Complied by:
Szabó Izabel Erzébet Second year Economics student Széchenyi István Egyetem
Sources: http://www.wto.org and Viczena Andrea - Szőke Andrea - Molnár Judit
1000 Questions 1000 Answers Business English Lexika Kiadó Kft.
The World Trade Organisation
1. The predecessor of the World Trade Organisation
In 1947 was born the decision to establish ITO, the International Trade Organisation, but it wasn’t realized. The aims of the International Trade Organisation was implemented by GATT.
GATT is the predecessor of the World Trade Organisation. GATT is the General Agreement on Tariffs and Trade. GATT was entered into force in 1947. Its aim was to promote free trade between its members, reduce import tariffs and quotas, and eliminate preferential trade agreements. It also provided a forum for handling trade disputes. One of the GATT’s principle is to prescribe the employment of the most-favoured-nation clause. According to this clause, if a country granted a tariff reduction to one country, it had to grant the same allowance to any other country.
There was three bigger round during the GATT, the Kennedy Round (1964-1967), the Tokyo Round (1973-1979) and the Uruguay Round (1986-1994). The greatest achievement of the Uruguay Round was the establishment of the World Trade Organisation as the successor of GATT.
2. The foundation
GATT has 128 members in 1994, and the end of 1994, together they signed the agreement of the World Trade Organisation. So the World Trade Organisation was founded in 1994 and it replaced GATT on 1 January 1995, the World Trade Organisation replaced GATT. The World Trade Organisation is the only global international organisation dealing with the rules of trade between nations. The goal is to help producers of goods and services, exporters and importers conduct their business. Its headquarters are in Geneva, Switzerland.
3. Memebers and observers
Those who were members of the GATT automatically became members of the World Trade Organisation. Now it has 148 members. The World Trade Organisation has observers too. Observers must start accession negotiation within five years of becoming observers. (Except for the Vatican)
4. Accession
Any state or customs territory having full autonomy in the conduct of its trade policies may become a member the World Trade Organisation but all World Trade Organisation members must agree on the terms.
5. Structure
The director of the World Trade Organisation is Dr Supachai Panitchpakai. He took up his appoitment on 1 September 2002 for three years.
The topmost decision-making body of the World Trade Organisation is the Ministerial Conference, which has to meet at least every two years. It brings together all members of the World Trade Organisation, all of which are countries or custom unions. The Ministerial Conference can take decisions on all matters.
6. Conferences
The first World Trade Organisation Ministerial Conference was held in Singapore in 1996. The second Conference was in 1998 in Switzerland, the third was in Seattle, in 1999. The fourth was in Qatar in 2001 and the fifth was in Mexico in 2003. The sixth World Trade Organisation Ministerial Conference will be held in Hong Kong, China, from 13 to 18 December 2005.
7. The General Council
The General Council is the World Trade Organisation’s highest-level decision-making body in Geneva, meeting regularly to carry out the functions of the World Trade Organisation. It has representatives from all member governments and has the authority to act on behalf of the Ministerial Conference which only meets about every two years. The current chairman is from Kenya.
8. Coherence
Globalisation has increased the need for closer cooperation between the multilateral institutions. The World Trade Organisation co-operates with other international organisations such as the International Monetary Fund and the International Bank for Reconstruction and Developement and provides technical assistance and training for developing countries.
9. The Annual Report
The Organisation’s Annual Report includes descriptions of its main activities and information on its budget and staff. The Annual Report is published in the first half of each years.
10. The differences between GATT and World Trade Organisation
GATT was an international treaty and the World Trade Organisation is an international organisation. The World Trade Organisation is more global both in its membership and activities than its predecessor. It covers almost the whole world trade and for the first time, extends its activities to such areas as trade in services, the protection of intellectual property and investment. Some GATT agreements for example anti-dumping measures and subsidies, were limited to a few countries.
11. Hungary
Hungary became a member of the GATT in 1973. As a result, the Hungarian tariff system was created in line with the international regulations and customs.
