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Unit 24 : Multilateralism and WTO

Subsequently, at the General Council meeting held at Geneva on 31 July 2006, an agreement was Notes
reached on the framework in order to conduct the negotiations. Preliminary agreements were reached
on broad approaches, especially in the areas of agriculture and industrial tariffs. It was decided to
drop the three Singapore issues on investment, competition policy, and government procurement
whereas negotiations on trade facilitation were to follow.
The Deadlock In WTO Negotiations
Despite intensive negotiations, deadlines were missed and negotiations across all areas of the Doha
work programme were suspended mainly due to lack of convergence on major issues in agriculture
and NAMA in July 2006. Agriculture remains the most contentious issue in the recent Ministerial
Conferences, widening the developed-developing country divide. Major developed countries continue
to give high amount of subsidies to their farmers. Interestingly, developed countries have fulfilled
their obligation of reduction in reducible subsidy in technical terms despite increasing the absolute
amount of subsidy. Besides, the EU and the US continue to give export subsidies as well. Ironically,
developed countries are pressurising developing countries to reduce their tariffs substantially. This
poses a threat to the domestic farming sector of developing countries, which has got serious socio-
economic and political implications. This makes negotiations in agriculture extremely complex.
Developed countries, on the other hand, are keen on market access for their industrial products.
Self-Assessment

1. Choose the correct options:
(i) The sixth WTO ministerial conference was held in ________ from 13 December - 18 December
2005.
(a) Macau (b) Hong Kong
(c) United States (d) Philippines
(ii) Designated name for the ________ (commonly known as Taiwan)
(a) Vietnam (b) Philippines
(c) People's Republic of China (d) Republic of China
(iii) Which of the following languages is spoken in World Trade Organization?
(a) Sardinian language (b) Spanish language
(c) Italian language (d) Venetian language
(iv) What is the leader of World Trade Organization called?
(a) Governor General of Tuvalu (b) Malaysian general election, 2008
(c) List of Secretaries General of ASEAN
24.5 Summary

• The World Trade Organization (WTO) is the only international organization that deals with
global rules of trade between nations. It provides a framework for conduct of international
trade in goods and services. It lays down the rights and obligations of governments in the set of
multilateral agreements discussed later in this chapter. In addition to goods and services, it also
covers a wide range of issues related to international trade, such as protection of intellectual
property rights and dispute settlement, and prescribes disciplines for governments in formulation
of rules, procedures, and practices in these areas. Moreover, it also imposes discipline at the
firm level in certain areas, such as export pricing at unusually low prices.
• WTO also covers areas of interest to international business firms, such as customs valuation,
pre-shipment inspection services, and import licensing procedures, wherein the emphasis has
been laid on transparency of the procedures so as to restrain their use as non-tariff barriers. The
agreements also stipulate rights of exporters and domestic procedures to initiate actions against
dumping of foreign goods. An international business manager needs to develop a thorough

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