INTRODUCTION TO
THE WTO SYSTEM
OLEKSANDRA SANDUL
1. What is the WTO?
2. The Origins
3. Functions
4. Operation
5. WTO Law
§ 164 Members
§ Headquarters – Geneva,
Switzerland
§ Marrakesh Agreement
§ Failure to establish the ITO
§ De facto international
GATT 1947 organization
§ Seven rounds of negotiations
Establishment of the WTO
Marrakesh Agreement Establishing the WTO:
1. Signed – 15 April 1994
2. Effective – 1 January 1995
The main purposes of the WTO
(the Preamble of the Marrakesh Agreement ):
§ raising standards of living, ensuring full employment and a large and
steadily growing volume of real income and effective demand;
§ expanding the production of and trade in goods and services;
§ sustainable development and environmental protection;
§ ensuring that developing countries, and especially the least developed
among them, secure a share in the growth in international trade.
Functions of the WTO
(Art. III of the Marrakesh Agreement ):
§ Implementation, administration and operation of WTO agreements;
§ Negotiations on new trade rules;
§ Trade Dispute Settlement;
§ Trade Policy Review;
§ Technical assistance to developing countries;
§ Cooperation with other international organizations.
Director-General Ngozi Okonjo-Iweala
The WTO Membership
§ 164 Members
§ States, Customs territories, EU (27
States)
§ 2 types of Members:
1. Founding Members (Parties to the
GATT 1947 and the EU)
2. Members by accession
Decision-Making
(Article IX of the Marrakesh Agreement ):
§ by consensus (Article IX:1)
§ by a majority of the votes (Article IX:1)
§ by special procedures (Article IX:1, Article IX:2…)
In practice: by consensus (Article IX:1)
Negative/Reverse Consensus
§ Establishment of a panel (Article 6.1 DSU)
§ Adoption of the Panel Report and the Appellate
Body report (Articles 16.4, 17.14 DSU)
§ Permission to suspend concessions or other
obligations (Article 22.6 of the DSU).
Budget and Status
(Articles VII and VIII of the Marrakesh Agreement ):
§ Status
The WTO shall have legal personality.
§ Budget
2022: CHF 195,500,000
§ Contributions
US (11.8%); China (10.5%); Germany (7.2%); Japan (3.8%); France (3.8%);
UK (3.8%); Korea (2.8%); Hong Kong (2.8%); Canada (2.4%); Singapore (2.5%);
India (2.3%); russia (1.66%); Belgium (1.8%); Ukraine (0.26%)
International
law
International
economic
law
WTO law
Sources
§ Marrakesh Agreement Establishing the WTO
Annex 1 A: GATT 1994 and 12 other MATGs (incl. TFA)
Annex 1 B: GATS
Annex 1 C: TRIPS Agreement
Annex 2: DSU
Annex 3: TPRM
Annex 4: Plurilateral agreements
Protocols of Accession (an integral part of the WTO
Agreement)
§ Other sources
• custom
• general principles of law
• judicial decisions
• teachings
De facto system of precedence
Art. 3.2 of the Dispute settlement understanding stipulates that
“the dispute settlement system of the WTO is a central element in
providing security and predictability to the multilateral trading
system.”
In Japan – Alcoholic Beverages II (ABR para. 108), it was
stated that adopted panel reports create legitimate expectations
among WTO members and therefore they should be taken into
account when they are relevant to any dispute.
Useful links
Virtual tour: https://www.wto.org/english/thewto_e/cwr_e/cwr_e.htm
WTO Membership Map: https://www.wto.org/english/thewto_e/countries_e/org6_map_e.htm
Ukraine and WTO: https://www.wto.org/english/thewto_e/countries_e/ukraine_e.htm
Marrakesh Agreement: https://www.wto.org/english/docs_e/legal_e/04-wto_e.htm
