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PresentationOn

Role of International Organization on

International Trade

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Our Discussion

Some important International Trade Organization from the prospective of • Objective• History• Headquarter• Membership• Governing bodies• Role on International Trade

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International Trade Organizations

International Organization And

Professional Group

• International Chamber Of Commerce (ICC)• UN Commission on International Trade Law (UNCITRAL)• UN Conference On Trade and Development (UNCTAD)

Standard Setters As Part Of Multilateral

Agreements

• International Union of Credit and Investment Insurers (Berne Union)

• Organization for Economic Co-operation and Development (OECD)

• Organization of the Petroleum Exporting Countries (OPEC)

• World Customs Organization (WCO)• World Trade Organization (WTO)

Standard Setting, Coordinating And

Monitoring Agencies

• International Monetary Fund (IMF)• World Bank Group

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Area Covered by International Trade Organizations

International Trade Payment and Finance

Cross Boarder fund Transfer

Uniformity and Efficiency in functions and operations

Prevention of cross border Fraud and crime

Financial Reforms and Openness

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International Chamber of Commerce (ICC)Founded in 1919 Objective To serve world business by promoting trade and

investment, open markets for goods and services, and the free flow of capital

Headquarter Paris, franceRegional offices In 140 countriesIn the ICC network About 6.5 million companiesStaff members About 200, representing more than 30 nationalitiesGoverning bodies • World council

• Executive board• International secretariat• National committees• Finance committee

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Role of ICC

Rule setting

• ICC has unrivalled authority in making rules that govern the conduct of business across borders.

Dispute resolution

• ICC‘s administered dispute resolution services help solve difficulties in international business.

Policy advocacy

• ICC policies, rules and standards are prepared by specialized working bodies.

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UN Commission on International Trade Law (UNCITRAL)

Established by The united nations general assembly by its resolution 2205 (XXI) of 17 December 1966

Annual sessions Held alternately in New York city and Vienna.Objective To promote the progressive harmonization and

unification of international trade lawComposed of Sixty member states elected by the general assembly

(elected for terms of six years, the terms of half the members expiring every three years)

Membership 110 states Governing bodies Secretariat

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Role of UNCITRAL

• Coordinating the work of organizations active and encouraging cooperation among them.

• Promoting wider participation in existing international conventions and wider acceptance of existing model and uniform laws.

• Preparing or promoting the adoption of new international conventions, model laws and uniform laws and promoting the codification and wider acceptance of international trade terms, provisions, customs and practice, in collaboration, where appropriate, with the organizations operating in this field.

• Promoting ways and means of ensuring a uniform interpretation and application of international conventions and uniform laws in the field of the law of international trade.

• Collecting and disseminating information on national legislation and modern legal developments, including case law, in the field of the law of international trade.

• Establishing and maintaining a close collaboration with the UN Conference on Trade and development.

• Maintaining liaison with other UN organs and specialized agencies concerned with international trade.

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Working Groups To Perform The Substantive Preparatory Work

•Micro, Small and Medium-sized EnterprisesWorking Group I

•Arbitration and ConciliationWorking Group II

•Online Dispute ResolutionWorking Group III

•Electronic CommerceWorking Group IV

•Insolvency LawWorking Group V

•Security InterestsWorking Group VI

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UN Conference On Trade and Development (UNCTAD)Established by 1964Permanent secretariat

Geneva, switzerland.

Goal To maximize the trade, investment and development opportunities of developing countries and assist them in their efforts to integrate into the world economy on an equitable basis

Primary objective To formulate policies relating to all aspects of development including trade, aid, transport, finance and technology.

Principal achievements

Conceive and implement the Generalised System Of Preferences (GSP).

UNCTAD conference Held every four yearsMembership 194 states (as of october 2012)Governing bodies Secretariat

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Reports

UNCTAD produces a number of topical reports, including

The trade and development report

The trade and environment review

The world investment report

The economic development in Africa report

The least developed countries report

UNCTAD statistics

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MANDATE• Research on trade and development issues • Consensus-building through intergovernmental machinery• Technical cooperation on all the topics of UNCTAD work

STRENGHTS • Trust and credibility among developing countries• Independent research

WEAKNESSES• Only a political role (no “teeth”)• Limited human and financial resources

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UNCTAD ideas Influenced by development theories of center/periphery

Deterioration of the terms of trade

Unfair and asymmetric international economic relations

Need for international policies and rules to address these asymmetries: Special and differential treatment (trade preferences, exceptions, longer periods of adjustment…)

Non-tariff barriers

External debt : sustainability, reduction formulas

Trade in services

Positive agenda in trade negotiations

Policy space

No one size fits all

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International Union of Credit and Investment Insurers (Berne Union)Formed In In 1934 by private and state export credit insurers from France,

Italy, Spain and the UK.Objective To actively facilitate cross-border trade

• By supporting international acceptance of sound principles in export credits and foreign investments and

• By providing a forum for professional exchanges among its members.

