Presented By:

Dr. Dharvi Saggu

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Dr. Shantanu Mehta

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World Trade Dr. Parul Katyal

Organisation
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Dr. Anjali Sachdeva

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 TABLE OF CONTENTS

01 02 03 04
Introduction - Objectives Structure Functions
WTO

05 06 07 08
Achievement Recent
Roles Implications Events
s

09 Conclusion
DR. DHARVI
SAGGU
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 Introduction -WTO
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.
 FACT
● Location: Geneva, SwitzerlandFILE
● Established: 1 January 1995
● Created by: Uruguay Round negotiations
● Membership: 164 members representing
98 per cent of world trade
● Budget: 197 million Swiss francs (2020)
● Head: Ngozi Okonjo-Iweala (Director-
General)
Mission of
WTO
Progressive opening and regulation of
markets

The WTO's mission is to open markets gradually

while ensuring that rules are respected.
The origin of the organization dates back to the end
of World War II when the idea of peaceful
cooperation among people was emerging.
In 1947, a number of countries decided to open up
their markets on the basis of common principles,
and founded the WTO's predecessor, the General
Agreement on Tariffs and Trade (GATT).
 0
Objectiv 2
es of
WTO
Objectives of
WTO
● To set and enforce rules for international trade.
● To provide a forum for negotiating and monitoring further trade
liberalization.
● To resolve trade disputes.
● To increase the transparency of decision-making processes.
● To cooperate with other major international economic
institutions involved in global economic management.
● To help developing countries benefit fully from the global
trading system.
 0
Structur 3
e
of WTO
Structure of WTO
 ★ Ministerial Conference:

It is the highest authority, composed of representatives of all WTO

members, which is required to meet at least every two years and which
can take decisions on all matters under any of the multilateral trade
agreements.

★ General Council:

It is composed of all WTO members and is required to report to the

Ministerial Conference. General Council convenes in two particular forms
discussed below.
★ Dispute Settlement Body
To oversee the dispute settlement procedures.

★ Trade Policy Review Body:

To conduct regular reviews of the trade policies of individual WTO
members.
DR. SHANTANU MEHTA
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Functio
ns of 0
4
WTO
 Functions
● It oversees the implementation, administration
and operation of the covered agreements (with
the exception is that it does not enforce any
agreements when China came into the WTO in
Dec 2001)
● It provides a forum for negotiations and for
settling disputes
● The WTO shall provide the forum for negotiations
among its members concerning their multilateral
trade relations.
● Technical assistance and training for developing
countries
● The WTO shall cooperate with the International
Monetary Fund (IMF) and with the International
Bank for Reconstruction and Development (IBRD)
and its affiliated agencies.
GATT V/S WTO
 Roles of
05 WTO
Roles
Orchestra
conductor
● International trade is governed by very precise rules developed by the WTO's
members.
● Countries must apply these rules when trading with one another. The WTO acts
as the orchestra conductor, ensuring that rules are respected.
● Adapting or changing the principles of international trade means reaching
consensus among WTO members through a round of negotiations.

Trainer
The WTO provides training programmes for government officials from developing
countries - for example, ministry staff or customs officials.
The WTO currently spends about 35 million Swiss francs annually on these
programmes. Africa is the main beneficiary, followed by Asia and Latin
America.
Monitor
● The WTO regularly reviews the trade
policies of its members.
● These reviews assess whether WTO
members are abiding by WTO rules and
measure the impact of their domestic
policies on international trade.

Tribunal
● Where members may file complaints against other members who fail to
abide by the principles of international trade.
● There are three stages to dispute settlement. To begin with, the
disputing countries try to settle their differences by themselves. If that
fails, the case is decided by a panel made up of three experts, which
issues a ruling. That ruling may be appealed. Once a definitive ruling
has been issued, the losing party must comply. If it does not, it is liable
to sanctions. Since 1995, over 400 complaints have been filed by WTO
members.
DR. PARUL KATYAL
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India’s Role in WTO

India is an important member of

WTO.
It has always followed WTO
guidelines as follows:
 Implication
06
s for INDIA
★ Reduction of Tariff and Non-Tariff Barriers:
● The agreement proposes an overall reduction of tariffs on manufactured products
and the phasing out of the quantitative restrictions over a period of time.
● The important implication is that the firms that have a competitive advantage
would be able to survive in the long run.

