WTO objectives
o Increase of living standards
o Attain full employment
o Growth of income and demand
o Expansion of production of (and trade in) goods and service
WTO Preamble
Improve living standards and full employment
Support sustainable development and environment
Help developing and least developed countries benefit from trade
Reduce tariffs and trade barriers
End discrimination in international trade
Build a strong, fair, multilateral trading system based on past agreements and the Uruguay Round
developing countries
no definition in WTO
self-selection of status
technical assistance
other members can challenge developing country status claims
provisions that allow developed countries to treat developing countries more favourably than other WTO members
Examples: Afghanistan, Angola, Bangladesh (most populated among these), Combodia, Democratic Republic of Congo, Gambia, Sierra Leone, Uganda, Yemen,
WTO orginizational levels
Ministerial Conference
General Council / Dispute Settlement Body / Trade Policy Review Body
Councils for areas of trade
The Council for Trade in Goods (Goods Council)
Council for Trade in Services (Services Council)
The Council for Trade-Related Aspects of Intellectual Property Rights (TRIPS Council)
Subsidiary bodies
WTO Dispute Settlement System
DSU as the “crown jewel”
= WTO Dispute Settlement is the official system the World Trade Organization (WTO) uses to resolve trade disputes between member countries
If a country believes another WTO member is violating trade rules (e.g., using unfair tariffs or subsidies), it can file a complaint. The WTO has a structured process to handle the case, including:
Panels (independent experts who review the case = Gutachtergruppen) 3 judges
An Appellate Body = Berufungsinstanz (for appeals)
Clear timelines and legal procedures
DSB
Dispute Settlement Body (DSB)
General Council discharges its responsibilities under the DSU through the DSB -> composed of all WTO members (usually through diplomatic delegates)
DSB responsible for administering DSU -> oversees dispute settlement process
authority to establish panels
Panels
Quasi-judicial bodies of first instance
Normally composed of three (exceptionally five) members
ad hoc -> No institutional continuity
WTO Secretariat maintains indicative list of names of governmental and non-governmental individuals
Members serve as individuals (not as governmental representatives)
Appellate Body
Permanent
Seven members (University professors, practising lawyers, past government officials, or senior judges)
part-time (in theory; in reality full-time)
Must be broadly representative of WTO membership
Appointed by DSB by consensus for four year terms
Reviews legal aspects of the panel reports (not facts!)
May reverse or modify the panel’s findings
at non-implementation
Compensation
not monetary payment but benefit (e.g. tariff reduction) equivalent to the benefit which the respondent has nullified or impaired by applying its measur
problem: MFN (all WTO members benefit from tariff reduction)
Suspension of WTO obligations
(20 days) after no agreement on compensation is reached
This means temporary actions like new tariffs, even if they break WTO rules.
Retaliation must be approved and fair.
Can be in the same or a different sector (like IP rights).
Last changed5 days ago