Overview of The WTO

 Objective of presentation

 WTO: The Beginnings

 Growth in Trade Underway

 A New Multilateral Organization

 The WTO: what is it?

 How does the WTO function?

 Principles of the Trading System

 Provisions for developing countries

 Progressing by packages

 The Round to end all rounds

 The WTO Agreement

 Liberalising trade in goods

 Textiles - back in the mainstream

 Agriculture: fairer markets for all

 Trade remedies

 Standards and procedures

 Administrative procedures

 Services: rules for growth and investment

 Services: the key rules

 Services: Better Access to Markets

 Intellectual Property: protection and enforcement of rights

 TRIPS: what does it cover?

 Settling Disputes: the heart of the system

 Meetings of Ministers

  Singapore Ministerial

 Geneva and Seattle Ministerials

 Doha Ministerial Meeting

 Cancun Ministerial Meeting

 Recent Developments

How does the WTO function?

Institutional characteristics

Before turning to the substance of the work of the WTO, it is perhaps useful to look at its institutional characteristics. Formally speaking, the WTO Agreement comprises all specific trade agreements - such as those relating to agriculture, services or antidumping - they are attached to the Agreement Establishing the World Trade Organization. This Agreement was signed in Marrakesh on 15 April 1994 and it marks the closure of the Uruguay Round. The specific agreements come in the form of four annexes. These annexes contain the multilateral trade agreements as well as other understandings and decisions reached during the Uruguay Round negotiations. All individual WTO members have accepted all these agreements. They constitute a totality in terms of a "single undertaking". There can be no choosing between them on the part of governments - it is all or nothing.

The Ministerial Conferences

The institutional structure of the WTO is such that it is headed by a Ministerial Conference. This is composed of all members of the WTO and meets at least once every two years. The most recent meeting was in Cancun in Mexico in September 2003. Prior to that, ministers met in Doha, Qatar in 2001, and in Seattle in 1999. They also met in Singapore in 1996 and Geneva in 1998. Between the sessions of the Ministerial Conference, the General Council exercises the functions of the Ministerial Conference. It is also made up of the full membership of the WTO. It is responsible for the continuing management of the WTO and supervises all aspects of its activities. The General Council also meets as the Dispute Settlement Body and as the Trade Policy Review Body.

Taking Decisions

As alluded to earlier, an important characteristic of the decisions taken in the WTO is that they are adopted on the basis of consensus. An issue is first discussed to the point of all Members agreeing, or at least not opposing the decision. To the extent that voting takes place, it is a mere formality. It is usually concerned with the pre-negotiated terms of accession of a country to the WTO, or, perhaps, a waiver to permit a member to deviate from a certain rule. Formally each WTO member has one vote. The normal rule is a decision according to the majority of the votes cast. Matters are far more complicated when it comes to amendments to WTO rules. For certain key articles - such as those relating to non-discrimination - no change is possible unless all Members agree formally.

Settling disputes

A further important feature of the WTO is its dispute settlement process. This lies at the heart of the WTO. In all of the diverse multilateral trade agreements, breaking the rules means being taken to court - and in fact, the same court for all breaches of agreement. If as a result of an inquiry measures are found to be in error with respect to WTO rules, they are to be brought into conformity with WTO obligations. If they are not, then compensation and retaliation - with the approval of the General Council sitting as the Dispute Settlement Body - are provided for. And in this context, the inter-relationship between the trade agreements is critical. Compensation, for example, can be sought in the form of improved market access in any of the areas covered by the multilateral trade agreements. It is not necessarily with respect to the agreement where the breach of obligations was committed.