★ Trade-Related Investment Measures (TRIMS):

● This agreement forbids the host country to discriminate against investments from
abroad versus domestic investment i.e. agreement requires investment to be
freely allowed by nations.

★ Agreement on Sanitary and Phytosanitary measures

(SPM):
● This deals with restricting exports of any country that do not
comply with the international standards of germs/bacteria,
etc.
★ Trade-Related Intellectual Property Rights (TRIPS):
● Intellectual property rights seek to protect and provide legal recognition to the creator
of the intangible illegal use of his creation.
● It includes patents, copyrights, geographical indications, trademarks, industrial
circuits, designs and trade secrets.
● As a result, India amended the Copyright Act, the Patents Act, and the Trade and
Merchandise Act.
● The pharmaceutical and biotechnology industries are expected to be hit the hardest.
● Another impact on India is expected to be in the transfer of technology from abroad.

★ Agreement on Agriculture (AOA):

● This agreement deals with giving market access, reducing export
subsidies and government subsidies on agricultural products.
 Achievemen
07 ts
Achieveme
nts
★ Global Facilitation of Trade:

● By building binding rules for global trade in goods and services, WTO
has facilitated dramatic growth in cross-border business activity.
● The WTO has not only enhanced the value and quantity of trade but
has also helped in eradicating trade and non-trade barriers.

★ Improved Economic Growth:

● Since 1995, the value of world trade has nearly quadrupled, while the
real volume of world trade has expanded by 2.7 times.
● Domestic reforms and market-opening commitments have resulted in
the lasting boost to national income of nations.
★ Increased Global Value Chains:

● The predictable market conditions fostered by the WTO, have

combined with improved communications to enable the rise of global
value chains, trade within these value chains today accounts for
almost 70% of total merchandise trade.

★ Upliftment of Poor Countries:

● All the WTO agreements recognize that they must benefit from the
greatest possible flexibility, and better-off members must make extra
efforts to lower import barriers on least-developed countries’ exports.
 DR. ANJALI
SACHDEVA
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 Rece
nt
08 Even
ts
● The WTO’s 164 member countries all benefit from the same baseline
duties from each other when their companies trade in goods and
services. This concept of equality is called the “most-favored-nation”
— aka MFN — treatment.
● Russia has threatened to sue countries that decide to suspend Russia’s
MFN status at the WTO through the trade body’s court because it
argues that the trade restrictions violate the rules of the WTO.
● Removing Russia’s most-favored-nation status without any
accompanying measures would be purely symbolic for most WTO
members.
● That’s because very few WTO countries — like Canada — have blanket
tariffs that they fall back on for their trade relations with non-WTO
members.
 ★ Recent Challenges:
● China’s State Capitalism:
China’s state-owned enterprises present a major challenge to the free-market
global trading system and the rulebook of the WTO is inadequate for addressing
these challenges.
It is due to this that USA-China are also engaged in Trade war.

● Lack of Transparency:
There is a problem in WTO negotiations as there is no agreed definition of what
constitutes a developed or developing country at the WTO.

● E-commerce & Digital Trade:

While the global trade landscape has changed significantly over the past 25 years,
WTO rules have not kept pace.

● Agriculture and Development:

Agreement on agriculture is facing issues due to food security and
development requirements for developing countries like India.
 CONCLUSION
● The world is complex. The World Trade Organization is complex.
● Were it a perfect system, there would be no need for further
negotiations and for the system to evolve and reform
continually.

The WTO can :

1.Cut living costs and raise living standards
2.Settle disputes and reduce trade tensions
3.Stimulate economic growth and employment
4.Cut the cost of doing business internationally
5. Encourage good governance
6.Help countries develop
7.Give the weak a stronger voice
8.Support the environment and health
9.Contribute to peace and stability
10.Be effective without hitting the headlines
Thank You
ANY QUESTIONS ?