World Trade Organization (English) Organisation mondiale du commerce (French) Organización Mundial del Comercio (Spanish)
200px
WTO members   EU and WTO members   Observers
Formation	January 1, 1995
Headquarters	Centre William Rappard, Geneva, Switzerland
Membership	155[1] member states
Official languages	English, French, Spanish[2]
Director-General	Pascal Lamy
Budget	196 million Swiss francs (approx. 209 million USD) in 2011.[3]
Staff	629[4]
Website	wto.org

The World Trade Organization (WTO) is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade (GATT), which commenced in 1948. The organization deals with regulation of trade between participating countries; it provides a framework for negotiating and formalizing trade agreements, and a dispute resolution process aimed at enforcing participants' adherence to WTO agreements which are signed by representatives of member governments^[5]:fol.9-10 and ratified by their parliaments.^[6] Most of the issues that the WTO focuses on derive from previous trade negotiations, especially from the Uruguay Round (1986–1994).

The organization is attempting to complete negotiations on the Doha Development Round, which was launched in 2001 with an explicit focus on addressing the needs of developing countries. According to a European Union statement, "The 2008 Ministerial meeting broke down over a disagreement between exporters of agricultural bulk commodities and countries with large numbers of subsistence farmers on the precise terms of a 'special safeguard measure' to protect farmers from surges in imports."^[7] The position of the European Commission is that "The successful conclusion of the Doha negotiations would confirm the central role of multilateral liberalisation and rule-making. It would confirm the WTO as a powerful shield against protectionist backsliding."^[8] An impasse remains. As of May 2012^[update], the future of the Doha Round remains uncertain.

History[link]

Harry White (l) and John Maynard Keynes at the Bretton Woods Conference — Both economists had been strong advocates of a liberal international trade environment, and recommended the establishment of three institutions: the IMF (fiscal and monetary issues), the World Bank (financial and structural issues), and the ITO (international economic cooperation).^[9]

The WTO's predecessor, the General Agreement on Tariffs and Trade (GATT), was established after World War II in the wake of other new multilateral institutions dedicated to international economic cooperation — notably the Bretton Woods institutions known as the World Bank and the International Monetary Fund. A comparable international institution for trade, named the International Trade Organization was successfully negotiated. The ITO was to be a United Nations specialized agency and would address not only trade barriers but other issues indirectly related to trade, including employment, investment, restrictive business practices, and commodity agreements. But the ITO treaty was not approved by the U.S. and a few other signatories and never went into effect.^[10][11][12]

In the absence of an international organization for trade, the GATT would over the years "transform itself" into a de facto international organization.^[13]

GATT rounds of negotiations[link]

The GATT was the only multilateral instrument governing international trade from 1946 until the WTO was established on January 1, 1995.^[14] Despite attempts in the mid 1950s and 1960s to create some form of institutional mechanism for international trade, the GATT continued to operate for almost half a century as a semi-institutionalized multilateral treaty regime on a provisional basis.^[15]

From Geneva to Tokyo[link]

Seven rounds of negotiations occurred under GATT. The first real GATT trade rounds concentrated on further reducing tariffs. Then, the Kennedy Round in the mid-sixties brought about a GATT anti-dumping Agreement and a section on development. The Tokyo Round during the seventies was the first major attempt to tackle trade barriers that do not take the form of tariffs, and to improve the system, adopting a series of agreements on non-tariff barriers, which in some cases interpreted existing GATT rules, and in others broke entirely new ground. Because these plurilateral agreements were not accepted by the full GATT membership, they were often informally called "codes". Several of these codes were amended in the Uruguay Round, and turned into multilateral commitments accepted by all WTO members. Only four remained plurilateral (those on government procurement, bovine meat, civil aircraft and dairy products), but in 1997 WTO members agreed to terminate the bovine meat and dairy agreements, leaving only two.^[14]

Uruguay Round[link]

During the Doha Round, the US government blamed Brazil and India for being inflexible, and the EU for impeding agricultural imports.^[16] The then-President of Brazil, Luiz Inácio Lula da Silva, responded to the criticisms by arguing that progress would only be achieved if the richest countries (especially the US and countries in the EU) make deeper cuts in their agricultural subsidies, and further open their markets for agricultural goods.^[17]

Well before GATT's 40th anniversary, its members concluded that the GATT system was straining to adapt to a new globalizing world economy.^[18][19] In response to the problems identified in the 1982 Ministerial Declaration (structural deficiencies, spill-over impacts of certain countries' policies on world trade GATT could not manage etc.), the eighth GATT round — known as the Uruguay Round — was launched in September 1986, in Punta del Este, Uruguay.^[18]

It was the biggest negotiating mandate on trade ever agreed: the talks were going to extend the trading system into several new areas, notably trade in services and intellectual property, and to reform trade in the sensitive sectors of agriculture and textiles; all the original GATT articles were up for review.^[19] The Final Act concluding the Uruguay Round and officially establishing the WTO regime was signed April 15, 1994, during the ministerial meeting at Marrakesh, Morocco, and hence is known as the Marrakesh Agreement.^[20]

The GATT still exists as the WTO's umbrella treaty for trade in goods, updated as a result of the Uruguay Round negotiations (a distinction is made between GATT 1994, the updated parts of GATT, and GATT 1947, the original agreement which is still the heart of GATT 1994).^[18] GATT 1994 is not however the only legally binding agreement included via the Final Act at Marrakesh; a long list of about 60 agreements, annexes, decisions and understandings was adopted. The agreements fall into a structure with six main parts:

