Printer friendly version of this page

The World Trade Organization (WTO) is a voluntary association of, at present, 134 member nations, states and entities that have chosen to bind themselves to general guidelines for the conduct of international business. Thirty other governmental entities are in various phases of negotiating accession to the WTO. The WTO is the successor to the General Agreement on Tariffs and Trade (GATT) and was formally established in January 1, 1995.

ISSUE

The 1999 WTO Seattle Ministerial
From November 30 – December 3, 1999, the United States will host the third WTO Ministerial in Seattle, Washington. The focus of this conference will be: a) the implementation of existing agreements and decisions; b) the formal launching of new negotiations on agriculture, services, industrial trade barriers and whatever else is agreed to by the WTO membership; and c) recommendations concerning possible future work, based on WTO work programs pursued to date and other member suggestions. The NAM supports increased trade liberalization and the examination of all issues directly relevant to the international marketplace, and welcomes US leadership to that end. The NAM is working for improved implementation of the current WTO agreements and on shaping the agenda for the new set of WTO negotiations, and will be a visible and strong supporting presence at the Seattle Ministerial Conference.

BACKGROUND

The WTO is an international body that deals with the rules of trade between WTO member nations, states and entities. At its heart are the WTO agreements, negotiated and signed by the bulk (134) of the world’s trading nations. These agreements provide the legal ground-rules for international commerce, essentially binding governments to keep their trade policies within agreed limits. The purpose of these agreements and this organization is to help producers of goods, services, exporters and importers conduct their business, to provide a forum for negotiation of these agreements, and to provide a mechanism for meaningful dispute resolution when necessary.

The WTO is based upon the core principles that a trading system should be: without discrimination (all are granted equal, or "most favoured nation" trading status); freer (reduced barriers through participant negotiations); predictable (with market-opening commitments "bound" so as not to be changed arbitrarily); more competitive (by discouraging unfair practices such as dumping); and more beneficial for less developed countries (by incorporating flexible adjustment periods). Upon that foundation, agreements on agriculture, textiles and clothing, banking, telecommunications, government purchases, industrial standards, food sanitation regulations, intellectual property and much more have been completed.

NAM POSITION

The National Association of Manufacturers (NAM) supports the WTO and the system’s overriding objective – to help trade flow as freely as possible under predictable, transparent rules. American manufacturers believe that opportunities lie ahead for worldwide development and that participation in, and adherence to the guidelines of, the WTO will only increase the welfare of, and opportunities for, the entire global population. Consistent and efficient international commerce creates synergies that will only be further augmented over time. These synergies can and should promote sustainable development, preserve the overall environment, and create a wealth of opportunities for all workers. For these reasons, US manufacturers support the principles and modalities of the current world trade system and the WTO.

ACTION

In support of the 1999 WTO Ministerial, the NAM has been a founding member of, and is housing the secretariat for, the "U.S. Alliance for Trade Expansion". This is an organization consisting of industry, agricultural, services and consumer organizations and their members for the purpose of communicating support for, and coordinating events leading up to and in conjunction with, the WTO and the Seattle Ministerial conference. For further information regarding this Alliance or the Seattle Ministerial, including substantive materials, logistical information and conference activities, please contact Dianne Sullivan or Kitty Brims through the Alliance’s secretariat at 202/637-3074; fax: 202/637-3182 or e-mail: ustrade@nam.org.

NAM STAFF CONTACT: Frank Vargo, (202) 637-3144, fvargo@nam.org, International Economic Policy Department