The World Trade Organization

1
The World Trade Organization

• By Naina Kamath and Parth Shah

2
What is the WTO?

• WTO stands for World Trade Organization
• The WTO "is the only global international
  organization dealing with the rules of trade
  between nations. At its heart are the WTO
  agreements, negotiated and signed by the bulk of
  the worlds trading nations and ratified in their
  parliaments."
• "made to help producers of goods and services,
  exporters, and importers conduct their business."

3
Origins

• Originated from GATT (General Agreements on
  Tariffs and Trade)
• GATT created the WTO during the Uruguay Round of
  negotiations.
• GATT is a code of regulations while WTO is an
  institutional organization.
• The WTO covers a broader areas like
  telecommunications, banking, and intellectual
  property rights.

4
Dates to remember

• 1947-GATT signed into action
• 1986-1994 Uruguay Round negotiations created most
  of the WTO framework
• 1995-WTO created from GATT (75 members joined
• 2001-Doha Ministerial Conference created new
  agreements
• 2005-Pascal Lamy became director
• 2013-159 members in WTO. along with the 24
  observing members

5
Leadership

• Decisions are made by member governments and "the
  rules are the outcome of negotiations among
  members"
• Pascal Lamy, a former EU trade commissioner, has
  been the head of WTO for the past 8 years

6
Advantages of the WTO

• Promotes peace between member nations
• Disagreements are handled diplomatically without
  physical violence
• Gives the smaller countries a larger voice
• Dramatically decreases the cost of living due to
  the reduction of protectionist policies such as
  embargos, tariffs, and quotas
• Trade encourages economic growth and increases
  employment rates
• Raises living standards of member nations through
  economic development

7
Disadvantages of the WTO

• The WTO is too powerful, in that it can in effect
  compel sovereign states to change laws and
  regulations by declaring these to be in violation
  of free trade rules.
• The WTO is run by the rich for the rich and does
  not give significant weight to the problems of
  developing countries.
• Its hearings on trade disputes are closed to the
  public and the media.
• The WTO is indifferent to the impact of free
  trade on workers' rights, child labour, the
  environment and health.

8
International Impact

• In general it has helped facilitate trade between
  countries. All six nations are members of WTO
  (except for Iran)
• The United Kingdom, Nigeria and Mexico are
  founding members. They have been members since
  January 1st 1995.
• Russia became a member in August 2012 after a lot
  of debate
• China became a member in December 2001
• Iran is currently an observing member

9
International Impact (Cont.)

• All 6 countries have had to alter their laws in
  accordance to WTO regulations. For example, after
  Russia received membership, it had to lower
  tariffs, import duties, export duties and allow
  greater access for foreign companies.
• In Mexico, WTO membership has hurt the domestic
  agricultural industry, increased competition and
  contributed to environmental issues.

10
International Impact (Cont.)

• In all 6 countries, there is controversy over how
  much impact the WTO and its regulations should be
  permitted to have. Also, WTO membership seems to
  hurt certain industries, and assist other
  industries.

11
works cited

• Menotti, Victor. "Key WTO issues for Mexico." Key
  WTO issues for Mexico. International Form on
  Globalization. 21 Mar. 2013 lthttp//www.ifg.org/an
  alysis/wto/cancun/plan_cancun.htmgt.
• "Profile World Trade Organization." BBC News. 15
  Feb. 2012. BBC. 20 Mar. 2013 lthttp//news.bbc.co.u
  k/2/hi/europe/country_profiles/2429503.stmgt.
• "Russia's entry to World Trade Organization
  hailed by EU." BBC News. 22 Aug. 2012. BBC. 21
  Mar. 2013 lthttp//www.bbc.co.uk/news/business-1934
  5844gt.
• "WORLD TRADE ORGANIZATION." WTO About the
  Organization. WTO. 20 Mar. 2013
  lthttp//www.wto.org/english/thewto_e/thewto_e.htmgt
  .
• "WORLD TRADE ORGANIZATION." WTO Understanding
  the WTO- members. 20 Mar. 2013 lthttp//www.wto.org
  /english/thewto_e/whatis_e/tif_e/org6_e.htmgt.
• "WORLD TRADE ORGANIZATION." WTO What is the WTO?
  Who are we. 20 Mar. 2013 lthttp//www.wto.org/engli
  sh/thewto_e/whatis_e/who_we_are_e.htmgt.
• "WORLD TRADE ORGANIZATION." WTO. World Trade
  Organization Official Documents and Legal Texts.
  20 Mar. 2013 lthttp//www.wto.org/english/docs_e/le
  gal_e/legal_e.htmgt.