• The Agreement Establishing the WTO
• Goods and investment — the Multilateral Agreements on Trade in Goods including the GATT 1994 and the Trade Related Investment Measures
• Services — the General Agreement on Trade in Services
• Intellectual property — the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)
• Dispute settlement (DSU)
• Reviews of governments' trade policies (TPRM)^[21]

Ministerial conferences[link]

The topmost decision-making body of the WTO is the Ministerial Conference, which usually meets every two years. It brings together all members of the WTO, all of which are countries or customs unions. The Ministerial Conference can take decisions on all matters under any of the multilateral trade agreements. The inaugural ministerial conference was held in Singapore in 1996. Disagreements between largely developed and developing economies emerged during this conference over four issues initiated by this conference, which led to them being collectively referred to as the "Singapore issues". The second ministerial conference was held in Geneva in Switzerland. The third conference in Seattle, Washington ended in failure, with massive demonstrations and police and National Guard crowd control efforts drawing worldwide attention. The fourth ministerial conference was held in Doha in the Persian Gulf nation of Qatar. The Doha Development Round was launched at the conference. The conference also approved the joining of China, which became the 143rd member to join. The fifth ministerial conference was held in Cancún, Mexico, aiming at forging agreement on the Doha round. An alliance of 22 southern states, the G20 developing nations (led by India, China,^[22] Brazil, ASEAN led by the Philippines), resisted demands from the North for agreements on the so-called "Singapore issues" and called for an end to agricultural subsidies within the EU and the US. The talks broke down without progress.

The sixth WTO ministerial conference was held in Hong Kong from 13–18 December 2005. It was considered vital if the four-year-old Doha Development Round negotiations were to move forward sufficiently to conclude the round in 2006. In this meeting, countries agreed to phase out all their agricultural export subsidies by the end of 2013, and terminate any cotton export subsidies by the end of 2006. Further concessions to developing countries included an agreement to introduce duty free, tariff free access for goods from the Least Developed Countries, following the Everything but Arms initiative of the European Union — but with up to 3% of tariff lines exempted. Other major issues were left for further negotiation to be completed by the end of 2010. The WTO General Council, on 26 May 2009, agreed to hold a seventh WTO ministerial conference session in Geneva from 30 November-3 December 2009. A statement by chairman Amb. Mario Matus acknowledged that the prime purpose was to remedy a breach of protocol requiring two-yearly "regular" meetings, which had lapsed with the Doha Round failure in 2005, and that the "scaled-down" meeting would not be a negotiating session, but "emphasis will be on transparency and open discussion rather than on small group processes and informal negotiating structures". The general theme for discussion was "The WTO, the Multilateral Trading System and the Current Global Economic Environment"^[23]

Doha Round[link]

The WTO launched the current round of negotiations, the Doha Development Round, at the fourth ministerial conference in Doha, Qatar in November 2001. This was to be an ambitious effort to make globalization more inclusive and help the world's poor, particularly by slashing barriers and subsidies in farming.^[24] The initial agenda comprised both further trade liberalization and new rule-making, underpinned by commitments to strengthen substantial assistance to developing countries.^[8]

The negotiations have been highly contentious. Disagreements still continue over several key areas including agriculture subsidies, which emerged as critical in July 2006.^[25] As of April 2012^[update], agreement has not been reached, despite intense negotiations at several ministerial conferences and at other sessions.

Functions[link]

Among the various functions of the WTO, these are regarded by analysts as the most important:

• It oversees the implementation, administration and operation of the covered agreements.^[27][28]
• It provides a forum for negotiations and for settling disputes.^[29][30]

Additionally, it is the WTO's duty to review and propagate the national trade policies, and to ensure the coherence and transparency of trade policies through surveillance in global economic policy-making.^[28][30] Another priority of the WTO is the assistance of developing, least-developed and low-income countries in transition to adjust to WTO rules and disciplines through technical cooperation and training.^[31]

The WTO is also a center of economic research and analysis: regular assessments of the global trade picture in its annual publications and research reports on specific topics are produced by the organization.^[32] Finally, the WTO cooperates closely with the two other components of the Bretton Woods system, the IMF and the World Bank.^[29]

Principles of the trading system[link]

The WTO establishes a framework for trade policies; it does not define or specify outcomes. That is, it is concerned with setting the rules of the trade policy games.^[33] Five principles are of particular importance in understanding both the pre-1994 GATT and the WTO:

1. Non-discrimination. It has two major components: the most favoured nation (MFN) rule, and the national treatment policy. Both are embedded in the main WTO rules on goods, services, and intellectual property, but their precise scope and nature differ across these areas. The MFN rule requires that a WTO member must apply the same conditions on all trade with other WTO members, i.e. a WTO member has to grant the most favorable conditions under which it allows trade in a certain product type to all other WTO members.^[33] "Grant someone a special favour and you have to do the same for all other WTO members."^[34] National treatment means that imported goods should be treated no less favorably than domestically produced goods (at least after the foreign goods have entered the market) and was introduced to tackle non-tariff barriers to trade (e.g. technical standards, security standards et al. discriminating against imported goods).^[33]
2. Reciprocity. It reflects both a desire to limit the scope of free-riding that may arise because of the MFN rule, and a desire to obtain better access to foreign markets. A related point is that for a nation to negotiate, it is necessary that the gain from doing so be greater than the gain available from unilateral liberalization; reciprocal concessions intend to ensure that such gains will materialise.^[35]
3. Binding and enforceable commitments. The tariff commitments made by WTO members in a multilateral trade negotiation and on accession are enumerated in a schedule (list) of concessions. These schedules establish "ceiling bindings": a country can change its bindings, but only after negotiating with its trading partners, which could mean compensating them for loss of trade. If satisfaction is not obtained, the complaining country may invoke the WTO dispute settlement procedures.^[34][35]
4. Transparency. The WTO members are required to publish their trade regulations, to maintain institutions allowing for the review of administrative decisions affecting trade, to respond to requests for information by other members, and to notify changes in trade policies to the WTO. These internal transparency requirements are supplemented and facilitated by periodic country-specific reports (trade policy reviews) through the Trade Policy Review Mechanism (TPRM).^[36] The WTO system tries also to improve predictability and stability, discouraging the use of quotas and other measures used to set limits on quantities of imports.^[34]
5. Safety valves. In specific circumstances, governments are able to restrict trade. There are three types of provision in this direction:

