Global Trade and Finance Prof Bryson Marriott School

Global Trade and Finance Prof. Bryson, Marriott School

What Is the WTO? The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. Ø WTO agreements are negotiated and signed by the trading nations and ratified in their parliaments. Ø The goal is to help producers of goods and services, exporters, and importers conduct and grow their business. Ø

The Goal Ø To improve the welfare of the peoples of the member countries.

Past, Present, Future The 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 Growth in World Trade Merchandise exports grew on average 6% annually Ø Total trade in 1997 was 14 times the level of 1950 Ø In 1997, 40 governments concluded negotiations for tariff free trade. Ø

The Organization Chart

The Organization Ministerial Conference GC: Trade Policy Review Body Council for Trade in Goods General Council for Intellectual Council for Trade Property Rights in Trade In Servfices Committees on Textiles Monitoring Body Trade and Environment Trade and Development… Working parties on Accessions Working groups GC: Dispute Settlement Body Committees

The WTO must teach the world the benefits of trade ØWe have seen what Ricardo had to say about comparative advantage, and the strong consensus among those who seriously consider trade issues. ØTrade provides nearly 100% of an economy’s jobs. Global trade provides a large and growing share of these jobs. .

Major WTO Functions Ø Administering WTO trade agreements Ø Forum for trade negotiations

Major WTO Functions Ø Handling trade disputes Ø Monitoring national trade policies

Major WTO Functions Ø Technical assistance and training for developing countries Ø Cooperation with other international organizations

The 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 Accession Process Ø First, “tell us about yourself”. Ø Second, “work out with us individually what you have to offer. ” (Country to country negotiations bilaterally. ) Ø Third, “let’s draft membership terms. ” Ø Finally, “the decision. ”

Criticisms of the WTO Ø Ø Ø 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/10 m 00_e. htm

Ø Ø Ø 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 Initiatives ØA new trade round was launched November, 2001 ØFor the first time, developing countries demanded capacity-building and technical assistance to take part meaningfully.

The Doha, Qatar Initiatives ØThe Pledging Conference was convened in accordance with the December 2001 decision of the WTO General Council. ØIn 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.