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The World Trade Organization

The World Trade Organization (WTO) is the global international organization that deals with the rules of trade between nations. The WTO agreements aim to ensure trade flows freely and predictably between countries. The WTO also provides a forum for negotiating trade agreements and a process for resolving disputes.

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0% found this document useful (0 votes)
88 views23 pages

The World Trade Organization

The World Trade Organization (WTO) is the global international organization that deals with the rules of trade between nations. The WTO agreements aim to ensure trade flows freely and predictably between countries. The WTO also provides a forum for negotiating trade agreements and a process for resolving disputes.

Uploaded by

Glaiza Lerio
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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THE WORLD TRADE ORGANIZATION

The World Trade Organization (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 world’s trading nations and ratified in their parliaments. The goal is to
ensure that trade flows as smoothly, predictably and freely as possible

WHO THEY ARE

There are a number of ways of looking at the World Trade Organization. It is an organization for
trade opening. It is a forum for governments to negotiate trade agreements. It is a place for
them to settle trade disputes. It operates a system of trade rules. Essentially, the WTO is a place
where member governments try to sort out the trade problems they face with each other.

The WTO was born out of negotiations, and everything the WTO does is the result of
negotiations. The bulk of the WTO’s current work comes from the 1986–94 negotiations called
the Uruguay Round and earlier negotiations under the General Agreement on Tariffs and Trade
(GATT). The WTO is currently the host to new negotiations, under the ‘Doha Development
Agenda’ launched in 2001.

Where countries have faced trade barriers and wanted them lowered, the negotiations have
helped to open markets for trade. But the WTO is not just about opening markets, and in some
circumstances its rules support maintaining trade barriers — for example, to protect consumers
or prevent the spread of disease.

At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading
nations. These documents provide the legal ground rules for international commerce. They are
essentially contracts, binding governments to keep their trade policies within agreed limits.
Although negotiated and signed by governments, the goal is to help producers of goods and
services, exporters, and importers conduct their business, while allowing governments to meet
social and environmental objectives.

The system’s overriding purpose is to help trade flow as freely as possible — so long as there
are no undesirable side effects — because this is important for economic development and
well-being. That partly means removing obstacles. It also means ensuring that individuals,
companies and governments know what the trade rules are around the world, and giving them
the confidence that there will be no sudden changes of policy. In other words, the rules have to
be ‘transparent’ and predictable.
Trade relations often involve conflicting interests. Agreements, including those painstakingly
negotiated in the WTO system, often need interpreting. The most harmonious way to settle
these differences is through some neutral procedure based on an agreed legal foundation. That
is the purpose behind the dispute settlement process written into the WTO agreements.

WHAT THEY DO

The WTO is run by its member governments. All major decisions are made by the membership
as a whole, either by ministers (who usually meet at least once every two years) or by their
ambassadors or delegates (who meet regularly in Geneva).

While the WTO is driven by its member states, it could not function without its Secretariat to
coordinate the activities. The Secretariat employs over 600 staff, and its experts — lawyers,
economists, statisticians and communications experts — assist WTO members on a daily basis
to ensure, among other things, that negotiations progress smoothly, and that the rules of
international trade are correctly applied and enforced.

TRADE NEGOTIATIONS

The WTO agreements cover goods, services and intellectual property. They spell out the
principles of liberalization, and the permitted exceptions. They include individual countries’
commitments to lower customs tariffs and other trade barriers, and to open and keep open
services markets. They set procedures for settling disputes. These agreements are not static;
they are renegotiated from time to time and new agreements can be added to the package.
Many are now being negotiated under the Doha Development Agenda, launched by WTO trade
ministers in Doha, Qatar, in November 2001

IMPLEMENTATION AND MONITORING

WTO agreements require governments to make their trade policies transparent by notifying the
WTO about laws in force and measures adopted. Various WTO councils and committees seek to
ensure that these requirements are being followed and that WTO agreements are being
properly implemented. All WTO members must undergo periodic scrutiny of their trade policies
and practices, each review containing reports by the country concerned and the WTO
Secretariat.
DISPUTE SETTLEMENT

The WTO’s procedure for resolving trade quarrels under the Dispute Settlement Understanding
is vital for enforcing the rules and therefore for ensuring that trade flows smoothly. Countries
bring disputes to the WTO if they think their rights under the agreements are being infringed.
Judgements by specially appointed independent experts are based on interpretations of the
agreements and individual countries’ commitments.

