World Trade Organization BARBARA Gianni BENICHOU Jonathan DANIAL Mikael GROUPE A MARKETING S 6
INTRODUCTION • GATT was created in 1948 after the Second World War • Its objectives were to favor the free international exchange by lowering the commercial barriers and by avoiding the return of the protectionism of before the Second World War • GATT became WTO in 1995 with the Uruguay Round • It covered almost all trade, goods, intellectual property, subventions, investments and service.
Characteristics • His location is in Geneva (Switzerland) • It is established the 1 January 1995 and created by the Uruguay Round negotiations • It is composed by 150 countries around the world • The Budget of the WTO is about 175 million Swiss francs or 110 997 527 € in 2006 • The Director General of the WTO is Pascal Lamy and the number of secretariat staff is 635.
Functions • 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
Ministerial Conferences Decision making • Topmost decision-making body of the WTO • Composed of General council • Regulation of disagreements • Examination of commercial policy • It works for WTO and according to the agreements of Uruguay Round
The different Ministerial Conferences • Singapore (1996) : implementation of the Uruguay Round Agreements • Geneva (1998) : E-commerce • Seattle (1999) : The negotiations were quickly overshadowed by massive and controversial street protests (anti-globalization movement) • Doha (2001) : to assist developing countries in implementing WTO agreements, covering issues related to agriculture, industrial tariffs, trade and competition policy • Cancun (2003) : work under the Doha Development Agenda • Hong-Kong (2005) : negotiations on agriculture and non-agricultural market access
International Trade • International trade is the exchange of goods and services across international boundaries or territories. In most countries • Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing are all having a major impact. Increasing international trade is the primary meaning of "globalization” • International trade is also a branch of economics, which, together with international finance, forms the larger branch of international economics.
Regulation of international trade • Traditionally trade was regulated through bilateral treaties between two nations. For centuries under the belief in Mercantilism most nations had high tariffs and many restrictions on international trade. • In the years since the Second World War multilateral treaties like the international trade GATT and World Trade Organization have attempted to create a globally regulated trade structure. • The regulation of international trade is done through the World Trade Organization at the global level, and through several other regional arrangements
Risks in international trade • Economic risks • Risk of insolvency of the buyer, • Risk of protracted default - the failure of the buyer to pay the amount due within six months after the due date • Risk of non-acceptance • Surrendering economic sovereignty • Political risks • Risk of cancellation or non-renewal of export or import licenses • War risks • Risk of expropriation or confiscation of the importer's company • Risk of the imposition of an import ban after the shipment of the goods • Transfer risk - imposition of exchange controls by the importer's country or foreign currency shortages • Surrendering political sovereignty
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