{"id":6520,"date":"2018-11-30T12:20:26","date_gmt":"2018-11-30T12:20:26","guid":{"rendered":""},"modified":"2019-06-07T13:11:11","modified_gmt":"2019-06-07T13:11:11","slug":"agreement-establishing-wto","status":"publish","type":"post","link":"https:\/\/www.lawteacher.net\/acts\/agreement-establishing-wto.php","title":{"rendered":"Agreement Establishing the World Trade Organisation 1995"},"content":{"rendered":"

The Agreement Establishing the World Trade Organisation 1995 (\u201cWTO Agreement\u201d) is a short agreement setting out the role, structure and powers of the World Trade Organisation (\u201cWTO\u201d)[1]<\/sup><\/a>. It was signed in Marrakesh on 15 April 1994 at the end of the Uruguay Round of the Multilateral Trade Negotiations.<\/p>\n

The WTO Agreement was part of the treaty that established the WTO[2]<\/sup><\/a>. Prior to the WTO\u2019s establishment, the General Agreement on Tariffs and Trade (GATT) governed the rights and obligations[3]<\/sup><\/a> for trade in goods between its signatories. However, the GATT had a weak institutional basis[4]<\/sup><\/a>, and was not meeting evolving needs[5]<\/sup><\/a>. Further, the agreements governing GATT were only signed by some signatories, and therefore had little or no impact. Therefore, at the Uruguay Round negotiations, the WTO was established out of a need for a better institution to govern international trade. In particular, there was an emphasis on efforts to improve the coherence of global economic policy-making[6]<\/sup><\/a>. The WTO superseded the GATT as the umbrella organisation for international trade.<\/p>\n

The WTO Agreement creates an entirely new international organisation (the WTO) to administer \u201can integrated, more viable and durable multilateral trading system[7]<\/sup><\/a>\u201d. The key aim of the WTO is \u201craising standards of living, ensuring full employment, expanding production and trade, and allowing optimal use of the world\u2019s resources\u201d[8]<\/sup><\/a>. In order to facilitate this, the WTO Agreement provides the new organisation with a clear structure, political guidance, a proper staff, and appropriate financial arrangements[9]<\/sup><\/a>.<\/p>\n

There are some main changes in the WTO Agreement compared to the GATT. First, the WTO Agreement relates to the production and trade of goods and services[10]<\/sup><\/a>, while the GATT only related to goods. Second, the WTO Agreement recognizes the need for positive efforts to ensure that developing countries \u201csecure a share in the growth in international trade” commensurate with the needs of their economic development\u201d[11]<\/sup><\/a>. Third, it states an objective relating to sustainable development, in particular, to \u201cprotect and preserve the environment\u201d[12]<\/sup><\/a>. Another key change from the GATT relates to dispute settlement arrangements that had evolved on a largely ad-hoc basis, with separate agreements to resolve disputes depending on where they arose[13]<\/sup><\/a>. Now, the WTO Agreement provides clearly that the WTO are to administer the settlement of disputes that may arise between members for the review of trade policies[14]<\/sup><\/a>.<\/p>\n

Broadly, the WTO Agreement defines the functions of the organisation[15]<\/sup><\/a>, its structure[16]<\/sup><\/a>, the qualifications for membership[17]<\/sup><\/a>, and decision-making procedures[18]<\/sup><\/a> and requirements[19]<\/sup><\/a>, as well as calls for efforts for improve the coherence of global economy policy-making[20]<\/sup><\/a>. In particular, Article III, defines clear functions of the WTO, including implementing agreements, acting as a negotiation forum, and administering the settlement of disputes[21]<\/sup><\/a>. Article V provides for the WTO to establish cooperative arrangements with other intergovernmental organisations, and non-governmental organisations with related responsibilities and interests to the WTO[22]<\/sup><\/a>. In particular, the WTO Agreement specifically calls on a cooperation with the International Monetary Fund and the World Bank[23]<\/sup><\/a>.<\/p>\n

\n
\n

[1]<\/sup><\/a> \u2018The WTO Agreements Series: 1 \u2013 Agreement Establishing The WTO\u2019 accessed 27 February 2016.<\/p>\n<\/div>\n

\n

[2]<\/sup><\/a> Article I, Agreement Establishing the World Trade Organization, (online at accessed 27 February 2016).<\/p>\n<\/div>\n

\n

[3]<\/sup><\/a> \u2018The WTO Agreements Series: 1 \u2013 Agreement Establishing The WTO\u2019 accessed 27 February 2016.<\/p>\n<\/div>\n

\n

[4]<\/sup><\/a> Ibid.<\/p>\n<\/div>\n

\n

[5]<\/sup><\/a>Ibid.<\/p>\n<\/div>\n

\n

[6]<\/sup><\/a>Ibid.<\/p>\n<\/div>\n

\n

[7]<\/sup><\/a> Preamble, Para 4, Agreement Establishing the World Trade Organization, (online at accessed 27 February 2016).<\/p>\n<\/div>\n

\n

[8]<\/sup><\/a>\u2018The WTO Agreements Series: 1 \u2013 Agreement Establishing The WTO\u2019 accessed 27 February 2016.<\/p>\n<\/div>\n

\n

[9]<\/sup><\/a>Ibid.<\/p>\n<\/div>\n

\n

[10]<\/sup><\/a>Ibid.<\/p>\n<\/div>\n

\n

[11]<\/sup><\/a>Preamble, Para 2, Agreement Establishing the World Trade Organization, (online at accessed 27 February 2016).<\/p>\n<\/div>\n

\n

[12]<\/sup><\/a>Preamble, Para 1, Agreement Establishing the World Trade Organization, (online at accessed 27 February 2016).<\/p>\n<\/div>\n

\n

[13]<\/sup><\/a>\u2018The WTO Agreements Series: 1 \u2013 Agreement Establishing The WTO\u2019 accessed 27 February 2016.<\/p>\n<\/div>\n

\n

[14]<\/sup><\/a>Ibid.<\/p>\n<\/div>\n

\n

[15]<\/sup><\/a> Article III, Agreement Establishing the World Trade Organization, (online at accessed 27 February 2016).<\/p>\n<\/div>\n

\n

[16]<\/sup><\/a>Article IV, Agreement Establishing the World Trade Organization, (online at accessed 27 February 2016).<\/p>\n<\/div>\n

\n

[17]<\/sup><\/a>Article V to VII, Agreement Establishing the World Trade Organization, (online at accessed 27 February 2016).<\/p>\n<\/div>\n

\n

[18]<\/sup><\/a>Article IX, Agreement Establishing the World Trade Organization, (online at accessed 27 February 2016).<\/p>\n<\/div>\n

\n

[19]<\/sup><\/a> \u2018The WTO Agreements Series: 1 \u2013 Agreement Establishing The WTO\u2019 accessed 27 February 2016.<\/p>\n<\/div>\n

\n

[20]<\/sup><\/a> Ibid.<\/p>\n<\/div>\n

\n

[21]<\/sup><\/a>Ibid.<\/p>\n<\/div>\n

\n

[22]<\/sup><\/a>Ibid.<\/p>\n<\/div>\n

\n

[23]<\/sup><\/a>Article III, Agreement Establishing the World Trade Organization, (online at accessed 27 February 2016).<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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