Understanding the WTO

The WTO is an umbrella organisation established after the Uruguay Round of multilateral trade negotiations. The WTO Agreement states that the Organisation is meant to provide the common institutional frame works for the implementation of those agreements. The basic functions of the WTO are:

• (a) to implement, administer, and carry out the WTO Agreement and its Annexes,

• (b) to act as a forum for ongoing multilateral trade negotiations,

• (c) to serve as a tribunal for resolving disputes, and

• (d) to review the trade policies and practices of member states.

The package of agreements is annexed to the WTO Agreement and is binding on all members of the organisation as a single body of law. Under Article II (2) of the WTO, the Multilateral Trade Agreements under Annex 1, 2, 3 are binding on all the members. Pursuant to Article II (3) however, Annex 4 on the Plurilateral Trade Agreements is binding only on members who have accepted it. These Agreements are geared towards the provision of a common institutional framework for the conduct of trade relations among Members of the WTO in matters related to the agreements and associated legal instruments included in the Annexes to the Agreement.

The reference to the WTO as a ‘rules-based’ system is due to the sophisticated structure of international trade regulation based on various trade agreements and also, by the compulsory dispute settlement system which includes a judicialstyle review mechanism.

The Agreements under the WTO are as follows:

• 1. The Final Act

• 2. Agreement Establishing the WTO

Annex 1A: Agreement on Trade in Goods

• 1. General Agreement on Tariffs and Trade (1994)

• 2. Uruguay Round Protocol to the General Agreement on Tariffs and Trade

• 3. Agreement on Agriculture

• 4. Agreement on Sanitary and Phytosanitary measures

• 5. Agreement on Textiles and Clothing

• 6. Agreement on Technical Barriers to Trade

• 7. Agreement on Trade-Related Investment Measures

• 8. Agreement on Implementation of Article VI (on antidumping)

• 9. Agreement on Implementation of Article VI (on customs valuation)

• 10. Agreement on Preshipment Inspection

• 11. Agreement on Rules of Origin

• 12. Agreement on Import Licensing Procedures

• 13. Agreement on Subsidies and Countervailing Measures

• 14. Agreement on Safeguards

Annex 1B: General Agreement on Trade in Services

Annex 1C: Agreement on Trade-Related Aspects of Intellectual Property Rights

Annex 2: Understanding of Rules and Procedures Governing the Settlement of Dispute