WTO

INTRODUCTION

The World Trade Organization (WTO) is an international organization

based in Geneva, Switzerland. It works to regulate and support global
trade. Governments use the WTO to create, update, and enforce trade rules,
often in coordination with the United Nations. With 166 member countries,
the WTO oversees more than 98% of global trade and GDP.

The WTO helps its members trade goods, services, and intellectual
property by providing a platform for negotiating trade agreements. These
agreements aim to lower or remove tariffs, quotas, and other trade
barriers. Member governments sign these agreements, and their
legislatures approve them. The WTO also resolves disputes between
members and ensures they follow the rules. While it promotes fair trade
among members, it allows exceptions for reasons like environmental
protection and national security.

The WTO officially started on January 1, 1995, replacing the General

Agreement on Tariffs and Trade (GATT), which had been in place since
1948.

The WTO’s main decision-making body is the Ministerial Conference,

where all members meet every two years. Decisions are usually made by
consensus. Day-to-day activities are managed by the General Council, which
includes representatives from all member countries. The organization also
has a Secretariat of over 600 staff, led by the Director-General, who handles
administrative and technical tasks. The WTO's annual budget is about $220
million, funded by members based on their share of global trade.

Research shows that the WTO has helped increase global trade and reduce
trade barriers. It has also influenced other trade agreements, as many of
them refer to or adopt WTO rules. The United Nations Sustainable
Development Goals also highlight the WTO's role in reducing inequality.

However, critics argue that the benefits of free trade under the WTO are
not shared equally.

The WTO evolved from GATT, which was created in 1947 by 23 countries
after World War II. This happened alongside the creation of other global
economic institutions like the World Bank and the International Monetary
Fund. A separate organization for trade, the International Trade
Organization, was planned but never started because key countries,
including the U.S., did not approve it. As a result, GATT became the main
global trade framework until the WTO was established.

History of the WTO

The World Trade Organization (WTO) evolved from the General Agreement
on Tariffs and Trade (GATT), which was created by a multilateral treaty
signed by 23 countries in 1947, after World War II. This came about as part
of a broader effort to build international economic cooperation, alongside
institutions like the World Bank (founded in 1944) and the International
Monetary Fund (IMF) (founded in 1944 or 1945). A similar organization,
the International Trade Organization (ITO), was planned but never formed
because the U.S. and other key signatories did not ratify its treaty. As a
result, GATT gradually became the main global trade framework.

GATT Negotiations before the Uruguay Round

Between 1949 and 1979, GATT held seven rounds of negotiations. The first
rounds, from 1947 to 1960, focused on reducing tariffs. In the mid-1960s,
the Kennedy Round introduced an anti-dumping agreement and included
provisions on development. The Tokyo Round in the 1970s was a major
attempt to address trade barriers beyond tariffs, including non-tariff
barriers. These agreements were sometimes called "codes" because not all
GATT members accepted them. Later, during the Uruguay Round, several of
these codes were transformed into multilateral commitments under the
WTO.

Uruguay Round: 1986–1994

By the 1980s, GATT members recognized that the organization was

struggling to keep up with the rapidly globalizing economy. In 1986, the
Uruguay Round was launched in Punta del Este, Uruguay, to address issues
such as structural deficiencies and the impact of some countries' policies on
global trade. The Uruguay Round aimed to expand the trading system to
include areas like trade in services and intellectual property, and to reform
agriculture and textiles. The round concluded in 1994 with the signing of
the Marrakesh Agreement, which formally established the WTO.

The Uruguay Round updated GATT 1947 and created new agreements,
including the General Agreement on Trade in Services (GATS), the
Agreement on Trade-Related Aspects of Intellectual Property Rights
(TRIPS), and agreements on dispute settlement and trade policy reviews.
These agreements are considered legally binding for WTO members.

Ministerial Conferences

The highest decision-making body of the WTO is the Ministerial

Conference, which meets every two years and includes all member
countries. The conference addresses matters related to the WTO's
agreements. Some conferences, such as the one in Singapore in 1996 and
the one in Cancun in 2003, saw debates between developed and developing
countries over issues like agricultural subsidies. The fourth conference in
Doha in 2001 allowed China to join the WTO and launched the Doha
Development Round. The sixth conference in Hong Kong in 2005 saw
agreements on phasing out agricultural export subsidies and eliminating
tariffs for least developed countries' goods. Additionally, the WTO's Aid for
Trade initiative was launched to help developing countries participate in
global trade, aligning with Sustainable Development Goal 8 on increasing
aid for trade.

