Title: The World Trade Organisation (WTO).

Summary of Provisions:

The World Trade Organisation's (WTO's) trade system is based on the idea that reducing barriers to trade promotes economic growth and prosperity. "Its main function is to ensure that trade flows as smoothly, predictably and freely as possible." (http://www.wto/org/english/thewto_e/whatis_e/whatis_e.htm). The WTO's guiding principles are that trade should be more free and competitive, predictable and undertaken without discrimination between nations. These principles are incorporated throughout its major agreements. The three key agreements cover trade in goods (the General Agreement on Tariffs and Trade), trade in services (the General Agreement on Trade in Services), and trade in ideas (the Agreement on Trade Related Aspects of Intellectual Property). These are supplemented by other agreements that aim to reduce non-tariff barriers to trade including the Agreement on Technical Barriers to Trade and the Sanitary and Phytosanitary Agreement.

The WTO system is overseen by a Ministerial Conference and a General Council. The General Council includes all members and also functions as the Trade Policy Review Body and the Dispute Settlement Body. Decisions are taken by consensus although provisions do exist for majority voting to be used if necessary (this is very rarely used).

Disputes are settled by consensus rulings of all members and if the party ruled against does not comply with the ruling trade sanctions may be imposed. Trade sanctions are imposed by the other party to the dispute and not by the WTO itself.

Summary of Development:

Following the Second World War there were moves to establish a more stable international economic environment. This led to the establishment of the International Financial Institutions and the General Agreement on Tariffs and Trade (GATT). The GATT agreed in 1947 and in force from 1948-1995 aimed to reduce tariff barriers to trade in goods. An informal international organisation grew around its rounds of negotiations on tariff reductions, and work developed to reduce other forms of trade barriers.

The final GATT round (the Uruguay Round) took place between 1986 and 1994. The outcomes of this round were the revision of GATT, the formalisation of agreements on other trade barriers and the establishment of a formal international organisation to oversee the global trading system (this was all set out in the 1994 Marrakesh Agreements). The WTO began work in January 1995.

Current Status:

The WTO has 153 member states.

Precursors:

1947 General Agreement on Tariffs and Trade.

World Trade Organisation

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Related Summaries on the Genomics Gateway Site:

Trade Related Aspects of Intellectual Property Rights Agreement

Technical Barriers to Trade Agreement

Sanitary and Phytosanitary Agreement

Page last updated 26th March 2009.

Comments/enquiries to catherine.rhodes-2 'at' manchester.ac.uk