Structure of the WTO

Status of the WTO

The WTO is an international organization. It has legal personality, and has been accorded by each of its
members such legal capacity as may be necessary for the exercise of its functions. It has also been accorded by
each of its members such privileges and immunities as are necessary for the exercise of its functions. As an
international organization, the WTO is fundamentally different from GATT, which did not have any formal
organizational structure. In other words, the organizational structure adopted by GATT did not have any legal
basis in GATT 1947. the lack of structural rule within GATT was due to the fact that GATT was not meant to
be a treaty establishing an international trade organization.
The official structure of the WTO is set out in article 4 of the WTO Agreement, which describes the status and
functions of the major authorities within the WTO. According to article 4, the highest authority within the
WTO is the Ministerial Conference, which is followed by the General Council. Under the General Council,
there are several councils and committees in charge of implementation of specific agreements. Committees are
also set up under each council to perform particular tasks of that council. The Secretariat is the administrative
organ of the WTO.
Ministerial Conference
The Ministerial Conference is the highest decision-making body of the WTO. It is composed of
representatives of all WTO members, who meet at least once every two years. The Ministerial Conference
carries out the functions of the WTO and takes actions necessary to this effect. It has the authority to take
decisions on all matters under any of the WTO agreements, if so requested by a member, in accordance with
the specific requirements for decision-making as set out in the WTO Agreement and other relevant agreements.
A special conference may be called at the request of a member. The WTO Agreement does not set out detailed
procedures for the calling of a special conference. These procedures can be decided by members of the
Ministerial Conference or the General Council.
General Council
The General Council consists of representatives of all WTO members. Unlike the Ministerial Conference,
the council is a permanent body and performs the functions of the Ministerial Conference when the Ministerial
Conference is not in session. Some of the council's powers are defined in the relevant agreement and the
council must follow procedures (if any) when performing this type of function. The council has power to make
procedural rules for its own operation and for committees to be set up under article IV(7) of the WTO
Agreement.
The General Council is not a rule-making body, although it may decide certain policy matters in the intervals
between the Ministerial Conference meetings. Obviously, any important policy decisions will have to be made
by the Ministerial Conference at its regular or special meetings. The General Council can, however, make
administrative or limited policy decisions for the implementation of agreements under the WTO Agreement.
The General Council is the second highest authority within the WTQ It has discretion in determining
whether to perform the functions of the Dispute Settlement Body (DSB) under the relevant law In other words,
it can act as a mechanism for settling disputes between WTO members. Similarly, the council may perform, if
it thinks fit, the functions of the Trade Policy Review Body (TPRB). These powers ensure that the relevant
agreements can be enforced when the relevant authority fails to perform its functions adequately In both
situations, however, it is not clear whether or not the General Council is bound by the procedural rules
formulated by the relevant bodies for the purpose of performing their respective responsibilities.
The General Council does not appear to have direct authority to interfere with the operation of the
organizations set up under the Plurilateral Trade Agreements for the purpose of enforcing these agreements.
These organizations, which are composed of countries who have ratified the relevant agreement, must operate
within the WTO framework, but the council does not have direct control over them. The committees or bodies
under the Plurilateral Trade Agreements are obliged to inform the council of the ties, which means that the
council has the power to monitor the operation of the functional committees set up under the Plurilateral Trade
Agreements.
Council for Trade in Goods
The Council for Trade in Goods is set up under articles ⅠV(5) and (6) of the WTO Agreement. It consists of
representatives of all members and is responsible for administering the operation of 14 agreements contained
in Annex 1A. All these agreements are concerned with trade in goods. The council is subject to the supervision
of the General Council. It has power to make its own procedural rules, subject to the approval of the General
Council. It can also set up subsidiary bodies when necessary
Council for Trade in Services
The Council for Trade in Services administers the operation of the General Agreement on Trade in Services
(GATS). It also consists of representatives of all members. Trade in services forms a particular category of
trading activities and is regulated by GATT for the first time in the Uruguay Round. Like the Council for Trade
in Goods, the Council for Trade in Services can make its own procedural rules, which must, however, be
approved by the General Council. The council can set up subsidiary bodies.
Council for Trade-Related Aspects of Intellectual Property Rights
The Council for TRIPs oversees the operation of the Agreement on Trade-Related Aspects of Intellectual
Property Rights (TRIPs Agreement). Membership is open to all WTO members. Intellectual property rights are
dealt with by GATT for the first time in the Uruguay Round. The council acts as the WTO's representative to
enforce the agreement. Its procedural rules must be approved by the General Council. Various functional
bodies may be established by the council for the purpose of enforcing the TRIPs Agreement.
Dispute Settlement Body
The Dispute Settlement Body (DSB) is an authority set up under article IV of the WTO Agreement and the
Understanding on Rules and Procedures Governing the Settlement of Disputes (referred to as the DSU). It is
responsible for enforcing the DSU. It may have its own chairperson and formulate procedural rules for the
purpose of implementing the DSU. It is theoretically subordinate to the General Council, but in fact has the
same membership.