The 12th Ministerial Conference, originally scheduled for June 2020 in

Kazakhstan, was cancelled due to the COVID-19 pandemic and later held in
Geneva in June 2022. The 13th Ministerial Conference is planned for
February 2024 in Abu Dhabi, U.A.E.

Functions of the WTO

The World Trade Organization (WTO) plays a key role in promoting global
economic growth by facilitating international trade. Its core functions
include:

1. Overseeing Agreements: The WTO manages the implementation,

administration, and operation of the trade agreements, though it
does not enforce agreements in specific cases, such as when China
joined in December 2001.
2. Providing a Forum for Negotiations and Dispute Settlement: The
WTO serves as a platform for its members to negotiate trade issues
and resolve disputes that arise between countries.
3. Trade Policy Review: It reviews national trade policies to ensure
that they are transparent and coherent with global economic policies.
This surveillance helps maintain consistency and fairness in
international trade.
4. Supporting Developing Countries: One of the WTO's key priorities
is to assist developing, least-developed, and low-income countries as
 they adjust to WTO rules through technical cooperation and training
programs.
5. Facilitating Trade Agreements: The WTO provides the framework
for negotiating, implementing, and operating multilateral trade
agreements. It also administers agreements related to the settlement
of disputes and the trade policy review mechanism.
6. Cooperation with Other Global Institutions: To achieve greater
coherence in global economic policymaking, the WTO works with the
International Monetary Fund (IMF) and the World Bank (IBRD) to
address global trade and financial issues.

As globalization continues, the WTO's role in managing international trade

systems becomes increasingly important. It helps address issues like
protectionism, trade barriers, subsidies, and intellectual property
violations, acting as a mediator between countries. The WTO can be seen as
both a product of globalization and an essential organization in today's
interconnected world.

In addition, the WTO conducts economic research and analysis, producing

regular reports and assessments of global trade. It also works closely with
the IMF and World Bank, components of the Bretton Woods system, to
further its mission of promoting stable and equitable global trade.

Organizational Structure of the WTO

The Ministerial Conference is the highest authority of the World Trade

Organization (WTO) and meets at least every two years. The most recent
meeting took place in June 2022 in Geneva.

In between Ministerial Conferences, the daily work of the WTO is managed

by three main bodies, all of which have the same membership but different
terms of reference:

The General Council

The Dispute Settlement Body (DSB)

The Trade Policy Review Body

These bodies handle the day-to-day functions of the WTO.

The General Council is chaired by David Walker of New Zealand (as of
2020) and oversees several committees that deal with specific areas of
trade:

Council for Trade in Goods: This includes 11 committees, each focusing on

specific areas of goods trade. The Textiles Monitoring Body, which has its
own chairman and 10 members, is also under this council.

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

Focuses on intellectual property issues within the WTO.

Council for Trade in Services: This council oversees the General Agreement
on Trade in Services (GATS), with members able to create subsidiary
bodies as needed.

Trade Negotiations Committee (TNC): This committee handles ongoing

trade talks, such as the Doha Development Round. The TNC is chaired by
the WTO’s director-general.

The General Council also oversees various committees, working groups,

and working parties, including those focused on issues such as trade and
the environment, trade and development, regional trade agreements, and
trade-related aspects of debt and finance.

As of December 2022, the WTO had 340 women and 283 men on its regular
staff.

Decision-Making in the WTO

The WTO operates as a member-driven, rules-based organization.

Decisions are made by member governments through negotiations, and
while votes are possible when consensus cannot be reached, consensus is
the preferred method.

According to Richard Harold Steinberg, the WTO’s consensus governance

model promotes law-based bargaining at the start of trade rounds, but
power-based bargaining (favoring Europe and the U.S.) may dominate
towards the end, which can limit potential improvements for all members.
Dispute Settlement in the WTO

The WTO's dispute settlement system evolved from the rules and practices
under the General Agreement on Tariffs and Trade (GATT). In 1994, WTO
members agreed on the Understanding on Rules and Procedures Governing
the Settlement of Disputes (DSU). The system is considered a core pillar of
the multilateral trading system, ensuring stability in the global economy.

