WTO SYSTEM

WTO is the only international body, which deals with issues governing trade flows across borders. The main objective of WTO is to make sure that international trade flows move freely at the highest possible degree. This will make sure improving the prosperity of member countries of WTO. WTO,

•  Administers trade agreements;

•  Settles disputes on trade related matters;

•  Monitors national trade policies;

•  Helps developing countries with regard to trade policies through technical assistance and training seminars;

•  Cooperates with other international organisations

The current system of WTO consists on the following major agreements:

•  General Agreement on Trade in Goods, which includes GATT and its accompanying agreements.

Everything started with the trade in goods. During 1947-1994 GATT was the body in charge of reducing customs tariffs and other trade barriers. GATT was in charge of defining important rates related to non-discrimination. Since 1995 GATT was transformed into a core agreement of WTO for the trade in goods. Its provisions relate to specific sectors as agriculture or industry (textiles, coal and steel), or other issues as products' standards, or anti-dumping provisions, employment in the public administration, etc.

•  General Agreement on Trade in Services (GATS)

Banks, insurance companies, telecommunication firms, group travelling organisers, hotel chains and transport companies that want to expand across borders, have the opportunity to benefit from international trade (which previously was enjoyed from trading in goods only). GATS govern the new agreement on trade in services. Member countries in the WTO have their obligations sanctioned in the agreement and where it is also specified what service sectors countries are ready to open up to foreign competition (and also specifying the degree of such market access).

•  Agreement on Trade–related Aspects of Intellectual Property Rights (TRIPS)