Established Jan 1, 1995 Members: 153 Headquarters: Geneva, Switzerland Functions

Negotiating & formalizing trade agreements Dispute resolution Adherence to WTO agreements

Principles

Non-discrimination Reciprocity Binding & enforceable commitments Transparency Safety valves

MFN = Most Favored Nation Each member country should treat all members as well as it treats its most favored nation (i.e., the member that it treats the best) National Treatment Once a product or seller has entered a country, it should be treated the same as products or sellers that originated inside that country

(There are many exceptions to both of these principles)

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

Helps to keep the peace in trading

Smooth flow of trade Outcome of international peace and cooperation

Allows disputes to be handled constructively

As trade expands transactions across boundaries

increase which gives rise to more dispute Trading rules are entrusted to WTO

Based on rules rather than power

Frees the major powers from the complexity of

negotiating with each of the trading partners Gives smaller countries more voice with more bargaining power

Freer Trade cuts cost of living

Lowers trade barriers through negotiation and applies

the principle of non-discrimination Reduced cost of production and hence reduced cost of goods and services

Trade raises incomes

Lowering trade barriers allows trade to increase National income and personal income increases

Shields governments from narrow interests

Helps governments take a more balanced view of

trade policy

Encourages good government

Under WTO rules, once a commitment has been made

to liberalize a sector of trade, it is difficult to reverse The rules also discourage a range of unwise policies For businesses, that means greater certainty and clarity about trading conditions. For governments it can often mean good discipline.

It is fundamentally Undemocratic
WTO rules are written by and for corporations with

inside access to the negotiations. Ex: The US Trade Representative gets heavy input for negotiations from 17 "Industry Sector Advisory Committees.

Tramples Labour and Human Rights

WTO rules put the "rights" of corporations to profit

over human and labour rights There is no internationally recognized labour standards

Destroying trade environment

WTO is being used by corporations to dismantle hard-

won local and national environmental protections, which are attacked as "barriers to trade."

Increasing Inequality
Free trade is not working for the majority of the world
WTO rules have hastened these trends by opening up

countries to foreign investment and thereby making it easier for production to go where the labour is cheapest

Hurts Poor, Small Countries in Favor of Rich Powerful Nations

The WTO supposedly operates on a consensus basis,

with equal decision-making power for all. In reality, many important decisions get made in a process whereby poor countries' negotiators are not even invited to closed door meetings

Undermines Local Level Decision-Making and National Sovereignty

Local policies aimed at rewarding companies who hire

local residents, use domestic materials, or adopt environmentally sound practices are essentially illegal under the WTO Many countries are even changing their laws and constitutions in anticipation of potential future WTO rulings and negotiations.

Thank You