MULTILATERAL: I. WTO

Question 1

only formal and international organization, composed of member governments, dealing with the rules of trade between nations

Answer 1

World Trade Organization

Question 2

Main approach that WTO members have adopted to promote economic growth and development

Answer 2

trade liberalization

Question 3

What are the two Bretton Woods Institutions?

Answer 3

World Bank (WB)
International Monetary Fund (IMF)

Question 4

The history of the WTO begins with the signing of the ____________________in 1947 which provided the rules for the bulk of world trade and presided over periods that saw some of the highest growth rates in international trade.

Answer 4

General Agreement on Tariffs and Trade (GATT)

Question 5

Failure of the creation of the _________________, the GATT served as an interim organization and took the functions originally intended for the organization.

Answer 5

International Trade Organization

Question 6

T/F
The GATT trade rounds focused on reducing tariffs. The following GATT trade rounds covered not only tariffs, but also other trade barriers.

Answer 6

TRUE

Question 7

The Uruguay Round (UR), was the most comprehensive round (among the 8 rounds) that eventually led to the creation of the _________________ and the current set of _____________.

Answer 7

WTO
WTO Agreements

Question 8

When did the WTO enter into force?

Answer 8

instituted on January 1, 1995

Question 9

What is the WTO present membership?

Answer 9

164 countries with the newest members being Liberia and Afghanistan

Question 10

What are the main objectives of WTO?

Answer 10

• to raise living standards
• to ensure full employment
• to ensure a large and steadily growing volume of real and effective demand
• to expand the production of and TIG and services with the objective of sustainable development
• to make positive efforts to ensure that countries secure a share in the growth in international trade commensurate with economic development

Question 11

what are the functions of the WTO?

Answer 11

• to facilitate the implementation, administration and operation, and further the objectives of the WTO Agreements through its bodies and committees;
• to serve as a forum for trade negotiations;
• to serve as a forum for Members to settle their disputes;
• to review Members’ trade policies;
• to coordinate with relevant international organizations in global economic policymaking, including the WB and the IMF; and
• to provide technical assistance and capacity building for developing and least- developed countries.

Question 12

what are the fundamental principles of the WTO?

Answer 12

1. Non-discrimination
2. More open trade
3. Transparency and predictability
4. Special and differential treatment for less developed members

Question 13

members shall not discriminate between their trading partners (MFN principle); or between national and foreign like products, services, or nationals (national treatment principle).

Answer 13

non-discrimination

Question 14

involves efforts in reducing or eliminating obstacles to trade.

Answer 14

more open trade

Question 15

traders and Members need to know trade rules around the world (transparency) and that trade measures will not be raised/introduced arbitrarily (predictability)

Answer 15

transparency and predictability

Question 16

developing and least developing Members face particular challenges when dealing with trade liberalization; therefore, they are provided greater flexibility, given more time to adjust to the rules, and granted other special rights.

Answer 16

Special and differential treatment for less developed Members

Question 17

who is the highest decision body of the WTO

Answer 17

Ministerial Conference (MC)

Question 18

Ministerial Conference (MC) shall meet _____________ to review the ongoing work, provide political guidance and direction to that work, and set the agenda for further work as necessary

a. once a year
b. twice a year
c. once every two years
d. twice every two years

Answer 18

c. once every two years

Question 19

The Ministerial Conference is compose of the ____________of all the Members.

a. policy ministers
b. trade ministers
c. policy ambassadors
d. trade ambassadors

Answer 19

b. trade ministers

Question 20

The ____________ is compose of representatives from all members: they are usually Members’ Ambassadors or Permanent Representatives based in Geneva.
a. Ministerial Conference
b. General Council
c. Councils
d. Subsidiary Bodies

Answer 20

b. General Council

Question 21

T/F
The GC has authority over the Trade Negotiations Committee (TNC), which is in-charge of the negotiations mandated by the Doha Development Agenda (DDA).

