World Trade Organization - WTO. World Trade Organization (WTO) Multilateral negotiations within the WTO
To achieve the goals of the GATT, it was provided (Article XXVIII bis) for the regular holding of multilateral trade negotiations (MTT), which later became known as “GATT rounds”. In this case, a “package approach” is observed: the round is not completed until solutions are found on all issues on the negotiation agenda. Before the emergence of the WTO, eight rounds of ICC took place under the auspices of the GATT:
- 1) in 1947 - in Geneva;
- 2) in 1949 - in Annecy (France);
- 3) in 1950 - in Torquay (Great Britain);
- 4) in 1956 - in Geneva;
- 5) in 1960–1961 – in Geneva (referred to as the “Dillon Round”);
- 6) in 1964–1967 – in Geneva (referred to as the “Kennedy round”);
- 7) in 1973–1979 – in Tokyo and Geneva (referred to as the Tokyo Round);
- 8) in 1986–1994 – in Punta del Este (Uruguay) and Geneva (referred to as the Uruguay Round).
On the agenda of the first rounds was only a reduction in the level of customs taxation of goods. The negotiators agreed with each other on the customs tax concessions that they were willing to offer and recorded the agreements in lists of concessions. Concessions in customs duty rates that ICC participants made to each other were automatically extended to all GATT members through the most-favoured-nation principle. Lists of concessions became part of the GATT. Subsequently, the range of issues submitted to the ICC expanded and became more complex.
During the Dillon Round, problems related to the creation of the EEC also became the subject of negotiations. During the Kennedy Round, a “linear” reduction in the level of customs taxation of industrial goods was agreed upon, agreements were prepared and adopted on certain types of non-tariff barriers (including the first “anti-dumping code”); an exception to the principle of reciprocity in favor of developing countries was approved.
During the Tokyo Round, the participating states agreed on another linear reduction in tariffs and signed a number of agreements on non-tariff measures. The following were adopted: Agreement on Technical Barriers to Trade ("standards code"), Agreement on the Application of Articles VI, XVI and XXIII of the GATT ("Code on Subsidies and Countervailing Duties"), Agreement on the Application of Article VII of the GATT ("Customs Valuation Code") "), Agreement on the Application of Article VI of the GATT ("Anti-Dumping Code"), etc.
Gradually, fundamental deficiencies accumulated in the GATT system, which did not allow it to be developed further. Here are some of them:
- legally the GATT did not have the proper form and remained temporary act, and its existence was based on the Protocol on the Provisional Application of the GATT;
- GATT did not have the necessary institutional infrastructure, did not have the necessary bodies, including a dispute resolution body, was not an international organization (although at a certain stage the GATT Secretariat, departments, and committees were created);
- for a long time, the GATT was not representative enough in terms of its participants and was not universal;
- GATT, in essence, secured the priority of national law over GATT norms;
- The GATT contained many gaps that had to be filled with separate agreements, but not all GATT participants became parties to such agreements; as a result, the legal fabric of the GATT has become fragmented;
- GATT did not apply to all goods: through the efforts of the United States and European countries, huge sectors of international trade were removed from its scope - trade in agricultural and textile goods. In addition, GATT did not apply to “invisible trade” - the service sector.
The Uruguay Round of the ICC led to a radical change in the entire GATT system and its transformation into the WTO. Many of these shortcomings have been eliminated. The subject of the Uruguay Round negotiations consisted of the following issues:
- reduction and elimination of tariffs and non-tariff methods of trade regulation;
- trade in tropical goods;
- trade in goods produced from natural raw materials;
- trade in textiles and clothing;
- trade in agricultural products;
- revision of GATT provisions;
- adoption of additions and amendments to agreements and arrangements concluded during the Tokyo Round;
- subsidies and countervailing duties;
- dispute resolution;
- trade-related aspects of intellectual property;
- trade-related investment measures;
- trade in services.
In accordance with the Ministerial Declaration on the Uruguay Round of the ICC (September 1986), the GATT member states assumed the following obligations:
- not to take restrictive measures that are incompatible with the GATT rules (the "Standstill" rule);
- carry out the gradual abolition of all restrictive measures that are incompatible with the GATT rules, without requiring reciprocity (the “Rollback” rule).
