current negotiations launched: 4th WTO Ministerial Conference, Doha, November 2001 Somewhere to talk


Slide20: Agreement only by consensus Everyone has to be persuaded No one forced by a majority Everything else follows from negotiations ... Somewhere to talk Foremost: The WTO is a forum for negotiations


Slide21: CURRENT NEGOTIATIONS Why so difficult? Better trade ALTERNATIVE: Make use of the winners’ gains to help the losers adjust QUESTION: If there are losers, does that mean ‘don’t do it’? ANY DEAL has winners and losers (and lobbies) RESULT: Status quo. But is that OK?


Slide22: CURRENT NEGOTIATIONS Better trade MOST DIFFICULT: to move forward … What can others accept? … give as well as take > CONSENSUS MORE DIFFICULT: identify own interests … ‘we want/don’t want’ EASY OPTION: be defensive ... ‘no deal is better than a bad deal’ (status quo) Seeking consensus


Slide23: European Union Small island developing states Cairns Group Australia, NZ, S.Africa, Brazil, Argentina, Thailand, Philippines, etc G20+/– India, Brazil, China, S.Africa, etc G33 Indonesia, etc lobbying for ‘special products’ Africans, least-developed, ACP (together = ‘G90’, but with 64 WTO members) ‘Like minded’ India, Pakistan, Caribbean, etc Just a sample of groupings … ‘RAMs’ new members (‘recently acceded’ members) G10 Switzerland, Norway, Japan, S.Korea, Ch.Taipei, etc US-EU (summer 2003) COALITIONS AND MAJORS CONSENSUS-BUILDERS The Five Australia, Brazil, EU, India, US (summer 2004) United States Better trade CURRENT NEGOTIATIONS CURRENT NEGOTIATIONS Key players, agriculture


Slide24: New group: ‘Small economies’ G20+/– India, Brazil, China, S.Africa, etc G33 Indonesia, etc lobbying for ‘special products’ Africans, least-developed, ACP (together = ‘G90’, but with 64 WTO members) Press conference in Hong Kong 16 December 2005 Better trade CURRENT NEGOTIATIONS CURRENT NEGOTIATIONS Key players, agriculture


Slide25: Better trade CURRENT NEGOTIATIONS CURRENT NEGOTIATIONS Key players, agriculture Or, another way of looking at groups …


Slide26: Better trade


WTO: Decision Making: WTO: Decision Making


WTO Decision Making, what about the institutionals?: WTO Decision Making, what about the institutionals? Member-driven and consensus-based. Ministerial Conference: Topmost decision-making body. Meets at least once every two years. General Council: On behalf of the Ministerial Conference. Meets in Geneva. Councils: Trade in Goods. Trade in Services. Trade-Related Aspects of Intellectual Property Rights. Various Committees.


WTO and other Stakeholders: WTO and other Stakeholders


WTO and other stakeholders:Parliamentarians: WTO and other stakeholders: Parliamentarians Elected representatives of the people. Constitutional role on trade issues. Crucial interface between people, civil society and governments. WTO outreach activities for Parliamentarians.


WTO and other stakeholders: NGOs : WTO and other stakeholders: NGOs Strong interest in WTO issues. NGO Attendance to Ministerial Conferences. Enhanced dialogue with civil society. Annual Symposium. Briefings for NGOs during WTO Meetings. Circulation of NGO Position Papers to WTO Members.


Registered NGOs in WTO Ministerial Conferences: Registered NGOs in WTO Ministerial Conferences


What about the WTO Secretariat?: What about the WTO Secretariat?


FACT FILE: Location: Geneva, Switzerland Established: 1 January 1995 Created by: Uruguay Round negotiations (1986-94)   Membership: 150 countries Budget: 175m Swiss francs, 2006 Secretariat staff: ~630 Head: Pascal Lamy (director-general) Functions: • Administering WTO trade agreements • Forum for trade negotiations • Handling trade disputes • Monitoring national trade policies • Technical assistance and training for developing countries • Cooperation with other international organizations FACT FILE


The World Trade Organization: The World Trade Organization The World Trade Organization Centre William Rappard rue de Lausanne 154 CH–1211 Geneva 21 Switzerland Tel: +41 (0)22 739 51 11 Fax: +41 (0)22 739 54 58 email: enquiries@wto.org website: www.wto.org