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 1. home
 2. the wto
 3. what is the wto?
 4. the wto in brief

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 1. Global trade rules
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 3. WTO agreements
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 5. How the WTO is organized
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WTO IN BRIEF

In brief, the World Trade Organization (WTO) is the only international
organization dealing with the global rules of trade. Its main goal is to improve
the welfare of people around the world by ensuring that trade flows as smoothly,
predictably and freely as possible.





“BY LOWERING TRADE BARRIERS THROUGH NEGOTIATIONS AMONG MEMBER GOVERNMENTS, THE
WTO’S SYSTEM ALSO BREAKS DOWN OTHER BARRIERS BETWEEN PEOPLES AND TRADING
ECONOMIES.


GLOBAL TRADE RULES

The overall objective of the WTO is to help its members use trade as a means to
raise living standards, create jobs and improves people's lives.

The WTO operates the global system of trade rules, helps developing economies
build their trade capacity and seeks to create a more inclusive trading system.

Global rules of trade provide assurance and stability. Consumers and producers
know they can enjoy secure supplies and greater choice of the finished products,
components, raw materials and services they use. Producers and exporters know
foreign markets will remain open to them.

This leads to a more prosperous, peaceful and accountable economic world.
Decisions in the WTO are typically taken by consensus among all members and they
are ratified by members’ parliaments. Trade frictions are channelled into the
WTO’s dispute settlement process, where the focus is on interpreting agreements
and commitments and how to ensure that members’ trade policies conform with
them. That way, the risk of disputes spilling over into political or military
conflict is reduced.

By lowering trade barriers through negotiations among member governments, the
WTO’s system also breaks down other barriers between peoples and trading
economies.

At the heart of the system – known as the multilateral trading system – are the
WTO’s agreements, negotiated and signed by a large majority of the world’s
trading economies, and ratified in their parliaments. These agreements are the
legal foundations for global trade. Essentially, they are contracts,
guaranteeing WTO members' important trade rights. They also bind governments to
keep their trade policies transparent and predictable which is to everybody’s
benefit.

The agreements provide a stable and transparent framework to help producers of
goods and services, exporters and importers conduct their business.

The goal is to improve the welfare of the peoples of the WTO’s members.

--------------------------------------------------------------------------------


“THE PAST 75 YEARS HAVE SEEN AN EXCEPTIONAL GROWTH IN WORLD TRADE. MERCHANDISE
EXPORTS HAVE GROWN ON AVERAGE BY 6% ANNUALLY.


TRADE NEGOTIATIONS

The World Trade Organization came into being in 1995. One of the youngest of the
international organizations, the WTO is the successor to the General Agreement
on Tariffs and Trade (GATT) established in the wake of the Second World War.

So while the WTO is relatively young, the multilateral trading system that was
originally set up under the GATT is over 75 years old.

The past 75 years have seen an exceptional growth in world trade. Merchandise
exports have grown on average by 6% annually. This growth in trade has been a
powerful engine for overall economic expansion and on average trade has grown by
1.5 times more than the global economy each year. Total exports in 2023 were 250
times the level of 1948. The GATT and the WTO have helped to create a strong and
prosperous trading system contributing to unprecedented growth.

The system was developed through a series of trade negotiations, or rounds, held
under the GATT. The first rounds dealt mainly with tariff reductions but later
negotiations included other areas such as anti-dumping and non-tariff measures.
The 1986-94 round – the Uruguay Round – led to the WTO’s creation.

The negotiations did not end there. In 1997, agreements were reached by groups
of WTO members on liberalizing telecommunications services, establishing
tariff-free trade in information technology products, and opening up their
financial services.

In 2000, new talks started on agriculture and services. These were incorporated
into a broader work programme launched at the fourth WTO Ministerial Conference
in Doha, Qatar, in November 2001.

The new work programme included negotiations and other work on non-agricultural
tariffs, trade and the environment, WTO rules on anti-dumping and subsidies,
trade facilitation, transparency in government procurement, intellectual
property and a range of issues raised by developing economies as difficulties
they face in implementing WTO agreements.

Negotiations on these and other topics have resulted in major updates to the WTO
rulebook. A revised Government Procurement Agreement – adopted at the WTO’s 8th
Ministerial Conference in 2011 – expanded the coverage of the original agreement
by an estimated US$ 100 billion a year.

At the 9th Ministerial Conference in Bali in 2013, WTO members struck the
Agreement on Trade Facilitation, which aims to reduce border delays by slashing
red tape. When fully implemented, this Agreement – the first multilateral accord
reached at the WTO – will cut trade costs by more than 14% and will lift global
exports by as much as US$ 1 trillion per year.

The expansion of the Information Technology Agreement – concluded at the 10th
Ministerial Conference in Nairobi in 2015 – eliminated tariffs on an additional
200 IT products valued at over US$ 1.3 trillion per year. Another outcome of the
Conference was a decision to abolish agricultural export subsidies, fulfilling
one of the key targets of the UN Sustainable Development Goals.