In 1987, the Standstill and Rollback Obligation Authority was created.
In accordance with the decisions of the Uruguay Round of the ICC, the total amount of customs taxation was to be reduced to 3%. In addition, the majority of the remaining tariff duties were subject to a kind of “freezing” (in GATT terminology – “binding” or “consolidation”) at the existing or agreed level. The share of “tied” rates in the tariffs of developed countries has increased to 98–99%, and of developing countries – to more than 70% of the entire product range.
During the Uruguay Round, developed countries actively raised the issue of bringing labor standards into the scope of WTO regulation and introducing a so-called “social clause” into future agreements. In practice, this would mean that, for example, wage issues would be subject to WTO law. Accordingly, goods produced by low-paid labor would be subject to unfavorable legal conditions. It is clear that developing countries opposed these innovations: the low cost of labor in developing countries is regarded by them as one of the main "comparative advantage" in the competition of goods from developing countries with goods from other countries.
In 2000, the ninth round began within the WTO, which received several names: Doha Round, Doha Round (from the name of the capital of Kuwait, where it began), Millennium Round, Millennium Round, Development Round, etc. The round is not over yet and is actually at a dead end.
A union of participating countries interested in liberalizing international trade, eliminating market barriers, and creating a favorable trade and political climate.
The WTO was established in 1995 and is the successor to the General Agreement on Trade and Tariffs, founded in 1947. The World Trade Organization pursues the goal of liberalizing world trade, regulating it using tariff methods by reducing existing barriers, restrictions, and import duties.
The WTO monitors the implementation of trade agreements between members of the organization, ensures negotiations between them, resolves disputes, and monitors the situation on the international market. The WTO head office is based in Geneva and employs more than 630 people.
Today, 164 countries are members of the WTO, 161 of them are recognized states. Russia joined the World Trade Organization on August 22, 2012, becoming the 156th member. Previously, other countries of the post-Soviet space were included in the list of participants - Kyrgyzstan, Latvia, Estonia, Georgia, Lithuania, Armenia, Ukraine.
WTO principles and rules
The goal of the creation and functioning of the World Trade Organization is free trade at the international level. The work of the WTO is guided by the following principles:- All participating countries have the same rights. Preferences established for one WTO member apply to other members;
- the activities of participants are transparent, countries must prepare and print reports to familiarize other WTO members with the rules they have established;
- Participants must comply with trade tariff obligations established by the organization, not those developed independently.
Structure of the World Trade Organization
The WTO has a ramified structure, determined by a number of problems that require solutions in the international market:- The Ministerial Conference is the highest body of the association, convened at least once every 2 years.
- The General Council of the WTO plays a leadership role and controls the work of other departments.
- The GATT Council determines the relationships between participants in the field of trade in goods.
- Trade Services Council.
- Council on legal issues and protection of individual property.
- Dispute Resolution Body - Provides fair and impartial resolution of conflicts at the international level.
The role of the WTO in the globalization of international trade is significant, despite a number of problems associated with the integration of new members and the adoption of controversial decisions. The World Trade Organization is responsible for trade liberalization, but does not deprive states of sovereignty in making economic decisions; it does not dictate trade policy, but only promotes dialogue between participants.
|
Location |
Issues discussed |
Number of participating countries |
|
|
(Dillon's round) | |||
|
(Kennedy round) |
and anti-dumping measures | ||
|
(Tokyo Round) opened in Tokyo |
Tariffs, non-tariff measures and framework agreements | ||
|
(Uruguayan Round) opened in Punta del Este, Uruguay |
Tariffs, non-tariff measures, regulations, services, intellectual property rights, dispute resolution, textiles and clothing, agriculture, creation of the WTO, and other issues | ||
|
(Doha round) opened in the capital of Qatar – Doha 1 |
First round of multilateral trade negotiations within the WTO. Liberalization of tariff and non-tariff barriers. Issues of normalization of agricultural trade conditions, trade facilitation program, trade in services |
The Tokyo Round is the first attempt to reform the international trading system
The Tokyo Round, which took place from 1973 to 1979, involved 102 countries. This round continued GATT efforts to gradually reduce tariffs. Among the results achieved are a reduction of customs duties on industrial products by an average of one third, as a result of which the average customs duty rates on industrial products decreased to 4.7 percent. The tariff reductions, which took place gradually over eight years, included an element of harmonization, with the result that the highest tariffs were reduced more than the lowest tariffs. However, the reduction in tariffs was soon offset by rising prices and changes in exchange rates.
