International cooperation in the field of trade from 1947 to 1995 was regulated by decisions of the General Agreement on Tariffs and Trade (GATT). The economic crisis of 1929 proved the need for cooperation in this area, and it was initiated by the United States and Great Britain in 1944. On January 1, 1995, an agreement was signed in Marrakesh to establish the World Trade Organization (WTO). By the beginning of 2012, 156 states are members.
Instructions
Step 1
Membership in the WTO presupposes a balance of rights and obligations of all countries participating in the agreement. Any state or customs union can join this organization under certain conditions. For example, the members of the WTO are the European Union as a whole and each country that is part of it.
Step 2
Before the start of negotiations on accession to the WTO, a state can become an observer in this organization. This step is optional. It is needed for the government of the applicant country to become better acquainted with the activities of the organization and decide whether membership is beneficial to the state.
Step 3
Observer status is granted for 5 years and gives the right to attend meetings of all WTO bodies, with the exception of the Committee on Budget, Finance and Administration. Observers may seek technical assistance from the Secretariat and are required to pay fees for services rendered to them.
Step 4
The subsequent entry process can be divided into four stages: 1. The government submits an application describing all aspects of the country's trade and economic policy that are relevant to the scope of the WTO. The memorandum is considered by the working group, which makes a conclusion on the possibility of admitting the applicant to the organization. All WTO member states can participate in these groups.
Step 5
2. After the working group has made a preliminary conclusion, bilateral negotiations begin between the participating countries and the applicant. They relate to changes in tariff rates, market access and other problems in the sphere of goods and services. Negotiations can be very lengthy and difficult, since they must prove the benefits of all members of the organization from the adoption of a new state.
Step 6
3. When the working group fully examines the trading conditions of the applicant, and the bilateral negotiations are successfully completed, the terms of entry are finalized. The group prepares a final report, a draft membership agreement and a list of obligations for the new member of the organization.
Step 7
4. The final package of documents, consisting of a final report, a protocol and a list of commitments, is submitted for consideration to the WTO General Council or the Ministerial Conference. If at least 2/3 of the participating countries voted for the admission of a new member, the applicant can sign the protocol and join the organization. However, in many countries, this decision needs to be ratified by parliament for it to take effect.
