ICAI Notes- Unit 3: Trade Negotiations | Business Economics for CA Foundation PDF Download

 Page 1


 
 
a
 
 9.33 
INTERNATIONAL TRADE 
LEARNING OUTCOMES 
UNIT - 3: TRADE NEGOTIATIONS 
 
 
 
At the end of this Unit, you will be able to: 
? Distinguish between different types of regional trade agreements 
? Outline the course of the history of trade negotiations 
? Describe the structure and guiding principles of the WTO  
? Give an overview of the WTO agreements 
? List out the major concerns in respect of functioning of the WTO 
 
 
 
 
3.1 INTRODUCTION 
The recent years have seen intense bilateral and multilateral negotiations among different 
nations in the international arena. India, for example, has already become part of 19 such 
concluded agreements and is currently negotiating more than two dozens of such proposals. 
Major events in the year 2020, such as Britain’s exit from the European Union, the new free 
International Trade
Trade Negotiations
RTAs GATT WTO
UNIT OVERVIEW 
 
© The Institute of Chartered Accountants of India
Page 2


 
 
a
 
 9.33 
INTERNATIONAL TRADE 
LEARNING OUTCOMES 
UNIT - 3: TRADE NEGOTIATIONS 
 
 
 
At the end of this Unit, you will be able to: 
? Distinguish between different types of regional trade agreements 
? Outline the course of the history of trade negotiations 
? Describe the structure and guiding principles of the WTO  
? Give an overview of the WTO agreements 
? List out the major concerns in respect of functioning of the WTO 
 
 
 
 
3.1 INTRODUCTION 
The recent years have seen intense bilateral and multilateral negotiations among different 
nations in the international arena. India, for example, has already become part of 19 such 
concluded agreements and is currently negotiating more than two dozens of such proposals. 
Major events in the year 2020, such as Britain’s exit from the European Union, the new free 
International Trade
Trade Negotiations
RTAs GATT WTO
UNIT OVERVIEW 
 
© The Institute of Chartered Accountants of India
  
 
BUSINESS ECONOMICS 
a
 
 
9.34 
trade agreement [which is a successor of the North American Free Trade Agreement (NAFTA)] 
concluded between Canada, Mexico, and United States, namely United States–Mexico–Canada 
Agreement (USMCA) and many other unpredictable developments in the trade front due to 
trade war between the US and China and the global pandemic, make trade negotiations a 
highly relevant area of study. 
National governments are not the sole stakeholders in a trade negotiation. Many interest 
groups, lobbying groups, pressure groups and Non-Governmental Organizations (NGO) exert 
their influence on the process. As anyone can guess, the positions taken by each of the 
negotiating parties would represent their underlying agenda of interests. For example, in trade 
negotiations, when one of the parties seems to be bargaining for market access through 
reduction in tariffs, the other (s) may be clamouring on the issue of possible grant of 
protection to domestic industries. 
Before we go into the discussion on multilateral trade negotiations and the related 
institutions, it is relevant to understand the nature of regional as well as free trade agreements 
which evolve through negotiations.  
3.2 TAXONOMY OF REGIONAL TRADE AGREEMENTS  
(RTAS)  
Regional Trade Agreements (RTAs) are defined as groupings of countries (not necessarily 
belonging to the same geographical region), which are formed with the objective of reducing 
barriers to trade between member countries. In other words, a regional trade agreement (RTA) 
is a treaty between two or more governments that define the rules of trade for all signatories. 
As of 1 February 2021, 339 RTAs were in force.  
Trade negotiations result in different types of agreements which are shown in the chart below- 
  
Types of RTA
Unilateral 
trade 
agreements
Bilateral 
Agreements
Regional 
Preferential 
Trade 
Agreements
Trading 
Bloc
Customs 
union
Common 
Markets
Economic 
and 
Monetary 
Union
© The Institute of Chartered Accountants of India
Page 3


 
 
a
 
 9.33 
INTERNATIONAL TRADE 
LEARNING OUTCOMES 
UNIT - 3: TRADE NEGOTIATIONS 
 
 
 
At the end of this Unit, you will be able to: 
? Distinguish between different types of regional trade agreements 
? Outline the course of the history of trade negotiations 
? Describe the structure and guiding principles of the WTO  
? Give an overview of the WTO agreements 
? List out the major concerns in respect of functioning of the WTO 
 
