Download Course on WTO Law and Jurisprudence Part I

Course on WTO Law and Jurisprudence
Part I: Basic Principles of WTO Law
From the ITO to the WTO:
The historical origins and structure of the WTO
Agreement
Session 1
15 October 2015
FROM THE ITO TO THE WTO
1930 – 1933
In 1930, the United States enacts the Smoot-Hawley tariff, raising its tariffs to the highest
levels in its history. Other countries react by raising their import barriers. By 1931 vast
import restrictions and exchange controls have been imposed by 26 countries. In 1933, the
United Kingdom abandons free trade and establishes a system of imperial tariff preferences.
Countries promote exports by competitive devaluations of their currencies.
1934 – 1945
The United States enacts the Reciprocal Trade Agreements Act of 1934 and, under the
authority of that Act, concludes 32 bilateral trade agreements with provisions similar to
those contained in the GATT.
1946 – 1948
Negotiations on the Charter for an International Trade Organisation (ITO) are conducted the
framework of the U.N. Economic and Social Council. The Charter covers a vast range of
issues, including employment, development, reconstruction, commercial policy, restrictive
business practices and commodity agreements. The Charter fails because the United States
administration decides not to submit it to Congress.
1947 –
The Chapter of the ITO Charter on commercial policy is transformed into the General
Agreement on Tariffs and Trade (GATT). The GATT does not enter into force. Instead, it is
applied on the basis of the Protocol of Provisional Application of 1947 and the protocols of
accession to the GATT. The staff of the Interim Commission for the International Trade
Organisation (ICITO) provides secretariat services to the contracting parties to the GATT.
FROM THE ITO TO THE WTO (2)
1954 – 1955
The Review Session of the CONTRACTING PARTIES to the GATT considers organisational
aspects of the GATT and proposes the creation of an Organisation for Trade Co-operation
(OTC). The proposal fails because the United States administration decides not to submit it
to Congress.
1973 – 1979
The Tokyo Round of multilateral trade negotiations ends with six agreements
supplementing the GATT in the areas of technical barriers to trade, government
procurement, subsidies, customs valuation, import licensing, anti-dumping and three
sector-specific agreements on bovine meat, dairy products, and civil aircraft. Less than one
third of the 125 contracting parties decide to accept these agreements. In addition, an
understanding codifying the dispute settlement practices of the GATT is adopted.
1986 – 1994
The Uruguay Round of multilateral trade negotiations leads to the creation of a new World
Trade Organization (WTO) replacing the GATT. The protocols through which GATT was
applied are terminated and the ICITO, at its final meeting in December 1994, agrees to
transfer its assets and liabilities to the WTO.
FROM THE ITO TO THE WTO (3)
GATT Negotiation Rounds
1949:
1950-51:
1956:
1960-61:
1964-67:
1973-79:
1986-94:
Annecy Round.
Torquay Round.
Geneva II Round (first Geneva Round was the conclusion of the GATT in
1947).
Dillon Round (named after U.S. Treasury Secretary Douglas Dillon).
Kennedy Round (named after President John F. Kennedy). First Round
to include non-tariff issues (dumping).
Tokyo Round.
Uruguay Round.
THE RESULTS OF THE URUGUAY ROUND
The results of the Uruguay Round were incorporated into
the Marrakesh Agreement Establishing the WTO (WTO
Agreement). Annexed to the WTO Agreement are close to
thirty legal instruments called:
 "multilateral agreements",
 "plurilateral agreements" and
 "understandings".
THE WTO AGREEMENTS
Agreement Establishing the World Trade Organization
Multilateral trade agreements
GATT 1994, defined as comprising:
 The GATT 1947
 Legal instruments adopted under the GATT 1947
 Six understandings on provisions of the GATT
1994
 Marrakesh Protocol to the GATT
Plurilateral trade agreements
GATS
TRIPS Agreement
Agreement on
Civil Aircraft
Ten agreements supplementing the GATT 1994
 Agreement on Agriculture
 SPS Agreement
 Agreement on Technical Barriers to Trade
 Agreement on Trade-Related Investment
Measures
 Anti-dumping Agreement
 Customs Valuation Agreement
 Agreement on Preshipment Inspection
 Agreement on Rules of Origin
 Import Licensing Agreement
 Safeguards Agreement
Understanding on the Rules and Procedures Governing the Settlement of Disputes (DSU)
Trade Policy Review Mechanism (TPRM)
Agreement on
Government
Procurement
THE HIERARCHY OF THE WTO AGREEMENTS
WTO AGREEMENT
(Protocols of Accession (see Article XII))
Annex 1A
(Trade in Goods)
Agreement on
Agriculture
(see Article 21.1)
Specific agreements
supplementing the
GATT
(see Note to Annex 1A
of WTO Agreement)
GATT 1994
• Decisions such as
Enabling Clause
• Schedules of
Concessions
Annex 1B
Annex 1C
Annex 2
Annex 3
Annex 4
GATS
TRIPS
DSU
Trade Policy Review
Mechanism
Plurilateral Trade
Agreements
(GPA) (not binding on
all Members)