• articles allowing for the use of trade measures to attain non-economic objectives;
• articles aimed at ensuring "fair competition"; and
• provisions permitting intervention in trade for economic reasons.^[36]

Exceptions to the MFN principle also allow for preferential treatment of developing countries, regional free trade areas and customs unions.^[5]:fol.93

Organizational structure[link]

The General Council has the following subsidiary bodies which oversee committees in different areas:

Council for Trade in Goods

There are 11 committees under the jurisdiction of the Goods Council each with a specific task. All members of the WTO participate in the committees. The Textiles Monitoring Body is separate from the other committees but still under the jurisdiction of Goods Council. The body has its own chairman and only 10 members. The body also has several groups relating to textiles.^[37]

Council for Trade-Related Aspects of Intellectual Property Rights

Information on intellectual property in the WTO, news and official records of the activities of the TRIPS Council, and details of the WTO's work with other international organizations in the field.^[38]

Council for Trade in Services

The Council for Trade in Services operates under the guidance of the General Council and is responsible for overseeing the functioning of the General Agreement on Trade in Services (GATS). It is open to all WTO members, and can create subsidiary bodies as required.^[39]

Trade Negotiations Committee

The Trade Negotiations Committee (TNC) is the committee that deals with the current trade talks round. The chair is WTO's director-general. As of April 2012^[update] the committee was tasked with the Doha Development Round.^[40]

The Service Council has three subsidiary bodies: financial services, domestic regulations, GATS rules and specific commitments.^[37] The General council has several different committees, working groups, and working parties.^[41] There are committees on the following: Trade and Environment; Trade and Development (Subcommittee on Least-Developed Countries); Regional Trade Agreements; Balance of Payments Restrictions; and Budget, Finance and Administration. There are working parties on the following: Accession. There are working groups on the following: Trade, debt and finance; and Trade and technology transfer.

Decision-making[link]

The WTO describes itself as "a rules-based, member-driven organization — all decisions are made by the member governments, and the rules are the outcome of negotiations among members".^[42] The WTO Agreement foresees votes where consensus cannot be reached, but the practice of consensus dominates the process of decision-making.^[43]

Richard Harold Steinberg (2002) argues that although the WTO's consensus governance model provides law-based initial bargaining, trading rounds close through power-based bargaining favouring Europe and the U.S., and may not lead to Pareto improvement.^[44]

Dispute settlement[link]

In 1994, the WTO members agreed on the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU) annexed to the "Final Act" signed in Marrakesh in 1994.^[45] Dispute settlement is regarded by the WTO as the central pillar of the multilateral trading system, and as a "unique contribution to the stability of the global economy".^[46] WTO members have agreed that, if they believe fellow-members are violating trade rules, they will use the multilateral system of settling disputes instead of taking action unilaterally.^[47]

The operation of the WTO dispute settlement process involves the DSB panels, the Appellate Body, the WTO Secretariat, arbitrators, independent experts and several specialized institutions.^[48] Bodies involved in the dispute settlement process, World Trade Organization.

Accession and membership[link]

The process of becoming a WTO member is unique to each applicant country, and the terms of accession are dependent upon the country's stage of economic development and current trade regime.^[49] The process takes about five years, on average, but it can last more if the country is less than fully committed to the process or if political issues interfere. The shortest accession negotiation was that of the Kyrgyz Republic, while the longest was that of the People's Republic of China (P. Farah, Five Years of China's WTO Membership, 263–304). Russia, having first applied to join GATT in 1993, was approved for membership in December 2011.^[50] An offer of accession is only given once consensus is reached among interested parties.^[51]

Accession process[link]

WTO accession progress. (As of May 2012^[update], including imminent membership of the Russian Federation.):

  Members (including dual-representation with the European Union)

  Draft Working Party Report or Factual Summary adopted

  Goods and/or Services offers submitted

  Memorandum on Foreign Trade Regime (FTR) submitted

  Observer, negotiations to start later or no Memorandum on FTR submitted

  Frozen procedures or no negotiations in the last 3 years

  No official interaction with the WTO

A country wishing to accede to the WTO submits an application to the General Council, and has to describe all aspects of its trade and economic policies that have a bearing on WTO agreements.^[52] The application is submitted to the WTO in a memorandum which is examined by a working party open to all interested WTO Members.^[51]

After all necessary background information has been acquired, the working party focuses on issues of discrepancy between the WTO rules and the applicant's international and domestic trade policies and laws. The working party determines the terms and conditions of entry into the WTO for the applicant nation, and may consider transitional periods to allow countries some leeway in complying with the WTO rules.^[49]