WTO members are expected to use the multilateral dispute settlement

process rather than acting unilaterally when they believe that trade rules
are being violated. The process includes:

Panels: Case-specific bodies appointed by the Dispute Settlement Body

(DSB) to resolve disputes.

Appellate Body: A higher authority to review panel rulings.

Arbitrators and Advisory Experts: Provide additional support when

needed.

The dispute process is designed to be efficient, with cases normally taking

no more than one year for a panel ruling, and no more than 16 months if
the case is appealed. If urgent, the case is expedited.

However, the system faces challenges. For example, in 2019, the United
States blocked appointments to the Appellate Body, preventing the body
from functioning. In response, the European Union and 15 other members
set up the Multiparty Interim Appeal Arbitration Arrangement (MPIA) to
offer an alternative mechanism for handling appeals during this period.

Dispute settlement does not address political disputes. For instance, when
Qatar requested a dispute panel against measures imposed by the UAE, the
case was dismissed by other GCC countries as a political matter, which the
WTO could not resolve.

Membership

 Members and observers

The WTO has over 160 members representing 98 per cent of

world trade. Over 20 countries are seeking to join the WTO.
  Accessions
To join the WTO, a government has to bring its economic and trade
policies in line with WTO rules and negotiate its terms of entry
with the WTO membership.

TRIPS — Trade-Related Aspects of Intellectual

Property Rights

The WTO Agreement on Trade-Related Aspects of Intellectual Property

Rights (TRIPS) is the most comprehensive multilateral agreement on
intellectual property (IP). It plays a central role in facilitating trade in
knowledge and creativity, in resolving trade disputes over IP, and in
assuring WTO members the latitude to achieve their domestic policy
objectives. It frames the IP system in terms of innovation, technology
transfer and public welfare. The Agreement is a legal recognition of the
significance of links between IP and trade and the need for a balanced IP
system.

The Agreement on Trade-Related Aspects of Intellectual Property Rights

(TRIPS) is an international legal agreement between all the member
nations of the World Trade Organization (WTO). It establishes minimum
standards for the regulation by national governments of different forms of
intellectual property (IP) as applied to nationals of other WTO member
nations. TRIPS was negotiated at the end of the Uruguay Round of the
General Agreement on Tariffs and Trade (GATT) between 1989 and
1990[5] and is administered by the WTO. The TRIPS agreement introduced
intellectual property law into the multilateral trading system for the first
time and remains the most comprehensive multilateral agreement on
intellectual property to date. In 2001, developing countries, concerned that
developed countries were insisting on an overly narrow reading of TRIPS,
initiated a round of talks that resulted in the Doha Declaration. The Doha
declaration is a WTO statement that clarifies the scope of TRIPS, stating for
example that TRIPS can and should be interpreted in light of the goal "to
promote access to medicines for all." Specifically, TRIPS requires WTO
members to provide copyright rights, covering authors and other copyright
holders, as well as holders of related rights, namely performers, sound
recording producers and broadcasting organisations; geographical
indications; industrial designs; integrated circuit layout-designs; patents;
new plant varieties; trademarks; trade names and undisclosed or
confidential information, including trade secrets and test data. TRIPS also
specifies enforcement procedures, remedies, and dispute resolution
procedures. Protection and enforcement of all intellectual property rights
shall meet the objectives to contribute to the promotion of technological
innovation and to the transfer and dissemination of technology, to the
mutual advantage of producers and users of technological knowledge and
in a manner conducive to social and economic welfare, and to a balance of
rights and obligations.

Background and History of the TRIPS Agreement:

The Agreement on Trade-Related Aspects of Intellectual Property

Rights (TRIPS) was negotiated during the Uruguay Round of the General
Agreement on Tariffs and Trade (GATT) from 1986 to 1994. Its inclusion
in the multilateral trading system was largely driven by the United States,
with significant lobbying efforts by the International Intellectual
Property Alliance (IIPA) and support from the European Union, Japan,
and other developed nations. The U.S. played a crucial role in pushing for
higher intellectual property standards globally, using economic incentives
through the Generalized System of Preferences and leveraging Section
301 of the Trade Act, which allowed the U.S. to sanction countries that did
not comply with certain IP standards.