BUILDING TRADE CAPACITY

WTO agreements contain special provision for developing countries, including longer time
periods to implement agreements and commitments, measures to increase their trading
opportunities, and support to help them build their trade capacity, to handle disputes and to
implement technical standards. The WTO organizes hundreds of technical cooperation missions
to developing countries annually. It also holds numerous courses each year in Geneva for
government officials. Aid for Trade aims to help developing countries develop the skills and
infrastructure needed to expand their trade.

OUTREACH

The WTO maintains regular dialogue with non-governmental organizations, parliamentarians,


other international organizations, the media and the general public on various aspects of the
WTO and the ongoing Doha negotiations, with the aim of enhancing cooperation and increasing
awareness of WTO activities.

WHAT THEY STAND FOR

The WTO agreement are lengthy and complex because they are legal texts covering a wide
range of activities. But a number of simple, fundamental principles run throughout all of these
documents. These principles are the foundation of the multilateral trading system.

Non-discrimination

A country should not discriminate between its trading partners and it should not discriminate
between its own and foreign products, services or nationals.
More open (Reciprocity)

Lowering trade barriers is one of the most obvious ways of encouraging trade; these barriers
include customs duties (or tariffs) and measures such as import bans or quotas that restrict
quantities selectively

PREDICTABLE AND TRANSPARENT (TRENSPARENCY)

Foreign companies, investors and governments should be confident that trade barriers should
not be raised arbitrarily. With stability and predictability, investment is encouraged, jobs are
created and consumers can fully enjoy the benefits of competition — choice and lower prices.

More competitive (Transparency)

Discouraging ‘unfair’ practices, such as export subsidies and dumping products at below cost to
gain market share; the issues are complex, and the rules try to establish what is fair or unfair,
and how governments can respond, in particular by charging additional import duties
calculated to compensate for damage caused by unfair trade

More beneficial for less developed countries (Binding and enforeceable commitments)

Giving them more time to adjust, greater flexibility and special privileges; over three-quarters of
WTO members are developing countries and countries in transition to market economies. The
WTO agreements give them transition periods to adjust to the more unfamiliar and, perhaps,
difficult WTO provisions.

Protect the environment (Safety Values)

The WTO’s agreements permit members to take measures to protect not only the environment
but also public health, animal health and plant health. However, these measures must be
applied in the same way to both national and foreign businesses. In other words, members
must not use environmental protection measures as a means of disguising protectionist
policies.

OVERVIEW

The World Trade Organization — the WTO — is the international organization whose primary
purpose is to open trade for the benefit of all.
The WTO provides a forum for negotiating agreements aimed at reducing obstacles to
international trade and ensuring a level playing field for all, thus contributing to economic
growth and development. The WTO also provides a legal and institutional framework for the
implementation and monitoring of these agreements, as well as for settling disputes arising
from their interpretation and application. The current body of trade agreements comprising the
WTO consists of 16 different multilateral agreements (to which all WTO members are parties)
and two different plurilateral agreements (to which only some WTO members are parties).

Over the past 60 years, the WTO, which was established in 1995, and its predecessor
organization the GATT have helped to create a strong and prosperous international trading
system, thereby contributing to unprecedented global economic growth. The WTO currently
has 164 members, of which 117 are developing countries or separate customs territories. WTO
activities are supported by a Secretariat of some 700 staff, led by the WTO Director-General.
The Secretariat is located in Geneva, Switzerland, and has an annual budget of approximately
CHF 200 million ($180 million, €130 million). The three official languages of the WTO are
English, French and Spanish.