The final phase of accession involves bilateral negotiations between the applicant nation and other working party members regarding the concessions and commitments on tariff levels and market access for goods and services. The new member's commitments are to apply equally to all WTO members under normal non-discrimination rules, even though they are negotiated bilaterally.^[52]

When the bilateral talks conclude, the working party sends to the general council or ministerial conference an accession package, which includes a summary of all the working party meetings, the Protocol of Accession (a draft membership treaty), and lists ("schedules") of the member-to-be's commitments. Once the general council or ministerial conference approves of the terms of accession, the applicant's parliament must ratify the Protocol of Accession before it can become a member.^[53]

Members and observers[link]

The WTO has 155 members (to become 156 on the pending accession of Russia) and 29 observer governments (including the Russian Federation).^[54] In addition to states, the European Union is a member. WTO members do not have to be full sovereign nation-members. Instead, they must be a customs territory with full autonomy in the conduct of their external commercial relations. Thus Hong Kong (as "Hong Kong, China" since 1997) became a GATT contracting party, and the Republic of China (Taiwan) acceded to the WTO in 2002 as "Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu" (Chinese Taipei) despite its disputed status.^[55] The WTO Secretariat omits the official titles (such as Counselor, First Secretary, Second Secretary and Third Secretary) of the members of Chinese Taipei's Permanent Mission to the WTO, except for the titles of the Permanent Representative and the Deputy Permanent Representative.^[56]

Iran is the biggest economy outside the WTO.^[57] With the exception of the Holy See, observers must start accession negotiations within five years of becoming observers. A number of international intergovernmental organizations have also been granted observer status to WTO bodies.^[58] 14 states and two territories so far have no official interaction with the WTO.

Agreements[link]

The WTO oversees about 60 different agreements which have the status of international legal texts. Member countries must sign and ratify all WTO agreements on accession.^[59] A discussion of some of the most important agreements follows. The Agreement on Agriculture came into effect with the establishment of the WTO at the beginning of 1995. The AoA has three central concepts, or "pillars": domestic support, market access and export subsidies. The General Agreement on Trade in Services was created to extend the multilateral trading system to service sector, in the same way as the General Agreement on Tariffs and Trade (GATT) provided such a system for merchandise trade. The agreement entered into force in January 1995. The Agreement on Trade-Related Aspects of Intellectual Property Rights sets down minimum standards for many forms of intellectual property (IP) regulation. It was negotiated at the end of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) in 1994.

The Agreement on the Application of Sanitary and Phytosanitary Measures—also known as the SPS Agreement—was negotiated during the Uruguay Round of GATT, and entered into force with the establishment of the WTO at the beginning of 1995. Under the SPS agreement, the WTO sets constraints on members' policies relating to food safety (bacterial contaminants, pesticides, inspection and labelling) as well as animal and plant health (imported pests and diseases). The Agreement on Technical Barriers to Trade is an international treaty of the World Trade Organization. It was negotiated during the Uruguay Round of the General Agreement on Tariffs and Trade, and entered into force with the establishment of the WTO at the end of 1994. The object ensures that technical negotiations and standards, as well as testing and certification procedures, do not create unnecessary obstacles to trade".^[60] The Agreement on Customs Valuation, formally known as the Agreement on Implementation of Article VII of GATT, prescribes methods of customs valuation that Members are to follow. Chiefly, it adopts the "transaction value" approach.

Directors-General[link]

The Directors-General of the WTO have been:^[61]

• Pascal Lamy, 2005–
• Supachai Panitchpakdi, 2002–2005
• Mike Moore, 1999–2002
• Renato Ruggiero, 1995–1999
• Peter Sutherland, 1995

The Directors-General of the precursor organization, GATT, were:

• Peter Sutherland, 1993–1995
• Arthur Dunkel, 1980–1993
• Olivier Long, 1968–1980
• Eric Wyndham White, 1948–1968

See also[link]

Notes[link]

External links[link]

Wikiquote has a collection of quotations related to: World Trade Organization

Wikimedia Commons has media related to: World Trade Organization

Official pages

• Official WTO homepage
  • WTO 10th AnniversaryPDF (1.40 MB) — Highlights of the first decade, Annual Report 2005 pages 116–166
  • Glossary of terms—a guide to 'WTO-speak'
• International Trade Centre — joint UN/WTO agency

Government pages on the WTO

• European Union position on the WTO

Media pages on the WTO

• World Trade Organization
• BBC News — Profile: WTO
• Guardian Unlimited — Special Report: The World Trade Organisation ongoing coverage

Non-governmental organization pages on the WTO

• Gatt.org — Parody of official WTO page by The Yes Men
• Public Citizen
• Transnational Institute: Beyond the WTO

Ron Paul
Member of the U.S. House of Representatives from Texas's 14th district
Incumbent
Assumed office January 3, 1997
Preceded by	Greg Laughlin
Member of the U.S. House of Representatives from Texas's 22nd district
In office January 3, 1979 – January 3, 1985
Preceded by	Robert Gammage
Succeeded by	Tom DeLay
In office April 3, 1976 – January 3, 1977
Preceded by	Robert Casey
Succeeded by	Robert Gammage
Personal details
Born	Ronald Ernest Paul (1935-08-20) August 20, 1935 (age 76) Pittsburgh, Pennsylvania, U.S.
Political party	Republican Party (1976–1988, 1988–present)
Other political affiliations	Libertarian Party (1988 election)
Spouse(s)	Carol Wells
Children	Ronnie Lori Rand Robert Joy
Alma mater	Gettysburg College (B.S.) Duke University (M.D.)
Religion	Southern Baptist
Signature
Website	Congressional website Campaign website
Military service
Service/branch	United States Air Force Texas Air National Guard
Years of service	1963–1965 1965–1968
Rank	Captain[1]
This article is part of a series about Ron Paul 2012 presidential campaign 2008 presidential campaign 1988 presidential campaign Political positions · Electoral history List of legislation sponsored by Ron Paul Ron Paul newsletters Ron Paul bibliography

