Organizational structure of WTO

Objectives
 The ultimate objectives of the WTO are thus:
 the increase of standards of living;
 the attainment of full employment;
 the growth of real income and effective demand; and
 the expansion of production of, and trade in, goods and
services.
 reciprocal and mutually advantageous arrangements on:
 the reduction of trade barriers; and
 the elimination of discrimination.
 sustainable economic development,
 integration of developing countries, and especially LDC’s
US-Shrimp Case (1995-2014)
Complainant-India, Malaysia, Pakistan, Thailand
Respondent-US
Product at issue: Shrimp and shrimp product
Issue: US import prohibition of shrimp and shrimp products
from non-certified countries (i.e. countries that had not used
a certain net in catching shrimp).
 WTO Appellate body held:
 The language to the Preamble to the WTO Agreement
demonstrates a recognition by WTO negotiators that optimal
use of the world’s resources should be made in accordance
with the objective of sustainable development.
 As this preambular language reflects the intentions of
negotiators of the WTO Agreement, we believe it must add
colour, texture and shading to our interpretation of the
agreements annexed to the WTO Agreement, in this case, the
GATT 1994.
Functions of WTO
 Provides for more integrated, more viable and more durable
multilateral trading system.
 Article III of WTO Agreement states the function of WTO:
 facilitate the implementation, administration and operation.
 provide the forum for negotiations.
 administer the Understanding on Rules and Procedures
Governing the Settlement of Disputes.(Article IV Para 3)
 administer the Trade Policy Review Mechanism(Article IV Para
4).
 Cooperate with IMF and World Bank(Article V).
Article IV: structure
Committees
Ministerial conference
 Comprised of all member nations.
 Meets at least once every two years.
 Has authority to take decisions on all matters under any of
the Multilateral Trade Agreements.(Annex 1, 2 and 3)
General Council
 composed of representatives of all the Members.
 shall meet as appropriate.
 Conduct the function of Ministerial Conference between
Intervals.
 shall establish its rules of procedure and approve the rules of
procedure for the Committees provided in Para 7, Article IV.
 convene as appropriate to discharge the responsibilities of the
Dispute Settlement Body
 discharge the responsibilities of the Trade Policy Review
Body provided for in the TPRM.
 Provides procedure for Cooperation with WTO and IMF.
 “Marrakesh Declaration on the Contribution of the World Trade
Organization to Achieving Greater Coherence in Global
Economic Policy-Making”
 WTO General Council's Decision approving the Cooperation
Agreements concluded with the IMF and the World Bank in
1996.
  At the operational level, the WTO-IMF and WTO-World Bank
Cooperation Agreements set out the working procedures under
which regular staff activities are conducted, and hence
contribute to the achievement of the coherence objectives.
 Provides procedure for cooperation with NGO.
Exclusive Powers of Ministerial
Conference
 Accession
 Waiver
 adopting authoritative interpretations of the WTO
agreements
 Adopting amendments
 appointing the Director-General and adopting staff
regulations.
 Does not have an executive body
 Negotiations happen in green rooms
 Does not have a consultative body to serve as a forum for
dialog.
 The Secretariat
 Based in Geneva
 Main function is to keep WTO network functioning
smoothly.
 Headed by Director-General, appointed by Ministerial
Conference.
 Role of Director-General:
 Member-driven organisation
 Members set the agenda
 DG has no decision making powers: only acts as an honest
facilitator
Main duties of the Secretariat
 to provide technical and professional support for the various
WTO bodies;
 to provide technical assistance to developing-country
Members;
 to monitor and analyze developments in world trade;
 to advise governments of countries wishing to become
Members of the WTO; and
 to provide information to the public and the media.
 provides administrative support and legal assistance for WTO
dispute settlement panels.
Article VI
 The responsibilities of the Director-General and of the staff
of the Secretariat shall be exclusively international in
character. In the discharge of their duties, the Director-
General and the staff of the Secretariat shall not seek or
accept instructions from any government or any other
authority external to the WTO. They shall refrain from any
action which might adversely reflect on their position as
international officials. The Members of the WTO shall
respect the international character of the responsibilities of
the Director-General and of the staff of the Secretariat and
shall not seek to influence them in the discharge of their
duties.