In other areas, the results of the Tokyo Round were more significant. This round marked a turnaround in efforts to modernize trade rules. As a result of the negotiations, a number of new agreements were reached. Some of these agreements were related to the application of certain existing GATT rules, while others covered completely new areas. These agreements were joined primarily by industrialized countries and some developing countries. Agreements were reached on issues such as:
Agreement on the Application and Interpretation of Articles VI, XVI and XXIII of the General Agreement on Tariffs and Trade (subsidies and countervailing measures);
Agreement on Technical Barriers to Trade;
Agreement on Import Licensing Procedures;
Government Procurement Agreement;
Agreement on the Application of Article VII of GATT (Customs Valuation);
Agreement on the Application of Article VI of the GATT (anti-dumping measures);
Beef Agreement;
International Dairy Agreement;
Agreement on Trade in Civil Aviation Equipment.
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The World Trade Organization (WTO) is an international organization created with the aim of liberalizing international trade and regulating trade and political relations of member states. The WTO is the successor to the General Agreement on Tariffs and Trade (GATT), which has been in force since 1947.
The goals of the WTO are the liberalization of world trade by regulating it primarily by tariff methods with a consistent reduction in the level of import duties, as well as the elimination of various non-tariff barriers and quantitative restrictions.
The functions of the WTO are monitoring the implementation of trade agreements concluded between WTO members, organizing and ensuring trade negotiations among WTO members, monitoring the trade policies of WTO members, resolving trade disputes between members of the organization.
The fundamental principles and rules of the WTO are:
Reciprocal provision of most favored nation (MFN) treatment in trade;
Reciprocal provision of national treatment (NR) to goods and services of foreign origin;
Regulation of trade primarily by tariff methods;
Refusal to use quantitative and other restrictions;
Trade policy transparency;
Resolution of trade disputes through consultations and negotiations, etc.
As of May 2012, 155 states are members of the WTO. In 2007, Vietnam, the Kingdom of Tonga and Cape Verde joined the organization; in 2008 - Ukraine. In April and May 2012, Montenegro and Samoa became WTO members, respectively.
More than 30 states and more than 60 international organizations, including the UN, IMF and the World Bank, have observer status in the WTO.
Among the observer countries are Afghanistan, Azerbaijan, Belarus, Bosnia and Herzegovina, Iran, Iraq, Kazakhstan, Serbia, Tajikistan, Uzbekistan, etc.
The vast majority of observer countries are at various stages of accession to the WTO.
The WTO accession procedure consists of several stages. This process takes on average 5-7 years.
At the first stage, within the framework of special Working Groups, a detailed consideration at the multilateral level of the economic mechanism and trade and political regime of the acceding country takes place for their compliance with the norms and rules of the WTO. After this, consultations and negotiations begin on the terms of membership of the applicant country in this organization. These consultations and negotiations are usually carried out at the bilateral level with all interested member countries of the Working Group.
First of all, the negotiations concern the “commercially significant” concessions that the acceding country will be willing to provide to WTO members on access to its markets.
In turn, the acceding country, as a rule, receives the rights that all other WTO members have, which will practically mean the end of its discrimination in foreign markets.
In accordance with the established procedure, the results of all negotiations on liberalization of market access and accession conditions are formalized in the following official documents:
The report of the Working Group, which sets out the entire package of rights and obligations that the applicant country will assume as a result of the negotiations;
List of commitments on tariff concessions in the field of goods and on the level of support for agriculture;
List of specific obligations for services and List of exceptions from the MFN (most favored nation treatment);
Protocol of Accession, legally formalizing the agreements reached at the bilateral and multilateral levels.
