Role of World Trade Organization in International Marketing

ROLE OF WORLD TRADE
ORGANIZATION IN
INTERNATIONAL MARKETING
Presented To: Manish Rai Presented To: Dr Monika Dubey

17MUCXX622 Faculty IM RTU MBA KOTA
MBA IVth SEM RTU KOTA
CONTENTS…
 To have an understanding of WTO and the principles and

functions of WTO
 To study the structure of WTO
 To study the role of WTO
 To study the relevance of WTO
 To study the provision of
TRIPs, TRIMs of WTO
 To have a knowledge of different agreements done under WTO
guidance
 To study role of WTO in developing countries
 Conclusion
What is the “The World Trade Organization is
‘member-driven’, with decisions
World Trade taken by General agreement among
Organization? all member of governments and it
deals with the rules of trade
between nations at a global or near-
global level. But there is more to it
than that.”
THEY DEAL WITH: AGRICULTURE, TEXTILES AND
CLOTHING, BANKING, TELECOMMUNICATIONS,
GOVERNMENT PURCHASES, INDUSTRIAL STANDARDS
AND PRODUCT SAFETY, FOOD SANITATION
REGULATIONS, INTELLECTUAL PROPERTY, AND MUCH
MORE.
THE WTO AGREEMENTS ARE LENGTHY AND COMPLEX
BECAUSE THEY ARE LEGAL TEXTS COVERING A WIDE
RANGE OF ACTIVITIES.
 The World Trade Organization (WTO)
came into being on January 1st
1995.
 It was the outcome of the lengthy
(1986-1994) Uruguay round of GATT
negotiations. The WTO was
WTO: The essentially an extension of GATT.
Beginnings  It extended GATT in two major ways.

First GATT became only one of the
/ History three major trade agreements that
went into the WTO (the other two
being the General Agreement on
Trade in Services (GATS) and the
agreements on Trade Related
Aspects of Intellectual Property
Rights (TRIPS)).
FACT FILE OF WTO
Location Established : Geneva, Switzerland 1 January
1995
Created by : Uruguay Round negotiations (1986-94)

164 countries on 23 July 2017
Membership Budget : 13,73,23,92,178.45 INR for 2018
Secretariat staff Head : Roberto Azevêdo(Director-

General)
 164 members
Current  Observers(23)
WTO  Liberia
became the
163rd member on 14 July
member 2016, and Afghanistan
s became the 164th
member on 29 July 2016.
 To arrange the implementation,
administration & operations of multilateral
(involving three or more participants) &
Plurilateral trade agreements (power which
shared between different countries)
Why  To arrange the forum for deliberations for

the member nations in regard to their
WTO? multilateral trade relations in issues deal
with under the agreements
 To provide a framework for implementing of

the results arising out of the deliberations
(long and care full
agreements/consideration) which taken
place at ministerial conference level
CONTI...
 To provide a framework for implementing of the

results arising out of The deliberations (long and
care full agreements/consideration) which taken
place at ministerial conference level
 To manage the created understanding on rules and
procedure governing the settlement of disputes.
 To manage effectively and efficiency the trade policy review

mechanism (TRIM)
 To create more together relationship with all nations in

respect of global economic policy-making, it would cooperate
with the IMF and the world bank & its affiliated
Organizations.
CONTI...
• To manage effectively and efficiency the trade

policy review mechanism (TRIM)
• To create more together relationship with all

nations in respect of global economic policy-
making, it would cooperate with the IMF and the
world bank & its affiliated Organisations.
FUNCTIONS OF WTO
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
PRINCIPLES OF WTO
The basic principles of the WTO (according to the WTO):
Trade Without Discrimination

Most-favoured-nation (MFN): treating other people equally Under the
WTO agreements, countries cannot normally discriminate between their
trading partners. Grant someone a special favour (such as a lower
customs duty rate for one of their products) and you have to do the
same for all other WTO members.
National treatment: Treating foreigners and locals equally: Imported

and locally-produced goods should be treated equally — at least after
the foreign goods have entered the market. The same should apply to
foreign and domestic services, and to foreign and local trademarks,
copyrights and patents.
CONTI…
Freer trade: gradually, through negotiation: Lowering trade barriers
is one of the most obvious means of encouraging trade. The barriers
concerned include customs duties (or tariffs) and measures such as
import bans or quotas that restrict quantities selectively.
Predictability: Through binding and transparency

