World Trade Organization (WTO): International Business Implications

1. World Trade Organization (WTO): International Business Implications

2. Major implications of WTO’s multilateral trade regime • Security of access of international markets • Stability of access to international markets • Implications for importers of raw materials and other inputs

3. From GATT to WTO

4. Functions of WTO • Facilitates the implementation, administration, and • operation of the trade agreements • Provides a forum for further negotiations among • member countries on matters covered by the • agreements as well as on new issues falling within its • mandate • Responsible for the settlement of differences and • disputes among its member countries

5. Functions (contd) • Responsible for carrying out periodic review of the • trade policies of its member countries • Assists developing countries in trade policy issues • through technical assistance and training programmes • Encourages cooperation within the international • organization

6. Principles of multilateral trading system under WTO • Trade without discrimination • Most-Favoured Nation (MFN) treatment • National treatment • Gradual move towards freer markets through • negotiations • Increased predictability of international • marketing environment • Promoting fair competition in international • markets

7. WTO agreements • Agreements for each of the broad areas of trade • covered by WTO • goods • services • intellectual Property • Dispute settlement • Review of governments’ trade policies

8. Standards and safety measures for international markets FINALLY • Agreement on Sanitary and Phytosanitary (SPS) • Measure sets out the basic rules on food safety and • plant health standards…..AND • Agreement on Technical Barriers to Trade (TBT) • ensures that regulations, standards, testing, and • certification procedures do not create unnecessary • obstacles to trade