wto - the global trading system

8/8/2019 WTO - The Global Trading System

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WTO the global trading system

Knut R. Srlie, Assistant Director

28 August 2007

Russian delegation presidential initiative


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WTO - background

Built on GATT (1948), established in 1995

151 member countries Secretariat in Geneva

Member-driven organisation cooperation betweenstates/governments

The power is in the committee-structure, where civilservants from the member countries are participating

Decisions based on consensus


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What is WTO doing (I)?

WTO is administering the existing agreements

WTO is a forum for negotiations of new traderules and liberalisation of the world trade

WTO has a dispute settlement instrument to solve

trade conflicts between member states


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What is WTO doing (II)?

WTO is regularly doing Trade Policy Reviews ofindividual members

WTO assists in technical assistance and capacitybuilding programmes for developing countries

WTO co-operate with other global institutions


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WTOs Basic Principles

WTO should secure non-discrimination through twoset of principles:

Most Favoured Nation (MFN-principle)

(non-discrimination between countries)

National Treatment (NT-principle)(non-discrimination between national and foreign

companies/products/services


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What is WTO covering?

Trade in industrial goods (GATT)

Trade in services (GATS) from 1995

Trade in agriculture (AoA) from 1995 Intellectual property rights (TRIPS) from 1995

In addition: underlying specific agreements on anti-dumping, subsidies, technical barriers to trade,

veterinary and phytosanitary rules, import licensing,customs valuation etc


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What shall WTO prevent?

Unpredictable rules - there is a commitment forbinding rules in the WTO

Discrimination through the principles MFN andNT

Protectionism through progressive liberalisationvia negotiations

Abuse of the big traders power through therules-based system and a dispute settlementinstrument


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The ongoing trade negotiations the

Doha round is controversial

Started in November 2001 in Doha, Qatar called adeveloping round

Aiming at reforming the trading system in order totake better into account the interests of thedeveloping countries

Many different groupings of members with differentinterests on the different negotiating topics

Bigger cuts in tariffs and subsidies than previoustrading rounds not least in agriculture, but also fortrade in industrial goods


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What is the negotiations about?

Market access for industrial products/fish (NAMA)

Agriculture reductions of domestic subsidies,export support and tariffs

Liberalisation ofservices in all modes of supply

(cross-border, consumption abroad, establishmentand temporary movement of persons)


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What is the negotiations about (II)?

Reform ofrules on antidumping and subsidies

Trade facilitation (the movement of goods acrossborders)

And some other minor issues


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Challenges for the WTO

Most important: how to secure a successfulconclusion of the Round

How to strengthen the policing of the bilateral freetrade agreements (FTA) which can erode the non-discrimination principle in the long run

The development role ofWTO

The functioning of the dispute instrument


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Challenges for the WTO

Accession of new members, most importantly, Russia

The coherence agenda (WTOs role vis--vis otherglobal institutions)

The agenda for future negotiations the broadening

of the trade agenda

wto - the global trading system

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