The inclusion of IP into the GATT framework was a response to growing

global trade in knowledge-intensive goods. Prior to TRIPS, there were
varying standards of intellectual property protection across nations, often
leading to trade tensions. The United States' strategy of tying trade policy
to intellectual property standards can be traced back to initiatives in the
early 1980s, driven by corporate interests, particularly in industries like
pharmaceuticals (e.g., Pfizer), that sought stronger IP protection to secure
monopolies on new inventions and technologies.
Requirements under the TRIPS Agreement:
TRIPS require member states to provide robust protections for various
forms of intellectual property (IP). Some of the key provisions include:

1. Copyright Protection:
o Copyright must last for at least 50 years from the author's
death, or longer in some cases (Art. 12 and 14).
o Copyright protection must be granted automatically, without
the need for formal registration, in accordance with the Berne
Convention (Art. 9).
o Computer programs are considered "literary works" and are
protected under copyright law (Art. 10).
2. Patents:
o Patents must be granted for inventions across all fields of
technology, provided the invention meets other patentability
requirements (Art. 27.1).
o Patent protection must last for at least 20 years (Art. 33).
o Exceptions to exclusive patent rights are allowed, but they
must not conflict with the normal exploitation of the invention
(Art. 30).
o The principle of national treatment ensures that IP
protections are granted equally to citizens of all WTO members
(Art. 3 and 5).
3. Other Protections:
o Geographical Indications, trademarks, and trade secrets
are also covered.
o Compilations of data or other materials that show
intellectual creativity, like databases, are protected as literary
works (Art. 10).
4. International Treaties:
o TRIPS incorporates by reference the provisions of the Berne
Convention (for copyright) and the Paris Convention (for
industrial property), ensuring that the core principles of these
established treaties are reflected in TRIPS.

Implementation and Challenges in Developing Countries:

Developing countries were given a transition period to adapt their
national laws to TRIPS, with a deadline for implementation set in 2005 for
developing countries and 2013 for least developed countries (LDCs).
The transition period for pharmaceutical patents was extended to 2016,
with the possibility of further extensions.
There have been concerns that the strict IP protections required by TRIPS
could hinder the development of poorer nations. For example, the
enforcement of strong patent protections can limit access to essential
medicines by making them too expensive for low-income countries.
However, TRIPS flexibilities (e.g., compulsory licensing and parallel
importation) were introduced to allow countries to bypass certain
provisions in cases of public health emergencies.

Despite these flexibilities, a 2005 WHO report found that many developing
countries had not fully implemented these options due to a lack of legal
expertise and technical capacity. Instead, many countries ended up
adopting stronger IP protections that aligned with the developed world,
often with the assistance of organizations like WIPO. Critics argue that this
has perpetuated monopolies rather than fostering more accessible access
to knowledge and medicines.

Post-TRIPS Expansion and TRIPS+:

Since the adoption of TRIPS, many countries have entered into bilateral
agreements to adopt even stricter IP standards, known as TRIPS+ or
TRIPS-Plus. These agreements often include:

1. Anti-circumvention laws to protect digital rights management

(DRM) systems.
2. Stricter patent enforcement and limitations on compulsory
licensing.
3. Proposals to enhance broadcasting rights for broadcasters and
webcasters.

Such agreements, including those promoted by WIPO and the European

Union, aim to extend the IP protections available under TRIPS, further
strengthening the rights of IP holders and limiting the flexibility that
developing countries have in using TRIPS flexibilities.

Panel Reports and Dispute Resolution:

The WTO's dispute settlement mechanism is an essential feature of

TRIPS, allowing countries to bring complaints about non-compliance with
IP protections. Some notable panel reports include:

 2000 Canada: Term of Patent Protection.

  2001 United States: Section 211 of the Omnibus Appropriations
Act (dealing with trademarks and geographical indications).
 1998 India: Patent Protection for Pharmaceutical and Agricultural
Products.

These cases highlight ongoing issues related to IP enforcement, term

extensions, and patent disputes under the TRIPS framework.

Conclusion

The TRIPS Agreement has significantly shaped global intellectual property

law, aligning IP standards across WTO member states. While it has spurred
innovation and created uniformity in IP protections, it has also faced
criticism, particularly regarding its impact on developing nations' ability to
access affordable medicines and other technologies. The debate
surrounding TRIPS+ agreements and the flexibilities available to
developing countries continues to evolve as global trade and technological
landscapes change.