 
 
 
3.1 INTRODUCTION 
The recent years have seen intense bilateral and multilateral negotiations among different 
nations in the international arena. India, for example, has already become part of 19 such 
concluded agreements and is currently negotiating more than two dozens of such proposals. 
Major events in the year 2020, such as Britain’s exit from the European Union, the new free 
International Trade
Trade Negotiations
RTAs GATT WTO
UNIT OVERVIEW 
 
© The Institute of Chartered Accountants of India
  
 
BUSINESS ECONOMICS 
a
 
 
9.34 
trade agreement [which is a successor of the North American Free Trade Agreement (NAFTA)] 
concluded between Canada, Mexico, and United States, namely United States–Mexico–Canada 
Agreement (USMCA) and many other unpredictable developments in the trade front due to 
trade war between the US and China and the global pandemic, make trade negotiations a 
highly relevant area of study. 
National governments are not the sole stakeholders in a trade negotiation. Many interest 
groups, lobbying groups, pressure groups and Non-Governmental Organizations (NGO) exert 
their influence on the process. As anyone can guess, the positions taken by each of the 
negotiating parties would represent their underlying agenda of interests. For example, in trade 
negotiations, when one of the parties seems to be bargaining for market access through 
reduction in tariffs, the other (s) may be clamouring on the issue of possible grant of 
protection to domestic industries. 
Before we go into the discussion on multilateral trade negotiations and the related 
institutions, it is relevant to understand the nature of regional as well as free trade agreements 
which evolve through negotiations.  
3.2 TAXONOMY OF REGIONAL TRADE AGREEMENTS  
(RTAS)  
Regional Trade Agreements (RTAs) are defined as groupings of countries (not necessarily 
belonging to the same geographical region), which are formed with the objective of reducing 
barriers to trade between member countries. In other words, a regional trade agreement (RTA) 
is a treaty between two or more governments that define the rules of trade for all signatories. 
As of 1 February 2021, 339 RTAs were in force.  
Trade negotiations result in different types of agreements which are shown in the chart below- 
  
Types of RTA
Unilateral 
trade 
agreements
Bilateral 
Agreements
Regional 
Preferential 
Trade 
Agreements
Trading 
Bloc
Customs 
union
Common 
Markets
Economic 
and 
Monetary 
Union
© The Institute of Chartered Accountants of India
 
 
a
 
 9.35 
INTERNATIONAL TRADE 
1. Unilateral trade agreements under which an importing country offers trade incentives 
in order to encourage the exporting country, to engage in international economic 
activities that will improve the exporting country’s economy. E.g. Generalized System of 
Preferences. 
2. Bilateral Agreements are agreements that set rules of trade between two countries, 
two blocs or a bloc and a country. These may be limited to certain goods and services 
or certain types of market entry barriers. E.g. EU-South Africa Free Trade Agreement; 
ASEAN–India Free Trade Area. 
3. Regional Preferential Trade Agreements among a group of countries reduce trade 
barriers on a reciprocal and preferential basis for only the members of the group. E.g. 
Global System of Trade Preferences among Developing Countries (GSTP) 
4. Trading Bloc has a group of countries that have a free trade agreement between 
themselves and may apply a common external tariff to other countries. Example: Arab 
League (AL), European Free Trade Association (EFTA) 
5. Free-trade area is a group of countries that eliminate all tariff and quota barriers on 
trade with the objective of increasing exchange of goods with each other. The trade 
among the member states flows tariff free, but the member states maintain their own 
distinct external tariff with respect to imports from the rest of the world. In other words, 
the members retain independence in determining their tariffs with non-members. 
Example: The ASEAN–India Free Trade Area (AIFTA) is a free trade area among the ten 
member states of the Association of Southeast Asian Nations (ASEAN) and India. it came 
into force on 1 August 2005 
6. A customs union is a group of countries that eliminate all tariffs on trade among 
themselves but maintain a common external tariff on trade with countries outside the 
union (thus, technically violating MFN). The common external tariff which distinguishes 
a customs union from a free trade area implies that, generally, the same tariff is charged 
wherever a member imports goods from outside the customs union. The EU is a Customs 
Union; its 27 member countries form a single territory for customs purposes. Other 
examples are Gulf Cooperation Council (GCC), Southern Common Market (MERCOSUR). 
7. Common Market: A Common Market deepens a customs union by providing for the 
free flow of output and of factors of production (labour, capital and other productive 
resources) by reducing or eliminating internal tariffs on goods and by creating a 
common set of external tariffs . The member countries attempt to harmonize some 
institutional arrangements and commercial and financial laws and regulations among 
themselves. There are also common barriers against non-members (e.g., EU, ASEAN)  
© The Institute of Chartered Accountants of India
Page 4