Decisions in the WTO are generally taken by consensus of the entire membership. The highest
institutional body is the Ministerial Conference, which meets roughly every two years. A
General Council conducts the organization's business in the intervals between Ministerial
Conferences. Both of these bodies comprise all members. Specialised subsidiary bodies
(Councils, Committees, Sub-committees), also comprising all members, administer and monitor
the implementation by members of the various WTO agreements

MORE SPECIFICALLY, THE WTO’S MAIN ACTIVITIES ARE:

-negotiating the reduction or elimination of obstacles to trade (import tariffs, other barriers to
trade) and agreeing on rules governing the conduct of international trade (e.g. antidumping,
subsidies, product standards, etc.)

— administering and monitoring the application of the WTO's agreed rules for trade in goods,
trade in services, and trade-related intellectual property rights

— monitoring and reviewing the trade policies of our members, as well as ensuring
transparency of regional and bilateral trade agreements

— settling disputes among our members regarding the interpretation and application of the
agreements
-building capacity of developing country government officials in international trade matters

— assisting the process of accession of some 30 countries who are not yet members of the
organization

— conducting economic research and collecting and disseminating trade data in support of the
WTO's other main activities

— explaining to and educating the public about the WTO, its mission and its activities.

The WTO’s founding and guiding principles remain the pursuit of open borders, the guarantee
of most-favoured-nation principle and non-discriminatory treatment by and among members,
and a commitment to transparency in the conduct of its activities. The opening of national
markets to international trade, with justifiable exceptions or with adequate flexibilities, will
encourage and contribute to sustainable development, raise people's welfare, reduce poverty,
and foster peace and stability. At the same time, such market opening must be accompanied by
sound domestic and international policies that contribute to economic growth and
development according to each member's needs and aspirations.

HISTORY OF THE MULTILATERAL TRADING SYSTEM

From the early days of the Silk Road to the creation of the General Agreement on Tariffs and
Trade (GATT) and the birth of the WTO, trade has played an important role in supporting
economic development and promoting peaceful relations among nations. This page traces the
history of trade, from its earliest roots to the present day.

THE EARLY DAYS OF TRADE

Trade and foreign policy have been intertwined throughout history, with foreign policy often
tailored to promote trade interests. In the 3rd century BC, during the Han Dynasty, China used
its military power to maintain the Silk Road for its value for trade. In the year 30 BC, Rome
conquered Egypt in large part to have a better supply of grain.

• Trade and foreign policy have always been intertwined — speech delivered by DDG Wolff
BEFORE THE GATT

single page of text from 1941 is a powerful reminder that the desire for peace and security
drove the creation of today’s global economic system. The global rules that underpin our
multilateral economic system were a direct reaction to the Second World War and a desire for
it to never be repeated.

• Trade in War’s Darkest Hour — Churchill and Roosevelt’s daring 1941 Atlantic Meeting —
article by Hunter Nottage

HOW THE GATT CAME INTO BEING

The lead negotiators for the creation of the GATT profoundly disagreed on the level of ambition
to be achieved but finally overcame their differences.

TT YEARS

From 1948 to 1994, the GATT provided the rules for much of world trade and presided over
periods that saw some of the highest growth rates in international commerce. It seemed well-
established but throughout those 47 years, it was a provisional agreement and organization.

BIRTH OF THE WTO

The WTO’s creation on 1 January 1995 marked the biggest reform of international trade since
the end of the Second World War. Whereas the GATT mainly dealt with trade in goods, the
WTO and its agreements also cover trade in services and intellectual property. The birth of the
WTO also created new procedures for the settlement of disputes.

