World Trade Organisation | UGC NET Commerce Preparation Course PDF Download

World Trade Organization (WTO)

• The World Trade Organization (WTO) was established in 1995, succeeding the General Agreement on Tariffs and Trade (GATT), which was created in 1948.
• GATT aimed to facilitate multilateral trade agreements by ensuring fair opportunities for all nations in global trade.
• The WTO was formed to create a rule-based trading system, preventing countries from imposing unreasonable trade restrictions.
• The WTO's primary objectives include promoting the production and trade of goods and services, ensuring optimal global resource utilization, and protecting the environment.
• It manages trade in both goods and services and promotes international trade—both bilateral and multilateral—by eliminating tariff and non-tariff barriers, thereby enhancing market access for its member countries.
• India, as a significant member of the WTO, plays a crucial role in shaping global trade rules, regulations, and safeguards, advocating for the interests of the developing world.
• India has successfully met its WTO commitments by removing quantitative restrictions on imports and lowering tariff rates.

Goals of the WTO

The main goals of the WTO are:

• Formulating and enforcing rules for international trade.
• Providing a platform for negotiating and monitoring further trade liberalization.
• Resolving trade disputes.
• Enhancing transparency in decision-making processes.

WTO Headquarters

• The headquarters of the WTO is located in Geneva, Switzerland, specifically in the Centre William Rappard building.
• Named after the Swiss politician who significantly contributed to the establishment of GATT, this building serves as the main administrative hub for the WTO.
• It houses offices, meeting rooms, and facilities for negotiations and conferences, playing a critical role in the organization's operations, including trade negotiations, dispute resolution, and policy coordination among member countries.

Functions of the WTO

The WTO performs several key functions, including:

• Negotiating trade agreements.
• Implementing trade rules.
• Resolving trade disputes.
• Monitoring and reviewing trade policies.
• Providing technical assistance and capacity building.
• Facilitating trade negotiations.
• Promoting transparency and information sharing.

Structure of the WTO

The structure of the WTO includes several key components that facilitate its operations and decision-making processes. These components include:

• Ministerial Conference
• General Council
• Dispute Settlement Body (DSB)
• Trade Policy Review Body (TPRB)
• Various Councils and Committees
• Secretariat
• Appellate Body (currently inactive)

Conclusion

The WTO is a cornerstone of the international trading system, fostering cooperation, transparency, and predictability in global commerce. Since its establishment, the WTO has played a vital role in facilitating trade negotiations, resolving disputes, and promoting economic development worldwide. By providing a rules-based framework for international trade, the WTO helps create a more open, fair, and inclusive trading environment, benefiting businesses, consumers, and economies across the globe.