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History Bretton Woods System:
John Maynard Keynes and Harry Dexter White at the Bretton Woods Conference – both economists being strong advocates of a liberal international trade environment, recommended the establishment of three institutions: The International Monetary Fund (IMF) for fiscal and monetary issues.
2.The World Bank for financial and structural issues. 3.The International Trade Organization (ITO) for international economic cooperation. The Bretton Woods Conference had introduced the idea for an organization to regulate trade as part of a larger plan for economic recovery after World War II. As governments negotiated the ITO, 15 negotiating states began parallel negotiations for the GATT as a way to attain early tariff reductions & ensure a stable trade and economic world environment. Once the ITO failed in 1950, only the GATT agreement was left.
GATT: The GATT (typically abbreviated GATT), which was then signed in 1947, is a multilateral agreement regulating trade among about 150 countries. According to its preamble, the purpose of the GATT is the “substantial reduction of tariffs and other international trade barriers, the elimination of preferences, reduction of tariff barriers, quantitative restrictions & subsidies on trade thru a series of agreements, on a reciprocal and mutually advantageous basis.” By then, GATT was a treaty, not an organization. The history of the GATT can be divided into three phases: 1.From 1947 until the Torquay Round, largely concerned which commodities would be covered by the agreement and freezing existing tariff levels.
2.From 1959 to 1979 encompassing three rounds, focused on reducing tariffs. From 1986 to 1994 consisting only of the Uruguay Round, extended the agreement fully to new areas such as tariff, intellectual property, services, capital, investment measures & agriculture.
The Uruguay Round, which was completed on December 15, 1993 after seven years of negotiations, resulted in an agreement among 117 countries (including the U.S.) to reduce trade barriers and to create more comprehensive and enforceable world trade rules. The agreement coming out of this round, the Final Act Embodying the Results of the Uruguay Round of Multilateral Trade Negotiations, was signed in April 1994. The Uruguay Round agreement was approved and implemented by the U.S. Congress in December 1994, and went into effect on January 1, 1995. WTO: This agreement also created the World Trade Organization (WTO), which came into being on January 1, 1995. The WTO implements the agreement, provides a forum for negotiating additional reductions of trade
barriers & for settling policy disputes. and importers conduct their business. The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. GATT functioned de facto as an organization. information technology products. Since the end of the Uruguay Round. conducting rounds of talks addressing various trade issues and resolving international trade disputes. 5 . The goal is to help producers of goods and services. and financial services. At its heart are the WTO agreements. negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. there have been negotiations on topics such telecommunications services. exporters. & enforces trade rules. Until the establishment of the WTO.
Established: 1st January 1995. Switzerland. 151 countries (on 27 July 2007). Budget: 182 million Swiss francs for 2007. Secretariat staff: 625. Created by: Uruguay Round negotiations (1986-94). Head: Pascal Lamy (Director-General). New member: Oman. Membership: Countries on map. 6 .Fact File Location: Geneva.
& was serviced by a provisional Secretariat. the WTO covers trade in goods. Also. The WTO now provides a permanent institutional framework for the multilateral trading system. However. Like the GATT. it also covers trade in services and trade-related aspects of intellectual property rights. the dispute settlement mechanism has been considerably strengthened in the WTO. it was without a permanent institutional framework. the General Agreement on Tariffs and Trade was applied on a provisional basis Although it operated like a permanent agreement. It has its own Secretariat.Difference between WTO & GATT For several decades. 7 .
GATT and WTO trade rounds Duratio Count Subjects Achievemen Name Start n ries covered ts Signing of GATT. 45.000 tariff Gene April 7 23 Tariffs concessions va 1947 months affecting $10 billion of trade Annec April 5 13 Tariffs Countries y 1949 months exchanged 8 .
worth more "framewor than $300 k" billion 9 .9 billion of world trade Tariff Tariffs. Tariff non-tariff reductions measures. cutting the 1948 tariff levels by 25% Tariffs.000 tariff concessions Countries exchanged some 8. concessions Antiworth $40 dumping billion of world trade Tariffs. $2.700 tariff Tariffs concessions .5 billion admission in tariff of Japan reductions Tariff concessions Tariffs worth $4.Septe Torqu mber ay 1950 8 months 38 Gene va II Janua ry 1956 5 months 11 months 26 Septe Dillon mber 1960 26 Kenne May dy 1964 Tokyo Septe mber 1973 37 months 74 months 62 102 some 5.
