What do you understand by WTO? And when it was formed and why?

Question

Answer

WTO is an abbreviation of World Trade Organisation. This organisation deals with the rules of trade between nations. It signed on 15 April 1994 but officially commenced on 1 st January 1995.WTO born out of GATT which aimed to minimising tariffs for global trade facilation.

Answer

WTO refers to World Trade Organisation.... WTO is an organisation at international level which sets the rules and regulation for the Global trade.. This was set up in 1955 as the successor of GATT after the second world war..

Answer

What is the WTO?

The World Trade Organization (WTO) is an international organization that deals with the global rules of trade between nations. It is the only global international organization dealing with the rules of trade between nations.

Formation and Establishment

The WTO was established on January 1, 1995, following the conclusion of the Uruguay Round of multilateral trade negotiations. Its creation was the result of several decades of international efforts to establish a global organization to govern international trade.

Purpose and Objectives

The primary purpose of the WTO is to promote and facilitate international trade by creating a transparent, predictable, and stable trading environment. It aims to reduce barriers to trade, ensure fair competition, and provide a platform for negotiations among member countries to resolve trade disputes.

Key Functions and Roles

The WTO performs several key functions and roles to fulfill its objectives:

1. Trade Negotiations: The WTO provides a forum for member countries to negotiate trade agreements, such as the Doha Development Agenda, which aims to address the needs of developing countries and promote fair trade.

2. Dispute Settlement: The WTO has a dispute settlement mechanism to resolve trade disputes between member countries. This mechanism helps ensure that trade rules are followed and provides a platform for resolving conflicts through a structured and impartial process.

3. Trade Policy Review: The WTO conducts regular reviews of member countries' trade policies to ensure transparency and provide a comprehensive assessment of their trade regimes. This process encourages countries to adhere to their commitments and promotes a more open and predictable trading system.

4. Technical Assistance and Training: The WTO provides technical assistance and training to help developing countries build their capacity to participate effectively in global trade. This support includes providing expertise, sharing best practices, and assisting in the implementation of trade-related reforms.

Membership and Decision-Making

The WTO has 164 member countries, representing the majority of global trade. Decisions within the organization are made through a consensus-based system, where all member countries have an equal say. The General Council, composed of representatives from all member countries, serves as the highest decision-making body.

Conclusion

The WTO plays a crucial role in promoting international trade by establishing rules, resolving disputes, and facilitating negotiations among its member countries. Its formation in 1995 marked a significant milestone in the evolution of global trade governance, and it continues to shape the global trading system today.

Answer

Created in 1995, the World Trade Organization(WTO) is an international institution that oversees the global trade rulers among nations. It superseded the 1947 General Agreement on Tariffs and Trade (GATT) created in the wake of World War 2.

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