An amendment to the WTO’s Intellectual Property Agreement entered into force in
2017, easing poor economies’ access to affordable medicines. The same year saw
the Trade Facilitation Agreement enter into force.

The 12th Ministerial Conference in June 2022 saw the adoption of a landmark
Agreement on Fisheries Subsidies as well as multilateral responses to the food
crisis and the COVID-19 pandemic. More recently, outcomes of the 13th
Ministerial Conference included important decisions aimed at improving trading
opportunities for developing economies and a commitment to work towards WTO
reform.

--------------------------------------------------------------------------------


“EACH MEMBER RECEIVES GUARANTEES THAT ITS EXPORTS WILL BE TREATED FAIRLY AND
CONSISTENTLY IN OTHER MEMBERS’ MARKETS.


WTO AGREEMENTS

How can you ensure that trade is as fair as possible, and as open as is
practical? By negotiating rules and abiding by them.

The WTO’s rules – the agreements – are the result of negotiations between the
members. The current set is largely the outcome of the 1986- 94 Uruguay Round
negotiations, which included a major revision of the original General Agreement
on Tariffs and Trade (GATT).

The Uruguay Round created new rules for dealing with trade in services and
intellectual property and new procedures for dispute settlement. The complete
set runs to some 30,000 pages consisting of about 30 agreements and separate
commitments (called schedules) made by individual members in specific areas,
such as lower tariffs and services market-opening.

Through these agreements, WTO members operate a non- discriminatory trading
system that spells out their rights and their obligations. Each member receives
guarantees that its exports will be treated fairly and consistently in other
members’ markets. Each promises to do the same for imports into its own market.
The system also gives developing economies some flexibility in implementing
their commitments.


> GOODS
> 
> It all began with trade in goods. From 1947 to 1994, the GATT was the forum
> for negotiating lower tariffs and other trade barriers; the text of the GATT
> spelt out important rules, particularly non- discrimination.
> 
> Since 1995, the Marrakesh Agreement Establishing the WTO and its annexes
> (including the updated GATT) has become the WTO’s umbrella agreement. It has
> annexes dealing with specific sectors relating to goods, such as agriculture,
> and with specific issues such as product standards, subsidies and actions
> taken against dumping. A recent addition was the Trade Facilitation Agreement,
> which entered into force in 2017.


> SERVICES
> 
> Banks, insurance firms, telecommunications companies, tour operators, hotel
> chains and transport companies looking to do business abroad enjoy the same
> principles of more open trade that originally only applied to trade in goods.
> 
> These principles appear in the General Agreement on Trade in Services (GATS).
> WTO members have also made individual commitments under the GATS stating which
> of their service sectors they are willing to open to foreign competition, and
> how open those markets are.


> INTELLECTUAL PROPERTY
> 
> The WTO’s Intellectual Property Agreement contains rules for trade in ideas
> and creativity. The rules state how copyrights, patents, trademarks,
> geographical names used to identify products, industrial designs and
> undisclosed information such as trade secrets – “intellectual property” –
> should be protected when trade is involved.


> DISPUTE SETTLEMENT
> 
> The WTO’s procedure for resolving trade conflicts under the Dispute Settlement
> Understanding is vital for enforcing the rules and therefore for ensuring that
> trade flows smoothly. Governments bring disputes to the WTO if they think
> their rights under the WTO agreements are being infringed. Judgements by
> specially appointed independent experts are based on interpretations of the
> agreements and individual members' commitments.
> 
> The system encourages members to settle their differences through consultation
> with each other. If this proves to be unsuccessful, they can follow a
> stage-by-stage procedure that includes the possibility of a ruling by a panel
> of experts. Confidence in the system is borne out by the number of cases
> brought to the WTO – more than 600 cases since the WTO was established. WTO
> members are currently discussing how to strengthen the dispute settlement
> system, including the appeal function.


> TRADE MONITORING
> 
> The WTO's Trade Policy Review Mechanism is designed to improve transparency,
> to create a greater understanding of the trade policies adopted by WTO members
> and to assess their impact. Many members see the reviews as constructive
> feedback on their policies. All WTO members must undergo periodic scrutiny,
> each review containing reports by the member concerned and the WTO
> Secretariat.
> 
> In addition, the WTO undertakes regular monitoring of global trade measures,
> with the aim of highlighting WTO members' implementation of both trade-
> facilitating and trade-restricting measures.

--------------------------------------------------------------------------------


“A WTO COMMITTEE ON TRADE AND DEVELOPMENT LOOKS AT DEVELOPING ECONOMIES’ SPECIAL
NEEDS.


BUILDING TRADE CAPACITY IN DEVELOPING ECONOMIES

Over three-quarters of WTO members are developing economies or least-developed
countries (LDCs). All WTO agreements contain special provisions for them,
including longer time periods to implement commitments, measures to increase
their trading opportunities and support to help them build the infrastructure
needed to participate in world trade.

