The general agreement on tariffs and trade, adopted in 1947, in 1995 was replaced by a new organization - the World Trade. And the WTO functions in the same way regulate relations in the politics of commerce between all participants. The basis of such a relationship is the package of documents of the Agreement of the Round of Trade Negotiations held in Uruguay and involving many parties (1986-1994). This is the legal basis of international trade in the modern world.
About agreement
The agreement provides for a permanent forum of those countries that determine the functions of the WTO by participation in the established organization. The forum is needed to resolve problems affecting trade relations of all parties, as well as to monitor the implementation of the agreements and all the agreements of the round in Uruguay. Basic principles and rules of the WTO:
- mutual provision of MFN (most-favored nation treatment) in trade between member countries;
- mutual provision of HP (national treatment) to services and goods of foreign origin;
- the application of mainly tariff methods in the regulation of trade;
- a ban on the use of any restrictions, including quantitative ones;
- building trade policies in the key to transparency;
- settlement of disputes through negotiations and consultations.
Membership in the WTO gives the following advantages to the participating countries:
- Access to world market services and goods occurs in more favorable conditions. WTO functions include stability and predictability in the development of trade with WTO member countries. Transparency is the main condition for the coexistence of countries in this organization.
- Accessibility of the WTO mechanism and the elimination of all discrimination in the resolution of disputes, ensuring the protection of national interests in case of infringement by their partners.
- The implementation of strategic and current trade and economic interests through active participation in the development of rules and their observance in international relations.
Rights and Obligations
All members of the World Trade Organization are required to comply with the basic agreements and legal documents of MTS (Multilateral Trade Agreements). The WTO countries thus fully fit into the system of a multilateral contract or package of agreements in all its norms and rules, which control almost 97% of goods and services in world trade. The organization pursues certain goals to strengthen and develop the economies of all participating countries, and focuses on increasing investment, expanding sales, increasing incomes and increasing employment. This is a universal organization, and WTO countries are solving global problems not only directly in international trade, but also in all related sectors of the world economy.
The WTO operates comprehensively on the basis of agreed rules that govern the behavior of governments in trade. In fact, these are the rules that WTO members strictly observe. They are effective for all states and their subjects in trade. Due to this, national markets open, strengthen and expand. WTO members even perform functions international court resolving all kinds of disputes regarding trade powers. The WTO also serves as a forum for negotiations on specific details that ensure the liberalization of world trade and its predictability.
WTO Functions
They are as follows:
- Administrative and organizational activities of the World Trade Organization are carried out, aimed at the implementation of trade agreements between partners within the competence of the WTO.
- The function of the forum is to conduct multilateral negotiations of WTO members.
- Resolves trade disputes between WTO member countries.
- Monitoring of trade policies of states, partners in the organization of the WTO.
- Development of cooperation with international institutions and organizations that are involved in the process of shaping world economic policy.
One of the main tasks of the WTO is also considered constant monitoring of the state of international trade and providing those in need with the necessary advice in the management and regulation of trade policy.
The main body is a conference of ministers, representatives of countries participating in the WTO. It takes place at least once every two years and makes decisions in all matters relating to this organization. The rest of the time in the WTO is governed by the General Council, which is responsible for everyday activities: resolving disputes, conducting reviews in the field of trade policy. In 2005, 148 countries with full rights were WTO members, a little more than thirty were in observer status, many of them are in the process of joining this organization.
August 2012
It was in August 2012 that Russia officially entered the WTO. Analysts from all sides covered this event in the press, mentioning the long rows of pluses and minuses that are associated with this step. Now it’s already possible to draw some conclusions: how did this membership turn out for the country and how it affected export and import. The leaders of our state for a long time did not dare to such an act. Russia's entry into the WTO was the last among the G20. I wanted to get new opportunities for export development, it was expected to create favorable conditions for the distribution of domestic goods in foreign markets, to attract investment in order to develop our own production, increase competitiveness, and improve quality. Russian investors could gain access to international projects and improve the country's image.
