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A Level
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The Roles of the World Trade Organisation (WTO) Resources for Courses
The WTO is the most significant institution in the world for promoting and policing
international trade. Its primary objective is to increase international trade by opening
up markets and ensuring that each country abides by a set of rules and regulations.
It has four roles:
The Orchestra Conductor! Tribunal
The member countries of the WTO have all agreed and When member states get into disputes over trade, the
signed up to a set of rules about how international trade WTO can act as an arbiter who attempts to solve those
can be conducted and how each country should not operate. disputes. Any disputes referred to the WTO will be looked
These rules are constantly being reviewed and updated – at by a panel of experts who will then issue a ruling. The
for example, as growth in the service sector increased WTO deals with dozens of disputes between countries
during the 1980s more rules were developed to control each year.
and monitor this. Each of the new set of rules has to
be agreed by all members.
Monitor Trainer
The WTO will continually review the trade policies of The WTO sees itself as one of the primary trainers of
its members. These policies are assessed to see if they Government officials from around the world – who will
abide by the rules and regulations set by the WTO. The gain advice and information about how to develop and
WTO see this monitoring of policies as a method of conduct trading policies. The main beneficiaries of
preventing disputes before they happen. these training programmes have been in the developing
nations of Africa, Asia and South America.
Case studies of WTO activities:
2013 – Japan and South Korea
Japan asked the WTO to investigate the South Korean ban on fish caught in waters that surrounded the crippled Fukushima
nuclear plant (which had been destroyed by a tsunami in 2011). Japan argued that the fish were not affected by the issues
surrounding the plant and that the ban was unfair. Japan asked the WTO safety experts to investigate if there was any real
danger from consuming fish from the area.
2012 – Mexico and China
Mexico asked the WTO to intervene in the case of the textile industries of both countries. Mexico argued that the Chinese
government aid to their domestic textile industry gave them an unfair advantage and contravened the rules set by the WTO.
2015 – USA and China
The USA asked the WTO to investigate the Chinese for allowing their domestic small aircraft manufacturers to be exempt
from paying a 17pc value added tax. The USA argued that this gave the domestic manufacturers or small aircraft an unfair
advantage over foreign imported aircraft (such as those imported from the USA!).
2003 (still unresolved in 2016) – Antigua and the USA
In 2003, Antigua referred the USA to the WTO for its conduct in the online gaming market. Antigua argued that the USA
was actively discouraging its citizens from using the sites set up legitimately in Antigua (and which accounts for
approximately one third of their overall GDP).
student activity sheet
Using your own research, complete the following table:
The Orchestra Conductor! Tribunal
Find two examples of new rules set up by the WTO since its latest Find two further examples of trade disputes that has required WTO
round of negotiations (called the ‘Doha Round’, started in 2001): intervention since 2005:
Monitor Trainer
Find one example of policies, implemented by countries that the WTO Name 5 developing countries that are likely to benefit from training
is currently monitoring to see if they comply with agreed WTO rules: from the WTO as their economies start to grow internationally:
Using this information, determine two advantages and two disadvantages of the WTO for a
country who is a member.
Advantages Disadvantages
Suggest one further advantage and disadvantage for the world economy from the existence
of the WTO:
Advantages Disadvantages