Sometimes, promising not to raise a trade barrier can be as
important as lowering one, because the promise gives businesses a
clearer view of their future opportunities. With stability and
predictability, investment is encouraged, jobs are created and
consumers can fully enjoy the benefits of competition — choice and
lower prices. The multilateral trading system is an attempt by
governments to make the business environment stable and
predictable.
CONTI...
Promoting fair competition
The WTO is sometimes described as a “free trade” institution, but
that is not entirely accurate. The system does allow tariffs and, in
limited circumstances, other forms of protection. More
accurately, it is a system of rules dedicated to open, fair and
undistorted competition.
Encouraging development and economic reform.
The WTO system contributes to development. On the other hand,
developing countries need flexibility in the time they take to
implement the system’s agreements. And the agreements
themselves inherit the earlier provisions of GATT that allow for
special assistance and trade concessions for developing
countries.
STRUCTURES OF WTO
Ministerial Conference
Dispute Trade Policy

Settlement General
Review
Body Council
Body
The
Intellectual
Committee on Goods Services
Property
T&D and T&E Council Council
Council
ROLE OF WTO
• The main goal of WTO is to help the trading industry to
become smooth, fair, free and predictable. It was organized
to become the administrator of multilateral trade and
business
agreements between its member
nations. negotiations
occurring It supports all
for latest agreements for trade. WTO
also tries to resolve trade disputes between member nations.
• Multi-lateral agreements are always made between several
countries in the past. Because of this, such agreements become
very difficult to negotiate but are so powerful and influential
once all the parties agree and sign the multi-lateral agreement.
WTO acts as the administrator. If there are unfair trade
practices or dumping and there is complain filed, the staff of
WTO are expected to investigate and check if there are
violations based on the multi-lateral agreements.
TRIMs, AND TRIPS OF
WTO
1. Agreement on Trade-Related Investment Measures (TRIMs)
TRIMs refers to certain conditions or restrictions imposed by a
governments in respect of foreign investment in the country
The agreement on TRIMs provides that no contracting party
shall apply any TRIM which is inconsistent with the WTO
Articles.
2. Agreement on Trade-Related Aspects of Intellectual Property
Rights (TRIPS)
The Agreement on Trade Related Aspects of Intellectual
Property Rights (TRIPS) is an international agreement
administered by the World Trade Organization (WTO) that sets
down minimum standards for many forms of intellectual
property (IP) regulation as applied to nationals of other WTO
Members
CONCLUSION
 It is the place where the member country comes and talks
together and shares their grievance in order to resolve their
problem related to International trade.
 The countries make their decisions through various councils

and committees, whose membership consists of all WTO
members.
 The system helps promote peace, by handling Dispute of

member countries. It provides free trade which cuts the costs
of living and provides more choice of products and qualities
and stimulates economic growth.
 The WTO agreements cover goods, services and intellectual

property. They spell out the principles of liberalization, and the
permitted exceptions.
CONTI…
 They include individual countries’ commitments to lower

customs tariffs and other trade barriers, and to open and keep
open services markets. They set procedures for settling disputes.
 They prescribe special treatment for developing countries.
 They require governments to make their trade policies

transparent
 WTO deals with the special needs of developing countries as two

thirds of the WTO members are developing countries and they
play an increasingly important and active role in the WTO
because of their numbers, because they are becoming more
important in the global economy, and because they increasingly
look to trade as a vital tool in their development efforts.
THANK YOU

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ROLE OF WORLD TRADE

Presented To: Manish Rai Presented To: Dr Monika Dubey

 To have an understanding of WTO and the principles and

Beginnings  It extended GATT in two major ways.

Created by : Uruguay Round negotiations (1986-94)

Membership Budget : 13,73,23,92,178.45 INR for 2018

Secretariat staff Head : Roberto Azevêdo(Director-

Why  To arrange the forum for deliberations for

 To provide a framework for implementing of

 To provide a framework for implementing of the

 To manage effectively and efficiency the trade policy review

 To create more together relationship with all nations in

• To manage effectively and efficiency the trade

• To create more together relationship with all

Trade Without Discrimination

National treatment: Treating foreigners and locals equally: Imported

Predictability: Through binding and transparency

Dispute Trade Policy

 The countries make their decisions through various councils

 The system helps promote peace, by handling Dispute of

 The WTO agreements cover goods, services and intellectual

 They include individual countries’ commitments to lower

 They prescribe special treatment for developing countries.

 They require governments to make their trade policies

 WTO deals with the special needs of developing countries as two

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