Text 5: The World Trade Organisation

The World Trade Organisation (WTO) is the only global international organisation dealing with the rules of trade between nations. Its goal is to help producers of goods and services, exporters, and importers conduct their business. This is the youngest trans-national structure but its history is great. The World Trade Organisation was founded on 1 January 1995. The WTO is the successor to the General Agreement on Tariffs and Trade signed in 1948.

The WTO has determined the following principles of trade agreements: all partners are equal; imported and local goods have equal rights on the domestic markets; trade barriers should be reduced through negotiations and agreements must be transparent and predictable; fair competition, economic development and economic reforms must be supported.

The topmost decision-making body of the WTO is the Ministerial Conference, which usually meets every two years. It brings together all members of the WTO, represented either by countries or customs unions. The Ministerial Conference can take decisions on all matters under any of the multilateral trade agreements. The daily work of the Ministerial Conference is handled by three groups: the General Council, the Dispute Settlement Body, and the Trade Policy Review Body. All three consist of the same membership - representatives of the WTO members.

1 The General Council - is the WTO’s highest-level decision-making body is located in Geneva. It has representatives from all member governments and has the authority to act on behalf of the ministerial conference which meets about every two years. The council acts on behalf of the Ministerial Council on the entire WTO affairs.

The General Council also meets under different rules, such as the Dispute Settlement Body or the Trade Policy Review Body.

2. The Dispute Settlement Body is made up of all member governments, and is usually represented by ambassadors. The WTO’s procedure for resolving trade quarrels is under the Dispute Settlement Understanding and vital for enforcing the rules and therefore for ensuring that trade flows smoothly.

3. The Trade Policy Review Body (TPRB) - is open to all WTO Members. The WTO General Council meets as the Trade Policy Review Body to undertake trade policy reviews of members.

Questions for discussion:

1. What kind of organisation is the WTO?
2. What is the goal of the WTO?
3. When was the WTO founded?
4. Where are the headquarters of the WTO?
5. What are the principles of the WTO trade agreements?
6. What is the topmost decision-making body of the WTO?
7. What are the main functions of the Ministerial Conference?
8. What is the role of the General Council?
9. What is the role of the Dispute Settlement Body?
10. What is the role of the Trade Policy Review Body?

Дата добавления: 2015-10-16