First Meeting Berne, SwitzerlandHeadquarters London, UKMember Companies

79 member companies

Governing Bodies

The Berne Union is led by the President, the Vice President and a Management Committee.

Committees To Supervise The Activity Of The Members

• The Short Term (ST) Committee for short term credit insurance• The Medium/Long Term (MLT) Committee for medium-long

term credit insurance/lending• The Investment (INV) Committee for investment insurance

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Role of Berne Union

Discuss professional matters through annual general meeting and committee meetings.

Seminars and workshops for to exchange views and experience

Berne union intranetCollaboration with the leading international and regional financial

institutions and key partners in the credit and investment insurance industry

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Organisation for Economic Co-operation and Development (OECD)Formed In 30 September 1961 (After Canada and the US joined

OEEC)Headquarters Paris, FranceObjective to promote policies that will improve the economic

and social well-being of people around the world.Membership 34 countriesGoverning Bodies • OECD Council, represented by a delegation led by

an ambassador of member countries. • Substantive Committees, experts from member and

non-member governments• Secretariat, led by the Secretary-General (currently

Ángel Gurría),

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Role of OECD

OECD uses its wealth of information on a broad range of topics to help governments foster prosperity and fight poverty through economic growth and financial stability.

It help ensure the environmental implications of economic and social development are taken into account

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Organization of the Petroleum Exporting Countries (OPEC)Formed In 10–14 September 1960 (at the Baghdad Conference)Headquarters Vienna, Austria (Previously at Geneva, Switzerland)Objective to co-ordinate and unify petroleum policies among

Member Countries, in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry.

Membership 12 states (2011)Governing Bodies Secretary General is the Organization’s Chief Executive

Officer.• Office Of The Secretary General, • The Legal Office,• The Research Division And • The Support Services Division.

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Role of OPEC

• It is responsible for the implementation of all resolutions passed by the Conference and • It carries out all decisions made by the Board of

Governors.• It also conducts research, the findings of which

constitute key inputs in decision-making.

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World Customs Organization (WCO)Formed In January 26, 1952Objective to enhance the efficiency and effectiveness of

member customs administrations,Headquarters Brussels, BelgiumMembership 180 customs administrationsGoverning Bodies • The Council, under its Chairperson who is elected

from among the delegates.• Article VII of the Convention requires the Council to

meet at least twice a year• Each Member of the WCO nominates one delegate

and one or more alternates to be its representatives on the Council

• Present Secretary General Kunio Mikuriya

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Strategic Goals

Promote the security and facilitation of international trade, including simplification and harmonization of Customs procedures = Economic Competitiveness Package

Promote fair, efficient, and effective Revenue collection = Revenue Package

Protect society, public health and safety = Compliance and Enforcement Package

Strengthen Capacity Building = Organizational Development Package

Promote information exchange between all stakeholders

Raise the performance and profile of Customs

Conduct Research and Analysis

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Role of WCOThe Development Of International Conventions, Instruments, And Tools On Topics Such As Commodity Classification &Valuation

Rules Of Origin

Collection Of Customs Revenue & Supply Chain Security.

International Trade Facilitation & Customs Enforcement Activities.

Combating Counterfeiting In Support Of Intellectual Property Rights (IPR), Integrity Promotion.

The WCO Maintains The International Harmonized System (HS) Goods Nomenclature, And Administers.

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World Trade Organization (WTO)

Formed In 1 January 1995Objective to supervise and liberalize international trade. Nature of Operation

• It’s a negotiating forum;• It’s a set of rules; And • it helps to settle disputes.

Headquarters Centre William Rappard, Geneva, SwitzerlandMembership 160 member statesGoverning Bodies • Council for Trade in Goods :

• Council for Trade-Related Aspects of Intellectual Property Rights:

• Council for Trade in Services The Council for Trade in Services:

• Trade Negotiations Committee

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Roles of WTO

• Administering WTO trade agreements• Forum for trade negotiations• Handling trade disputes• Monitoring national trade policies• Technical assistance and training for developing

countries• Cooperation with other international organizations

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Principles of the Trading System

Most-favored-nation (MFN)

