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Master of Business Administration- MBA Semester 4MB0053 –International Business Management -4 Credits(Book ID: B1315)

arrangements with competitors and to embark on a subsidies race to maintain their holds onagricultural trade. Both these changes undermined the credibility and effectiveness of GATT.


World Trade Organization came into existence in 1995 after the desolation of General Agreement onTariff and Trade (GATT).The WTO’s overriding objective is to help trade flow smoothly, freely, fairly and predictably. It does thisby:

 Administering trade agreements

 Acting as a forum for trade negotiations

Settling trade disputes

Reviewing national trade policies

 Assisting developing countries in trade policy issues, through technical assistance and trainingprograms

Cooperating with other international organizationsThe WTO has nearly 150 members, accounting for over 97% of world trade. Around 30 others arenegotiating membership. Decisions are made by the entire membership. This is typically by consensus. A majority vote is also possible but it has never been used in the WTO, and was extremely rare under the WTO’s predecessor, GATT. The WTO’s agreements have been ratified in all members’parliaments.The WTO’s top level decision-making body is the

Ministerial Conference

which meets at least onceevery two years. Below this is the

General Council

which meets several times a year in the Genevaheadquarters. The General Council also meets as the Trade Policy Review Body and the DisputeSettlement Body. At the next level, the

Goods Council, Services Council and Intellectual Property(TRIPS) Council

report to the General Council.Numerous

specialized committees, working groups


working parties

deal with the individualagreements and other areas such as the environment, development, membership applications andregional trade agreements.The WTO Secretariat, based in Geneva, has around 600 staff and is headed by a director-general. Itsannual budget is roughly 160 million Swiss francs. It does not have branch offices outside Geneva.Since decisions are taken by the members themselves, the Secretariat does not have the decision-making role that other international bureaucracies are given with.