C-1-3- The WTO, the World Trade Organization


The World Trade Organization (WTO) is an international organization. WTO was created after the Marrakesh Agreement of April 15, 1994, which was signed by 125 ministers from present and concerned countries, concluding the Uruguay round. Its role is to handle all issues within the scope of international transactions, as stipulated in Article II of the agreement.

The role of the WTO is to support "the conduct of the trade relations."

It was created after the agreement on customs tariffs and the GATT (General Agreement on Tariffs on Trade). It was created on January 1, 1995. The WTO, an international organization, differs from the GATT, which does not possess an institutional structure, The WTO, an international organization, differs from the GATT, which does not possess an institutional structure,

The WTO includes the ORD structure, a Dispute Settlement Body with an appeals court.

The WTO is guarantor of trade agreements, therefore akin to the GATT and TRIPS (trade related aspects of Intellectual Property right).

The scope of coverage includes goods, services and intellectual property. The management of each type of coverage is carried out by a specialist council, directed by the WTO General Council.

1-3-1- WTO and customs duties

The WTO's objective is to pursue a reduction or a suppression of customs duties between all participants, based on Uruguay's multilateral negotiations from October, 1986.

1-3-2- WTO and quotas

One of the main foundations of the WTO is to avoid all import and export barriers. A quantitative limit, for example, the annual contingents, or quotas, is the barrier most often used by industrialized countries to protect industries based on import.

1-3-3- WTO and anti-dumping duty

Dumping is the unfair trade practice of companies selling their goods at a price lower than market value. Such practice is currently banned by anti-dumping agreements. The WTO only allows governments to intervene. Article 6 of the GATT offers measures against dumping in accordance with the anti-dumping agreement of the WTO.

1-3-4- TRIPS (Trade Related aspects of Intellectual Property Right) and the WTO

TRIPS (trade related aspects of Intellectual Property right) are intellectual property rights implemented by the WTO. They were created on January 1, 1995.

It is presently a comprehensive, multilateral agreement with respect to intellectual property, contrary to the GATT, which has never taken into account this aspect of international trade. Currently, all countries must take into account the specifics of intellectual property. They range from patent filing, to the filing of a trademark on designs and models.

1-3-5- The WTO and export subsidies

The WTO does not allow subsidies for the exportation of industrial products. It also prohibits subsidies that make mandatory a requirement for recipients to meet certain export targets.

The abuse of such subsidies can be resolved through one of the WTO's missions, an accelerated dispute settlement procedure.

The WTO can also take action at the request of a complaining country in cases where subsidies may have the effect of penalizing importers. In such cases, the WTO may request the payment of countervailing duties.