The dispute settlement mechanism of the WTO is based on the DSU which provides means and procedures
for the settlement of certain disputes between members. Not all disputes arising from the WTO Agreement and
its annexes are subject to the procedures of the DSU. According to Appendix l to the DSU disputes arising
from the WTO Agreement, GATT 1994, GATS, the TRIPs Agreement, the DSU; and the Plurilateral Trade
Agreements are subject to the procedures of the DSU Disputes arising from Annex 3 are not subject to the
DSU (Annex 3 regulates the Trade Policy Review Mechanism, which may not be directly related to disputes
between WTO members).
The DSB provides general procedures or rules for settling disputes. In broad terms, the dispute settlement
procedures are: consultations, good offices, conciliation or mediation, and panel proceedings. Panel
proceedings are different from arbitration proceedings. The jurisdiction of a panel proceeding is compulsory, in
the sense that a respondent does not have the power or the right to block the proceeding once the DSB has
accepted an applicant’s request for setting up a panel. In comparison, an arbitration proceeding, in most cases,
will be based on an agreement of the parties, unless a dispute is referred to arbitration pursuant to articles 21(3)
or 22(6) of the DSU. The panel makes reports, containing findings and recommendations, to the DSB, which
will make a decision on whether to accept the panel report only when the parties do not indicate an intention to
appeal against the panel finding. Otherwise, the matter should go to the appeal process of the panel proceeding.
The DSU also sets out procedures for dealing with multiple complainants and the interests of third parties.
Basic rules for the operation of the panel, such as the power to collect information and the issue of
confidentiality, are set out in the DSU and the Rules of Conduct for the Understanding on Rules and
Procedures Governing the Settlement of Disputes.
The DSB is responsible for setting up the Appellate Body at the request of the disputants. The Appellate
Body has power to hear appeals against the panel's findings on points of law only. Procedures for appeal are
decided by the Appellate Body in consultation with the DSB and relevant authorities. Like the panel report, the
Appellate Body’s report does not have force until it is accepted by the DSB. The parties, however, do not have
the right to challenge the report, no matter what the DSB's decision is. The DSB is under time restraints, and
has to resolve a dispute within nine months (when the panel report is not challenged) or l2 months (when an
appeal is made to the Appellate Body). The DSB has power to supervise the implementation of the report of
the panel is only an Appellate Body, as the case may be.
The DSB supervises the operation of the dispute settlement mechanism, based on a range of ADR methods
such as negotiation, mediation, good offices, and panel proceedings. Panel proceedings differ from mediation
in that recommendations are made to the DSB, rather than to the parties, they differ from arbitration in that the
panel is only an adviser to the DSB and has no power to make a decision.
Secretariat
 The Secretariat of the WTO is set up under article VⅠof the WTO Agreement. The head of the Secretariat is
the Director-General appointed by the Ministerial Conference. The Director-General has the power to select
the staff members of the Secretariat and to define their functions and duties. The Secretariat's staff must be
neutral in discharging their duties and must consult the governments which are affected by their acts
The power, functions and duties of the Director-General are determined by the Ministerial Conference,
which can change the terms if necessary. The Secretariat administers the routine operation of the WTO: it is its
bureaucratic side.
Trade Policy Review Body
The Trade Policy Review Body (TPRB) is established under art ⅠV of the WTO Agreement and the
agreement entitled 'Trade Policy Review Mechanism'. It is a body in charge of periodic review of members'
trade policies and practice. It does not have any decision-making power. However, its reports on the members'
policies will be published and its findings may thus affect the decisions of the Ministerial Conference with
regard to particular matters. The function of the TPRB is to collect information, assess the trade policies of
members, publish reports and submit reports to the Ministerial Conference.
Various functional bodies and committees
In order to implement all the agreements of the WTO, many subsidiary bodies may be set up under the
supervision of the General Council. For example, article IV(7) establishes the Committee on Trade and
Development, the Committee on Balance-of-Payments Restrictions and the Committee on Budget, Finance and
Administration. More committees or bodies will be set up as necessary, with their functions and tasks
determined by the General Council.
Admission procedure
There are two ways to become a WTO member. When the WTO came into operation in 1995, only members
of GATT 1947 were eligible to become original members of the WTO Agreement. Article 5 of the Final Act
Embodying the Results of the Uruguay Round of Multilateral Trade Negotiations provides that before
accepting the WTO Agreement, countries which 'are not contracting parties to GATT 1947 must first have
concluded negotiations for their accession to GATT 1947 and become contracting parties thereto’. A member
of GATT 1947 could become a member of the WTO Agreement by accepting the WTO Agreement pursuant to
articles XI, XⅡand ⅪV. For any country which is not a member of GATT the admission procedure is
governed by article XⅡof the WTO Agreement, which states that any 'state or separate customs territory
possessing full autonomy in the conduct of its external commercial relations and of the other matters provided
for in this Agreement and the Multilateral Trade Agreements may accede to this Agreement, on terms to be
agreed between it and the WTO'. The WTO follows the GATT practice of consensus for admission of new
members. This means that a prospective member needs to negotiate with all existing members who have
expressed special interest in its application for admission. Interested countries may form an interest group to
exchange their views of the admission matter. The purpose of negotiation is to ensure that enough support will
be received when the application is put for a vote in the Ministerial Conference, which 'shall approve the
agreement on the terms of accession by a two-thirds majority of the Members of the WTO'.