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What's wrong with the WTO?
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General Agreement on Tariffs and Trade (GATT)(Part of Annex 1A: Multilateral Agreements On Trade In Goods) "It all began with trade in goods. From 1947 to 1994, GATT was the forum for negotiating lower customs duty rates and other trade barriers; the text of General Agreement spelt out important rules, particularly non-discrimination." "Since 1995, the updated GATT has become the WTO's umbrella agreement for trade in goods. It has annexes dealing with specific sectors such as agriculture and textiles, and with specific issues such as state trading, product standards, subsidies and actions taken against dumping." —"The WTO in brief: The WTO agreements." WTO Web site The WTO Web site makes the full GATT treaty available in two parts:
General Agreement on Trade in Services (GATS)(Annex 1B to Agreement Establishing the World Trade Organization) "Banks, insurance firms, telecommunications companies, tour operators, hotel chains and transport companies looking to do business abroad can now enjoy the same principles of freer and fairer trade that originally only applied to trade in goods." "These principles appear in the new General Agreement on Trade in Services (GATS). WTO members have also made individual commitments under GATS stating which of their services sectors they are willing to open to foreign competition, and how open those markets are." —"The WTO in brief: The WTO agreements." WTO Web site
Agreement on Technical Barriers to Trade (TBT)(Part of Annex 1A: Multilateral Agreements On Trade In Goods) "Technical regulations and industrial standards are important, but they vary from country to country. Having too many different standards makes life difficult for producers and exporters. If the standards are set arbitrarily, they could be used as an excuse for protectionism. Standards can become obstacles to trade." "The Agreement on Technical Barriers to Trade tries to ensure that regulations, standards, testing and certification procedures do not create unnecessary obstacles. The WTO's version is a modification of the code negotiated in the 1973-79 Tokyo Round." "The agreement recognizes countries' rights to adopt the standards they consider appropriate — for example, for human, animal or plant life or health, for the protection of the environment or to meet other consumer interests. Moreover, members are not prevented from taking measures necessary to ensure their standards are met. In order to prevent too much diversity, the agreement encourages countries to use international standards where these are appropriate, but it does not require them to change their levels of protection as a result." —"Trading Into the Future: The agreements. Non-tariff barriers: technicalities, red tape, etc." WTO Web site
TBT relies on standards set by the International Organization for Standardization (ISO), a private-sector organization.
Agreement on Government Procurement (AGP)(Annex 4(b) to Agreement Establishing the World Trade Organization) "The WTO already has an Agreement on Government Procurement. It is plurilateral - only some WTO members have signed it so far. The agreement covers such issues as transparency and non-discrimination." "The decision by WTO ministers at the 1996 Singapore conference does two things. It sets up a working group that is multilateral — it includes all WTO members. And it focuses the group's work on transparency in government procurement practices. The group will not look at preferential treatment for local suppliers, so long as the preferences are not hidden." "The agreement recognizes countries' rights to adopt the standards they consider appropriate — for example, for human, animal or plant life or health, for the protection of the environment or to meet other consumer interests. Moreover, members are not prevented from taking measures necessary to ensure their standards are met. In order to prevent too much diversity, the agreement encourages countries to use international standards where these are appropriate, but it does not require them to change their levels of protection as a result." "The first phase of the group's work is to study transparency in government procurement practices, taking into account national policies. The second phase is to develop elements for inclusion in an agreement." —"Trading Into the Future: Beyond the agreements. Investment, competition, procurement, simpler procedures." WTO Web site
Agreement on the Application of Sanitary and Phytosanitary Measures (SPS)(Part of Annex 1A: Multilateral Agreements On Trade In Goods) "Problem: How do you ensure that your country's consumers are being supplied with food that is safe to eat — 'safe' by the standards you consider appropriate? And at the same time, how can you ensure that strict health and safety regulations are not being used as an excuse for protecting domestic producers?" "A separate agreement on food safety and animal and plant health standards (Sanitary and Phytosanitary Measures) sets out the basic rules." "It allows countries to set their own standards. But it also says regulations must be based on science. They should be applied only to the extent necessary to protect human, animal or plant life or health. And they should not arbitrarily or unjustifiably discriminate between countries where identical or similar conditions prevail." "Member countries are encouraged to use international standards, guidelines and recommendations where they exist. However, members may use measures which result in higher standards if there is scientific justification. They can also set higher standards based on appropriate assessment of risks so long as the approach is consistent, not arbitrary." —"Trading Into the Future: The agreements. Agriculture: fairer markets for farmers." WTO Web site
SPS references the Codex Alimentarius, an international food code controlled by an industry-dominated body, and the International Organization for Standardization (ISO), a private-sector organization.
Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)(Annex 1C to Agreement Establishing the World Trade Organization) "The WTO's intellectual property agreement amounts to rules for trade and investment in ideas and creativity." "The rules state how copyrights, trademarks, geographical names used to identify products, industrial designs, integrated circuit layout-designs and undisclosed information such as trade secrets — 'intellectual property' — should be protected when trade is involved." —"The WTO in brief: The WTO agreements." WTO Web site
The World Intellectual Property Organization (WIPO) of the United Nations is another international body whose mandate includes the protection of intellectual property.
Agreement on Trade-Related Investment Measures (TRIMS)(Part of Annex 1A: Multilateral Agreements On Trade In Goods) "The Agreement on Trade-Related Investment Measures (TRIMS) applies only to measures that affect trade in goods. It recognizes that certain measures can restrict and distort trade, and states that no member shall apply any measure that discriminates against foreigners or foreign products (i.e. violates 'national treatment' principles in GATT). It also outlaws investment measures that lead to restrictions in quantities (violating another principle in GATT). An illustrative list of TRIMS agreed to be inconsistent with these GATT articles is appended to the agreement. The list includes measures which require particular levels of local procurement by an enterprise ('local content requirements'). It also discourages measures which limit a company's imports or set targets for the company to export ('trade balancing requirements')." "Under the agreement, countries must inform the WTO and fellow-members of all investment measures that do not conform with the agreement. Developed countries have to eliminate these in two years (by the end of 1996); developing countries have five years (to end of 1999); and least developed countries seven." "The agreement establishes a Committee on TRIMS to monitor the implementation of these commitments. The agreement also says that WTO members should consider, by 1 January 2000, whether there should also be provisions on investment policy and competition policy." —"Trading Into the Future: The agreements. Non-tariff barriers: technicalities, red tape, etc." WTO Web site
Agreement on Agriculture (AOA)(Part of Annex 1A: Multilateral Agreements On Trade In Goods) "The original GATT did apply to agricultural trade, but it contained loopholes. For example, it allowed countries to use some non-tariff measures such as import quotas, and to subsidize. Agricultural trade became highly distorted, especially with the use of export subsidies which would not normally have been allowed for industrial products." "The Uruguay Round agreement is a significant first step towards order, fair competition and a less distorted sector. It is being implemented over a six year period (10 years for developing countries), that began in 1995. Participants have agreed to initiate negotiations for continuing the reform process one year before the end of the implementation period. The negotiations are now underway." —"Trading Into the Future: The agreements. Agriculture: fairer markets for farmers." WTO Web site
Understanding on Rules and Procedures Governing the Settlement of Disputes(Annex 2 to Agreement Establishing the World Trade Organization) "The WTO's procedure for resolving trade quarrels under the Dispute Settlement Understanding is vital for enforcing the rules and therefore for ensuring that trade flows smoothly." "Countries bring disputes to the WTO if they think their rights under the agreements are being infringed. Judgements by specially-appointed independent experts are based on interpretations of the agreements and individual countries' commitments." "The system encourages countries to settle their differences through consultation. Failing that, they can follow a carefully mapped out, stage-by-stage procedure that includes the possibility of a ruling by a panel of experts, and the chance to appeal the ruling on legal grounds." "Confidence in the system is borne out by the number of cases brought to the WTO - 167 cases by March 1999 compared to some 300 disputes dealt with during the entire life of GATT (1947-94)." —"The WTO in brief: The WTO agreements." WTO Web site
By Peter Costantini ~ Seattle ~ November 2001 |
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