1. ESTABLISHING THE RULE OF LAW THE UN AND THE WTO:

2. THE UN AND THE WTO The UN seeks to establish the rule of law in various fields of international activity; the GATT/WTO in the field of international trade relations

3. Kofi Annan Our predecessors […] wisely chose a course of openness and cooperation. They established the United Nations, the Bretton Woods institutions, the General Agreement on Tariffs and Trade and a host of other organizations whose job it was to make the overall system work. […] We benefit from that legacy still.

4. THE DREAM..... …..was to establish a peaceful liberal world order. Limited conflict Limited restriction on all forms of exchange between nations

5. HARRY HAWKINS DIRECTOR OF THE OFFICE OF ECONOMIC AFFAIRS OF THE U.S. STATE DEPARTMENT IN 1944 Trade conflict breeds noncooperation, suspicion, bitterness. Nations which are economic enemies are not likely to remain political friends for long.

6. Interdependence Montesquieu: “The natural effect of commerce is to lead to peace.

7. Two nations that trade together become mutually dependent: if one has an interest in buying, the other has an interest in selling; and all unions are based on mutual needs.”

8. Bretton Woods Conference July 1944 International Monetary Fund International Monetary Fund (IMF) World Bank World Bank --International Bank for Reconstruction and Development [IBRD] ….. assigned the task of regulating monetary and banking issues in the post-WWII era.

9. Agreement on the GATT was reached in 1947 WTO 1995 Uruguay Round of Trade Negotiations

10. RESULTS average tariff rates on industrial products in developed countries have decreased from 40 percent in 1940s to a mere 4.7 percent after the establishment of the WTO. The volume of world trade has increased from 22,700 million dollars in 1938 to 11,783 billion in 2006

11. the ratio of merchandise exports to world GDP has risen four-fold from 5.5 percent in 1950 to 20.5 percent in 2005 in terms of their trade relations, countries are on average four times more interdependent in 2005 than they were in 1950.

12. TABLE 1 Main International Trade Statistics for Turkey

13. WTO FUNCTIONS executive function of the organization the administration of multilateral trade agreements multilateral trade agreements monitoring Member’s trade policies through such mechanisms as the Trade Policy Review Mechanism Russia’s accession to WTO

14. Legislative function ‘forum for negotiations’ in the field of international trade trade liberalization through “trade negotiation rounds” 8 different Rounds have been finalized the Uruguay Round—most comprehensive Current round: the Doha Development Agenda (DDA), started in 2001 Doha Development Agenda negotiation is the driving force of the multilateral trading system.

15. Judicial function --one of the most important strengths of the WTO system due to compulsory jurisdiction Key judiciary bodies: the Dispute Settlement Panel and the Appellate Body (AB) Dispute Settlement Panel

16. The Panels and the AB function are ‘very much like a court of international trade’ Their decisions are binding and there is a possibility of imposing sanctions if they are not observed.

17. WTO ‘the most important international tribunal’

18. WTO Video