DATA CENTER COLLEGE OF THE PHILIPPINES OF LAOAG CITY, INC.
BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION
World Trade Organization
The World Trade Organization (WTO) is the only international organization dealing with
the rules of trade between nations. At its heart are the WTO agreements, negotiated
and signed by the bulk of the world’s trading nations and ratified in their parliaments.
The fundamental goal of the WTO, as set out in the organization's founding agreement,
is to use trade as a means to improve people's living standards, create better jobs and
promote sustainable development.
How it started?
Throughout history, trade and foreign policy have been intertwined, with China
maintaining the Silk Road and Rome conquering Egypt for grain supply. From 1948 to
1994, the General Agreement on Tariffs and Trade (GATT) provided the rules for much
of world trade and presided over periods that saw some of the highest growth rates in
international commerce. It seemed well-established but throughout those 47 years, it
was a provisional agreement and organization. The WTO’s creation on 1 January 1995
marked the biggest reform of international trade since the end of the Second World War.
Whereas the GATT mainly dealt with trade in goods, the WTO and its agreements also
cover trade in services and intellectual property. The birth of the WTO also created new
procedures for the settlement of disputes. 1998 marked the 50th anniversary of the
multilateral trading system. Over the past 30 years, WTO members have agreed major
updates to the WTO rulebook to improve the flow of global trade. In 2024, the WTO
marked its 30th anniversary of the Marrakesh Agreement Establishing the WTO.
Who are they?
The first Director-General of the GATT was Eric Wyndham White, who held office from
1948 to 1968. The current Director-General of the WTO is Dr Ngozi Okonjo-Iweala, who
took office on 1 March 2021.The WTO is run by its member governments. All major
decisions are made by the membership as a whole, either by ministers (who meet at
least once every two years) or by their ambassadors or delegates (who meet regularly
at the WTO's headquarters in Geneva). Decisions are normally taken by consensus.
The WTO, comprising 98% of world trade, has 166 members who join through
negotiation, with over 20 countries currently negotiating to join.
What they do?
The WTO governs global trade rules, assists developing nations in trade capacity
enhancement, facilitates trade agreements, and resolves trade issues, aiming to
enhance living standards, job creation, and overall human well-being.
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DATA CENTER COLLEGE OF THE PHILIPPINES OF LAOAG CITY, INC.
BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION
What they stand for?
The WTO agreements, despite their complexity, are based on fundamental principles
that aim to improve people's lives, ensure full employment, and maximize resource use.
These principles include non-discrimination between trading partners and products,
services, and nationals, and lowering trade barriers like customs duties and import bans
to encourage trade.
Functions
The WTO’s overriding objective is to help its members use trade as a means to raise
people's living standards. It does this by:
administering trade agreements
acting as a forum for trade negotiations
settling trade disputes
reviewing national trade policies
building the trade capacity of developing economies
cooperating with other international organizations
The WTO can ...
1 ... cut living costs and raise living standards
2 ... settle disputes and reduce trade tensions
3 ... stimulate economic growth and employment
4 ... cut the cost of doing business internationally
5 ... encourage good governance
6 ... help countries develop
7 ... give the weak a stronger voice
8 ... support the environment and health
9 ... contribute to peace and stability
10 ... be effective without hitting the headlines
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DATA CENTER COLLEGE OF THE PHILIPPINES OF LAOAG CITY, INC.
BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION
Pros of the WTO:
Promotes Free Trade:
The WTO aims to reduce trade barriers like tariffs and quotas, leading to a more open
and efficient global trading system.
Lower Prices and Increased Variety:
Free trade can lead to lower prices for consumers and a wider variety of goods and
services available.
Economic Growth:
Increased trade can stimulate economic growth by fostering competition, innovation,
and specialization.
Global Trade Rules:
The WTO provides a framework of rules and regulations for international trade, ensuring
predictability and stability for businesses.
Dispute Resolution:
The WTO offers a mechanism for resolving trade disputes between member countries,
promoting fair trade practices.
Export Diversification:
WTO membership can help countries diversify their exports and access new markets.
Transparent and Predictable Investment Regime:
WTO membership can lead to a more transparent and predictable investment regime.
Strengthening Positions in Trade Disputes:
WTO membership can strengthen a country's position in trade disputes.
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DATA CENTER COLLEGE OF THE PHILIPPINES OF LAOAG CITY, INC.
BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION
Cons of the WTO:
Potential Job Losses:
Trade liberalization can lead to job losses in certain sectors as companies shift
production to countries with lower labor costs.
Unequal Distribution of Benefits:
Critics argue that free trade benefits developed countries more than developing
countries, potentially exacerbating inequality.
Environmental Concerns:
Some argue that increased trade can lead to environmental damage as countries
compete to produce goods at lower costs.
Loss of Sovereignty:
Some critics argue that the WTO infringes on national sovereignty by imposing trade
rules.
Lack of Transparency:
The WTO's decision-making processes can be opaque, raising concerns about
accountability and fairness.
Focus on Trade Over Other Issues:
Critics argue that the WTO prioritizes trade liberalization over other important issues,
such as labor rights and environmental protection.
Undemocratic and Unaccountable:
Some global communities claim that the WTO is undemocratic and unaccountable, has
increased global inequality and insecurity, promotes unsustainable production and
consumption patterns, erodes diversity, and undermines social and environmental
standards.
Imbalanced Trade:
Some argue that the WTO has led to imbalanced trade, where some countries have a
significant trade surplus while others have a significant trade deficit.
Exploitation of Labor and Resources:
Some argue that the WTO has led to the exploitation of labor and resources in
developing countries.
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DATA CENTER COLLEGE OF THE PHILIPPINES OF LAOAG CITY, INC.
BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION
LIST OF SECTORS:
Business services and professional services
Accountancy services
Advertising services
Architectural and engineering services
Computer and related services
Legal services
Communication services
Audiovisual services
Postal and courier, express mail services
Telecommunications
Construction and related services
Distribution services
Education services
Energy services
Environmental services
Financial services
Health and social services
Tourism services
Transport services
Air transport services
Land transport services
Maritime transport services
Services auxiliary to all modes of transport
Movement of natural persons
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