United Kingdom November 2004BASIC INDICATORS
Population (thousands, 2003) / 59 280 / Rank in world trade, 2003 / Exports / Imports
GDP (million current US$, 2003) / 1 794 858 / Merchandise / 6 / 4
GDP (million current PPP US$, 2003) / 1 606 853 / Commercial services / 2 / 3
Current account balance (million US$, 2003) / - 33 457 / Merchandise excluding intra-EU trade / - / -
Trade per capita (US$, 2001-2003) / 14 941 / Commercial serv. excl. intra-EU trade / - / -
Trade to GDP ratio (2001-2003) / 55.4
Annual percentage change
2003 / 1995-2003 / 2002 / 2003
Real GDP (95 prices, 1995=100) / 123 / 3 / 2 / 2
Exports of goods and services (95 prices, 1995=100) a / 140 / 5 / -1 / ...
Imports of goods and services (95 prices, 1995=100) a / 166 / 8 / 1 / ...
TRADE POLICY
WTO accession date / 1January 1995 / Contribution to WTO budget (%, 2004) / 5.689
Trade Policy Review date / 25, 27October 2004 / Import duties collected:
in total tax revenue / ...
Tariff binding coverage (%, 2004) / 100.0 / to total merchandise imports / ...
MFN tariffs / Final bound / Applied 2004
Simple average of ad-valorem duties / Number of:
All goods / 4.1 / 4.2 / GATS services sectors with commitments / 115
Agricultural goods (AOA) / 5.8 / 5.9 / Dispute rulings (complainant - defendant) / 25 - 10
Non-agricultural goods / 3.9 / 4.0 / Notifications outstanding (CRN) / 18
Non ad-valorem duties (% of total tariff lines) / 6.0 / 5.9 / Number of contingency measures in force:
Anti-dumping (30 June 2004) / 165
MFN duty free imports / Countervailing duties (30 June 2004) / 18
Share in total imports, 2003 / 46.5 / Safeguards (18 October 2004) / 1
MERCHANDISE TRADE / Value / Annual percentage change
2003 / 1995-2003 / 2002 /
2003
Merchandise exports, f.o.b. (million US$) / 304 596 / 3 / 3 / 9
Merchandise imports, c.i.f. (million US$) / 390 774 / 5 / 4 / 13
2003 /
2003
Share in world total exports / 4.1 / Share in world total imports / 5.0
Breakdown in economy's total exports / Breakdown in economy's total imports
By main commodity group (ITS) / By main commodity group (ITS)
Agricultural products / 6.6 / Agricultural products / 10.6
Mining products / 10.6 / Mining products / 6.8
Manufactures / 82.8 / Manufactures / 78.7
By main destination / By main origin
1. European Union (15) / 53.4 / 1. European Union (15) / 52.3
2. United States / 15.0 / 2. United States / 9.9
3. Japan / 1.9 / 3. China / 5.1
4. Canada / 1.7 / 4. Japan / 3.4
5. Switzerland / 1.5 / 5. Norway / 2.5
Unspecified destinations / 4.0 / Unspecified origins / 4.9
COMMERCIAL SERVICES TRADE / Value / Annual percentage change
2003 / 1995-2003 / 2002 /
2003
Commercial services exports (million US$) / 143 411 / 8 / 11 / 11
Commercial services imports (million US$) / 118 318 / 8 / 9 / 13
2003 /
2003
Share in world total exports / 8.0 / Share in world total imports / 6.6
Breakdown in economy's total exports / Breakdown in economy's total imports
By principal services item / By principal services item
Transportation / 14.8 / Transportation / 23.7
Travel / 15.9 / Travel / 41.0
Other commercial services / 69.4 / Other commercial services / 35.3
a Refers to 2002 values and to the average annual percentage change for 1995-2002.
November 2004
United States
BASIC INDICATORS
Population (thousands, 2003) / 291 044 / Rank in world trade, 2003 / Exports / Imports
GDP (million current US$, 2003) / 10 881 610 / Merchandise / 2 / 1
GDP (million current PPP US$, 2003) / 10 871 090 / Commercial services / 1 / 1
Current account balance (million US$, 2003) / - 530 660 / Merchandise excluding intra-EU trade / 2 / 1
Trade per capita (US$, 2001-2003) / 8 427 / Commercial serv. excl. intra-EU trade / 2 / 2
Trade to GDP ratio (2001-2003) / 23.3
Annual percentage change
2003 / 1995-2003 / 2002 / 2003
Real GDP (95 prices, 1995=100) / 129 / 3 / 2 / 3
Exports of goods and services (95 prices, 1995=100) a / 131 / 4 / -2 / ...
