WTO

Question 1

Origins

Answer 1

Bretton Woods Conference 1944: failed to establish ITO
1947: GATT
1947 - 1995: frequent global negotations on tariffs (took increasingly longer and more bilateral agreements)
1995: GATT -> WTO

Question 2

Structure of WTO (4)

Answer 2

1. General Council
2. Ministerial Conference
3. Dispute Settlement Body
4. working groups, committees and parties

Question 3

What is the WTO General Council

Answer 3

-plenary body of trade officials

Question 4

What is the Ministerial Conference

Answer 4

• highest plenary decision-making organ
• trade ministers
• annual meetings

Question 5

What is decision-making based on

Answer 5

consensus

Question 6

WTO importance

Answer 6

• most of world trade involves WTO
• rule-setting function
• transparency (public list)
• dispute settlement procedure

Question 7

WTO objectives:

Answer 7

-decrease trade limitations
-benefit all partners (specialization, large-scale production)
hence should be self-interest = compliance?

Question 8

3 WTO principals

Answer 8

1. bound tariffs -> legally binding, transparent, tariff ceilings, amended through negotiations (categorisation of goods often arbitrary or influenced by powerful states)
2. most-favoured nation -> best with 1 country = best with all (most violated WTO principal)
3. national treatment -> no discrimination

Question 9

WTO principals exceptions

Answer 9

• protect essential national security interests
• protect human, animal or plant life
• regional trade agreements
• balance of payments
• temporary waivers

Question 10

Non-compliance reasons

Answer 10

1. political opportunism - domestic industry protection in democracies
2. free-riding through unilateral non-tariff barriers (creating non-tariff barriers e.g. bans)

Question 11

Dispute Settlement process

Answer 11

1. bilateral resolution attempt
2. WTO complaint by party harmed
3. panel of 3 experts -> report
4. parties may go to appelate body to appeal
5. 2nd appeal possible: DSB approves/rejects report
6. economic sanctions if guilty

-enforcement method by relying on others to complain?

Question 12

Dispute Settlement Body (DSB) Crisis

Answer 12

Missing judges

Question 13

WTO Criticisms

Answer 13

• contributes to world inequality
• excludes goods of the Global South
• fails to address agricultural subsidies
• ignores environment and labour issues

Question 14

Is the WTO intergovernmental or supranational

Answer 14

Purely intergovernmental