 
 
a
 
 9.33 
INTERNATIONAL TRADE 
LEARNING OUTCOMES 
UNIT - 3: TRADE NEGOTIATIONS 
 
 
 
At the end of this Unit, you will be able to: 
? Distinguish between different types of regional trade agreements 
? Outline the course of the history of trade negotiations 
? Describe the structure and guiding principles of the WTO  
? Give an overview of the WTO agreements 
? List out the major concerns in respect of functioning of the WTO 
 
 
 
 
3.1 INTRODUCTION 
The recent years have seen intense bilateral and multilateral negotiations among different 
nations in the international arena. India, for example, has already become part of 19 such 
concluded agreements and is currently negotiating more than two dozens of such proposals. 
Major events in the year 2020, such as Britain’s exit from the European Union, the new free 
International Trade
Trade Negotiations
RTAs GATT WTO
UNIT OVERVIEW 
 
© The Institute of Chartered Accountants of India
  
 
BUSINESS ECONOMICS 
a
 
 
9.34 
trade agreement [which is a successor of the North American Free Trade Agreement (NAFTA)] 
concluded between Canada, Mexico, and United States, namely United States–Mexico–Canada 
Agreement (USMCA) and many other unpredictable developments in the trade front due to 
trade war between the US and China and the global pandemic, make trade negotiations a 
highly relevant area of study. 
National governments are not the sole stakeholders in a trade negotiation. Many interest 
groups, lobbying groups, pressure groups and Non-Governmental Organizations (NGO) exert 
their influence on the process. As anyone can guess, the positions taken by each of the 
negotiating parties would represent their underlying agenda of interests. For example, in trade 
negotiations, when one of the parties seems to be bargaining for market access through 
reduction in tariffs, the other (s) may be clamouring on the issue of possible grant of 
protection to domestic industries. 
Before we go into the discussion on multilateral trade negotiations and the related 
institutions, it is relevant to understand the nature of regional as well as free trade agreements 
which evolve through negotiations.  
3.2 TAXONOMY OF REGIONAL TRADE AGREEMENTS  
(RTAS)  
Regional Trade Agreements (RTAs) are defined as groupings of countries (not necessarily 
belonging to the same geographical region), which are formed with the objective of reducing 
barriers to trade between member countries. In other words, a regional trade agreement (RTA) 
is a treaty between two or more governments that define the rules of trade for all signatories. 
As of 1 February 2021, 339 RTAs were in force.  
Trade negotiations result in different types of agreements which are shown in the chart below- 
  
Types of RTA
Unilateral 
trade 
agreements
Bilateral 
Agreements
Regional 
Preferential 
Trade 
Agreements
Trading 
Bloc
Customs 
union
Common 
Markets
Economic 
and 
Monetary 
Union
© The Institute of Chartered Accountants of India
 
