The
Agreement Establishing the World Trade Organization (WTO) provides
a common institutional framework encompassing the GATT as modified
by the Uruguay Round (ie. the GATT 1994), all Agreements and
Arrangements concluded under GATT auspices and other Agreements and
Ministerial Decisions resulting from the Uruguay Round. The common
institutional framework provided by the WTO covers:
-
The Multilateral Trade Agreements (MTAs) – Agreements and
associated legal instruments that form an integral part of the
Agreement Establishing the WTO, which is binding on all WTO Members;
and
-
The Plurilateral Trade Agreements (PTAs) that are binding only
on Members who have accepted them. The PTAs include Agreements
and Arrangements on Civil Aircraft, Government Procurement, Dairy
Products and Bovine Meat.
The
WTO framework ensures a "single undertaking approach" to
the results of the Uruguay Round. Membership in the WTO will automatically
entail accepting all the results of the Uruguay Round with exception
only for the PTAs.
The
WTO has five main functions:
- To
facilitate the implementation, administration, operation and further
the objectives of the Agreement establishing the WTO. It will
also provide the framework for the implementation, administration
and operation of the PTAs.
- To
provide the forum for negotiations concerning the multilateral
trade relations of its Members.
- To
administer the Understanding on Rules and Procedures Governing
the Settlement of Disputes.
- To
administer the Trade Policy Review Mechanism.
- To
cooperate, as appropriate, with the International Monetary Fund,
the International Bank for Reconstruction and Development and
its affiliated agencies.
The
most senior body of the WTO is the Ministerial Conference meeting
at least once every two years. A General Council has been established
to oversee the operation of the WTO Agreement and Ministerial Decisions
on a regular basis. This General Council acts as a Dispute Settlement
Body and a Trade Policy Review Body, both of which concern themselves
with the full range of trade issues covered by the WTO. There are
also subsidiary bodies such as a Council for Trade in Goods, a Council
for Trade in Services and a Council for Trade-Related Aspects of Intellectual
Property Rights and these can establish other subsidiary bodies.
The
WTO continues the practice of decision-making by consensus followed
under the GATT 1947. When voting is necessary, the decisions are taken
by a majority of the votes cast, unless otherwise provided for. For
any decision on the interpretation of the WTO Agreement, as well as
in most cases where a waiver is to be granted, approval by a three-fourths
majority of the Members is required. The WTO Agreement also contains
detailed rules concerning the submission for acceptance, the voting
and the obligations of each Member with respect to amendments to the
WTO Agreement and the PTAs.
The
Agreement Establishing the WTO provides for non-application to allow
a Member not to apply the WTO Agreement vis-a-vis a newly acceding
country, and vice-versa. Original Members of the WTO who were contracting
parties to the GATT, may only invoke this provision, if, at the time
of entry into force of the WTO, the non-application provision was
already being invoked in respect of GATT 1947.
Contracting
parties to the GATT 1947 that accepted the WTO Agreement automatically
became original Members of the WTO but only on lodgement of schedules
of market access concessions and commitments (with respect to tariffs
and non-tariff measures in industrial goods as well as undertakings
in agriculture), and schedules of specific commitments in the area
of services.
Countries
and territories possessing full autonomy in the conduct of external
commercial relations may accede to WTO on terms agreed and approved
by the Ministerial Conference. Accession of new Members must be approved
by a two-thirds majority of members.
