2.

12 World Trade
The World Trade Organisation
Organization
intergovernmental
organization, (WTO).,WTO
an
officially commcnced
on 1 January regulates intemational
1995 under trade. The
the Marrakcch Agrecment,, signedby 123
on 15 April 1994, replacing the General Agreement on Tariffs and Trade
(oATT), which commenced in 1948 The WTO's creation, as a resut of
lne Uruguay Round, marked the biggest reform of international trade Since
after the World War II.
The GATT seemed well established, but it was aprovisional agreement
and organization. Instead, the WTO constitutes an international organízation
with a more comprehensive mandate and asolid institutional base. The
WTO has also expanded both in terms of Membership and substantive
coverage. The WTO Agreements cover not only trade in goods, but also
trade in services and trade-related aspects of intellectual property rights.
The original GATT stillexists as the WTO's general agreement on trade in
goods.
The common goal of multilateral trade liberalization in the context of a
rules-based system resulted in the continuous accession of new countries
to the organization, adding to the heterogeneity of the Membership. The
ability of the GATT/WTO system toaccommodate the different needs of
its Members has been an important factor in its success'S,
Wellbefore GATT's 40th anniversary, its members concluded that the
GATT system was straining toadapt to a new globalizing world economy.
In response to the problems identified in the 1982 Ministerial Declaration
15. World Trade Report 2007
 Gatt and WTO : Origin and Evolution 31

(structural deficicncics, spill-over impacts of certain countries' policies on

worldtrade GATT could not manage ctc.), the cighth GATT round-- known
gs the Uruguay Round- was launched in September 1986, in Punta del
Este, Uruguay.
It was the biggest negotiating mandate on trade ever agrecd: the talks
were going to extend the trading system into several new areas, notably
trade in services and intellectual property, and to reform trade in the sensitive
sectors of agriculture and textiles; all the original GATT articles were up
for review. The Final Act concluding the Uruguay Round and officially
establishing the WTOregime was signed 15 April 1994, during the ministerial
meeting at Marrakesh, Morocco, and hence is known as the Marrakesh
Agreement.
The GATT stillexists as th WTO's umbrella treaty for trade in goods,
updated as aresult of the Uruguay Round negotiations (a distinction is
made between GATT1994, the updated parts of GATT, and GATT 1947,
the original agreement which is still the heart of GATT 1994). GATT 1994
is not however the only legally binding agreement included via the Final Act
at Marrakesh; a long list of about 60 agreements, annexes, decisions and
understandings was adopted. The agreements fall into a structure with six
main parts:
6ATT GATS TRIPS

Subect goods services and services providets natlonas

Maln elements any advantage, favour or privilege " treatment no less favourable than any advantage given to ay coumtry
granted to any country that accorded to any country shall be accorded ummed1ately and
shall be accorded immediately " shallbe accorded immediately and unconditionaly
and unconditonaly unconditionaly to the nationas of all other
. to the "ike products" of all other to "like services and services Members
Members Supliers" of all other Members

apphes to all gots aples to any measure extept where aphes to al catgories of intellectual
adeparture is allowed bythe GATS (") property covered by the TRIPS
that affects rade in services in ay Agreement
Sector (aling under the Agreement

MheAgreement Establishing the WTO

YGoods and investment -the MultilateralIAgreements on Trade in
Goods including the GATT 1994 and the Trade Related Investment
Measures (TRIMS)
 32
2.14
2.13
Transparency
commitments
Plurilateral settlennent
Dispute Basic
Ruies Umbrela In
commitments
Market
access Additional
details a
The helps " " Mai "n YServi
Basic tshell: " of ces
eGATT industries An It Revi ews YIntel ectual
members ardifferences
The
ToEnhanced
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seput(lDeeSU)ctual
permanent differences deal
basic opportunity
features
was to of
have structure with and the
promotemarket of
property
ad-hocbetween government
the s' Property General
ratified with annexes GATT (Annex
Goods 1A)
ESTABLISHING
AGREEMENT WTO of totransparent
Plurilateral schedules
commitments
Trade Dispute agreements Other pressures
between Countries the
The
participate peace,access WTO
WrO
-
WTO and GATT Policy
basic Settlement s the
the Agreements Reviev Services
annexes
goods
RightAgreement
provisional. structure and
agreements. for opportunities
GATT of
by trules trade Agreement
WTOhaving and in
Mechanism (Annex GATS Services
(Annex18)
Countries'
exemptions) schedules
commitments(andMFN of
of(Annex
the 2)
protectionism avoithe ding for policies (TRIPS) International
the on Trade
agreements a WTO and shaping
WTO 4) on
sound The (Annex Trade
Agreements Aspects
trade and trade (TPRM)Trade-Related
are: WTO
3) of equal
legal WTO of in
fromglobal wars goods
TRIPS Intellectual
property
(Annex and Services
basis and the treatment and Institutions
its 1C) trade
retaliation
because domestic services
agreeme rules
the