 
a
 
 9.35 
INTERNATIONAL TRADE 
1. Unilateral trade agreements under which an importing country offers trade incentives 
in order to encourage the exporting country, to engage in international economic 
activities that will improve the exporting country’s economy. E.g. Generalized System of 
Preferences. 
2. Bilateral Agreements are agreements that set rules of trade between two countries, 
two blocs or a bloc and a country. These may be limited to certain goods and services 
or certain types of market entry barriers. E.g. EU-South Africa Free Trade Agreement; 
ASEAN–India Free Trade Area. 
3. Regional Preferential Trade Agreements among a group of countries reduce trade 
barriers on a reciprocal and preferential basis for only the members of the group. E.g. 
Global System of Trade Preferences among Developing Countries (GSTP) 
4. Trading Bloc has a group of countries that have a free trade agreement between 
themselves and may apply a common external tariff to other countries. Example: Arab 
League (AL), European Free Trade Association (EFTA) 
5. Free-trade area is a group of countries that eliminate all tariff and quota barriers on 
trade with the objective of increasing exchange of goods with each other. The trade 
among the member states flows tariff free, but the member states maintain their own 
distinct external tariff with respect to imports from the rest of the world. In other words, 
the members retain independence in determining their tariffs with non-members. 
Example: The ASEAN–India Free Trade Area (AIFTA) is a free trade area among the ten 
member states of the Association of Southeast Asian Nations (ASEAN) and India. it came 
into force on 1 August 2005 
6. A customs union is a group of countries that eliminate all tariffs on trade among 
themselves but maintain a common external tariff on trade with countries outside the 
union (thus, technically violating MFN). The common external tariff which distinguishes 
a customs union from a free trade area implies that, generally, the same tariff is charged 
wherever a member imports goods from outside the customs union. The EU is a Customs 
Union; its 27 member countries form a single territory for customs purposes. Other 
examples are Gulf Cooperation Council (GCC), Southern Common Market (MERCOSUR). 
7. Common Market: A Common Market deepens a customs union by providing for the 
free flow of output and of factors of production (labour, capital and other productive 
resources) by reducing or eliminating internal tariffs on goods and by creating a 
common set of external tariffs . The member countries attempt to harmonize some 
institutional arrangements and commercial and financial laws and regulations among 
themselves. There are also common barriers against non-members (e.g., EU, ASEAN)  
© The Institute of Chartered Accountants of India
  
 
BUSINESS ECONOMICS 
a
 
 
9.36 
8. Economic and Monetary Union: For a common market, the free transit of goods and 
services through the borders increases the need for foreign exchange operations and 
results in higher financial and administrative expenses of firms operating within the 
region. The next stage in the integration sequence is formation of some form of 
monetary union. In an Economic and Monetary Union, the members share a common 
currency. Adoption of common currency also makes it necessary to have a strong 
convergence in macroeconomic policies. For example, the European Union countries 
implement and adopt a single currency. 
There has been significant growth in international trade since the end of the Second World 
War, mostly due to the multilateral trade system which is both a political process and a set of 
political institutions. It is a political process because it is based on negotiations and bargaining 
among sovereign governments based on which they arrive at rules governing trade between 
or among themselves. The political institutions that facilitate trade negotiations, and support 
international trade cooperation by providing the rules of the game have been the former 
General Agreements on Tariffs and Trade (GATT) and the World Trade Organization (WTO). 
3.3 THE GENERAL AGREEMENT ON TARIFFS AND  
TRADE (GATT) 
The General Agreement on Tariffs and Trade (GATT) covers international trade in goods. The 
workings of the GATT agreement are the responsibility of the Council for Trade in Goods 
(Goods Council) which is made up of representatives from all WTO member countries. The 
Goods Council has 10 committees dealing with specific subjects (such as agriculture, market 
access, subsidies, anti-dumping measures, and so on). Again, these committees consist of all 
member countries. 
Also reporting to the Goods Council are a working party on state trading enterprises, and the 
Information Technology Agreement (ITA) Committee. 
The GATT lost its relevance by the 1980s because  
• it was obsolete to the fast-evolving contemporary complex world trade scenario 
characterized by emerging globalisation  
• international investments had expanded substantially  
• intellectual property rights and trade in services were not covered by GATT  
• world merchandise trade increased by leaps and bounds and was beyond its scope. 
• the ambiguities in the multilateral system could be heavily exploited  
• efforts at liberalizing agricultural trade were not successful  
© The Institute of Chartered Accountants of India
Page 5


 
 
a
 
 9.33 
INTERNATIONAL TRADE 
LEARNING OUTCOMES 
UNIT - 3: TRADE NEGOTIATIONS 
 
 
 
At the end of this Unit, you will be able to: 
? Distinguish between different types of regional trade agreements 
? Outline the course of the history of trade negotiations 
? Describe the structure and guiding principles of the WTO  
? Give an overview of the WTO agreements 
? List out the major concerns in respect of functioning of the WTO 
 
 
 
 
3.1 INTRODUCTION 
The recent years have seen intense bilateral and multilateral negotiations among different 
nations in the international arena. India, for example, has already become part of 19 such 
concluded agreements and is currently negotiating more than two dozens of such proposals. 
Major events in the year 2020, such as Britain’s exit from the European Union, the new free 
International Trade
Trade Negotiations
RTAs GATT WTO
UNIT OVERVIEW 
 