Imports of goods and services (95 prices, 1995=100) a / 175 / 8 / 4 / ...
TRADE POLICY
WTO accession date / 1January 1995 / Contribution to WTO budget (%, 2004) / 15.735
Trade Policy Review date / 14, 16 January 2004 / Import duties collected:
in total tax revenue, 2001-2003 / 1.7
Tariff binding coverage (%, 2009) / 100.0 / to total merchandise imports, 2001-2003 / 1.6
MFN tariffs / Final bound / Applied 2002
Simple average of ad-valorem duties / Number of:
All goods / 3.6 / 3.9 / GATS services sectors with commitments / 110
Agricultural goods (AOA) / 6.9 / 5.1 / Dispute rulings (complainant - defendant) / 24 - 41
Non-agricultural goods / 3.2 / 3.7 / Notifications outstanding (CRN) / 13
Non ad-valorem duties (% of total tariff lines) / 10.8 / 0.3 / Number of contingency measures in force:
Anti-dumping (30 June 2004) / 293
MFN duty free imports / Countervailing duties (30 June 2004) / 57
Share in total imports, 2002 / 43.4 / Safeguards (18 October 2004) / 0
MERCHANDISE TRADE / Value / Annual percentage change
2003 / 1995-2003 / 2002 /
2003
Merchandise exports, f.o.b. (million US$) / 723 805 / 3 / -5 / 4
Merchandise imports, c.i.f. (million US$) / 1 303 050 / 7 / 2 / 9
2003 /
2003
Share in world total exports / 9.6 / Share in world total imports / 16.8
Breakdown in economy's total exports / Breakdown in economy's total imports
By main commodity group (ITS) / By main commodity group (ITS)
Agricultural products / 10.5 / Agricultural products / 5.9
Mining products / 3.9 / Mining products / 14.2
Manufactures / 81.1 / Manufactures / 76.0
By main destination / By main origin
1. Canada / 23.4 / 1. European Union (15) / 19.3
2. European Union (15) / 20.8 / 2. Canada / 17.4
3. Mexico / 13.5 / 3. China / 12.5
4. Japan / 7.2 / 4. Mexico / 10.7
5. China / 3.9 / 5. Japan / 9.3
COMMERCIAL SERVICES TRADE / Value / Annual percentage change
2003 / 1995-2003 / 2002 /
2003
Commercial services exports (million US$) / 287 695 / 5 / 2 / 5
Commercial services imports (million US$) / 228 535 / 7 / 2 / 8
2003 /
2003
Share in world total exports / 16.0 / Share in world total imports / 12.8
Breakdown in economy's total exports / Breakdown in economy's total imports
By principal services item / By principal services item
Transportation / 16.5 / Transportation / 28.8
Travel / 29.2 / Travel / 26.1
Other commercial services / 54.2 / Other commercial services / 45.1
a Refers to 2002 values and to the average annual percentage change for 1995-2002.
November 2004
Hungary
BASIC INDICATORS
Population (thousands, 2003) / 10 120 / Rank in world trade, 2003 / Exports / Imports
GDP (million current US$, 2003) / 82 805 / Merchandise / 36 / 31
GDP (million current PPP US$, 2003) / 147 472 / Commercial services / 37 / 36
Current account balance (million US$, 2003) / - 7 364 / Merchandise excluding intra-EU trade / 25 / 21
Trade per capita (US$, 2001-2003) / 8 881 / Commercial serv. excl. intra-EU trade / 24 / 23
Trade to GDP ratio (2001-2003) / 135.6
Annual percentage change
2003 / 1995-2003 / 2002 / 2003
Real GDP (95 prices, 1995=100) / 135 / 4 / 3 / 3
Exports of goods and services (95 prices, 1995=100) a / 249 / 14 / 4 / ...
