MULTILATERAL: I. WTO Flashcards
only formal and international organization, composed of member governments, dealing with the rules of trade between nations
World Trade Organization
Main approach that WTO members have adopted to promote economic growth and development
trade liberalization
What are the two Bretton Woods Institutions?
World Bank (WB)
International Monetary Fund (IMF)
The history of the WTO begins with the signing of the ____________________in 1947 which provided the rules for the bulk of world trade and presided over periods that saw some of the highest growth rates in international trade.
General Agreement on Tariffs and Trade (GATT)
Failure of the creation of the _________________, the GATT served as an interim organization and took the functions originally intended for the organization.
International Trade Organization
T/F
The GATT trade rounds focused on reducing tariffs. The following GATT trade rounds covered not only tariffs, but also other trade barriers.
TRUE
The Uruguay Round (UR), was the most comprehensive round (among the 8 rounds) that eventually led to the creation of the _________________ and the current set of _____________.
WTO
WTO Agreements
When did the WTO enter into force?
instituted on January 1, 1995
What is the WTO present membership?
164 countries with the newest members being Liberia and Afghanistan
What are the main objectives of WTO?
- to raise living standards
- to ensure full employment
- to ensure a large and steadily growing volume of real and effective demand
- to expand the production of and TIG and services with the objective of sustainable development
- to make positive efforts to ensure that countries secure a share in the growth in international trade commensurate with economic development
what are the functions of the WTO?
- to facilitate the implementation, administration and operation, and further the objectives of the WTO Agreements through its bodies and committees;
- to serve as a forum for trade negotiations;
- to serve as a forum for Members to settle their disputes;
- to review Members’ trade policies;
- to coordinate with relevant international organizations in global economic policymaking, including the WB and the IMF; and
- to provide technical assistance and capacity building for developing and least- developed countries.
what are the fundamental principles of the WTO?
- Non-discrimination
- More open trade
- Transparency and predictability
- Special and differential treatment for less developed members
members shall not discriminate between their trading partners (MFN principle); or between national and foreign like products, services, or nationals (national treatment principle).
non-discrimination
involves efforts in reducing or eliminating obstacles to trade.
more open trade
traders and Members need to know trade rules around the world (transparency) and that trade measures will not be raised/introduced arbitrarily (predictability)
transparency and predictability
developing and least developing Members face particular challenges when dealing with trade liberalization; therefore, they are provided greater flexibility, given more time to adjust to the rules, and granted other special rights.
Special and differential treatment for less developed Members
who is the highest decision body of the WTO
Ministerial Conference (MC)
Ministerial Conference (MC) shall meet _____________ to review the ongoing work, provide political guidance and direction to that work, and set the agenda for further work as necessary
a. once a year
b. twice a year
c. once every two years
d. twice every two years
c. once every two years
The Ministerial Conference is compose of the ____________of all the Members.
a. policy ministers
b. trade ministers
c. policy ambassadors
d. trade ambassadors
b. trade ministers
The ____________ is compose of representatives from all members: they are usually Members’ Ambassadors or Permanent Representatives based in Geneva.
a. Ministerial Conference
b. General Council
c. Councils
d. Subsidiary Bodies
b. General Council
T/F
The GC has authority over the Trade Negotiations Committee (TNC), which is in-charge of the negotiations mandated by the Doha Development Agenda (DDA).
True
the General Council also meets as ______________ and _______________
- Dispute Settlement Body (DSB)
- Trade Policy Review Body (TPRB)
establishes panels of independent experts to resolve the disputes, adopts the rulings of the panels, and oversees the implementation of those rulings
General Council as Dispute Settlement Body (DSB)
administers trade policy reviews as mandated by the Trade Policy Review Mechanism of the WTO
General Council as Trade Policy Review Body (TPRB)
Three more councils, each handling a different area of trade, report to the General Council:
- The Council for Trade in Goods (Goods Council)
- Council for Trade in Services (Services Council)
- Council for Trade-Related Aspects of Intellectual Property Rights (TRIPS Council)
oversees all the issues related to the WTO Agreement on Trade in Goods. It supervises the work of various committees responsible for specific matters (e.g., agriculture, market access, customs validations, rules of origin, sanitary and phytosanitary measures).
The Council for Trade in Goods (Goods Council)
oversees all issues related to the General Agreement on Trade in Services (GATS)
Council for Trade in Services (Services Council)
oversees all issues related to the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement
Council for Trade-Related Aspects of Intellectual Property Rights (TRIPS Council)
Several other subsidiary bodies which focus on horizontal issues also report directly to the GC. Usually called Committees, Working Groups or Working Parties, these are?
- Committee on Trade and Development (CTD);
- Committee on Trade and Environment (CTE);
- Committee on Regional Trade Agreements (CRTA);
- Committee on Balance-of-Payment Restrictions (BOP Committee);
- Committee on Budget, Finance and Administration (CBFA);
- Working Parties on Accession;
- Working Group on Trade, Debt and Finance; and
- Working Group on Trade and Technology Transfer.
How are decisions made at the WTO?
through consensus
In decision making in the WTO, where consensus is not possible, the WTO Agreement allows the ____________.
voting
what ways does the WTO operate?
- As a set of multilaterally agreed rules
- As a forum for trade negotiations
- As an international court where governments can resolve disputes with other WTO members
T/F
Trade liberalization is promoted through the conduct of Multilateral Trade Negotiations, referred to as “Market Integration”.
False
“Rounds”
The UR was the eighth Round of Multilateral Trade Negotiations conducted within the framework the GATT, spanning from 1986 to 1994 and including _______ countries as ____________.
123
“contracting parties.”
What are the 3 key results areas of the Uruguay Round?
a. market access
b. rules and disciplines
c. institutional topics
result area of the Uruguay Round that includes negotiations in industrial tariffs, agriculture, textiles and clothing, and services.
market access
result area of the Uruguay round where negotiating topics ranged from trade measures against unfair trade (such as anti-dumping and countervailing measures), trade measures to protect a country against import surges and a deterioration of its balance-of-payments (e.g., safeguards), trade restrictions, customs valuation, subsidies, intellectual property rights, and investment measures
rules and disciplines
result area of the Uruguay Round that includes dispute settlement and ways by which to improve the conduct of the MTS, e.g., trade policy review
institutional topics
what are the emergency measures sanctioned by the WTO?
a. trade remedy measures
b. balanced-of payments measures
c. renegotiation of tariff concessions
what are the trade remedy measures?
anti-dumping
countervailing
safeguard measures
Restrictions can come in the form of price based measures (import surcharges, import requirements) over the bound duty rates of a member country, subject to the Understanding on the Provisions of GATT 1994.
Balance-of-Payments Measures
T/F
Consultations are required four (4) months from the adoption of a balance-of-payments measure.
True
WTO allows a renegotiation of bound tariffs subject to the requirement that a return to higher tariffs be compensated for.
Renegotiation of Tariff Concessions
