The World Trade Organization (WTO) is the legal and institutional

basis of the multilateral trading system. It embodies the main

contractual obligations which determine how governments must
formulate and apply their laws and regulations relating to trade. It
is also the framework for the conduct of trade relations among its
Members. This is done through a collective process of discussions,
negotiations and decisions.

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Prior to 1995 there was no permanent institutional framework for
the multilateral trading system. The expression "the GATT" tended
to be used to refer to both the actual General Agreement on Tariffs
and Trade and the framework in which the multilateral trade
negotiations took place. Since 1 January 1995, the World Trade
Organization constitutes the permanent institutional framework for
the multilateral trading system. However, the GATT survives as an
Agreement. The General Agreement on Tariffs and Trade as it
results from the Uruguay Round negotiations is referred to as
"GATT 1994". It embodies a modified and updated version of the
original General Agreement on Tariffs and Trade, now referred to as
"GATT 1947".

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For several decades, the General Agreement on Tariffs and Trade
was applied on a provisional basis. It was a multilateral agreement
containing rules relating to trade in goods. Although it operated like
a permanent agreement, it was without a permanent institutional
framework, and was serviced by a provisional Secretariat. The WTO
now provides a permanent institutional framework for the
multilateral trading system. It has its own Secretariat. Like the
GATT, the WTO covers trade in goods. However, it also covers trade
in services and trade-related aspects of intellectual property rights.
Also, the dispute settlement mechanism has been considerably
strengthened in the WTO.

Since its establishment, the WTO has had extensive contact with
other intergovernmental organizations interested in its activities.
Relations have been established with relevant organizations in the
United Nations system, the Bretton Woods organizations, and
various regional bodies. This is to ensure that the resources and
expertise of the international community remain focused and
coordinated. Many organizations have been granted observer status
in one or more of the various WTO councils, committees or working
groups.

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In the preamble of the Marrakesh Agreement establishing the WTO,
members recognize certain objectives, to which they wish to
contribute through the multilateral trading system. It is recognized
that their relations in the field of trade and economic endeavour
should be conducted with a view to raising standards of living. They
should ensure full employment and a large and steadily growing
volume of real income and effective demand. This is to be coupled
with an expansion of production and trade in goods and services,
while allowing for the optimal use of the world's resources. This is
to be in accordance with the objective of sustainable development.
The Agreement also recognizes the need for positive efforts to
ensure that developing countries, and especially the least-
developed among them, secure a share in the growth in
international trade which is commensurate with the needs of their
economic development.

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The WTO provides the common institutional framework for the
conduct of trade relations among its Members in matters related to
agreements negotiated during the Uruguay Round. It monitors and
oversees, through its various bodies, the implementation, operation
and administration of the various agreements. It also administers
the trade policy review mechanism and the dispute settlement
mechanism. In addition, the WTO provides the forum for further
negotiations between its Members in matters dealt with under the
Agreements and also more generally concerning their multilateral
trade relations.

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Countries which were contracting parties to the GATT 1947 and
which took part in the Uruguay Round negotiations could become
original Members of the WTO. This was accomplished by accepting
the WTO Agreement. The Agreements remained open for
acceptance for a period of two years after the entry into force of the
WTO. Now, any State or separate customs territory can become a
Member of the WTO through the process of accession. The terms of
accession are agreed between the State or territory requesting
accession and the Members of the WTO. This implies acceptance of
the Agreements and negotiations with current WTO Members on
schedules of concessions in goods and specific commitments in
services.

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The WTO is an intergovernmental organization, and only the
governments of Members take part in its activities. However, other
intergovernmental organizations can be granted observer status.
This means they may attend the meetings of WTO bodies. In
addition, the General Council may make arrangements for
consultation and cooperation with non- governmental organizations
concerned with WTO-related matters.

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The various councils and committees are composed of
representatives of all the Members. The Members have the same
voting rights in these bodies. Decision-making in the WTO generally
follows the previous GATT 1947 practice of consensus. This means
a decision is considered to be adopted if no Member present at the
meeting when the decision is taken, formally objects to the
proposed decision. If voting is required, each Member has one vote,
regardless of its importance in terms of international trade.

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The WTO is a "Member-driven" organization. Delegates of the
Member countries participate actively in the meetings of the various
committees and councils of the WTO. These meetings take place all
year round at WTO headquarters in Geneva. These meetings are
assisted and serviced by the staff of the Secretariat of the WTO.
The WTO Secretariat is composed of a number of divisions, each of
which is responsible for a certain area of work. The respective
divisions service the relevant WTO bodies. The Secretariat
comprises approximately 500 staff members. At the head of the
Secretariat is a Director-General, appointed by the Ministerial
Conference.

