current Director-General of the World Trade Organization Roberto Azevêdo current Director-General of the World Trade Organization

Officially commenced on 1 January 1995 under the Marrakesh Agreement, replacing the General Agreement on Tariffs and Trade (GATT), which commenced in 1948 An organization that intends to supervise and liberalize international trade HQ – Geneva, Switzerland Official language – English, French, Spanish

Evolution of WTO

WTO Structure

Important Terms Before Understanding Functions of WTO All countries want to protect domestic industries and prevent entry of foreign players.  So, they create two types of barriers to International trade viz.

Tariff Barriers → When Govt Tariff Barriers → When Govt. puts heavy import duty / custom duty on Foreign Products which protects domestic players from competition from foreign players Non Tariff barriers → When Domestic players are given subsidies / preference over the foreign players by Govt. for Ex.   When Govt. is buying some Phones/ Xerox Machines, in the tender it’ll mention that only Domestic companies are allowed. Making polices in a way that it’s hard for foreign player to start factory / introduce his product in India

Key Functions of WTO Reduce above stated barriers to international trade – both tariff barriers and non-tariff barriers & Get the members enter into multilateral trade agreements. Provide forum for negotiation & dispute settlement for members, if agreements are violated. Ensure the developing countries benefit from world trade, especially the least Developed countries Cooperate with UN, World and IMF for a global economic policy that improves livelihood, protects environment and promotes sustainable Development

Safety Protection Agreements with regards to Tariff & Non-Tariff Barriers Non-food productsTechnical Barriers to Trade Agreement (TBT) → Based on Quality & Durability Food ProductsSanitary and Phytosanitary Measures Agreement (SPS) → Based on Hygiene & Quality

WTO Agreements

IPR Trade related intellectual property rights (TRIPS) – Protects seven categories of IPR viz. Copyrights Patents Trademarks Geographical indicators Industrial designs Integrated circuit layout-designs Trade secret

Dispute settlement To enforce the trade agreements and commitments made by individual member country Once a complaint is filed,  first, the parties are allowed to sort the issue through mutual consultation If that fails, formal adjudication by an expert panel

Policy Review Periodically, WTO carries out audit/inspection/review of the trade policy of member states and gives them constructive feedback

Plurilateral Agreements Not signed by all countries – Civil aircrafts, Government procurement, Dairy Products, Bovine meat

Trade facilitation agreement (TFA) Member nations to publish a detailed list of procedure for import-export, fees, inspection rules, penalties etc. Minimize the proof documents and clearance required for customs clearance Provide electronic payment of fees, duties, taxes → Reduce red tapes and bureaucratic hassles in customs clearance Setup a single window mechanism to help trader submits all documents at a single point- preferably online. Provide faster customs clearance to perishable goods (Fruits, veggies, flowers). Give Advance ruling, as and where applicable. Trader should be notified immediately, if goods are detained at customs. LDC will get financial and technical help to comply with above rules.