© The Institute of Chartered Accountants of India
  
 
BUSINESS ECONOMICS 
a
 
 
9.34 
trade agreement [which is a successor of the North American Free Trade Agreement (NAFTA)] 
concluded between Canada, Mexico, and United States, namely United States–Mexico–Canada 
Agreement (USMCA) and many other unpredictable developments in the trade front due to 
trade war between the US and China and the global pandemic, make trade negotiations a 
highly relevant area of study. 
National governments are not the sole stakeholders in a trade negotiation. Many interest 
groups, lobbying groups, pressure groups and Non-Governmental Organizations (NGO) exert 
their influence on the process. As anyone can guess, the positions taken by each of the 
negotiating parties would represent their underlying agenda of interests. For example, in trade 
negotiations, when one of the parties seems to be bargaining for market access through 
reduction in tariffs, the other (s) may be clamouring on the issue of possible grant of 
protection to domestic industries. 
Before we go into the discussion on multilateral trade negotiations and the related 
institutions, it is relevant to understand the nature of regional as well as free trade agreements 
which evolve through negotiations.  
3.2 TAXONOMY OF REGIONAL TRADE AGREEMENTS  
(RTAS)  
Regional Trade Agreements (RTAs) are defined as groupings of countries (not necessarily 
belonging to the same geographical region), which are formed with the objective of reducing 
barriers to trade between member countries. In other words, a regional trade agreement (RTA) 
is a treaty between two or more governments that define the rules of trade for all signatories. 
As of 1 February 2021, 339 RTAs were in force.  
Trade negotiations result in different types of agreements which are shown in the chart below- 
  
Types of RTA
Unilateral 
trade 
agreements
Bilateral 
Agreements
Regional 
Preferential 
Trade 
Agreements
Trading 
Bloc
Customs 
union
Common 
Markets
Economic 
and 
Monetary 
Union
© The Institute of Chartered Accountants of India
 
 
a
 
 9.35 
INTERNATIONAL TRADE 
1. Unilateral trade agreements under which an importing country offers trade incentives 
in order to encourage the exporting country, to engage in international economic 
activities that will improve the exporting country’s economy. E.g. Generalized System of 
Preferences. 
2. Bilateral Agreements are agreements that set rules of trade between two countries, 
two blocs or a bloc and a country. These may be limited to certain goods and services 
or certain types of market entry barriers. E.g. EU-South Africa Free Trade Agreement; 
ASEAN–India Free Trade Area. 
3. Regional Preferential Trade Agreements among a group of countries reduce trade 
barriers on a reciprocal and preferential basis for only the members of the group. E.g. 
Global System of Trade Preferences among Developing Countries (GSTP) 
4. Trading Bloc has a group of countries that have a free trade agreement between 
themselves and may apply a common external tariff to other countries. Example: Arab 
League (AL), European Free Trade Association (EFTA) 
5. Free-trade area is a group of countries that eliminate all tariff and quota barriers on 
trade with the objective of increasing exchange of goods with each other. The trade 
among the member states flows tariff free, but the member states maintain their own 
distinct external tariff with respect to imports from the rest of the world. In other words, 
the members retain independence in determining their tariffs with non-members. 
Example: The ASEAN–India Free Trade Area (AIFTA) is a free trade area among the ten 
member states of the Association of Southeast Asian Nations (ASEAN) and India. it came 
into force on 1 August 2005 
6. A customs union is a group of countries that eliminate all tariffs on trade among 
themselves but maintain a common external tariff on trade with countries outside the 
union (thus, technically violating MFN). The common external tariff which distinguishes 
a customs union from a free trade area implies that, generally, the same tariff is charged 
wherever a member imports goods from outside the customs union. The EU is a Customs 
Union; its 27 member countries form a single territory for customs purposes. Other 
examples are Gulf Cooperation Council (GCC), Southern Common Market (MERCOSUR). 
7. Common Market: A Common Market deepens a customs union by providing for the 
free flow of output and of factors of production (labour, capital and other productive 
resources) by reducing or eliminating internal tariffs on goods and by creating a 
common set of external tariffs . The member countries attempt to harmonize some 
institutional arrangements and commercial and financial laws and regulations among 
themselves. There are also common barriers against non-members (e.g., EU, ASEAN)  
© The Institute of Chartered Accountants of India
  
