World Trade Organization (WTO)

World Trade Organization

The World Trade Organization (WTO) is an international organization designed by its founders 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 1947.

General Agreement on Tariffs and Trade (GATT)

The General Agreement on Tariffs and Trade (GATT) came into existence in 1947
It sought substantial reduction in tariff and other barriers to trade and to eliminate discriminatory treatment in international commerce. India signatory to GATT 1947 along with twenty two other countries Eight rounds of negotiations had taken place during five decades of its existence

General Agreement on Tariffs and Trade (GATT)

The significant round is the Uruguay Round of 1986. This round of negotiations covers a wide range of subjects like,
Subsidies, Safeguards, Trade related IPR (TRIPS), Trade related Investment Measures (TRIMS), Trade services.

This agreement was finally signed in the Marrakech, Morocco, on 15th April 1994.

Establishment of WTO
In order to implement the final act of Uruguay Round agreement of GATT the WTO was established on Jan 1st 1995. Currently 153 member countries. India is one of the founder member of WTO. WTO is run by its member nations. Decisions are taken by consensus among entire member nations.

Principles of WTO
The main principles of WTO are: To promote fair competition

To encourage economic and development reforms To increase predictability through transparency To lower trade barriers for free trade

To ensure fair treatment to all nations.

To Provide a mechanism for settling trade disputes.

Organization Structure of WTO

Ministerial conference:
The WTO's top-level decision-making body is the ministerial conference, which meets at least once in every two years

General Council:
The general council which meets several times a year in Geneva. The General Council have two sub - units : - The Trade Policy Review Body and - The Dispute Settlement Body.

Organization Structure of WTO

Councils:
There are three Councils each handling a different broad area of trade the Council for Trade in Goods (Goods Council), the Council for Trade in Services (Services Council), and the Council for Trade-Related Aspects of Intellectual Property Rights (TRIPS Council).

Organization Structure of WTO

Committees:

There are also specialized committees, -Committee on Trade & Development, -Committee on BOP restrictions, -Committee on Budget, finance & administration The WTO secretariat in Geneva has around 600 staffs and is headed by a Director General.