Ronald Ernest "Ron" Paul (born August 20, 1935) is an American politician who has been the U.S. Representative for Texas's 14th congressional district, which includes Galveston, since 1997, and a three-time candidate for President of the United States, as a Libertarian in 1988 and as a Republican in 2008 and currently 2012. He is an outspoken critic of American foreign and monetary policies, including the Military–industrial complex and the Federal Reserve, and is known for his libertarian-leaning views, often differing from his own party on certain issues.

A native of Pittsburgh, Pennsylvania, Paul is a graduate of Gettysburg College and Duke University School of Medicine, where he earned his medical degree. He served as a medical officer in the United States Air Force from 1963 until 1968. He worked as an obstetrician-gynecologist from the 1960s to the 1980s, delivering more than 4,000 babies. He became the first Representative in history to serve concurrently with a child in the Senate when his son Rand Paul was elected to the United States Senate for Kentucky in 2010.^[2]

Ron Paul has been an active writer and publisher since the late 1970s, when he created the first of several newsletters bearing his name. He has published many books, beginning with The Case for Gold (1982) and including Liberty Defined: 50 Essential Issues That Affect Our Freedom (2011), End The Fed (2009), The Revolution: A Manifesto (2008), Pillars of Prosperity (2008), and A Foreign Policy of Freedom: Peace, Commerce, and Honest Friendship (2007). Paul has been characterized as the "intellectual godfather" of the Tea Party movement.^[3][4]

On July 12, 2011, Paul announced that he would forego seeking another term in Congress in order to focus on his presidential bid.^[5] On May 14, 2012, Paul announced that he would not be competing in any other Presidential primaries, though he is still competing for delegates in states where the primary election have already been held.^[6]

Early life, education, and medical career[link]

Ronald Ernest Paul was born on August 20, 1935, in Pittsburgh,^[7] the son of Howard Caspar Paul, who ran a small dairy company, and Margaret (née Dumont) Paul. His paternal great-grandparents emigrated from Germany, and his mother was of German and Irish ancestry.^[8][9]

As a junior at suburban Dormont High School, he was the 220-yard dash state champion.^[10] He graduated from Gettysburg College with a B.S. degree in Biology in 1957.^[10]

Paul earned a Doctor of Medicine degree from Duke University's School of Medicine in 1961, and completed his medical internship at the Henry Ford Hospital in Detroit and his residency in obstetrics and gynecology at Magee-Womens Hospital in Pittsburgh.^[11] Paul served as a flight surgeon in the United States Air Force from 1963 to 1965 and then in the United States Air National Guard from 1965 to 1968.^[12]

Paul and his wife then relocated to Texas, where he began a private practice in obstetrics and gynecology.^[13] He refused to accept Medicaid or Medicare payments, but routinely lowered fees for patients who could not afford to pay.^[14][15]

Early congressional career (1976–1985)[link]

While still a medical resident in the 1960s, Paul was influenced by Friedrich Hayek's The Road to Serfdom, which caused him to read many publications by Ludwig von Mises and Ayn Rand. He came to know economists Hans Sennholz and Murray Rothbard well, and credits to them his interest in the study of economics.^[16]

When President Richard Nixon "closed the gold window" by ending American participation in the Bretton Woods System, thus ending U.S. dollar's loose association with gold^[16] on August 15, 1971, Paul decided to enter politics^[17] and became a Republican candidate for the United States Congress.^[18]

Elections[link]

In 1974, incumbent Robert R. Casey defeated him for the 22nd district. President Gerald Ford later appointed Casey to direct the Federal Maritime Commission, and Paul won an April 1976 special election to the vacant office.^[19] Paul lost the next regular election to Democrat Robert Gammage by fewer than 300 votes (0.2%), but defeated Gammage in a 1978 rematch, and was reelected in 1980 and 1982.^[20] Gammage underestimated Paul's popularity among local mothers: "I had real difficulty down in Brazoria County, where he practiced, because he'd delivered half the babies in the county. There were only two obstetricians in the county, and the other one was his partner."^[21]

Tenure[link]

Paul has served in Congress three different periods: first from 1976 to 1977, after he won a special election, then from 1979 to 1985, and finally since 1997.

In his early years, Paul served on the House Banking Committee, where he blamed the Federal Reserve for inflation and spoke against the banking mismanagement that resulted in the savings and loan crisis.^[22][8] Paul argued for a return to the gold standard maintained by the US from 1873-1933, and with Senator Jesse Helms convinced the Congress to study the issue.^[16] He spoke against the reinstatement of registration for the military draft in 1980, in opposition to President Jimmy Carter and the majority of his fellow Republican members of Congress.^[23]

During his first term, Paul founded the Foundation for Rational Economics and Education (FREE), a non-profit "think tank" dedicated to promoting principles of limited government and free-market economics.^[24]

Paul proposed term-limit legislation multiple times, while himself serving four terms in the House of Representatives.^[23] In 1984, he decided to retire from the House in order to run for the U.S. Senate, complaining in his House farewell address that "Special interests have replaced the concern that the Founders had for general welfare.... It's difficult for one who loves true liberty and utterly detests the power of the state to come to Washington for a period of time and not leave a true cynic."^[25][26] (On Paul's departure from the House, his congressional seat was assumed by former state representative Tom DeLay, who would eventually become Speaker of the House.)^[27]

Committee assignments[link]

• House Banking Committee

1984 U.S. Senate election[link]

In 1984, Paul campaigned for the U.S. Senate, but lost the Republican primary to Phil Gramm, who had switched parties the previous year from Democrat to Republican.^[28] Another candidate of the senatorial primary was Henry Grover, a conservative former state legislator who had lost the 1972 gubernatorial general election to the Democrat Dolph Briscoe, Jr.

