The importance of WTO Written by Amarendra Bhushan
The WTO was established in 1995 as a result of Uruguay Round of multilateral trade negotiations (1986-1994). It is an international organization that sets global rules of trade between nations. The core of WTO system, referred to as multilateral trading system, are WTO agreements which lay down legal ground rules for international trade as well as market-opening commitments taken up by its Members. These agreements are negotiated and signed by all Members of WTO, and ratified in their parliaments. The WTO is composed of governments and political entities (such as EU) and is a member-driven organisation with decisions mainly taken on a consensus basis. Membership implies a balance of rights and obligations. By October 2004, 149 countries had joined WTO, with around 25 negotiating to sign up. A vast majority of Members are developing countries. The largest and most comprehensive entity is European Union with its 25 Member States. Indeed, while Member States co-ordinate their positions in Brussels and Geneva, European Commission alone speaks for EU at almost all WTO meetings. The WTO's top level decision-making body is Ministerial Conference, which meets at least once every two years. The latest conferences were Seattle (1999), Doha (2001 – which launched DDA) and Cancun (2003). Below this, General Council meets several times a year in Geneva headquarters. Both are composed of representatives of all Member States. At next level, Goods Council, Services Council and Intellectual Property Council as well as numerous specialised committees, working groups and working parties deal with individual agreements and other areas such as environment, development, membership applications and trade agreements. Finally, WTO Secretariat located in Geneva supplies technical support for various councils and committees and ministerial conferences, analyses world trade and explains WTO affairs to public and media. See more info on WTO. Currently, WTO Members are engaged in a broad round of multilateral trade negotiations, called “the Doha Development Agenda” (DDA). In July 2004, Members agreed on a Framework Agreement that sets a clear agenda for formulation of a new set of trade rules by end of DDA and decided that next WTO Ministerial will be held in Hong Kong in December 2005. Members and Observers Albania 8 September 2000 Angola 23 November 1996 Antigua and Barbuda 1 January 1995 Argentina 1 January 1995 Armenia 5 February 2003 Australia 1 January 1995 Austria 1 January 1995 Bahrain, Kingdom of 1 January 1995 Bangladesh 1 January 1995 Barbados 1 January 1995 Belgium 1 January 1995 Belize 1 January 1995 Benin 22 February 1996 Bolivia 12 September 1995 Botswana 31 May 1995 Brazil 1 January 1995 Brunei Darussalam 1 January 1995 Bulgaria 1 December 1996 Burkina Faso 3 June 1995 Burundi 23 July 1995 Cambodia 13 October 2004 Cameroon 13 December 1995 Canada 1 January 1995 Central African Republic 31 May 1995 Chad 19 October 1996 Chile 1 January 1995 China 11 December 2001 Colombia 30 April 1995 Congo 27 March 1997 Costa Rica 1 January 1995 Côte d'Ivoire 1 January 1995 Croatia 30 November 2000 Cuba 20 April 1995 Cyprus 30 July 1995 Czech Republic 1 January 1995 Democratic Republic of Congo 1 January 1997 Denmark 1 January 1995 Djibouti 31 May 1995 Dominica 1 January 1995 Dominican Republic 9 March 1995
| | The EU and the WTOWritten by Amarendra bhushan
The EU is one of key players in World Trade Organisation (WTO). This is because EU has a common trade policy, where European Commission negotiates on behalf of Union 's 25 Member States. As such, EU is one of driving forces behind current round of multilateral trade negotiations in WTO, Doha Development Agenda (DDA). The DDA comprises both further market opening and additional rule making, underpinned by commitments to take measures necessary to integrate developing countries into world trading system, notably by strengthening assistance to build capacity. The main objective of New Round is to put development at heart of world trade system in a way that will help them combat poverty. In July 2004 WTO Members adopted a Framework Agreement on DDA that sets out modalities for further negotiations. EU Trade Policy and WTO The EU has a common trade policy (“Common Commercial Policy”). In other words, where trade, including WTO matters, are concerned, EU acts as one single actor, where European Commission negotiates trade agreements and represents European interests on behalf of Union's 25 Member States. The legal basis for EU’s trade policy is Article 133 of European Community Treaty. On this basis, Commission negotiates on behalf of Member States, in consultation with a special committee, “the Article 133 Committee”. The 133 Committee is composed of representatives from 25 Member States and European Commission. Its main function is to coordinate EU trade policy. The Committee meets on a weekly basis, usually on a Friday in Brussels at headquarters of Council of Ministers. It discusses full range of trade policy issues affecting Community, from strategic issues surrounding launch of rounds of trade negotiations at WTO to specific difficulties with export of individual products, and considers trade aspects of wider Community policies in order to ensure consistency of policy. In this Committee, Commission presents and secures endorsement of Member States on all trade policy issues. The major formal decisions (for example agreement to launch or conclude negotiations) are then confirmed by Council of Ministers.
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