 
BUSINESS ECONOMICS 
a
 
 
9.36 
8. Economic and Monetary Union: For a common market, the free transit of goods and 
services through the borders increases the need for foreign exchange operations and 
results in higher financial and administrative expenses of firms operating within the 
region. The next stage in the integration sequence is formation of some form of 
monetary union. In an Economic and Monetary Union, the members share a common 
currency. Adoption of common currency also makes it necessary to have a strong 
convergence in macroeconomic policies. For example, the European Union countries 
implement and adopt a single currency. 
There has been significant growth in international trade since the end of the Second World 
War, mostly due to the multilateral trade system which is both a political process and a set of 
political institutions. It is a political process because it is based on negotiations and bargaining 
among sovereign governments based on which they arrive at rules governing trade between 
or among themselves. The political institutions that facilitate trade negotiations, and support 
international trade cooperation by providing the rules of the game have been the former 
General Agreements on Tariffs and Trade (GATT) and the World Trade Organization (WTO). 
3.3 THE GENERAL AGREEMENT ON TARIFFS AND  
TRADE (GATT) 
The General Agreement on Tariffs and Trade (GATT) covers international trade in goods. The 
workings of the GATT agreement are the responsibility of the Council for Trade in Goods 
(Goods Council) which is made up of representatives from all WTO member countries. The 
Goods Council has 10 committees dealing with specific subjects (such as agriculture, market 
access, subsidies, anti-dumping measures, and so on). Again, these committees consist of all 
member countries. 
Also reporting to the Goods Council are a working party on state trading enterprises, and the 
Information Technology Agreement (ITA) Committee. 
The GATT lost its relevance by the 1980s because  
• it was obsolete to the fast-evolving contemporary complex world trade scenario 
characterized by emerging globalisation  
• international investments had expanded substantially  
• intellectual property rights and trade in services were not covered by GATT  
• world merchandise trade increased by leaps and bounds and was beyond its scope. 
• the ambiguities in the multilateral system could be heavily exploited  
• efforts at liberalizing agricultural trade were not successful  
© The Institute of Chartered Accountants of India
 
 
a
 
 9.37 
INTERNATIONAL TRADE 
• there were inadequacies in institutional structure and dispute settlement system  
• it was not a treaty and therefore terms of GATT were binding only insofar as they are 
not incoherent with a nation’s domestic rules.  
3.4 THE URUGUAY ROUND AND THE ESTABLISHMENT  
OF WTO 
The need for a formal international organization which is more powerful and comprehensive 
was felt by many countries by late 1980s.Having settled the most ambitious negotiating 
agenda that covered virtually every outstanding trade policy issue, the Uruguay Round 
brought about the biggest reform of the world’s trading system. Members established 15 
groups to work on limiting restrictions in the areas of  tariffs, non-tariff barriers, tropical 
products, natural resource products, textiles and clothing, agriculture, safeguards against 
sudden ‘surges’ in imports, subsidies, countervailing duties, trade related intellectual property 
restrictions, trade related investment restrictions, services and four other areas dealing with 
GATT itself, such as, the GATT system, dispute settlement procedures and implementation of 
the NTB Codes of the Tokyo Round, especially on anti-dumping. 
The Round started in Punta del Este in Uruguay in September 1986 and was scheduled to be 
completed by December 1990. However, due to many differences and especially due to heated 
controversies over agriculture, no consensus was arrived at.  Finally, in December 1993, the 
Uruguay Round, the eighth and the most ambitious and largest ever round of multilateral 
trade negotiations in which 123 countries participated, was completed after seven years of 
elaborate negotiations. The agreement was signed by most countries on April 15, 1994, and 
took effect on July 1, 1995. It also marked the birth of the World Trade Organization (WTO) 
which is the single institutional framework encompassing the GATT, as modified by the 
Uruguay Round. 
3.5  THE WORLD TRADE ORGANIZATION (WTO) 
The World Trade Organization (WTO) is the only global international organization dealing with 
the rules of trade between nations. At its heart are the WTO agreements, negotiated and 
signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is 
to ensure that trade flows as smoothly, predictably, and freely as possible. The principal 
objective of the WTO is to facilitate the flow of international trade smoothly, freely, fairly, and 
predictably. 
 
© The Institute of Chartered Accountants of India