National treatment

Freer trade: gradually through negotiation

Predictability: through binding and transparency

Promoting fair competition

Encouraging development and economic reform

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AGREEMENT ESTABLISHING WTO

Goods

• GATT• General Agreement on Tariffs and Trade

Services

• GATS• General Agreement on Trade in Services

Intellectual property

• TRIPS• Trade-Related Aspects of Intellectual Property Rights

Area for Agreement• Tariffs• Agriculture• Standards and Safety• Textiles• Services• Intellectual Property• Anti- dumping, Subsidy.• Non Tariff Barriers• Plurilaterals• Trade Policy Reviews

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World BankFormation 27 December 1945Headquartered Washington, D.C. Purpose Economic development, poverty eliminationMembership 188 states (187 UN countries and Kosovo)President Jim Yong KimWorldwide offices. 120Website worldbank.org

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Organizations Of World Bank Group

The World Bank Group consists of five organizations:

International Bank For Reconstruction And Development (IBRD)

International Development Association (IDA)

International Finance Corporation (IFC)

Multilateral Investment Guarantee Agency (MIGA)

International Center For Settlement Of Investment Disputes (ICSID)

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IBRD IDA IFC MIGA ICSIDFormation 1944 1960 1956 1988 1966Membership 188

countries172countries

184 countries

180 countries

159 countries

President Jim Yong Kim Jim Yong Kim Jin-Yong Cai (EVP & CEO)

Keiko Honda(EVP)

Meg Kinnear(SG)

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RolesClients Tools

IBRD Middle-income and creditworthy low-income countries

• Loans,• Guarantees,• Analytical and• Advisory services

IDA Poorest countries • Interest-free loans, • Grants, analytical and• Advisory services

IFC Businesses in developing countries where there is limited access to capital

• Commercial-rate loans,• Equity investments, resource mobilization,• Advisory services

MIGA Investors and lenders • Political risk insurance,• Advisory and• Legal services

ICSID Member countries and private investors

• Conciliation and arbitration mechanism for investment disputes

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International Monetary Fund (IMF)Founded in 27 December 1945

Began financial operations

1 March 1947( de facto formation)

Objective • To promote international monetary cooperation• To maintain orderly exchange arrangements• To facilitate the expansion and balanced growth of

international trade• To provide temporary financial assistance to member

countriesHeadquarter Washington, D.C., United StatesMembership 29 countries (founding); 188 countries (to date)Governing Bodies

• Board of Governors• Executive Board (Consisting 24 Executive Directors)• Interim Committee (provides ministerial guidance)• Development committee (advises on development issues• Managing Director (chairs the Executive Board and

serves as head of the organization’s staff)

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Quota

• A member country's quota defines its financial and organizational relationship with the IMF, including• Subscription• Voting power• Access to financing• SDR allocations

TECHNICAL ASSISTANCE (through many department)

• The Monetary and Exchange Affairs Department (MAE) • The Fiscal Affairs Department • The Policy Development and Review Department • The Statistics Department • The IMF Institute • The Legal Department • The Treasurer’s Department • The Bureau of Computing Services

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Financial Operations and Policies

Regular Facilities

• Reserve Tranche• Credit Tranches• Stand-By Arrangements• Extended Fund Facility (EFF)

Special Facilities

• Compensatory and Contingency Financing Facility • Buffer Stock Financing Facility.• Supplemental Reserve Facility (SRF)

Concessional Facilities

• Enhanced Structural Adjustment Facility (ESAF).

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Creation Of International Reserve Asset – SDR• The SDR (Special Drawing Right) is an International Reserve Asset created

by the IMF in 1969 and allocated to its members to supplement existing reserve assets.

• The SDR is the unit of account of the IMF and is used as a unit of account, or as a basis for a unit of account, by a number of other international and regional organizations and international conventions.

• The value of the SDR is determined daily on the basis of a basket of major currencies: the Euro, Japanese yen, Pound sterling and U.S. dollar .

• The SDR valuation basket is revised every five years.• The SDR interest rate, which is adjusted weekly, is a weighted average of

the yields on specified short-term instruments in the domestic money markets of the countries whose currencies are included in the SDR basket.

• IMF members may use SDRs in a variety of voluntary transfers. • The uses of SDRs between members and the IMF consist of receipts of

SDRs by the IMF’s General Resources Account from members and transfers of SDRs from the General Resources Account to members.

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Some popular International Trade regulation and standard Issuing Body Name of the Standard/principlesOECD • Principles of Corporate GovernanceICC • Uniform Customs and Practice for documentary Credit

(UCP 600)• Uniform Rules for demand Guarantee (URDG 758)• Intentional Commercial Terms• DOCDEX Rules

UN • UN Vienna Convention on Contract of Sale (UNCITRAL)• UN Convention for the suppression the financing

TerrorismIMF • Article VIII WTO • General agreement on trade in services

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Any Question???

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Thanks to All