• Renato Ruggiero succeeds Peter Sutherland as WTO Director-General — March 1995

50TH ANNIVERSARY OF THE MULTILATERAL TRADING SYSTEM

1998 marked the 50th anniversary of the multilateral trading system


DOHA ROUND

The Doha Round was launched in 2001 to achieve major reform of the international trading
system through the introduction of lower trade barriers and revised trade rules. A fundamental
objective of the Doha Development Agenda is to improve the trading prospects of developing
countries.

• Launch of the Doha Round

MAJOR ACHIEVEMENTS

Over the past 20 years, WTO members have agreed major updates to the WTO rulebook to
improve the flow of global trade. The WTO's membership has expanded to 164 members,
representing over 98% of international trade. In 2015, the WTO reached a significant milestone
with the receipt of its 500th trade dispute for settlement.

• Revised WTO Agreement on Government Procurement enters into force

• WTO disputes reach 500 mark

• Expansion of the Information Technology Agreement

• TRIPS Agreement amended to ease access to affordable medicine

• Trade Facilitation Agreement enters into force

WTO MINSTERIAL CONFERENCES

The Ministerial Conference is the highest decision-making body of the WTO and usually meets
every two years. The WTO's first Ministerial Conference was held in Singapore in December
1996. Its most recent — the 11th — was held in Buenos Aires in December 2017.

• Ministerial conferences
GATT AND WTO DIRECTORS GENERAL

The first Director-General of the GATT was Eric Wyndham White, who held office from 1948 to
1968. The current Director-General of the WTO is Roberto Azevêdo, who began a second four-
year term in September 2017

25TH ANNIVERSARY OF THE WTO

In 2020, the WTO marked its 25th anniversary.

MEMBERS AND OBSERVERS

164 members since 29 July 2016 , with dates of WTO membership.

Click any member to see key information on trade statistics, WTO commitments, disputes,
trade policy reviews, and notifications.

