Global Trade and Finance

Prof. Bryson, Marriott School

What Is the WTO?What Is the WTO?

The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations.

WTO agreements are negotiated and signed by the trading nations and ratified in their parliaments.

The goal is to help producers of goods and services, exporters, and importers conduct and grow their business.

The GoalThe Goal

To improve the welfare of the peoples of the member countries.

Past, Present, FuturePast, Present, FutureThe WTO came into being in 1995.

The WTO is the successor to the General Agreement on Tariffs and Trade (GATT), established in the wake of the Second World War.

The Past 50 Years: Exceptional The Past 50 Years: Exceptional Growth in World TradeGrowth in World Trade

Merchandise exports grew on average 6% annually

Total trade in 1997 was 14 times the level of 1950

In 1997, 40 governments concluded negotiations for tariff free trade.

The Organization ChartThe Organization Chart

The OrganizationThe Organization

General Council

Council for Tradein Goods

Council for Intellectual Property Rights in Trade

Council for TradeIn Servfices

GC: DisputeSettlement Body

GC: Trade Policy Review Body

Ministerial Conference

Committees onTrade and EnvironmentTrade and Development…

Working parties on Accessions

Working groups

CommitteesCommittees

Textiles Monitoring Body

Working parties on

The WTO must teach the world The WTO must teach the world the benefits of tradethe benefits of trade

We have seen what Ricardo had to say about comparative advantage, and the strong consensus among those who seriously consider trade issues.

Trade provides nearly 100% of an economy’s jobs. Global trade provides a large and growing share of these jobs..

Major WTO FunctionsMajor WTO Functions

Administering WTO trade agreements

Forum for trade negotiations

Major WTO FunctionsMajor WTO Functions

Handling trade disputes

Monitoring national trade policies

Major WTO FunctionsMajor WTO Functions

Technical assistance and training for developing countries

Cooperation with other international organizations 

The QuadThe Quad

Some of the most difficult negotiations have needed an initial breakthrough in talks among the four largest members

Canada  European union  Japan  United States

How to Join the WTO: the How to Join the WTO: the Accession ProcessAccession Process

First, “tell us about yourself”. Second, “work out with us individually

what you have to offer.” (Country to country negotiations bilaterally.)

Third, “let’s draft membership terms.” Finally, “the decision.”

Criticisms of the WTOCriticisms of the WTO

The WTO undermines state sovereignty It undermines representative democracy Member nations are prevented from protecting the

environment Members are unable to uphold laws guaranteeing

workers’ rights The WTO is controlled by the larger nations The WTO represents the interests of large

corporations and wealthy citizens

http://www.wto.org/english/thewto_e/whatis_e/10mis_e/10m00_e.htm

Some protesters have arguments fully worthy of consideration. They deserve a better venue for hearing than the streets.

Nihilistic anarchists usually capture the legal protest, along with

lugubrious labor Luddites trade terrorists, and the clueless

The Doha, Qatar InitiativesThe Doha, Qatar InitiativesA new trade round was launched November, 2001

For the first time, developing countries demanded capacity-building and technical assistance to take part meaningfully.

The Doha, Qatar InitiativesThe Doha, Qatar Initiatives

The Pledging Conference was convened in accordance with the December 2001 decision of the WTO General Council.

In that decision, the General Council set a target for core funding of CHF 15 million plus support in kind, including training courses for trade officials.