One of the main conditions for new countries to join the WTO is to bring their national legislation and practice of regulating foreign economic activity in accordance with the provisions of the package of agreements of the Uruguay Round.
At the final stage of accession, the national legislative body of the candidate country ratifies the entire package of documents agreed upon within the Working Group and approved by the General Council. After this, these obligations become part of the legal package of WTO documents and national legislation, and the candidate country itself receives the status of a WTO member.
The highest governing body of the WTO is the Ministerial Conference. It is convened at least once every two years, usually at the level of the ministers of trade or foreign affairs. The conference elects the head of the WTO.
The current management of the organization and monitoring the implementation of adopted agreements is carried out by the General Council. Its functions also include resolving trade disputes between WTO member countries and monitoring their trade policies. The General Council controls the activities of the Council for Trade in Goods, the Council for Trade in Services, and the Council for Intellectual Property.
Members of the General Council are ambassadors or heads of missions of WTO member countries.
The executive body of the organization is the WTO Secretariat.
The WTO includes working and expert groups and specialized committees, whose functions include establishing and monitoring compliance with competition rules, monitoring the operation of regional trade agreements and the investment climate in member countries, and admitting new members.
The WTO practices decision-making by consensus, although de jure voting is provided. The interpretation of the provisions of agreements on goods and services, as well as exemptions from accepted obligations, are adopted by 3/4 votes. Amendments that do not affect the rights and obligations of members, as well as the admission of new members, require a 2/3 vote (in practice, usually by consensus).
The working languages of the WTO are English, French and Spanish.
The Director General of the WTO since September 1, 2005 is Pascal Lamy.
The organization's headquarters is located in Geneva.
The material was prepared based on information from open sources
World Trade Organization (WTO - English World Trade Organization (WTO))- an organization created in 1995 with the aim of establishing international trade and establishing regulation of trade and political relations of member states. The WTO began as a successor to the General Agreement on Tariffs and Trade (GATT), concluded in 1947.
World Trade Organization WTO is a community of countries that recognize its Charter and adhere to the main agreements governing foreign trade. Currently, the WTO is not a UN body and has mechanisms for resolving trade issues between member states.
The WTO headquarters is located in Geneva, Switzerland. The organization includes both developed and developing countries from all continents. Initially, there were 77 countries participating in the World Trade Organization. It currently has 162 members (158 internationally recognized states, Taiwan, 2 dependent territories and the European Union).
What tasks does the WTO perform?
The tasks of the WTO include:
- monitoring the implementation of agreements and understandings of the Uruguay Round package of documents;
- conducting multilateral trade negotiations between interested member countries;
- resolution of trade disputes;
- monitoring national trade policies of member countries;
- cooperation with international specialized organizations.
WTO rules regulate only trade and economic issues. In general, the WTO promotes the ideas of free trade, seeking to remove any protectionist barriers.
What does joining the WTO give a country?
The main benefits of WTO membership are:
- assistance in creating favorable conditions on the international trade market in the form of the development of stable, strong trade relations between participating countries (including assistance in creating favorable conditions in foreign economic policy);
- elimination of all discrimination, protection of interests, both national and common, of WTO member countries if they are infringed upon by other partner countries;
- assistance in the implementation of planned plans, the emergence of new trade and economic interests.
All countries that have joined the World Trade Organization undertake to comply with the terms of agreements, legal documents, which are combined under the single term “Multilateral Trade Agreement” (MTA). In other words, the organization provides a package of agreements (contracts), rules, and certain norms that govern all global trade.
Among the international organizations that received observer status: the World Bank, the UN and the IMF.
Is Russia a member of the WTO?
Negotiations on Russia's accession to the WTO lasted 18 years. The Russian Federation became a full member of the organization on August 22, 2012. The most difficult negotiations were with the United States and the European Union. In particular, for a long time it was not possible to resolve issues with Washington regarding access to the Russian market for American pork and the protection of intellectual property rights, with the EU - on export duties on timber, on agriculture, on the conditions for the industrial assembly of cars in the Russian Federation.
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