The round non-tariff led to the measures. textiles.Urugu Septe ay mber 1986 87 months 123 agreemen dollars ts achieved Tariffs. & an extension of intellectual 10 . WTO. major agricultur reductions e. extended intellectua the range of l property. creation in tariffs of WTO. trade dispute negotiations settlement . an agreement to allow full access for textiles & clothing from developing countries. and services. leading to . creation of rules. (about 40%) etc and agricultural subsidies.
which has 11 . except the Appellate Body. investmen t. Tariffs. labor standards. all WTO members may participate in all councils. environme The round is nt. committees. Dispute Settlement panels.property rights. transpare ncy. n. not yet competitio concluded. etc. and plurilateral committees.. patents etc Nove Doha mber 2001 ? 141 Formal Structure According to WTO rules. agricultur e. Highest level: Ministerial Conference: The topmost decision-making body of the WTO is the Ministerial Conference. non-tariff measures.
all of which are countries or separate customs territories. Second level: General Council: The daily work of the ministerial conference is handled by three groups: the General Council. the Dispute Settlement Body. 1.to meet at least every two years. It has representatives (usually ambassadors or equivalent) from all member governments and has the authority to act on behalf of the ministerial conference which only meets about every two years. All three consist of the same membership — representatives of all WTO members — but each meets under different rules. and the Trade Policy Review Body. Mr. Bruce GOSPER (Australia). 12 . 2. The General Council. meets regularly to carry out the functions of the WTO. the WTO’s highestlevel decision-making body in Geneva. The council acts on behalf on the Ministerial Council on all of the WTO affairs. The Ministerial Conference can make decisions on all matters under any of the multilateral trade agreements. It brings together all members of the WTO. The Dispute Settlement Body is made up of all member governments. usually represented by ambassadors or equivalent.E. The current chairman is H.
The current chairperson is H. Yonov Frederick Agah (Nigeria).E. & Council for Trade in Services — each council works in different fields. Mr. 1. as of 200702-13. The current chairperson. six other bodies report to the General Council reporting on issues such as trade & development. is Amb. are the responsibility of the Council for Trade in Goods. The WTO General Council meets as the Trade Policy Review Body (TPRB) to undertake trade policy reviews of Members under the TRPM. There are three councils — Council for Trade in Goods. It is made up of representatives from all WTO member countries. Yonov Frederick AGAH (Nigeria). environmentalism. Council for Trade in Goods — The workings of the General Agreement on Tariffs and Trade (GATT) which covers international trade in goods. 13 . Council for TradeRelated Aspects of Intellectual Property Rights. Mario MATUS (Chile).The current chairperson is H. The TPRB is thus open to all WTO Members. 3. Mr. regional trading arrangements & administrative issues. Apart from these three councils.E. Third level: Councils for Trade: The Councils for Trade work under the General Council.
It is open to all WTO members. dealing with specific subjects such as agriculture.2. State Trading Enterprises. The Goods Council — subsidiary under the Council for Trade in Goods. market access. antidumping measures & so on. & details of the WTO’s work with other international organizations in the field. 14 . Committees include the following: • • Information Technology Agreement (ITA) Committee. Council for Trade-Related Aspects of Intellectual Property Rights — Information on intellectual property in the WTO. and can create subsidiary bodies as required. 1. news & official records of the activities of the TRIPS Council. Fourth level: Subsidiary Bodies: There are subsidiary bodies under each of the three councils. It has 11 committees consisting of all member countries. Council for Trade in Services — The Council for Trade in Services operates under the guidance of the General Council and is responsible for overseeing the functioning of the General Agreement on Trade in Services (GATS). subsidies. 3.
