Wto and Its Impact on International Business
Unit 2-1 WTO and Its Impact on
International Business
Content to be discussed
• WTO, Impact of WTO on International
Business:
• Tariff and Non Tariff Barriers (NTBs), GATT,
GATS, TRIPs, TRIMs, ..
How WTO Emerged?
• The multilateral trading system—past, present and future The World Trade Organization came into being in 1995.
• One of the youngest of the international organizations, the WTO is the successor to the
General Agreement on Tariffs and Trade (GATT) established in the wake of the Second World War.
• While the WTO is still young, the multilateral trading system that was originally set up under
GATT is well over 50 years old.
How WTO Emerged?
• Economic problems of Pre World War
– Failure of world monetary system – collapse of
Gold Standard
– Disruptions in world trade
– Destruction of Europe from WWII.
Great Depression of 1930s
How WTO Emerged?
Three Economic
Problems
Three pillars proposed in 1944
Result
Failure of world monetary system – collapse of Gold Standard
International Monetary
Fund (IMF)
Established
Disruptions in world trade International Trade
Organization(ITO)
Failed: GATT
Introduced
Destruction of Europe from WWII.
International Bank for
Reconstruction and
Development (IBRD)
Established
How WTO Emerged?
The Bretton Wood Institutions
• IMF was established in 1944 - to maintain the order in world monetary system.
• IBRD was established in 1944 - to reconstruct and develop world war devastated countries
• ITO failed
– In 1947, in order to foster and promote international trade, world’s 23 major trading nations agreed to sign
GATT.
– GATT went through eight rounds of negotiations until the end of eight round 1994. The last round called
Uruguay Round (1986-1994) created World Trade
Organization (WTO)
How WTO came into being?
SN Year
Place/
Round
Subjects/Results
Parties
Members
1
2
3
4
5
6
1947
1949
1951
1956
1960-61
International Business
Content to be discussed
• WTO, Impact of WTO on International
Business:
• Tariff and Non Tariff Barriers (NTBs), GATT,
GATS, TRIPs, TRIMs, ..
How WTO Emerged?
• The multilateral trading system—past, present and future The World Trade Organization came into being in 1995.
• One of the youngest of the international organizations, the WTO is the successor to the
General Agreement on Tariffs and Trade (GATT) established in the wake of the Second World War.
• While the WTO is still young, the multilateral trading system that was originally set up under
GATT is well over 50 years old.
How WTO Emerged?
• Economic problems of Pre World War
– Failure of world monetary system – collapse of
Gold Standard
– Disruptions in world trade
– Destruction of Europe from WWII.
Great Depression of 1930s
How WTO Emerged?
Three Economic
Problems
Three pillars proposed in 1944
Result
Failure of world monetary system – collapse of Gold Standard
International Monetary
Fund (IMF)
Established
Disruptions in world trade International Trade
Organization(ITO)
Failed: GATT
Introduced
Destruction of Europe from WWII.
International Bank for
Reconstruction and
Development (IBRD)
Established
How WTO Emerged?
The Bretton Wood Institutions
• IMF was established in 1944 - to maintain the order in world monetary system.
• IBRD was established in 1944 - to reconstruct and develop world war devastated countries
• ITO failed
– In 1947, in order to foster and promote international trade, world’s 23 major trading nations agreed to sign
GATT.
– GATT went through eight rounds of negotiations until the end of eight round 1994. The last round called
Uruguay Round (1986-1994) created World Trade
Organization (WTO)
How WTO came into being?
SN Year
Place/
Round
Subjects/Results
Parties
Members
1
2
3
4
5
6
1947
1949
1951
1956
1960-61