o Formed on 1st January 1995 under the provisions of the URUGUAY

round.

o Its main objective is to Dzachieve freer, fairer and predictable trade.

o Headquarters Geneva, Switzerland

o Membership 153 member States.
o Official Languages English, French, Spanish
o Director General Mr. Pascal Lamy
o Budget 180 million Swiss Francs in 2008.
(approx. 163 million USD)
 Staff 625
 Website www.wto.int
«was established in 1994 under the Uruguay Round
Agreements.
«is the legal personality of the WTO.
«is binding on all its members.
«is equipped with a powerful enforcement system
«is unlike the GATT resolution system.
«its rulings are adopted automatically and only the unanimous
consent of all members can halt the adoption of a ruling.
«is prided as the WTO¶s ³unique contribution to the stability of
the global economy.´
ã =egal document
ã Applies to consultations and settlement of disputes
between Members
ã Established the Dispute Settlement Body (DSB)
ã Its stated objective is to secure a withdrawal of
³offensive´ trade measures
ã Has the provision to resort to compensation if
measure is not withdrawn
ã Has the provision to impose trade sanctions
ã shairperson ± H.E. Mr. Mario Matus from shille
ã General souncil in another guise
ã Governs the process of settling disputes
ã Has the sole authority to establish panels
ã Has the authority to accept or reject each panels
findings using the reverse consensus formula
ã Monitors the implementation of rulings and
recommendations
ã Has the power to authorize retaliation by means of
trade sanctions
A disputes arises when a member Govt.
believes another member Govt. is violating an
agreement or a commitment that it has made
in the W.T.O.
 DSB
‡sonsists of all 153 members of the WTO
‡Has the sole authority to establish panels
‡Panel findings are unanimously adopted
‡Reverse consensus formula
‡Monitors implementation of rulings

PANE= APPE==ATE BODY

‡sonsists of 3-5 individuals
‡WTO Secretariat maintains a list of
³appropriate´ panelists
Deliberations should be concluded
within 6 months
‡7 permanent Members each serving
four-year terms
‡Each appeal heard by 3 members
‡somprises of persons of recognized
authority with expertise in law
- The Appellate Body shall
³comprise persons of recognized
authority, with demonstrated - 7 members each serving a
expertise in law, international trade four year term, renewable
and the subject matter of the WTO only once.
agreements generally.´-DSU - surrent members are from-
‡ India (shairman)
-Appellate Body membership ‡ Japan
be broadly representative of ‡ Brazil
WTO Membership. ‡ United States
‡ Egypt
‡ Italy
‡ South Africa
 Request for sonsultations
10-30 days

sonsultations
60 days

Appointment of Panel
45 days Appeal
Appellate Body
60-90 days
Panel Deliberations
No Appeal 6 months
Ruling adopted
by DSB Appellate Body
Within 60 days Panel report circulated Report adopted
30 days
First Stage: Consultation (up to 60 days).

Second Stage: The Panel (up to 45 days for a panel to

be appointed , plus 6 months for panel to
conclude.
 Subsidies.

 Customs Duties.

 Sanitary and Phytosanitary.

 Patent Protection.
 It was discovered that about 75% of all the complaints
made were by the developed countries.

 The mechanism is cumbersome.

 Retaliation turns out to be an effective but unsatisfactory

method of solving the dispute.

 The dispute redressal system is coming under heavy strain

as the members are increasingly resorting to it.
 Interpretations Altering the Balance of Rights and
Obligations.

 Difference in Approach of Panels.

 Factual ambiguity Regarding Sequencing.

 Surveillance of Implementation.
 :o Retroactive Remedy.

 Initiating a Dispute is costly.

 Lack of Remand Power.

? Rishi Sharma
? K. Praveen Kumar
? Promod Sikaria
? Rakesh Sharma
? Gautam Kumar