The World Trade Organization

Abstract

AbstractThe World Trade Organization was established on 1 January 1995. The WTO builds on the organizational structure of the GATT and its secretariat—to a significant extent it formalizes and extends the structure that had gradually evolved over a period of some 50 years. The Punta del Este Ministerial Declaration launching the Uruguay Round did not call for the creation of a WTO. In principle, it was not necessary to create an international organization to implement the outcome of the negotiations. The Canadian suggestion to establish a Multilateral Trade Organization in 1990—subsequently supported by the EU—was therefore something of a surprise. The proposal was motivated by a desire to create a single institutional framework for world trade (Croome, 1999). This would encompass the modified GATT, the new agreements on services (GATS) and intellectual property (TRIPS), as well as all other agreements and arrangements concluded under the auspices of the Uruguay Round. The US initially opposed the idea, but after negotiations on the substance of the new organization, agreed to the framework that currently exists, including the name change.