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Most of the WTO's Members are developing countries. The
Marrakesh Declaration adopted at the close of the Uruguay Round
stresses the notably active role played by developing countries in
the negotiations. It also notes that this "has marked a historic step
towards a more balanced and integrated global trade partnership".
This active participation is reflected in the results of the
negotiations. The interests of developing countries are taken into
account in various ways in the WTO Agreements. Part IV of the
GATT 1994 contains principles, commitments and special provisions
for joint action by Members towards the development of the
economies of developing country Members. In addition, the WTO
Agreements often contain specific provisions for the special and
differential treatment of developing countries. Longer transition
periods to implement the provisions of the Agreements are also
granted in many cases. Also, developing countries can benefit from
technical cooperation and training provided by the Secretariat or
directly by developed country Members on a bilateral basis as
foreseen in the various WTO agreements.

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The Ministerial Conference is the highest body of the WTO. It is
composed of representatives of all the Members and meets at least
once every two years. To date, there have been five such meetings:
in Singapore, Geneva, Seattle, Doha and Cancun. It is the
ministerial conferences that guide the work of the WTO. The central
tasks are threefold. First, to review what the WTO has been doing.
Second, to assess the present situation of world trade and
international relations and to identify challenges that must be met.
Finally, to agree on the work programme of the WTO for the
months and years ahead. This may involve the launching of a new
round of multilateral trade negotiations.

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Concerns have been expressed by some WTO Members over the
observance of core labour standards and their possible place in the
framework of the WTO. Ministers addressed this issue during the
Singapore Ministerial Conference. The Declaration from that
meeting includes a paragraph on core labour standards. The
Ministers declared: I quote "we renew our commitment to the
observance of internationally recognized core labour standards. The
International Labour Organization (ILO) is the competent body to
set and deal with these standards, and we affirm our support for its
work in promoting them. We reject the use of labour standards for
protectionist purposes, and agree that the comparative advantage
of countries, particularly low-wage developing countries, must in no
way be put into question. "

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At a meeting held in Punta de Este, Uruguay, Ministers of GATT
contracting parties decided to launch a round of multilateral trade
negotiations, which became known as the "Uruguay Round". This
was the most important trade negotiation ever undertaken. The
negotiating agenda covered a number of very important new areas,
in particular trade in services and trade-related aspects of
intellectual property. The Round was intended to last four years. In
December 1990, however, a final agreement had not been reached.
Significant disagreements remained in the area of agriculture. It
took another three years for all the remaining negotiating
difficulties to be solved and the Agreement Establishing the World
Trade Organization was signed in Marrakesh on 15 April 1994.

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The Marrakesh Agreement Establishing the World Trade
Organization, often referred to as "the WTO Agreement", embodies
the results of the Uruguay Round. The Agreement defines the
institutional framework, objectives and functions of the new
organization. In addition, a number of important specific
agreements and understandings negotiated during the Uruguay
Round are also incorporated into this Agreement as Annexes.

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Before the Uruguay Round, some agreements which related to
GATT 1947 had been negotiated during previous negotiating
rounds. In particular, a number of agreements were negotiated
during the Tokyo Round. These were in the area of non-tariff
barriers. These agreements, however, were not adopted by all the
parties to the GATT. They were only applied to those countries
which accepted to be bound by them. In the Uruguay Round, a
different approach was adopted. It was decided that the bulk of the
multilateral agreements negotiated was to be accepted as a whole.
The GATT, the Agreement on Agriculture, the Agreement on Trade-
Related Aspects of Intellectual Property Rights, the GATS, as well as
most of the other agreements negotiated during the Uruguay
Round are part of this "single undertaking". On the contrary,
plurilateral agreements are binding only on those Members who
have accepted them.

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One of the central elements of the WTO framework is its dispute
settlement mechanism. WTO Members commit themselves not to
take unilateral action against perceived violation of the agreements.
They do, however, commit themselves to seek recourse to the
multilateral dispute settlement system and abide by its findings and
recommendations. The Dispute Settlement Understanding was
adopted as part of the single undertaking. It sets out the
procedures to be followed for the resolution of disputes. The aim of
this mechanism is to "secure a positive solution to a dispute". While
building on the past GATT practice of dispute settlement, it has
been considerably strengthened in comparison with its predecessor.

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The Fourth WTO Ministerial Conference was held in Doha, Qatar, in
November 2001. Ministers adopted a broad work programme for
the coming years. This work program is called the Doha
Development Agenda. It envisages negotiations on improving
market access and a variety of other challenges facing the trading
system. It is called a development agenda as the work programme
places the development of developing countries at the core.

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The WTO has an Internet website which contains a wealth of
information about the WTO Agreements and the structure and work
of the Organization. A number of WTO documents can also be
downloaded directly from the website. The WTO website is located
at http://www.wto.org In addition, the Information and Media
Relations Division in the WTO Secretariat is available to answer
questions for information from the general public and media.

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