• Afghanistan — 29 July 2016

• Albania — 8 September 2000

• Angola — 23 November 1996

• Antigua and Barbuda — 1 January 1995

• Argentina — 1 January 1995

• Armenia — 5 February 2003

• Australia — 1 January 1995

• Austria — 1 January 1995

• Bahrain, Kingdom of — 1 January 1995


• Bangladesh — 1 January 1995

• Barbados — 1 January 1995

• Belgium — 1 January 1995

• Belize — 1 January 1995

• Benin — 22 February 1996

• Bolivia, Plurinational State of — 12 September 1995

• Botswana — 31 May 1995

• Brazil — 1 January 1995

• Brunei Darussalam — 1 January 1995

• Bulgaria — 1 December 1996

• Burkina Faso — 3 June 1995

• Burundi — 23 July 1995

• Cabo Verde — 23 July 2008

• Cambodia — 13 October 2004

• Cameroon — 13 December 1995

• Canada — 1 January 1995

• Central African Republic — 31 May 1995

• Chad — 19 October 1996

• Chile — 1 January 1995

• China — 11 December 2001

• Colombia — 30 April 1995

• Congo — 27 March 1997


• Costa Rica — 1 January 1995

• Côte d’Ivoire — 1 January 1995

• Croatia — 30 November 2000

• Cuba — 20 April 1995

• Cyprus — 30 July 1995

• Czech Republic — 1 January 1995

• Democratic Republic of the Congo — 1 January 1997

• Denmark — 1 January 1995

• Djibouti — 31 May 1995

• Dominica — 1 January 1995

• Dominican Republic — 9 March 1995

• Ecuador — 21 January 1996

• Egypt — 30 June 1995

• El Salvador — 7 May 1995

• Estonia — 13 November 1999

• Eswatini — 1 January 1995

• European Union (formerly EC) — 1 January 1995

• Fiji — 14 January 1996

• Finland — 1 January 1995


• France — 1 January 1995

• Gabon — 1 January 1995

• Gambia — 23 October 1996

• Georgia — 14 June 2000

• Germany — 1 January 1995

• Ghana — 1 January 1995

• Greece — 1 January 1995

• Grenada — 22 February 1996

• Guatemala — 21 July 1995

• Guinea — 25 October 1995

• Guinea-Bissau — 31 May 1995

• Guyana — 1 January 1995

• Haiti — 30 January 1996

• Honduras — 1 January 1995

• Hong Kong, China — 1 January 1995

• Hungary — 1 January 1995

• Iceland — 1 January 1995

• India — 1 January 1995


• Indonesia — 1 January 1995

• Ireland — 1 January 1995

• Israel — 21 April 1995

• Italy — 1 January 1995

• Jamaica — 9 March 1995

• Japan — 1 January 1995

• Jordan — 11 April 2000

• Kazakhstan — 30 November 2015

• Kenya — 1 January 1995

• Korea, Republic of — 1 January 1995

• Kuwait, the State of — 1 January 1995

• Kyrgyz Republic — 20 December 1998

• Lao People’s Democratic Republic — 2 February 2013

• Latvia — 10 February 1999

• Lesotho — 31 May 1995

• Liberia — 14 July 2016

• Liechtenstein — 1 September 1995

• Lithuania — 31 May 2001


• Luxembourg — 1 January 1995

• Macao, China — 1 January 1995

• Madagascar — 17 November 1995

• Malawi — 31 May 1995

• Malaysia — 1 January 1995

• Maldives — 31 May 1995

• Mali — 31 May 1995

• Malta — 1 January 1995

• Mauritania — 31 May 1995

• Mauritius — 1 January 1995

• Mexico — 1 January 1995

• Moldova, Republic of — 26 July 2001

• Mongolia — 29 January 1997

• Montenegro — 29 April 2012

• Morocco — 1 January 1995

• Mozambique — 26 August 1995

• Myanmar — 1 January 1995

• Namibia — 1 January 1995

• Nepal — 23 April 2004

• Netherlands — 1 January 1995


• New Zealand — 1 January 1995

• Nicaragua — 3 September 1995

• Niger — 13 December 1996

• Nigeria — 1 January 1995

• North Macedonia — 4 April 2003

• Norway — 1 January 1995

• Oman — 9 November 2000

• Pakistan — 1 January 1995

• Panama — 6 September 1997

• Papua New Guinea — 9 June 1996

• Paraguay — 1 January 1995

• Peru — 1 January 1995

• Philippines — 1 January 1995

• Poland — 1 July 1995

• Portugal — 1 January 1995

• Qatar — 13 January 1996

R
• Romania — 1 January 1995

• Russian Federation — 22 August 2012

• Rwanda — 22 May 1996

• Saint Kitts and Nevis — 21 February 1996

• Saint Lucia — 1 January 1995

• Saint Vincent and the Grenadines — 1 January 1995

• Samoa — 10 May 2012

• Saudi Arabia, Kingdom of — 11 December 2005

• Senegal — 1 January 1995

• Seychelles — 26 April 2015

• Sierra Leone — 23 July 1995

• Singapore — 1 January 1995

• Slovak Republic — 1 January 1995

• Slovenia — 30 July 1995

• Solomon Islands — 26 July 1996

• South Africa — 1 January 1995

• Spain — 1 January 1995

• Sri Lanka — 1 January 1995

• Suriname — 1 January 1995

• Sweden — 1 January 1995

• Switzerland — 1 July 1995


T

• Chinese Taipei — 1 January 2002

• Tajikistan — 2 March 2013

• Tanzania — 1 January 1995

• Thailand — 1 January 1995

• Togo — 31 May 1995

• Tonga — 27 July 2007

• Trinidad and Tobago — 1 March 1995

• Tunisia — 29 March 1995

• Turkey — 26 March 1995