Inter-congressional years[link]

1985–1997[link]

Following the loss of the 1984 senate race, Paul returned to his obstetrics practice and took part in a number of other business ventures.^[8][29] Along with his former congressional chief of staff, Lew Rockwell, Paul founded a for-profit enterprise, Ron Paul & Associates, Inc. (RP&A) in 1984, with Paul serving as president, Rockwell as vice president, Paul's wife Carol as secretary, and daughter Lori Pyeatt as treasurer.^[30] The company published a variety of political and investment-oriented newsletters including Ron Paul Freedom Report and Ron Paul Survival Report, and by 1993 was generating revenues in excess of $900,000.^[31][32]

Paul also co-owned a mail-order coin dealership, Ron Paul Coins, for twelve years with Burt Blumert, who continued to operate the dealership after Paul resumed office in 1996.^[33][34] Paul spoke multiple times at the American Numismatic Association's 1988 convention.^[33] He worked with his Foundation for Rational Economics and Education on such projects as establishing the National Endowment for Liberty, producing the At Issue public policy series that was broadcast on the Discovery Channel and CNBC,^[24] and continuing publication of newsletters.

1988 presidential campaign[link]

Paul resigned from the Republican Party in 1987 and launched a bid for the presidency running on the Libertarian Party ticket. At the 1987 Libertarian National Convention, the party was split between a Conservative and Liberal wing. Paul represented the conservative wing, which was successful in fundraising, while the liberal wing claimed to have received ten times more (and more favorable) press coverage.^{[citation needed]} Paul argued, "Pro-life libertarians have a vital task to perform: to persuade the many abortion-supporting libertarians of the contradiction between abortion and individual liberty; and to sever the mistaken connection in many minds between individual freedom and the 'right' to extinguish individual life."^[35][36]

In the 1988 presidential election, Paul was on the ballot in 46 States,^[37] scoring third in the popular vote with 432,179 votes (0.5%).^[38] Paul was kept off the ballot in Missouri, and received votes there only when written in, due to what the St. Louis Post-Dispatch termed a "technicality".^[39]

According to Paul, his presidential campaign was about more than obtaining office; he sought to promote his libertarian ideas, often to school and university groups regardless of vote eligibility. He said, "We're just as interested in the future generation as this election. These kids will vote eventually, and maybe, just maybe, they'll go home and talk to their parents."^[37]

Paul considered campaigning for President during 1992,^[40] but instead chose to endorse Pat Buchanan that year, and served as an adviser to Buchanan's Republican presidential primary campaign against incumbent President George H. W. Bush.^[41]

Later congressional career (1997–present)[link]

An earlier congressional portrait of Paul

Elections[link]

1996 campaign

During 1996, Paul was re-elected to Congress after a difficult campaign. The Republican National Committee endorsed incumbent Greg Laughlin in the primary; Paul won with assistance from baseball pitcher, constituent, and friend Nolan Ryan, tax activist and publisher Steve Forbes^[8] and conservative commentator Pat Buchanan (both of whom had had presidential campaigns that year). Paul narrowly defeated Democratic attorney Charles "Lefty" Morris in the fall election, despite Morris' criticism over controversial statements in several newsletters that Ron Paul published.

1998–present

In 1998 and 2000, Paul defeated Loy Sneary, a Democratic Bay City, Texas, rice farmer and former Matagorda County judge.^[17] In the 2008 Republican primary,^[42] he defeated Friendswood city councilman Chris Peden,^[43] with over 70 percent of the vote^[44] and ran unopposed in the general election.^[45] In the 2010 Republican primary, Paul defeated three opponents with 80 percent of the vote.^[46]

On July 12, 2011, Paul announced that he would not seek re-election to the House in order to pursue the 2012 presidential election.^[47][48]

Tenure[link]

Legislation

Of the 620 bills that Paul had sponsored through December 2011, over a period of more than 22 years in Congress, only one had been signed into law – a lifetime success rate of less than 0.3%.^[49] The sole measure authored by Paul that was ultimately enacted allowed for a federal customhouse to be sold to a local historic preservation society (H.R. 2121 in 2009).^[49]

By amending other legislation, he has helped prohibit funding for national identification numbers, funding for federal teacher certification,^[17] International Criminal Court jurisdiction over the U.S. military, American participation with any U.N. global tax, and surveillance of peaceful First Amendment activities by citizens.^[50]

Affiliations

Paul was honorary chairman of, and is a member of the Republican Liberty Caucus, a political action committee that describes its goal as electing "liberty-minded, limited-government individuals".^[51] He is an initiating member of the Congressional Rural Caucus, which deals with agricultural and rural issues, and the 140-member Congressional Wildlife Refuge Caucus.^[52]

Committee assignments[link]

