World Trade Organisation

The World Trade Organisation (WTO) in Geneva, Switzerland is one of the most powerful organisations in the world.  It is where countries make the rules that govern global trade. 

With 151 member countries, the WTO is also the forum for deciding on trade disputes. It can impose huge fines if a country breaks the rules.

The WTO’s aim is to spread free trade across the world.

How does the WTO work?
Trade ministers from member countries meet every two years to negotiate the terms of new trade agreements, which are taken forward in a vast array of ongoing meetings.The UK negotiates as part of the EU. Trade ministers from all 27 EU member states agree a single negotiating position, which the EU trade commissioner – currently Peter Mandelson – takes to WTO meetings.
As one of the largest trading blocs, the EU trade commissioner is in a hugely powerful position.

A model of democracy?
The WTO is often held up as a model of democracy among international institutions because it relies on the principle of ‘one member, one vote’.

In practice, some members have much more power in the system than others.

What is happening at the World Trade Organisation (WTO)?
Currently WTO trade negotiators are trying to wrap up the biggest trade agreement in history. The current round of negotiations was launched in Doha in Qatar in 2001 and is known as the Doha ‘Development Round’. The focus was meant to be on the ‘needs and interests’ of poor countries but the talks have frequently stalled.

The current state of play
Last-ditch proposals were tabled in summer 2007. All countries are being asked to compromise.The US must cut its $23bn farm subsidies - which harm global trade the most - and the EU may have to let in more farm imports from the rest of the world.
But in return, poor countries must open up their markets with little regard for the impact on poor people and the environment.

Led by Brazil and India, many developing countries have lobbied hard to get rich nations to slash their bloated farm subsidies and cut tariff barriers.

But the deal taking shape at the WTO will do little to tackle poverty – in fact, it could cause massive hardship and unemployment.

photo : ©Michael Hughes / ActionAid UK