• Uganda — 1 January 1995

• Ukraine — 16 May 2008

• United Arab Emirates — 10 April 1996

• United Kingdom — 1 January 1995

• United States — 1 January 1995

• Uruguay — 1 January 1995

• Vanuatu — 24 August 2012

• Venezuela, Bolivarian Republic of — 1 January 1995

• Viet Nam — 11 January 2007


Y

• Yemen — 26 June 2014

• Zambia — 1 January 1995

• Zimbabwe — 5 March 1995

OBSERVER GOVERNMENTS

Algeria

• Andorra

• Azerbaijan

• Bahamas

• Belarus

• Bhutan

• Bosnia and Herzegovina

• Comoros

• Curaçao

• Equatorial Guinea

• Ethiopia

• Holy See

• Iran

• Iraq

• Lebanese Republic

• Libya
• Sao Tomé and Principe

• Serbia

• Somalia

• South Sudan

• Sudan

• Syrian Arab Republic

• Timor-Leste

• Turkmenistan

• Uzbekistan

INTERNATIONAL INTERGOVERNMENTAL ORGANIZATIONS GRANTED OBSERVER STATUS TO


WTO BODIES

The purpose of observer status for international intergovernmental organizations in the WTO is
to enable these organizations to follow discussions therein on matters of direct interest to
them.

MEMBERSHIPS, ALLIANCES AND BUREAUCRACY

All members have joined the system as a result of negotiation and therefore membership
means a balance of rights and obligations. They enjoy the privileges that other member-
countries give to them and the security that the trading rules provide. In return, they had to
make commitments to open their markets and to abide by the rules — those commitments
were the result of the membership (or “accession”) negotiations. Countries negotiating
membership are WTO “observers”

HOW TO JOIN THE WTO: THE ACCESSION PROCESS

Any state or customs territory having full autonomy in the conduct of its trade policies may join
(“accede to”) the WTO, but WTO members must agree on the terms. Broadly speaking the
application goes through four stages:
First, “tell us about yourself”. The government applying for membership has to describe all
aspects of its trade and economic policies that have a bearing on WTO agreements. This is
submitted to the WTO in a memorandum which is examined by the working party dealing with
the country’s application. These working parties are open to all WTO members.

Second,” work out with us individually what you have to offer”. When the working party has
made sufficient progress on principles and policies, parallel bilateral talks begin between the
prospective new member and individual countries. They are bilateral because different
countries have different trading interests. These talks cover tariff rates and specific market
access commitments, and other policies in goods and services. The new member’s
commitments are to apply equally to all WTO members under normal non-discrimination rules,
even though they are negotiated bilaterally. In other words, the talks determine the benefits (in
the form of export opportunities and guarantees) other WTO members can expect when the
new member joins. (The talks can be highly complicated. It has been said that in some cases the
negotiations are almost as large as an entire round of multilateral trade negotiations.)

Third, “let’s draft membership terms”. Once the working party has completed its examination
of the applicant’s trade regime, and the parallel bilateral market access negotiations are
complete, the working party finalizes the terms of accession. These appear in a report, a draft
membership treaty (“protocol of accession”) and lists (“schedules”) of the member-to-be’s
commitments.

Finally, “the decision”. The final package, consisting of the report, protocol and lists of
commitments, is presented to the WTO General Council or the Ministerial Conference. If a two-
thirds majority of WTO members vote in favour, the applicant is free to sign the protocol and to
accede to the organization. In many cases, the country’s own parliament or legislature has to
ratify the agreement before membership is complete

REPRESENTING US

The work of the WTO is undertaken by representative of member governments but its roots lie
in the everyday activity of industry and commerce. Trade policies and negotiating positions are
prepared in capitals, usually taking into account advice from private firms, business
organizations, farmers, consumers and other interest groups.
Most countries have a diplomatic mission in Geneva, sometimes headed by a special
ambassador to the WTO. Officials from the missions attend meetings of the many councils,
committees, working parties and negotiating groups at WTO headquarters. Sometimes expert
representatives are sent directly from capitals to put forward their governments’ views on
specific questions.