More intense competition in finance was also expected, and, as a result, lower interest rates for the population and small and medium enterprises. However, the plans did not materialize. Moreover, the Central Bank of Russia rate has risen sharply, money in the economy has risen in price, loans are no longer available. Rates have not yet returned to pre-crisis levels. Russia and the WTO could not make friends. However, the same trends exist for many other countries participating in this organization: export of efficient production sometimes grows slightly, if foreign competitors do it weaker, but not a single industry requiring support has succeeded in exporting, only import is growing.
Russia and the WTO
Russian enterprises, too, were far from all able to fit into the foreign market: competition with foreign manufacturers is too high (if we reduce duties, domestic production of goods ceases to be profitable), our agricultural sector was always risky due to climatic conditions, the state of the Russian automobile industry forced many enterprises to close . Only a very few enterprises were able to cope with this extreme and slightly improved their performance. In particular, Lada received a twenty percent increase in deliveries to Kazakhstan and four times to Europe. Agriculture exported goods with a growth of fifteen percent (twenty billion dollars). But this, of course, is a drop in the bucket. The country failed to get rid of raw material dependence. The main reason is competition, of course. In any case, despite all efforts, Russia's exports from the World Trade Organization (WTO) have significantly reduced. Here and drop in oil prices played a role. As regards non-ferrous metals and potash fertilizers, export of these items increased slightly (8.7% and 54.7%).
Most restrictive measures hinder the increase in the pace of international trade. The statistics are as follows: as early as November 2012eighteen countries defended themselves against Russian goods (seventy-three measures were taken, five investigations were carried out), and by the end of 2015 the number of countries restricting trade with Russia had increased to twenty-seven; The use of protective measures is included in the goals of the WTO, since increased deliveries from abroad damage the producers of this country.
Nevertheless, much more often in the same Greece you can buy Dutch flowers or Spanish olive oil. Yes, and vegetables are often also not local. The sanction war (there is no harm without good!) Saved Russia from the influx of cheap imports, on product lines until the crisis of 2013, products from abroad clearly dominated domestic goods. However, the economy began to separate into low-profitable and highly profitable sectors, and this process continues. Competition, of course, is growing, but many industries are left without support, even strategically important. Moreover, the coveted access of our exporters to international markets was clearly not justified.
Sanctions
The restrictions that existed before this sanctions war by the WTO and Russian companies have grown in number. Access is blocked almost completely to all advanced technologies, foreign direct investment has fallen dramatically, cheap financial resources are no longer available. The question is, why did Russia join the WTO, if not a single goal of accession is achieved? But ordinary Russian consumers did not notice this event at all, but should. Import prices did not decrease; on the contrary, retail growth was observed.
It is natural for a country like ours, for all the difficulties of interacting with the US and the EU, to follow all their obligations and implement the WTO agreements. It always happened, it happens now. The paradox here is that the very principles and history of the WTO are in huge and most direct contradiction with any plan restrictive measures. That is, we should not wait for economic preferences in connection with WTO membership. The fact is that the system of this organization itself is placed at the center of regulation of economic relations between countries, and the norms established by this system are almost an international trade law. Non-members of the WTO are in the position of outsiders, since the general rules do not apply to them. Which prompts (that is, forces) to join the WTO.
Miscellaneous cases
Russia has a very special demographic, industrial and scientific potential, and its position in the WTO, that is, absolute equality in partnership in the world market, must be consistent. The entry step would be correct and logical if such logic was present in the WTO actions in due measure. Our domestic law can hardly be brought into line with the principles and norms of this organization. The main thing is to see and correctly evaluate all the pros and cons of the WTO. First, there was no and no equality in the ranks of the WTO. According to data from 1995 to 2002, the United States and Japan sued this organization one hundred forty-three times out of two hundred and five. The countries that are poorer have filed the rest of the lawsuits. And the forty-nine of the poorest have never complained to anyone. In all disputes without exception, the United States turned out to be the winners.