Rep. Paul serves on the following committee and subcommittees.^[53]

• Committee on Financial Services
  • Subcommittee on Domestic Monetary Policy and Technology (Chairman)
  • Subcommittee on International Monetary Policy and Trade
• Committee on Foreign Affairs
  • Subcommittee on Oversight and Investigations

With the election of the 112th Congress, and a resulting GOP majority in the House, Paul became the chairman of the Subcommittee on Domestic Monetary Policy and Technology starting in January 2011.^[54]

2008 presidential campaign[link]

Ron Paul being interviewed the day of the New Hampshire primary in Manchester

2008 Republican primary campaign[link]

Paul formally declared his candidacy for the 2008 Republican nomination on March 12, 2007, on C-SPAN.^[55] Few major politicians endorsed him, and his campaign was largely ignored by traditional media.^[56] However, he attracted an intensely loyal grassroots following, in large part energized by "iconoclastic white men"^[57] interacting through internet social media.^[58][59][60] In May 2007, shortly after the first televised primary debates, the blogs search engine site Technorati.com listed Paul's name as the term most frequently searched for;^[58] and Paul's campaign claimed that Paul had more YouTube channel subscribers than Barack Obama or any other candidate for president.^[61] For a candidate who had had relatively low national name recognition prior to entering the race, Paul did surprisingly well in fundraising, taking in more money than any other Republican candidate in the fourth quarter of 2007, as the primary season headed into the Iowa caucuses.^[62][63]

Despite benefiting from large numbers of campaign contributions from individual donors,^[64] and the efforts of tech-savvy supporters determined to keep his name a frequent topic of discussion on the internet,^[58] over the course of the campaign Paul was unable to translate the enthusiasm of his core supporters into large enough numbers of actual primary votes to unseat his rivals.

Paul came in 5th place in both the January 4 Iowa caucuses (10% of votes cast)^[65] and the January 8 New Hampshire primary (8%).^[66] With the exception of the Nevada caucuses January 19, where he came in 2nd (14%) behind Romney (51%), he did little better through the rest of January: Michigan 4th (6%), South Carolina 5th (4%), Florida 5th (3%). On SuperTuesday, February 5, he placed 4th in almost every state, generally taking in a mere 3–6% of the votes (although he did better in the mountain states of North Dakota (21%, 3rd place) and Montana (25%, 2nd place).^[67][68]

By March, front-runner John McCain had secured enough pledged delegates to guarantee that he would win the nomination, and Romney and Huckabee had both formally withdrawn from the race. Paul, who had won no state primaries, knew that it was now mathematically impossible for him to win the nomination, as he had captured only 20^[69] – 40 pledged delegates compared to more than 1,191 for McCain, yet he refused to concede the race and said that it was unlikely that he would ultimately endorse McCain.^[70][71][72] Over the next few weeks, Paul's supporters clashed with establishment Republicans at several county and state party conventions over state party rules, the party platforms, and selection of delegates for the national convention.^[73][74][75] In one of the more dramatic moments, Nevada's state party leaders, outmaneuvered by Paul supporters at the state nominating convention, resorted to the highly unusual measure of prematurely and abruptly shutting down the convention before selecting national delegates, with a plan to reconvene at a later date.^[76][77]

On June 12, 2008, Paul finally withdrew his bid for the Republican nomination. He later said that one of the reasons he did not run in the general election as a third-party candidate, after losing the primary election, was that, as a concession to gain ballot access in certain states, he had signed legally-binding agreements to not run a third-party campaign if he lost the primary.^[78] Some of the $4 million remaining campaign contributions was invested into the new political action and advocacy group called Ron Paul's Campaign for Liberty.^[79]

Refusal to endorse the Republican candidate[link]

At a September 10, 2008, press conference, Paul announced his general support of four third-party candidates: Cynthia McKinney (Green Party); Bob Barr (Libertarian Party); Chuck Baldwin (Constitution Party); and Ralph Nader (independent). He said that each of them had pledged to adhere to a policy of balancing budgets, bringing the troops home, defending privacy and personal liberties, and investigating the Federal Reserve. Paul also said that under no circumstances would he be endorsing either of the two dominant parties' candidates (McCain – Republican Party, or Obama – Democratic Party) because there were no real differences between them, and because neither of them, if elected, would seek to make the fundamental changes in governance that were necessary. He urged instead that, rather than contribute to the “charade” that the two-party election system had become, the voters support the third-party candidates as a protest vote, to force change in the election process.^[80][81] Later that same day, Paul gave a televised interview with Nader saying much the same again.^[82]

Two weeks later, "shocked and disappointed" that Bob Barr (the Libertarian candidate) had pulled out of attending the press conference at the last minute and had admonished Paul for remaining neutral and failing to say which specific candidate Paul would vote for in the general election, Paul released a statement saying that he had decided to endorse Chuck Baldwin, the Constitution Party candidate, for president.^[83]

In the November 2008 general election, Paul received 41,905 votes despite not actively campaigning.^[84][85]

2012 presidential campaign[link]

Ron Paul during his 2012 presidential election campaign in Las Vegas, Nevada.

Paul is a candidate for the Republican Party nomination for President of the United States in the 2012 election.