Answer 21

True

Question 22

the General Council also meets as ______________ and _______________

Answer 22

• Dispute Settlement Body (DSB)
• Trade Policy Review Body (TPRB)

Question 23

establishes panels of independent experts to resolve the disputes, adopts the rulings of the panels, and oversees the implementation of those rulings

Answer 23

General Council as Dispute Settlement Body (DSB)

Question 24

administers trade policy reviews as mandated by the Trade Policy Review Mechanism of the WTO

Answer 24

General Council as Trade Policy Review Body (TPRB)

Question 25

Three more councils, each handling a different area of trade, report to the General Council:

Answer 25

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

Question 26

oversees all the issues related to the WTO Agreement on Trade in Goods. It supervises the work of various committees responsible for specific matters (e.g., agriculture, market access, customs validations, rules of origin, sanitary and phytosanitary measures).

Answer 26

The Council for Trade in Goods (Goods Council)

Question 27

oversees all issues related to the General Agreement on Trade in Services (GATS)

Answer 27

Council for Trade in Services (Services Council)

Question 28

oversees all issues related to the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement

Answer 28

Council for Trade-Related Aspects of Intellectual Property Rights (TRIPS Council)

Question 29

Several other subsidiary bodies which focus on horizontal issues also report directly to the GC. Usually called Committees, Working Groups or Working Parties, these are?

Answer 29

• Committee on Trade and Development (CTD);
• Committee on Trade and Environment (CTE);
• Committee on Regional Trade Agreements (CRTA);
• Committee on Balance-of-Payment Restrictions (BOP Committee);
• Committee on Budget, Finance and Administration (CBFA);
• Working Parties on Accession;
• Working Group on Trade, Debt and Finance; and
• Working Group on Trade and Technology Transfer.

Question 30

How are decisions made at the WTO?

Answer 30

through consensus

Question 31

In decision making in the WTO, where consensus is not possible, the WTO Agreement allows the ____________.

Answer 31

voting

Question 32

what ways does the WTO operate?

Answer 32

• As a set of multilaterally agreed rules
• As a forum for trade negotiations
• As an international court where governments can resolve disputes with other WTO members

Question 33

T/F
Trade liberalization is promoted through the conduct of Multilateral Trade Negotiations, referred to as “Market Integration”.

Answer 33

False
“Rounds”

Question 34

The UR was the eighth Round of Multilateral Trade Negotiations conducted within the framework the GATT, spanning from 1986 to 1994 and including _______ countries as ____________.

Answer 34

123
“contracting parties.”

Question 35

What are the 3 key results areas of the Uruguay Round?

Answer 35

a. market access
b. rules and disciplines
c. institutional topics

Question 36

result area of the Uruguay Round that includes negotiations in industrial tariffs, agriculture, textiles and clothing, and services.

Answer 36

market access

Question 37

result area of the Uruguay round where negotiating topics ranged from trade measures against unfair trade (such as anti-dumping and countervailing measures), trade measures to protect a country against import surges and a deterioration of its balance-of-payments (e.g., safeguards), trade restrictions, customs valuation, subsidies, intellectual property rights, and investment measures

Answer 37

rules and disciplines

Question 38

result area of the Uruguay Round that includes dispute settlement and ways by which to improve the conduct of the MTS, e.g., trade policy review

Answer 38

institutional topics

Question 39

what are the emergency measures sanctioned by the WTO?

Answer 39

a. trade remedy measures
b. balanced-of payments measures
c. renegotiation of tariff concessions

Question 40

what are the trade remedy measures?

Answer 40

anti-dumping
countervailing
safeguard measures

Question 41

Restrictions can come in the form of price based measures (import surcharges, import requirements) over the bound duty rates of a member country, subject to the Understanding on the Provisions of GATT 1994.

Answer 41

Balance-of-Payments Measures

Question 42

T/F
Consultations are required four (4) months from the adoption of a balance-of-payments measure.

Answer 42

True

Question 43

WTO allows a renegotiation of bound tariffs subject to the requirement that a return to higher tariffs be compensated for.

Answer 43

Renegotiation of Tariff Concessions