The World Trade Organization (WTO)

The World Trade Organization (WTO) is the only global international organization dealing with rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading countries and ratified in parliaments. The goal is to help producers of goods and services, exporters, and importers conduct business.

Based in Geneva, the WTO was set up in 1995, replacing another international organisation known as the General Agreement on Tariffs and Trade (Gatt). Gatt was formed in 1948 when 23 nations signed an agreement to reduce customs tariffs.

Location: Geneva
Members: 149 nations(November 2005)
Budget: 125 million US $ dollars
Staff: 601
Key players: US, EU, Japan
Established: 1 January 95
Created by: Uruguay Round negotiations 1986-94
Membership: 149 nations (on 11 December 2005)
Budget: 175 million Swiss francs for 2006
Secretariat staff: 635
Head: Pascal Lamy (Director-General)
Functions:
• 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

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

In 2005 Saudi Arabia had an application to join the WTO accepted. Yet it must open its long protected economy
The World Trade Organization (WTO) has approved Saudi Arabia's application for membership after 12 years of talks.
The world's largest oil exporter will become the 149th member of the WTO in 30 days' time. The country will need to adopt the entire body of WTO legislation, a process that involves liberalisation of currently restricted sectors.Saudi Arabia must open its long protected economy to the outside world, including fellow WTO member Israel. The accession will enhance the business environment in Saudi Arabia by adding more transparency and predictability. Saudi Arabia's participation in the Arab League boycott of Israel will thus need to be reviewed.

In 2005 the Grenadian Prime Minister expressed his disappointment at the World Trade Organisation decision to declare a new tarrif by the EU on imported bananas. The WTO backed a claim brought by Latin American countries, who argued the EU tariff would have a "devastating effect" on their economies and exports. Under a EU system set for launch in January 2006, imports faced a tariff of 230 euros ($280.30) a tonne.

In 2006 Russian President Vladimir Putin voiced optimism that negotiations with the World Trade Organization (WTO) over membership. Mr Putin said Russia could sign the protocol before the G8 meeting of the world's eight most industrialized nations in St Petersburg in July. Russia's attempts at WTO membership have stalled, amid accusations that it is being judged too harshly by the USA. The USA is the only member of the WTO not to have approve Russia's entry. Yet Russia and the USA failed to agree terms for Russia joining the World Trade Organization. Russian President Vladimir Putin had hoped for a deal that he could announce after a bilateral meeting with President Bush earlier in the day. Mr Bush said there had been progress, but still no deal.
In 2006 Indian Commerce and Industry Minister Kamal Nath threatened to walk out of World Trade Organisation talks early as members failed to reach agreement. Mr Nath said he saw "no movement" in the talks and that his staying on would make "no difference". India says it will seek a series of bilateral trade accords after talks to save a global trade treaty collapsed. Trade minister Kamal Nath said the country was already looking at deals with the European Union and Japan. He was speaking after attending talks in Geneva which failed to save the World Trade Organisation treaty. The talks had aimed to resolve differences over cuts in farm subsidies by rich countries and import tariff reductions by poor nations. The EU accused the USA of inflexibility. The Americans said they preferred no deal at all to one that did not provide them with new business.

In 2006 Vietnam has moved closer to joining the World Trade Organization (WTO) after talks with US trade officials ended with a trade deal paving the way ahead.
VietnamNet website quoted a source as saying "Vietnam and the US reached an agreement on Vietnam joining the WTO."

Director-general: Pascal Lamy
Pascal Lamy: WTO head wants to cut trade barriers
Pascal Lamy, a Frenchman and a former EU trade commissioner, became WTO head in September 2005. Discussions on this - the so-called Doha round of talks - began in 2001. But a breakthrough proved elusive, with rows emerging among the WTO's key players over agricultural tariffs and subsidies in Cancun, Mexico in 2003. A deal was meant to be finalised at trade talks in Hong Kong in December 2005, but this now looks unlikely. Mr Lamy's predecessor, Thailand's Supachai Panitchpakdi, was the first WTO director-general to come from a developing country. The WTO has been the focal point of criticism from people who are worried about the effects of free trade and economic globalisation.

Opposition to the WTO centres on four points:

1) WTO is too powerful, in that it can in effect compel sovereign states to change laws and regulations by declaring these to be in violation of free trade rules.

2) WTO is run by the rich for the rich and does not give significant weight to the problems of developing countries. For example, rich countries have not fully opened their markets to products from poor nations.

3) WTO is indifferent to the impact of free trade on workers' rights, child labour, the environment and health.

4) WTO lacks democratic accountability, in its hearings on trade disputes are closed to the public and the media. Supporters of the WTO argue it is democratic, in its rules were written by its member states, many of whom are democracies, who also select its leadership. They also argue that, by expanding world trade, the WTO in fact helps to raise living standards around the world.

Albania • Angola • Antigua and Barbuda • Argentina • Armenia • Australia • Bahrain • Bangladesh • Barbados • Belize • Benin • Bolivia • Botswana • Brazil • Brunei • Bulgaria • Burkina Faso • Burundi • Cambodia • Cameroon • Canada • Central African Republic • Chad • Chile • People's Republic of China • Colombia • Congo • Costa Rica • Côte d'Ivoire • Croatia • Cuba • Democratic Republic of the Congo • Djibouti • Dominica • Dominican Republic • Ecuador • Egypt • El Salvador • European Communities • Fiji • Gabon • The Gambia • Georgia • Ghana • Grenada • Guatemala • Guinea • Guinea Bissau • Guyana • Haiti • Honduras • Hong Kong• Iceland • India • Indonesia • Israel • Jamaica • Japan • Jordan • Kenya • Kuwait • Kyrgyzstan • Lesotho • Liechtenstein • Macau • Madagascar • Malawi • Malaysia • Maldives • Mali • Malta • Mauritania • Mauritius • Mexico • Moldova • Mongolia • Morocco • Mozambique • Myanmar • Namibia • Nepal • New Zealand • Nicaragua • Niger • Nigeria • Norway • Oman • Pakistan • Panama • Papua New Guinea • Paraguay • Peru • Philippines • Qatar • Republic of Macedonia • Romania • Rwanda • Saint Kitts and Nevis • Saint Lucia • Saint Vincent & the Grenadines • Saudi Arabia • Senegal • Sierra Leone • Singapore • Solomon Islands • South Africa • South Korea • Sri Lanka • Suriname • Swaziland • Switzerland • Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu • Tanzania • Thailand • Togo • Trinidad and Tobago • Tunisia • Turkey • Uganda • United Arab Emirates • USA• Uruguay • Venezuela • Zambia • Zimbabwe