He won several early straw polls for the 2012 Republican presidential nomination ^[86] and in late April, 2011, he formed an official exploratory committee.^[87][88] He participated in the first Republican presidential debate on May 5, 2011.^[89] and on May 13, 2011, Paul formally announced his candidacy in an interview on ABC's Good Morning America.^[90] He placed second in the 2011 Ames Straw Poll, missing first by 0.9%.^[91]

In December 2011, with Ron Paul's increased support, the controversy over allegedly racist and homophobic statements in several Ron Paul newsletters in the 1980s and early 1990s once again gained media attention.^[92] During this time Paul supporters asserted that he was continually ignored by the media despite his significant support, citing examples of where television news shows would fail to mention Paul in discussions of the Republican presidential hopefuls even when he was polling second.^{[93][94][95][96]}

Paul came in third in the Iowa Republican Caucus held on January 3, 2012. Out of a turnout of 121,503 votes, Paul took 26,036 (21%) of the certified votes. Rick Santorum and Mitt Romney finished in a virtual tie for first place with 25% each.^[97] In the New Hampshire Primary held on January 10, 2012, Paul received 23% of the votes and came in second after Romney's 39%.^[98]

Ron Paul's results then declined, despite the withdrawal of candidates Michele Bachmann, Jon Huntsman and Rick Perry. He had fourth place finishes in the next two primaries, on January 21st in South Carolina (with 13% of the vote^[99]) and on January 31st in Florida (where he received 7% of the vote.^{[100][101][102]})

On February 4, Paul finished third in Nevada with 18.8% of the vote.^[103] Three non-binding primaries were held on February 7th; Paul took 3rd place in Colorado^[104] and Missouri^[105] with 13% and 12% of the vote respectively. He fared better in Minnesota^[106] with 27%, finishing second to Rick Santorum.

On May 14, Paul's campaign announced that due to lack of funds he would no longer actively campaign for votes in the 11 remaining primary states, including Texas and California, that had not yet voted.^[6][107] He would, however, continue to seek to win delegates for the national party convention in the states that had already voted.

Political party identification[link]

Throughout his entire tenure in Congress, Paul has represented his district as a member of the Republican Party. However, he has frequently taken positions in direct opposition to the other members and the leadership of the party, and he has sometimes publicly questioned whether he really belonged in the party.

He had been a lifelong supporter of the Republican Party by the time he entered politics in the mid 1970s.^[108] He was one of the first elected officials in the nation to support Ronald Reagan's presidential campaign,^[109] and he actively campaigned for Reagan in 1976 and 1980.^[110] After Reagan's election in 1980, Paul quickly became disillusioned with the Reagan administration's policies. He later recalled being the only Republican to vote against Reagan budget proposals in 1981,^[111][112] aghast that "in 1977, Jimmy Carter proposed a budget with a $38 billion deficit, and every Republican in the House voted against it. In 1981, Reagan proposed a budget with a $45 billion deficit – which turned out to be $113 billion – and Republicans were cheering his great victory. They were living in a storybook land."^[109] He expressed his disgust with the political culture of both major parties in a speech delivered in 1984 upon resigning from the House of Representatives to prepare for a (failed) run for the Senate, and he eventually apologized to his Libertarian friends for having supported Reagan.^[111]

Wikisource has original text related to this article: Ron Paul's 1987 Resignation Letter to the RNC

By 1987, Paul was ready to sever all ties to the Republican Party, as he explained in a blistering resignation letter: "Since [1981] Ronald Reagan and the Republican Party have given us skyrocketing deficits, and astoundingly a doubled national debt. How is it that the party of balanced budgets, with control of the White House and Senate, accumulated red ink greater than all previous administrations put together? ... There is no credibility left for the Republican Party as a force to reduce the size of government. That is the message of the Reagan years."^[110][108] A month later he announced he would seek the 1988 Libertarian Party nomination for president.

During the 1988 campaign, Paul called Reagan "a dramatic failure"^[110] and complained that "Reagan's record is disgraceful. He starts wars, breaks the law, supplies terrorists with guns made at taxpayers' expense and lies about it to the American people."^[113] Paul predicted that "the Republicans are on their way out as a major party,"^[111] and he said that, although registered as a Republican, he had always been a Libertarian at heart.^[112][111]

Paul returned to his private medical practice and managing several business ventures after losing the 1988 election; but by 1996, he was ready to return to politics, this time running on the Republican Party ticket again. He said that he had never read the entire Libertarian platform when he ran for president as a Libertarian in 1988, and that "I worked for the Libertarians on my terms, not theirs."^[114] He added that in terms of a political label he preferred to call himself "a constitutionalist. In Congress I took an oath to uphold the Constitution, not the (Republican) platform."^[114]

When he lost the Republican Party presidential primary election in 2008, Paul criticized the two major political parties, saying that there was no real difference between the parties and that neither of them truly intended to challenge the status quo. He refused to endorse the Republican Party's nominee for president, John McCain, and lent his support to third-party candidates instead.^[115][116]

In 2012 presidential campaign, during which he acknowledged it was unlikely that he would win the Republican Party nomination,^[117] Paul again asserted that he was participating in the Republican Party on his own terms, trying to persuade the rest of the party to move toward his positions rather than joining in with theirs.^[118] He expressed doubt that he would support any of his rivals should they win the nomination, warning that, “If the policies of the Republican Party are the same as the Democrat Party and they don't want to change anything on foreign policy, they don't want to cut anything, they don't want to audit the Fed and find out about monetary policy, they don't want to have actual change in government, that is a problem for me."^[119] On that same theme he said in another interview, "I would be reluctant to jump on board and tell all of the supporters that have given me trust and money that all of a sudden, I'd say, [all] we've done is for naught. So, let's support anybody at all ... even if they disagree with everything that we do."^[120]

Political positions[link]