WTO Flashcards
(40 cards)
World Trade Organization (WTO)
Established: 1 January 1995 | Headquarters: Geneva, Switzerland | Purpose: Regulates international trade by providing a framework for negotiating trade agreements and a dispute resolution process.
Evolution of the WTO
Origins: Evolved from the General Agreement on Tariffs and Trade (GATT) established in 1948. | Transition: The Uruguay Round negotiations (1986-1994) led to the creation of the WTO, which replaced GATT in 1995.
Key Functions of the WTO
- Trade Negotiations: Facilitates multilateral trade agreements. | 2. Dispute Settlement: Provides a mechanism to resolve trade disputes. | 3. Trade Policy Monitoring: Reviews national trade policies to ensure transparency. | 4. Technical Assistance and Training: Supports developing countries in trade-related capacity building.
Principles of the WTO
- Non-Discrimination: Most-Favoured-Nation (MFN) and National Treatment principles ensure equal trading opportunities. |
- Free trade gradually through negotiations: Mutual concessions in trade negotiations. |
- Predictability through binding and transparency. |
4.Promoting fair competition through -antidumping duties and countervailing duties
5.Encouraging development and economic reforms
WTO Agreements
Notable Agreements: |
General Agreement on Tariffs and Trade (GATT): Focuses on trade in goods. |
General Agreement on Trade in Services (GATS): Addresses trade in services. |
Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS): Covers intellectual property rights. |
Agreement on Agriculture (AoA): Deals with agricultural subsidies and market access. |
Sanitary and Phytosanitary Measures (SPS): Concerns food safety and animal/plant health standards.
Trade-Related Investment Measures(TRIMS)
Organizational Structure of the WTO
- Ministerial Conference: The highest decision-making body, meeting biennially. | 2. General Council: Oversees daily operations and dispute settlements. |
- Dispute Settlement Body (DSB): Manages dispute resolution processes. |
- Council for Trade in Goods/Services/TRIPS: Specialized councils handling respective agreements.
Dispute Settlement Mechanism
Process: Involves consultation, adjudication by panels, and potential appeal to the Appellate Body. Ensures enforcement of WTO agreements and resolution of trade conflicts.
Doha Development Round
Initiated: 2001 | Objective: Focuses on addressing the needs of developing countries, aiming to lower trade barriers globally and improve trade opportunities for developing nations.
WTO and Developing Countries
Initiatives: Implements special provisions like longer time periods for implementing agreements, measures to increase trading opportunities, and support for capacity building to integrate into the global trading system.
Recent Developments in the WTO
Updates: | -
E-commerce Negotiations: Addressing rules for digital trade. | -
Fisheries Subsidies Agreement: Aims to curb harmful subsidies contributing to overfishing. | -
COVID-19 Response: Discussions on intellectual property waivers for vaccines and medical products.
General Agreement on Tariffs and Trade (GATT) 1994
Scope: Trade in goods |
Objective: Reduction of tariffs and other trade barriers |
Significance: Forms the foundation of the WTO’s legal framework for goods trade.
Agreement on Agriculture (AoA)
Scope: Agricultural products | Objective: Reform trade in agriculture by reducing subsidies and protectionist policies |
Pillars: Market access, domestic support, export competition.
Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement)
Scope: Food safety and animal/plant health standards | Objective: Ensure that member countries’ measures are scientifically based and do not unjustifiably restrict trade.
Agreement on Technical Barriers to Trade (TBT Agreement)
Scope: Technical regulations and standards | Objective: Prevent unnecessary obstacles to trade while allowing members to implement legitimate regulatory objectives.
Agreement on Trade-Related Investment Measures (TRIMS)
Scope: Investment measures related to trade in goods |
Objective: Eliminate investment measures that are inconsistent with GATT principles, such as local content requirements.
Agreement on Anti-Dumping (AD Agreement)
Scope: Dumping of products at below normal value
| Objective: Establish rules for the investigation and determination of dumping and the implementation of anti-dumping measures.
Agreement on Subsidies and Countervailing Measures (SCM Agreement)
Scope: Subsidies and countervailing measures | Objective: Define subsidies and regulate the actions countries can take to counter the effects of subsidies.
Agreement on Safeguards
Scope: Emergency actions regarding increased imports | Objective: Provide guidelines for the application of safeguard measures to protect domestic industries from serious injury.
General Agreement on Trade in Services (GATS)
Scope: Trade in services | Objective: Create a credible and reliable system of international trade rules for services, ensuring fair and equitable treatment.
Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)
Scope: Intellectual property rights | Objective: Establish minimum standards for the protection and enforcement of intellectual property rights.
Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU)
Scope: Dispute settlement | Objective: Provide a system for resolving disputes between WTO members regarding their rights and obligations.
Trade Policy Review Mechanism (TPRM)
Scope: Review of national trade policies
Objective: Enhance transparency and understanding of members’ trade policies and practices.
Agreement on Government Procurement (GPA)
Scope: Government procurement | Objective: Ensure open, fair, and transparent conditions of competition in government procurement.
Information Technology Agreement (ITA)
Scope: Information technology products | Objective: Eliminate tariffs on IT products to encourage trade and investment in the sector.
