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

Provisions for developing countries

Growing number

Developing countries account for more than two thirds of the total WTO membership.  They rightfully expect the multilateral trading system to contribute positively to their development prospects. As a consequence, they play an increasingly important role in all aspects of the work of the WTO. The outcome is that much attention is paid in the multilateral trading system to the special needs and problems of developing countries.

Need for flexibility

The need for additional flexibility with regard to GATT obligations for the developing countries in terms of their use of commercial policy instruments has long been recognized. For example, the structural nature of their balance-of-payments problems was recognized almost half a century ago, along with the flexibility needed in terms of maintaining balance-of-payments restrictions. Similarly, developing countries have long been able to adopt measures deviating from GATT obligations for the promotion of a particular industry.

Trade and development

In fact, in 1965 a special section called "Trade and Development" was added to the GATT. This section recognizes the need for a rapid and sustained expansion of the export earnings of the less-developed countries. To this effect, developed countries are called upon to assign a high priority to the reduction and elimination of barriers to products of export interest to developing countries. It also codifies in the multilateral trading system the concept of non-reciprocity in trade negotiations between developed and developing countries.

Enabling Clause

The Trade and Development section of the GATT was further elaborated at the end of the nineteen seventies in the Decision which has come to be known as the "Enabling Clause". This decision consolidated the concept of "Differential and More Favorable Treatment for Developing Countries" as well as the principle of non-reciprocity in trade negotiations. The most significant provision of the Enabling Clause is that which enables Members to accord differential and more favorable treatment to developing countries as a departure from the most-favoured-nation clause. A number of categories of such treatment are identified, including preferential tariff treatment accorded by developed countries to products originating in developing countries.

The WTO Agreements

There are other special provisions in favour of developing countries in the WTO Multilateral Trade Agreements. These include:
- provisions which require WTO Members to safeguard the interests of developing countries   when adopting their own trade measures; also,
- there are provisions granting longer transitional periods for the implementation of commitments on the part of developing countries; and finally,
- there are the provision of technical assistance in the implementation of commitments undertaken by the developing countries and also technical assistance to ensure the developing countries benefit from the outcome of negotiations.

Least developed countries

What is clear, however, is that while a number of developing countries have benefited from the multilateral trading system, the advantage they have drawn has been far from uniform. Some have done much better than others. Most worrying of all is the position of the world's 49 poorest nations. These countries are classified by the United Nations as least developed countries. With 10.5 per cent of the world's population, they account for only one-half of 1 per cent of world trade. This tiny share is still shrinking. Many of these countries are saddled with enormous debts, a lack of infrastructure and are starved of investment. The least-developed countries received extra attention in the WTO. For example, WTO members have agreed on a Plan of Action for Least-Developed Countries. This envisages special efforts to improve access to developed country markets, including the possibility of removing tariffs completely.