The story is very loud and unpleasant occurred recently (and, unfortunately, no conclusion was drawn from its results, no one was punished, received no compensation, moreover, the same practice continues). In 1996, the WTO obliged the EU to sell meat on its territory that is oversaturated with growth hormones. And for the fact that the EU did not allow this product to be imported for several years, the WTO imposed a huge fine: for each year of the ban, the European Union paid the United States one hundred and seventeen million US dollars, and Canada - eleven million Canadian dollars.For each year of the ban! A few years later, scientists proved the harm of these growth hormones - people who consumed meat brought into the EU from the USA and Canada suffered dangerous diseases. But this case did not become the last. Since 2003, a lawsuit over GMO has lasted three years. The EU did not let in dubious food from the United States, the latter were indignant and sued. And what? A WTO court found the EU guilty and not only imposed a fine again for three years of the ban, but also insisted on the sale of these products in the future.
History of creation
The WTO was founded in 1995 and has since been a follower of the GATT (1947). In 1997, Geneva celebrated the anniversary of the General Agreement on Tariffs and Trade. Multilateral trade has acquired a half-century history. The latest GATT round in Uruguay led to the WTO, an organization with a wider scope. Trade has expanded to services and intellectual property aspects related to trade. The mechanism of work of the GATT was adapted to the present and improved, in addition, the status changed - the GATT was not formally an international organization.
WTO Director General - Roberto Carvalho de Azevêdo (Roberto Carvalho de Azevêdo. Formerly Robert Carvalho - Brazilian diplomat, successor to Pascal Lamy in the WTO field. Elected in 2013. The legal basis of the organization is based on a multilateral treaty - a set of legal documents: GATT (gene. agreement on trade in goods), GATS (the same on trade in services), TRIPS (the same on commercial aspects and intellectual property rights) All WTO agreements have been ratified by the parliaments of member states.
Structure
The WTO General Council delegates functions to three councils: trade in services, goods, and intellectual property rights. Further, the work is distributed to the relevant committees of each Council, which should monitor compliance with WTO principles and the implementation of agreements. There are also working groups - permanent and created. The third council, on property rights, deals with, among other things, conflicts related to the falsification of goods.
The committees are numerous, each highly specialized, working groups address environmental issues, deal with the problems of developing countries and conduct the procedure of regional trade agreements, as well as accession to the WTO. The WTO Secretariat in Geneva has five hundred employees, but it does not make decisions, it is done by the participating countries themselves, members of the organization. Technical support and analysis are being carried out with their hands, legal assistance is being provided, and work is being done with the press.
Key Agreements
The World Trade Organization declares the creation of a non-discriminatory trading system, where countries receive guaranteed fair and consistent treatment of their exports in foreign markets, while pledging to create equal conditions for imports on their own. However, all this is too flexibly arranged, due to which the actions of some countries in comparison with others gain much greater scope. The principles and rules are reflected in the MTS (Multilateral Trade Relations), which affects the sale of goods, services, some aspects of intellectual property rights, trade policy review mechanisms and dispute resolution.
Since 1947, the GATT has been implementing key principles that have been transferred to the WTO. This is a forum where negotiations are underway to reduce duties, remove trade barriers and discriminate. By 1994, the concepts were expanded and clarified. The main set of WTO rules applies to trade in goods, it is composed of agreements on specific sectors (textiles, agriculture), individual topics (state trade, standards for various products, subsidies, anti-dumping actions, etc.). Ensuring market access and non-discrimination are fundamental to the principles of the WTO.Here is access to the market, the abolition of quantitative restrictions on imported goods, the regulation of trade, transparency and transparency of the trade regime of all countries participating in the agreement. Free export and import of services, regardless of delivery methods (cross-border trade or consumption of certain services abroad), are also documented. The specifics of the sale of services requires exceptions in the most favored nation mode - each country decides this individually. The abolition of quantitative quotas is also carried out selectively, which is usually decided during negotiations. Intellectual property is protected by a set of rules on investment in creativity and ideas, where protection is stipulated in the implementation of such operations. It can be trademarks, copyrights, product names, geographical names, trade secrets, designs, chip topologies, and much more.
