WORLD TRADE ORGANIZATION - WTO

The World Trade Organization (WTO) is an international organization whose creation has established the institutional and legal framework of the international multilateral trading system. The essence of establishing this system is to clearly define the rules and principles under which trade between members of the World Trade Organization is being conducted. The foundations of the international multilateral trading system are WTO agreements that have been adopted as a result of the Uruguay Round of Multilateral Trade Negotiations and constitute the Annexes to the Marrakesh Agreement:

• Annex 1A: Multilateral Agreements on Trade in Goods  including the General Agreement on Tariffs and Trade 1994 and single agreements regulating certain fields of trade in goods;                                                                                                 
• Annex 1B: General Agreement on Trade in Services;
• Annex 1C:  Agreement on Trade-Related Aspects of Intellectual Property Rights

Translations of the texts of the mentioned WTO agreements are available through the link: RESULTS OF THE URUGUAY ROUND OF MULTILATERAL TRADE NEGOTIATIONS

In accordance with the foregoing, the basic functions of the World Trade Organization are (i) administering the implementation of the aforementioned multilateral agreements among the members of this organization. In this context, (ii) Member States’ Review Policy Control Mechanism, as set out in Annex 3 of the Uruguay Round of Multilateral Negotiations, was established.

In the case of a dispute between the members regarding the implementation of the above agreements, (iii) a WTO dispute settlement system has been provided, the procedures of which are set forth in Annex 2: Understanding on Rules and Procedures Governing the Settlement of Disputes

Finally, the World Trade Organization is also (iv) a forum for negotiations between members on further liberalization of world trade and the updating of existing rules.

For more information on the WTO, see BASIC INFORMATION ON THE WTO where a translation of the WTO brochure “Trade inthe Future”, 1999, is available.

Special attention within the framework of the World Trade Organization is devoted to countries that, after its establishment, remain outside this system. For these countries, a special procedure for joining this organization is stipulated, which includes (i) reviewing the trade regime of the accession country, as well as negotiations with existing members on access to the market for goods and services of these countries.

Since 1999, Bosnia and Herzegovina has held the status of an observer of  the WTO, and negotiations for joining this organization are still ongoing. For more detailed information on the state of this process, relevant information is available through a link BiH AND WTO.   

Establishing a world multilateral trading system within the WTO implies introducing into the use a new terminology in international trade relations. Basic trade terms are available through a link GLOSSARY OF WTO TERMS.