International Economic Law

Why join WTO?

• Avoid trade wars and retaliation

- The WTO promotes peace by providing a stable and predictable system of rules and an efficient mechanism for dealing with trade disputes among its Members.

• Dispute Settlement Mechanism

- Dispute Settlement

- Appellate Body

How to join the WTO?

• Accession process - negotiating with the WTO Members.
• The process is one of learning and preparation for WTO Membership.
• Memorandum covering all aspects of state trade regime, which is examined by the working party.
• The results of both multilateral and bilateral negotiations are consolidated into a document which is part of the final “accession package”.
• “Decisions on accession shall be taken by the Ministerial Conference. The Ministerial Conference shall approve the agreement on the terms of accession by a two-thirds majority of the Members of the WTO” - Art XII(2).

WTO Fundamental Treatments

• Non-discrimination – Most-favorite nation principle, national treatment
• More open trade
• Transparency and Predictability
• Special treatment for less developed Members
• WTO Agreements give policy space to the Members in order to protect legitimate policy objectives

Most-favourite nation treatment

Legal basis – Article 1 of GATT

If a WTO member grants an advantage to imports from any country (member or not of the WTO), it must “immediately and unconditionally” grant that advantage to imports of like products from all WTO members.

National Treatment

Legal basis – Article 3 of GATT

The national treatment principle ensures non-discrimination between domestic and foreign products, services or nationals. In general, it prohibits a member from favoring its domestic products over the imported like products of other members once imported products have entered the domestic market.