REPRESENTING OF GROUPS OF COUNTRIES

Increasingly, countries are getting together to form groups and alliances in the WTO. In many
cases they even speak with one voice using a single spokesman or negotiating team. In the
agriculture negotiations, well over 20 coalitions have submitted proposals or negotiated with a
common position, most of them still active. The increasing number of coalitions involving
developing countries reflects the broader spread of bargaining power in the WTO. One group is
seen as politically symbolic of this change, the G-20, which includes Argentina, Brazil, China,
Egypt, India, South Africa, Thailand and many others, but there are other, overlapping “Gs” too,
and one “C” — the Cotton Four (C-4), an alliance of sub-Saharan countries lobbying for trade
reform in the sector

COALITION-BUILDING IS PARTLY THE NATURAL RESULT OF ECONOMIC INTEGRATION

-more customs unions, free trade areas and common markets are being set up around the
world. It is also seen as a means for smaller countries to increase their bargaining power in
negotiations with their larger trading partners and to ensure they are represented when
consultations are held among smaller groups of members. Sometimes when groups of countries
adopt common positions consensus can be reached more easily. Sometimes the groups are
specifically created to compromise and break a deadlock rather than to stick to a common
position. But there are no hard and fast rules about the impact of groupings in the WTO.

The largest and most comprehensive group is the European Union and its member states. The
EU is a customs union with a single external trade policy and tariff. While the member states
coordinate their position in Brussels and Geneva, the European Commission alone speaks for
the EU at almost all WTO meetings. The EU is a WTO member in its own right as are each of its
member states.

A lesser degree of economic integration has so far been achieved by WTO members in the
Association of South East Asian Nations (ASEAN) — Brunei Darussalam, Cambodia, Indonesia,
Malaysia, Myanmar, Philippines, Thailand, Singapore and Viet Nam. (The remaining member
Laos is applying to join the WTO.) Nevertheless, they have many common trade interests and
are frequently able to coordinate positions and to speak with a single voice. The role of
spokesman rotates among ASEAN members and can be shared out according to topic.
MERCOSUR, the Southern Common Market (Argentina, Brazil, Paraguay, Uruguay and
Venezuela, with Bolivia, Chile, Colombia, Ecuador and Peru as associate members), has a similar
set-up.

More recent efforts at regional economic integration have not yet reached the point where
their constituents frequently have a single spokesman on WTO issues. An example is the North
American Free Trade Agreement: NAFTA (Canada, US and Mexico). Among other groupings
which occasionally present unified statements are the African Group, the least-developed
countries, the African, Caribbean and Pacific Group (ACP) and the Latin American Economic
System (SELA)

A well-known alliance of a different kind is the Cairns Group. It was set up just before the
Uruguay Round began in 1986 to argue for agricultural trade liberalization. The group became
an important third force in the farm talks and remains in operation. Its members are diverse,
but sharing a common objective — that agriculture has to be liberalized — and the common
view that they lack the resources to compete with larger countries in domestic and export
subsidies

THE WTO SECRETARIAT AND BUDGET

The WTO Secretariat is located in Geneva. It has around 630 staff and is headed by a director-
general. Its responsibilities include:

Administrative and technical support for WTO delegate bodies (councils, committees, working
parties, negotiating groups) for negotiations and the implementation of agreements.

Technical support for developing countries, and especially the least-developed.

Trade performance and trade policy analysis by WTO economists and statisticians.

Assistance from legal staff in the resolution of trade disputes involving the interpretation of
WTO rules and precedents.
Dealing with accession negotiations for new members and providing advice to governments
considering membership

SOME OF THE WTO’S DIVISIONS ARE RESPONSIBLE FOR SUPPORTING PARTICULAR


COMMITTEES: the Agriculture Division assists the committees on agriculture and on sanitary
and phytosanitary measures, for example. Other divisions provide broader support for WTO
activities: technical cooperation, economic analysis, and information, for example.

The WTO budget is over 160 million Swiss francs with individual contributions calculated on the
basis of shares in the total trade conducted by WTO members. Part of the WTO budget also
goes to the International Trade Centre.

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