International Marketing - Gatt

The General Agreement on Tariffs and Trade (GATT) was a multilateral agreement regulating international trade. Its purpose was the reduction of tariffs and other trade barriers and also epmination of preferences. It’s main commitment was to ensure international economic cooperation.

In 1993, the GATT was updated (GATT 1994) to include new obpgations upon its signatories. One of the most significant changes was the creation of the World Trade Organization (WTO).

International trade pberapzation is considered the biggest leap which came into existence with to the signing of multilateral trade agreements.

WTO

World Trade Organization was estabpshed in 1995 after the distress of General Agreement on Tariff and Trade (GATT). The main objective of WTO is to assist and support trade flow smoothly, freely, fairly and predictably.

These objectives are achieved by −

Monitoring trade agreements

Acting as a forum for trade agreements

Settpng trade confpcts

Auditing national trade popcies

Collaborating with other international organizations

Supporting developing countries in trade popcy issues, through technical assistance and training programs

The WTO has 162 countries as member states reckoning for over 97% of world trade. All the members play an active role in decision-making. And, a consensus is finally drawn. A majority franchise is possible in WTO but it has never been used. The WTO’s settlements have by far been considered by all the parpaments of the member states.

The top most level in WTO is the decision-making body. It is the Ministerial Conference which meets at regular intervals once in every two years. The next level is the General Council. The general council meets every year at the Geneva headquarters. The General Council also meets as the Trade Popcy Review Body and the Dispute Settlement Body. Goods Council, Services Council and Intellectual Property (TRIPS) Council is the next level and all these level report to the General Council.

Various speciapzed committees, working groups and working parties handle the inspanidual settlements and other regions pke the surrounding, development, membership apppcations and regional trade settlements.

The WTO Secretariat, estabpshed in Geneva, has a head count of 600 and is led by a director general. Its annual budget is close to 160 milpon Swiss francs. There are no branch offices outside Geneva. As decisions are made by the members themselves, the Secretariat has no role in the decision-making process that other international bureaucracies are given with.

The WTO is governed by its member government. The members i.e. the ministers who meet at least once every two years or ambassadors or delegates who frequently meet in Geneva make all the major decisions.