ends direct
greements 2.16
binding and the 2.15 Gutt
The The
Plurilateral
The conduct The
the Functions Scope " .The and
and arrangements blocked.
andGATT
trade often WTOGATTold multilateral in
package certain Whereas
number
WTO signatories.
most theiron
Multilateral
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dispute WTO
within
has the GATTunderscoring
expanded with contains
The1994"
WTO GATT
further of of become WTO
resulting trade is so members of no WTO grandfather
will: important dealt legal GATT :
of Agreementsdesigned the called an
1947
of ofthe
the relations mechanism. system the some agreeiments important
Agreements,
the Agreements WTO a improved
has Origin
objectives export
and opt-out major role with
organisation. the GATT
from WT0 "grey cannot 150
"members". hascontracting
clause
function to which fact anl
amongst of
trade
countries not
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GATTby
trading that version trameworkEvolution
area" Underblock system
was is been in to
Uruguay of of whilst are restraintsare to in agreements
thewhich
parties,
the the its a item goods. Also,GATT
binding from common decisionbased system. is GATT carried
Protocol
of
measures GATT including far the
Multilateral WTO administered members for all allowed
Round. the are faster wider
the was
Uruguay
on
on the The original members the
forward negotiated
is todispute
arrived
consensus In potential officially had of WTO
to all institutional
relating be and addition,
first Trade WTO than Provisional
Hence, phased
out.be
including
voluntary "contracting GATT for
implement,
Plurilateral and Members by gradually more administersa
panel at time membership to are the
the Round. to services
inhas under
only the and
to the
under of the rules" conmitted. existence
WTO0, framework findings automatic l
alenvironment considerablyGATT.the WTO. concluded
achieve of
Multilateral overturned the a Application
administer, the menmbers. legal
dispute and parties" unificd
are WTO. of GATT WTO
theseTrade only were than IPR text of
for the by a 33
 International Trade Institutions
Gatt and WTO: Origin and Evolution 35
34
liberalisation negotiationss
"forum" for further trade
" Provide aMultilateral/Plurilateral Agreements. arising nce every two years. It can take deciS1ons on all matters under any of the
multilateral trade agreements, in accordance with the decisíon-making
from the Settlement Procedure
Administer the new Dispute procedures contained in the WTO Agreement Establishing the WTO. It is
Mechanisn,.
Trade Policy Review the chief policy making body of the WTO and any major policy
" Establish and direct a the IMF and World euch as adecision to alter competition policy or to rewrite thechanges,
on an equalfooting, with WTO
" Co-operatefully, and of economic policy-making. agreement, require its approval.
Bank for the furtherance general economie As of December 2011, eight Ministerial Conferences have been held
Research and produce both specialised and the WTO.
interest. under the auspices of
reports of international
WTO
2.17 Structure of the Month/Year Place/Name Maln DecisjonsDedarations
organisational structure is ae
The WorldTrade Organisation (WTO) December 1996 Singapore Snegare Ainstn Dertn(WijNAN6JDEC)
follows:
(a) Ministerial Conference cateçones of i products (retered to as the "A initiathe)- WTMINS6J16
(b) GeneralCouncil May 1998 Geneva Eristertal(Dedarst on (WTIMINIS3)/DEC), that undertned the importante of the rutlaterl nie bused tradn
sstem, celebrated the SOth Arrhersary of the GATT and reafirmed the conanents and assessrent made in
(c) Trade Councils Singapore
(d) Trade Committees
Dedaration on Glctal Fletrane Commere(WT/MINS8JDEC/2)
(c) The Secretariat
November Seattle Mnisters did not reach an agreement to adopt any Deciscon or Declaraticn
December 1999
Ministerlal Conference
Novermber 2001 Doha Ministerial De:lsratlon WTJMINJO1)/DEC/I "Doha Dacaration"), which launched the "Doha
Devdnet
Agenda" (DOA).
Genaral Councl(also DSB andTPRB) Decisinn on irplementatignHektedlsues ndConKEAS (WT/MINIOLY1,
P non the Agreement gn Trade-Reated As0:ts of trtellextual Prooty Rgits ard Pex Htn
Councila (Good, Senvces and Antellectual Property) (tyi1)/DEC/2),.
September 2003 Cancun Ninisters adopted astatement in vhich they reafimed their comitmerts to complate the negotztbons under
the DOA.
Commlttaes December 2005 Hong Kong Ministenal Decaration (WT/MIN(OS)/DEC "Hong Kong Dedaration) reafirnrg the Minsteal Decaratrs and
Decsions adopled at Doha and the General Counal Deciscn of1Aug1st 2004 -the"uy2004 iranewa.
WT/S79).
Subsldiary Bodies
Ministers agrPed tn reate anPw WTO wnrk prngramme nn Ait-fxr-Trade (Hng Knng Darlrakion, paragrah 57,.
November Geneva The general theme for dsctUBSion was the WTO, the MS Ond tha global econcme ervronment Mter
December 2009 reiewed the functioning of the WTO, indudng the Doha Round of negotahons.
Secretarlat Derember 2011 Geneva In paralel to the Plenary Sesslon, three Workäng Seslons tock plce with the folovig themes: 'Inpertzce of te
WTO organizational chart:
Multilateral Trading System and the WTO", Trade and Development and "Doha Davelpnent Agenda". The
Conference aproved the ecessions of Rusa, Samca and Montenego. Ministers aao adoçted anumber of
decislors. For more informatkon, please refer to:
2.17.1 Ministerial Conference htg:/wwwwto.orgiengbsh/thevto e(ranist e/1n!1 e/nnl1 ehtn
Top
The Ministerial Conference is the top tier Decision making body
of the WTOframework.
December 2013 Bal Ministers adopted the "Bal Package" which comprises aseries of decisiors aimed at streambnrg trade aoumg
develoçing countries mcre options for providing food security, boosting least-develcped cousties' tade nd
integrated by representatives of all WTO Members and helping development more generaly. They aso adopted arunber ol routine deasions ard accepted Yeren sa
shall meet at least new member of the WTO. For more informabon, plezae refer to: htiRwo Qr
 36
in
e affairs,Ministerial
thregularly
2.17.2
General in
issue
"established" discussion WTO
mentioned
out particular The practice.
running
bodies:
major if Plurilateral
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accordance no The
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such changes has and when General
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in to by Council decisions
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the of in work. is Trade year.
order the the vote. and the turn, for to all behalf
Councils, Ministerial
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act
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Ambassadors
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