WTO What is WTO ？Goal&Functions,BenefitsStructureAgreements& Principles Principles Details of trade agreements

What is the WTO? The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations.  The World Trade Organization came into being in One of the youngest of the international organizations, the WTO is the successor to the General Agreement on Tariffs and Trade (GATT) established in the wake of the Second World War.

FACT FILE Location: Geneva, Switzerland Established: 1 January 1995 Created by: Uruguay Round negotiations ( ) Membership: 149 countries(on11 December 2005) Budget: 175 million Swiss francs for 2006 Secretariat staff: 635 Head: Pascal Lamy (Director-General) Location: Geneva, Switzerland Established: 1 January 1995 Created by: Uruguay Round negotiations ( ) Membership: 149 countries(on11 December 2005) Budget: 175 million Swiss francs for 2006 Secretariat staff: 635 Head: Pascal Lamy (Director-General)

Structure WTO Ministerial Conference General Council Goods Council Services Council Intellectual Property (TRIPS) Council specialized committees working groups working parties

The goal  help producers of goods and services, exporters, and importers conduct their business  improve the welfare of the peoples of the member countries

Functions:  The WTO’s objective is to help trade flow smoothly, freely, fairly and predictably Administering WTO trade agreements Forum for trade negotiations Handling trade disputes Monitoring national trade policies Technical assistance and training for developing countries Cooperation with other international organizations  The WTO’s objective is to help trade flow smoothly, freely, fairly and predictably Administering WTO trade agreements Forum for trade negotiations Handling trade disputes Monitoring national trade policies Technical assistance and training for developing countries Cooperation with other international organizations

10 benefits of the WTO trading system 1. The system helps promote peace 2. Disputes are handled constructively 3. Rules make life easier for all 4. Freer trade cuts the costs of living 5. It provides more choice of products and qualities 6. Trade raises incomes 7. Trade stimulates economic growth 8. The basic principles make life more efficient 9. Governments are shielded from lobbying 10. The system encourages good government 1. The system helps promote peace 2. Disputes are handled constructively 3. Rules make life easier for all 4. Freer trade cuts the costs of living 5. It provides more choice of products and qualities 6. Trade raises incomes 7. Trade stimulates economic growth 8. The basic principles make life more efficient 9. Governments are shielded from lobbying 10. The system encourages good governmentThe system helps promote peaceDisputes are handled constructivelyRules make life easier for allFreer trade cuts the costs of livingIt provides more choice of products and qualitiesTrade raises incomesTrade stimulates economic growthThe basic principles make life more efficientGovernments are shielded from lobbyingThe system encourages good governmentThe system helps promote peaceDisputes are handled constructivelyRules make life easier for allFreer trade cuts the costs of livingIt provides more choice of products and qualitiesTrade raises incomesTrade stimulates economic growthThe basic principles make life more efficientGovernments are shielded from lobbyingThe system encourages good government

The WTO agreements The WTO agreements are its heart, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The WTO agreements are its heart, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The WTO’s agreements are the result of negotiations between the members. The WTO’s agreements are the result of negotiations between the members. The current set were the outcome of the 1986–94 Uruguay Round negotiations which included a major revision of the original General Agreement on Tariffs and Trade (GATT). The current set were the outcome of the 1986–94 Uruguay Round negotiations which included a major revision of the original General Agreement on Tariffs and Trade (GATT).

 The complete set runs to some 30,000 pages consisting of about 30 agreements and separate commitments (called schedules) made by individual members in specific areas such as lower customs duty rates and services market-opening.

Principles of the trading system  Trade without discrimination 1. Most-favoured-nation (MFN): treating other people equally 1. Most-favoured-nation (MFN): treating other people equally 2. National treatment ： Treatingforeigners and locals equally 2. National treatment ： Treatingforeigners and locals equally  Freer trade: gradually, through negotiation  Predictability: through binding and transparency  Promoting fair competition  Encouraging development and economic reform

Annual publications  The WTO publishes three annual publications: WTO Annual Report The organization's annual report to its members and the public on institutional matters, including descriptions of its main activities and information on its budget and staff. WTO Annual Report The organization's annual report to its members and the public on institutional matters, including descriptions of its main activities and information on its budget and staff. WTO Annual Report WTO Annual Report World Trade Report The main WTO research publication on global trade policy, with special topics, analysis, and new developments. World Trade Report The main WTO research publication on global trade policy, with special topics, analysis, and new developments. World Trade Report World Trade Report International Trade Statistics The WTO's annual compilation of global trade statistics. International Trade Statistics The WTO's annual compilation of global trade statistics. International Trade Statistics International Trade Statistics

Trade Agreements Of WTO Goods: The General Agreement on Tariffs and Trade ( GATT) Services: General Agreement on Trade in Services(GATS) Intellectual Property: Trade-Related Aspects of Intellectual Property Rights(TRIPS)

Contribution of WTO Promote the International trade and economy Tariffs Cuts

Principle: Most-Favoured-Nation A B C D E WTO AB Trade Agreement C D E Share equally

Promise of Members Promise of Members  The government of membership make their trade policies transparent by following the laws of WTO.  The transparency of institutions is an important guarantee which makes the WTO works well.

membershipWTO lower tariffs more trade business and more profits Less economic independence and protection More competitions and responsibilities Sum-up

Entering the WTO: opportunities and threats Example: The Influence of China’s Accession to WTO on the Banking Sector

opportunities threats  Banks come into the international track  Competitive mechanisms will be brought to China  More potential customers for banks in China while the market open  Banking sector in China has equal chance to enter the foreign market  Banks in China may lose high-class customers  Losing excellent management staff  Facing the increased competition which is disadvantage for them  The supervision capability of Central Bank will be challenged

Membership :unfair Fact

Summarize  WTO is a organization!  WTO depends on agreements!  WTO is a entity filled with different relationships! Members VS WTO Member A VS Member B Members VS WTO Member A VS Member B Goal Functions Benefits Structure Members