WTO: Purpose or Objectives, Functions and Principles, Opportunities and Challenges of WTO to member countries.

1. WORLD TRADE ORGANIZATION
Group 3
Karki, Shiwir
Khanal, Kritika
Shrestha, Bijay Kumar
Upreti, Prakriti

2. Table of Contents
• Background and GATT
• Introduction to WTO
• Major Agreements
• The Uruguay Round
• The Doha Round
• Purpose / Objectives
• Functions of WTO
• Principles of WTO
• Benefits of WTO Trading System
• Dispute Settlement
• Opportunities and Challenges

3. Background and GATT
The WTO predecessor- GATT (General Agreement on Trade and Tariff) was
established after the World War II for international economic co-operation.
The GATT was the only multilateral instrument governing international trade
from 1948 until the WTO was established on January 1, 1995.
GATT continued to operate for almost half a century as semi-institutionalized
multilateral treaty regime on a provisional basis.
The Final Act concluding the Uruguay Round and officially establishing the
WTO regime was signed during the April 1994 ministerial meeting at
Marrakesh, Morocco, and hence is known as the Marrakesh Agreement
The GATT still exists as the WTO's umbrella treaty for trade in goods, updated
as a result of the Uruguay Round negotiations.

4. Introduction to WTO
Formation: 1st Jan, 1995
Headquarters: Geneva
Members: 153
Official Languages: English, French, Spanish
Annual Budget: US$ 209,000,000
Staff: 629
Website: www.wto.org

5. Introduction to WTO continued
World Trade Organization(WTO) was officially commenced on
January 1st 1995.
An association of 153 countries globally.
All types of countries like socialists, capitalists, rich and poor
countries, very industrialized and developing countries are in WTO.
The topmost decision making body of WTO is the Ministerial
Conference, which takes decision on all matters under any multilateral
trade agreements.
Nepal received the member of WTO dated on 23rd April 2004 and
became a 147th member of World Trade Organization WTO.

6. Major Agreements
.

7. The Uruguay Round
It was the 8th round of Multilateral Trade
Negotiation (MTN) conducted within the framework
of GATT spanning from 1986-1994 and embracing
123 countries.
The main objectives of this round were:
to reduce agricultural subsidies
to put restrictions on foreign investment, and
to begin the process of opening trade in
services like banking and insurance

8. The Doha Round
The WTO launched the current round of
negotiations, the Doha Development Agenda
(DDA)
Ambitious effort to make globalization more
inclusive and help the world's poor
The initial agenda comprised both further
trade liberalization and new rule-making

9. Purpose / Objectives
Rejecting most forms of protectionism.
Removing trade barriers and eliminating discriminatory treatment in
international trade .
Providing a fair, predictable and open rule-based trading system.
Providing a mechanism for settling trade disputes.
Integrates developing and least developed economies into the world
trading system.

10. Purpose / Objectives continued
Mission Statement
“The World Trade Organization is the
international organization whose primary
purpose is to open trade for the benefit of
all.”

11. Functions of WTO
> Basic Functions
> Additional Functions

12. Basic Functions
Two Most Important Functions
overseeing the implementation, administration
and operation of the covered agreements
provides a forum for negotiations and for
settling disputes

13. Additional Functions
Administers the Understandings on Rules and
Procedures governing the Settlement of Disputes
Administers the Trade Policy Review Mechanism
(TPRM)
Cooperates with IMF and with the International
Bank for Reconstruction and Development (World
Bank) and its affiliate agencies

14. Principles of WTO
• Non-discrimination
• More Openness
• Predictable and Transparent
• More competition
• More beneficial for less developed countries.
• Protect the environment.

15. 10 Benefits of WTO Trading System
Peace
Disputes
Rules
Cost of living
Choice
Incomes
Growth and jobs
Efficiency
Lobbying
Good government

16. Dispute Settlement
WTO’s procedure for resolving trade quarrels
How disputes arise?
The authors of these agreements are the
member governments themselves.
Ultimate responsibility

17. Opportunities of WTO
Entry into sophisticated areas of trade such as
international banking, telecommunications.
More countries are involving in international
trade.
Stability, Consensus, Dispute settlement,
Balance, Transparency, Openness.

18. Challenges of WTO
Accusations regarding widening the gap between rich and poor
in claims of fixing it.
Protectionism for the influential countries.
Unfair negotiations and participation.
Environmental and labor concerns.
Marginalization by agreements such as TRIPs (Agreement on
Trade Related Aspects of Intellectual Property Rights).

19. end