A WTO Committee on Trade and Development looks at developing economies’ special
needs. Its responsibility includes monitoring implementation of special
treatment for developing economies in the WTO agreements, technical cooperation
and promoting the increased participation of developing economies in the global
trading system.

The Aid for Trade initiative is designed to help developing economies build
trade capacity, enhance their infrastructure and improve their ability to
benefit from trade-opening opportunities. So far, over US$ 600  billion has been
disbursed to support Aid for Trade projects. A Global Review of the initiative
is held every two years at the WTO’s headquarters.

The Enhanced Integrated Framework (EIF) is the only multilateral partnership
dedicated exclusively to assisting LDCs in their use of trade as an engine for
growth, sustainable development and poverty reduction. The EIF partnership of 51
countries, 24 donors and eight partner agencies, including the WTO, works
closely with governments, development organizations, civil society and academia.
The EIF has invested in over 170 projects, with US$ 330 million committed to
supporting the poorest countries in the world.

Another partnership supported by the WTO is the Standards and Trade Development
Facility (STDF), set up to help developing economies meet international
standards for food safety, plant and animal health and access global markets.
The WTO houses the Secretariat and manages the STDF trust fund, which has
provided financing of over US$ 50 million to support projects in low-income
economies.

Technical assistance and training

The WTO organizes hundreds of technical cooperation missions to developing
economies annually. It also holds many trade policy courses each year in Geneva
for government officials. Regional seminars are held regularly in all regions of
the world, with a special emphasis on African countries. In 2023, over 12,000
participants benefited from technical assistance activities and e-learning
courses aimed at improving understanding of WTO agreements and global trade
rules.

--------------------------------------------------------------------------------


“THE WTO HAS 166 MEMBERS, ACCOUNTING FOR 98% OF WORLD TRADE. A TOTAL OF 22
COUNTRIES ARE NEGOTIATING MEMBERSHIP.


HOW THE WTO IS ORGANIZED

FUNCTIONS

The WTO’s overriding objective is to help its members use trade as a means to
raise people's living standards. It does this by:

 * administering trade agreements
 * acting as a forum for trade negotiations
 * settling trade disputes
 * reviewing national trade policies
 * building the trade capacity of developing economies
 * cooperating with other international organizations

STRUCTURE

The WTO has 166 members, accounting for 98% of world trade. A total of 22
countries are negotiating membership.

Decisions are made by the entire membership. This is typically by consensus. The
WTO’s agreements have been ratified in all members’ parliaments.

The WTO’s top level decision- making body is the Ministerial Conference, which
meets usually every two years.

Below this is the General Council (normally ambassadors and heads of delegation
based in Geneva but sometimes officials sent from members’ capitals) which meets
several times a year in the Geneva headquarters. The General Council also meets
as the Trade Policy Review Body and the Dispute Settlement Body.

At the next level, the Goods Council, Services Council and Intellectual Property
(TRIPS) Council report to the General Council.

Numerous specialized committees, working groups and working parties deal with
the individual agreements and other areas, such as the environment, development,
membership applications and regional trade agreements.

--------------------------------------------------------------------------------


WTO SECRETARIAT

The WTO Secretariat, based in Geneva, has around 600 staff and is headed by a
Director- General. It does not have branch offices outside Geneva. Since
decisions are taken by the WTO’s members, the Secretariat does not itself have a
decision-making role.

The Secretariat’s main duties are to supply technical support for the various
councils/ committees and the ministerial conferences, to provide technical
assistance for developing economies, to analyse world trade and to explain WTO
activities to the public and media.

The Secretariat also provides some forms of legal assistance in the dispute
settlement process and advises governments wishing to become members of the WTO.
The annual budget contributed by members is roughly 205 million Swiss francs.


CONTACTING THE WTO


WTO - OMC

Rue de Lausanne 154 CH-1211 Geneva 21
Switzerland
Tel.: +41 (0)22 739 51 11

WTO Information and External Relations Division e-mail: enquiries@wto.org

WTO Publications e-mail: publications@wto.org

WTO Online Bookshop https://onlinebookshop.wto.org

WTO iLibrary e-mail: WTO-iLibrary@wto.org




THE WTO

LOCATION: Geneva, Switzerland

ESTABLISHED: 1 January 1995

CREATED BY: Uruguay Round negotiations (1986-94)

MEMBERSHIP: 166 members representing 98% of world trade

BUDGET: 205 million Swiss francs for 2024

SECRETARIAT STAFF: 604

DIRECTOR GENERAL: Ngozi Okonjo-Iweala

FUNCTIONS:

 * Administering WTO trade agreements
 * Forum for trade negotiations
 * Handling trade disputes
 * Monitoring trade policies
 * Technical assistance and training for developing economies
 * Cooperation with other international organizations

ABOUT WTO

The World Trade Organization (WTO) deals with the global rules of trade between
nations. Its main function is to ensure that trade flows as smoothly,
predictably and freely as possible. More 

--------------------------------------------------------------------------------

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