WORLD TRADE ORGANISATION (WTO)
- The WTO provides a platform for its member countries to negotiate and establish trade agreements and rules. These negotiations cover a wide range of trade-related issues, including tariffs, non-tariff barriers, and trade in services.
- The WTO has a Dispute Settlement Body (DSB) that helps member countries resolve trade disputes. The DSB issues rulings on trade conflicts and ensures that members comply with those rulings
- The WTO conducts regular reviews of the trade policies and practices of its member countries to promote transparency and monitor adherence to WTO agreements.
- The organization offers technical assistance and capacity-building programs to help developing countries and economies in transition participate more effectively in the global trading system.
- The WTO aims to reduce trade barriers, such as tariffs and quotas, to increase market access for goods and services
- The General Agreement on Trade in Services (GATS) under the WTO deals with trade in services, encouraging the opening of services markets and ensuring fair treatment for service providers
- The TRIPS Agreement sets standards for the protection of intellectual property rights, including patents, copyrights, and trademarks.
- The Doha Development Round, launched in 2001, is an ongoing multilateral trade negotiation aimed at addressing various trade-related issues, with a focus on development concerns
History of the World Trade Organization (WTO):
Predecessors: The WTO is the successor to the General Agreement on Tariffs and Trade (GATT), which was established in 1947. GATT was a provisional framework for international trade that aimed to reduce tariffs and trade barriers.
Uruguay Round: The WTO was created as a result of the Uruguay Round of multilateral trade negotiations, which began in 1986 and concluded in 1994. The Uruguay Round negotiations expanded the scope of trade agreements to include services, intellectual property, and agriculture.
Establishment: The WTO officially came into existence on January 1, 1995, replacing GATT. It was established under the Marrakesh Agreement, signed in Marrakesh, Morocco, in April 1994.
Membership: The WTO began with 123 member countries, and its membership has since grown to over 160 countries as of my last knowledge update in January 2022.
Key Facts about the WTO:
Headquarters: The WTO is headquartered in Geneva, Switzerland.
Trade Agreements: The WTO administers various trade agreements, including the General Agreement on Tariffs and Trade (GATT), the General Agreement on Trade in Services (GATS), and the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).
Principles: The organization operates based on principles such as non-discrimination, most-favored-nation treatment, and transparency.
Dispute Settlement: The WTO has a well-established dispute settlement system to resolve trade disputes among member countries. The Dispute Settlement Body (DSB) is responsible for this process.
Trade Policy Reviews: The WTO conducts regular reviews of the trade policies and practices of member countries. These reviews help monitor compliance with WTO agreements and promote transparency.
Trade Facilitation Agreement: The Trade Facilitation Agreement (TFA) is one of the most recent agreements under the WTO, aimed at simplifying and streamlining customs procedures to facilitate trade.
Membership in the World Trade Organization (WTO) offers numerous benefits for countries that choose to participate. These benefits include:
Access to Global Markets: WTO membership provides countries with access to a vast and open global market. Member countries can trade their goods and services with fewer barriers, facilitating economic growth and market diversification.
Non-Discrimination: The WTO's most-favored-nation (MFN) principle ensures that member countries treat each other equally. This means that a country cannot provide preferential treatment to one trading partner without extending the same benefits to all other WTO members. This principle promotes fairness and reduces discrimination in international trade.
Predictability: WTO agreements provide a predictable framework for international trade. Member countries can rely on established rules and commitments, reducing uncertainty for businesses and investors.
Market Access: WTO agreements, such as the General Agreement on Tariffs and Trade (GATT), aim to reduce trade barriers, including tariffs and non-tariff measures. This leads to increased market access for member countries, which can boost exports and economic growth.
Trade Facilitation: The WTO's Trade Facilitation Agreement (TFA) simplifies and streamlines customs procedures, reducing red tape and the costs associated with cross-border trade. This agreement helps improve the efficiency of trade and lower transaction costs.
Development Opportunities: The WTO recognizes the development needs of least-developed and developing countries. It includes special and differential treatment provisions to help these countries integrate into the global trading system.
Intellectual Property Protection: The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) provides protection for intellectual property, encouraging innovation and technology transfer.
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MCQs On World Trade Organisation (WTO) Question: The General Agreement on Tariffs and Trade (GATT) was established in: A) 1945
B) 1957
C) 1968
D) 1975
Answer: A) 1945 Question: What is the primary objective of the World Trade Organization (WTO)? A) To promote free trade and reduce trade barriers among member nations.
B) To regulate global currency exchange rates.
C) To enforce quotas on imports and exports.
D) To impose tariffs on agricultural goods.
Answer: A) To promote free trade and reduce trade barriers among member nations. Question: The WTO is headquartered in: A) Geneva, Switzerland
B) Brussels, Belgium
C) New York, USA
D) London, UK
Answer: A) Geneva, Switzerland Question: The Ministerial Conference is the highest decision-making body of the WTO. How often is it held? A) Biennially
B) Every three years
C) Every five years
D) Whenever deemed necessary by member nations
Answer: D) Whenever deemed necessary by member nations Question: Dispute Settlement Understanding (DSU) is a mechanism of the WTO used for: A) Imposing sanctions on non-compliant member nations.
B) Resolving trade disputes among member nations.
C) Setting global trade norms and regulations.
D) Implementing tariff barriers on imports.
Answer: B) Resolving trade disputes among member nations |
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Previous Year Questions 1.In the context of which of the following do you sometimes find the terms 'amber box, blue box and green box' in the news? (UPSC CSE 2016) A.WTO affairs B.SAARC affairs C.UNFCCC affairs D.India-EU negotiations on FTA Answer (A) |