Imports of goods and services (95 prices, 1995=100) a / 249 / 14 / 6 / ...
TRADE POLICY
WTO accession date / 1January 1995 / Contribution to WTO budget (%, 2004) / 0.427
Trade Policy Review date / 07, 08 July 1998 / Import duties collected:
in total tax revenue, 2000-2002 / 3.3
Tariff binding coverage (%, 2002) / 96.4 / to total merchandise imports, 2000-2002 / 1.4
MFN tariffs / Final bound / Applied 2002
Simple average of ad-valorem duties / Number of:
All goods / 9.7 / 9.5 / GATS services sectors with commitments / 109
Agricultural goods (AOA) / 27.0 / 26.2 / Dispute rulings (complainant - defendant) / 0 - 0
Non-agricultural goods / 6.9 / 7.0 / Notifications outstanding (CRN) / 4
Non ad-valorem duties (% of total tariff lines) / 0.0 / 0.0 / Number of contingency measures in force:
Anti-dumping (30 June 2004) / 165
MFN duty free imports / Countervailing duties (30 June 2004) / 18
Share in total imports, 2001 / 17.7 / Safeguards (18 October 2004) / 1
MERCHANDISE TRADE / Value / Annual percentage change
2003 / 1995-2003 / 2002 /
2003
Merchandise exports, f.o.b. (million US$) b / 42 532 / ... / 13 / 23
Merchandise imports, c.i.f. (million US$) b / 47 602 / ... / 12 / 26
2003 /
2003
Share in world total exports / 0.6 / Share in world total imports / 0.6
Breakdown in economy's total exports / Breakdown in economy's total imports
By main commodity group (ITS) / By main commodity group (ITS)
Agricultural products / 8.0 / Agricultural products / 4.6
Mining products / 3.4 / Mining products / 7.9
Manufactures / 88.0 / Manufactures / 84.5
By main destination / By main origin
1. European Union (15) / 73.8 / 1. European Union (15) / 56.3
2. United States / 3.1 / 2. China / 7.1
3. Romania / 2.5 / 3. Japan / 4.3
4. Poland / 2.3 / 4. Russian Federation / 4.0
5. Czech Republic / 2.1 / 5. United States / 3.3
COMMERCIAL SERVICES TRADE / Value / Annual percentage change
2003 / 1995-2003 / 2002 /
2003
Commercial services exports (million US$) / 7 894 / 6 / 4 / 2
Commercial services imports (million US$) / 8 043 / 11 / 19 / 13
2003 /
2003
Share in world total exports / 0.4 / Share in world total imports / 0.5
Breakdown in economy's total exports / Breakdown in economy's total imports
By principal services item / By principal services item
Transportation / 12.9 / Transportation / 17.3
Travel / 43.6 / Travel / 25.2
Other commercial services / 43.6 / Other commercial services / 57.5
a Refers to 2002 values and to the average annual percentage change for 1995-2002.
b Break in series for merchandise: 1996.
Key
Reporting to General Council (or a subsidiary)
Reporting to Dispute Settlement Body
Plurilateral committees inform the General Council or Goods Council of their activities, although these agreements are not signed by all WTO members
Trade Negotiations Committee reports to General Council
The General Council also meets as the Trade Policy Review Body and Dispute Settlement Body.
The negotiations mandated by the Doha Declaration take place in the Trade Negotiations Committee and its subsidiaries. This now includes the negotiations on agriculture and services begun in early 2000. The TNC operates under the authority of the General Council.
Key
Reporting to General Council (or a subsidiary)
Reporting to Dispute Settlement Body
Plurilateral committees inform the General Council or Goods Council of their activities, although these agreements are not signed by all WTO members
Trade Negotiations Committee reports to General Council
The General Council also meets as the Trade Policy Review Body and Dispute Settlement Body.
The negotiations mandated by the Doha Declaration take place in the Trade Negotiations Committee and its subsidiaries. This now includes the negotiations on agriculture and services begun in early 2000. The TNC operates under the authority of the General Council.
Members and Observers