WTO - what is it? WTO: conditions, countries, membership

Each of us regularly hears in the news about the WTO. Information about this organization can be found in textbooks on geography and economics. Its activities are very important for European countries, but our compatriots know little about it. Recently, such a topic as "Russia and the WTO" has been very actively discussed. And on the wave of increased interest, let's try to understand this difficult economic and political issue.

Structure and organization

So, what is the WTO? The abbreviation stands for "World Trade Organization". It was founded in 1995 to expand the freedom of trade relations around the world, as well as between states that have joined the WTO. The basis was the General Agreement on Trade and Tariffs, established in 1947.

The headquarters of the organization is located in Switzerland (Geneva). At the moment, the general director of the structure is Pascal Lamy, and by mid-2013 it included 159 countries. The General Council is subordinated to the General Council or the secretariat, which in turn manages several commissions.

The main official body of the WTO is the Ministerial Conference. It meets at least once in a two-year period. Over the entire history of the structure, six such conferences were organized, and almost every one of them was accompanied by a series of protest actions by the enemies of globalization. We think, we answered the question: "WTO, what is this?". Now let us consider the goals of this organization.

Three main goals

1. Unhindered facilitation of international trade and removal of barriers to this. The WTO organization does not allow negative consequences and various abuses. For individual entrepreneurs, enterprises and departmental organizations, the norms of international trade do not change without warnings. Their meaning is clear and understandable, and the application is consistent.

2. Since many countries participate in the signing of the texts of the agreements, there is a constant debate between them. The WTO mediates in the negotiations, introducing a number of regulatory restrictions and creating reliability, which helps to avoid conflicts.

3. The third important aspect of the organization's work is the settlement of disputes. After all, the parties involved in the negotiations, as a rule, have different goals. Contracts and agreements concluded through the mediation of the WTO often require a subsequent interpretation. All disputable issues are best resolved in the order established by the organization, based on mutually agreed legal aspects, providing the parties with equal opportunities and rights. That is why all agreements signed within the organization include an item on the terms of dispute settlement.

Five principles

Currently, there are five principles that the world trading system must meet.

1. Non-discrimination

No state has the right to infringe another by imposing restrictions on the import and export of goods. Ideally, national and foreign products should be sold in the domestic market of the country under the same conditions.

2. Reduction of protection (trade) barriers

Trade barriers are factors that prevent the appearance of foreign goods in the domestic market of any state. First of all, they include import quotas and customs duties. Also, the policy of establishing currency exchange rates and administrative obstacles influences international trade .

3. Predictability and stability of trading conditions

Governments, investors and foreign companies should have confidence in the invariability of trade conditions (tariff and non-tariff barriers) in a sudden and arbitrary manner.

4. Stimulation of the competitive component

For competition between firms of different countries to be equal, it is necessary to prevent dishonest means of struggle-export subsidies (state support for exporting firms) and the use of dumping (specially understated) prices to enter new export markets.

5. Benefits for States with a low level of development

As a rule, WTO countries have a strong economy, but there are also underdeveloped states, to which the organization grants special privileges. This principle is in conflict with others, but it is needed to draw in countries with a low level of development in international trade.

Functions

• Monitoring compliance with the terms of the WTO framework agreements;
• Settlement of disputes on the problems of foreign trade;
• Assistance to both developing and underdeveloped countries;
• Cooperation with various international organizations;
• Creation of favorable conditions for negotiations among WTO members;
• Control over the policies of countries in the sphere of international trade.

Connection procedure

We have practically revealed the question "WTO - what is this?". It remains to consider the most important part of it - the procedure of joining, worked out for many years of existence of the organization. Judging by the experience of the applicant countries, the process takes about 5-7 years.

At the first stage, ad hoc working groups conduct a multilateral analysis of the trade and political regime and the economic mechanism of the acceding state for their compliance with WTO rules and norms. Then, negotiations begin on the conditions for joining the organization of the candidate country. Moreover, interested states participating in working groups can participate in them.

The main topic of the talks is the "commercially significant" concessions that the WTO countries will receive on access to its markets after the official accession of the candidate state to the organization. An equally important issue for discussion is the time frame for accepting obligations arising from membership.

In turn, the acceding state will get the rights that other WTO members have. This will stop its discrimination in foreign markets. If any member of the organization commits unlawful acts, any country may file a complaint with the LFS (Dispute Settlement Body). At the national level, every WTO member must fulfill its decisions.

The final stage is the ratification by the legislative body of the candidate country of all documents agreed by the Working Group and approved by the General Council. After this procedure, the candidate country receives the corresponding status.

Russia and the WTO

Since the economy of our country (since the time of the collapse of the USSR) has become increasingly integrated into international trade, it has become necessary to enter the world arena. For the first time, the accession to the WTO was discussed by the Russian leadership in 1995, and negotiations were held at that time. Joining the country to this organization will provide many advantages. And given the pace of globalization, getting them becomes a strategic priority. Bonuses that Russia will receive after joining the WTO:

• The best conditions for access of our goods to the world market;
• Expansion of opportunities for Russian investors to enter the markets of other member countries of the organization;
• Improving the image of the state in the international political arena;
• The possibility of using the WTO legislative framework to resolve trade disputes;
• Participation in the development of rules and norms of international trade taking into account their own interests.

In 2012, the 16-year negotiation process on Russia's accession to the WTO ended. An international treaty was sent to the Constitutional Court to verify its compliance with Russian legislation. In July 2012, the court recognized the conditions of the WTO prescribed in the treaty as legitimate, like the entire agreement as a whole. After 11 days, President Putin V.V. Signed an appropriate decree on Russia's accession to this organization.

Criticism

We hope that we have told you about this organization in sufficient detail, and you will no longer have a question: "What is WTO?". In conclusion, a couple of words about criticism.

Many people do not agree with the principles of the WTO on free trade. They believe that these principles do not contribute to the creation of a more prosperous life for the majority of citizens, but only lead to enrichment of already wealthy countries (and individuals). Also, WTO treaties are accused of unfair priority to rich states and multinational corporations.

Critics believe that small WTO member countries have no influence in the organization, and developed ones concentrate exclusively on their own commercial interests. Also, according to experts, the issues of environmental protection and health care are always pushed into the background for the sake of additional benefits for business.