o Trade & Development (Subcommittee on Least-Developed Countries). o Regional Trade Agreements. debt and finance. The Services Council — subsidiary under the Council for Trade in Services which deals with financial services. o Budget. 3. Other committees: • • • Committees on o Trade & Environment. Working parties on o Accession. Groups dealing with notifications — process by which governments inform the WTO about new policies &measures in their countries. domestic regulations & other specific commitments.• • Textiles Monitoring Body — Consists of a chairman & 10 members acting under it.subsidiary under the Dispute Settlement Body to resolve disputes and the Appellate Body to deal with appeals. Dispute Settlement panels & Appellate Body. Finance & Administration. Working groups on o Trade. 2. 15 . o Balance of Payments Restrictions.
WTO negotiations proceed not by consensus of all members. and relative market size is the primary source of bargaining power. The advantage of consensus decision-making is that it encourages efforts to find the most widely acceptable decision. Main disadvantages include large time requirements and many rounds of negotiation to develop a consensus decision. and the tendency for final agreements to use ambiguous language on contentious points that makes future interpretation of treaties difficult. Such negotiations are often called "Green Room" negotiations (after the colour of the WTO Director-General's Office in Geneva). In reality. The WTO operates on a one country. These processes have been regularly criticized by many of the WTO's developing country members which are often totally excluded from the negotiations. or "Mini-Ministerials". but actual votes have never been taken.o Trade & technology transfer. but by a process of informal negotiations between small groups of countries. Decisionmaking is generally by consensus. one vote system. when they occur in other countries. 16 .
There are a number of ways of looking 17 .Features The WTO is an international organization designed to supervise & liberalize international trade.
It is operating since five years as an international organization. Since 1948. The WTO deals with the rules of trade between nations at a global or near-global level. & is the successor to the GATT. The WTO began life on 1 January 1995. but not so young. The WTO came into being on January 1. but its trading system is half a century older. to try to sort out the trade problems they face with each other. The WTO is the most powerful legislative & judicial body in the world. the GATT had provided the rules for the system. It operates a system of trade rules. held in Geneva in May 1998. the WTO is a place where member governments go.at the WTO. The WTO was born out of negotiations. The bulk of the WTO's current 18 . It’s a forum for governments to negotiate trade agreements. The first step is to talk. & everything the WTO does is the result of negotiations. Born in 1995. 1995. It’s a negotiating forum. It’s a place for them to settle trade disputes. which was created in 1947. included a celebration of the 50th anniversary of the system. The second WTO ministerial meeting. Essentially.
That is the purpose behind the dispute settlement process written into the WTO agreements. negotiated & signed by the bulk of the world’s trading nations. It helps to settle disputes. & importers conduct their business. while allowing governments to meet social and environmental objectives. The most harmonious way to settle these differences is through some neutral procedure based on an agreed legal foundation. These documents provide the legal ground-rules for international commerce. Trade relations often involve conflicting interests. the goal is to help producers of goods & services. Agreements. often need interpreting.work comes from the 1986-94 negotiations called the Uruguay Round & earlier negotiations under the GATT. exporters. 19 . Although negotiated & signed by governments. This is a third important side to the WTO’s work. under the “Doha Development Agenda” launched in 2001 It’s a set of rules. They are essentially contracts. including those painstakingly negotiated in the WTO system. At its heart are the WTO agreements. binding governments to keep their trade policies within agreed limits. The WTO is currently the host to new negotiations.
all decisions are made by the member governments. specifically by lowering trade barriers & providing a platform for negotiation of trade. This main mission is further specified in certain core functions serving & safeguarding five 20 . a General Council. The WTO is governed by a Ministerial Conference. member-driven organization . Functions The WTO's stated goal is to improve the welfare of the people of its member countries. predictably & freely as possible".The WTO is a rules-based. & the rules are the outcome of negotiations among members. Its main mission is "to ensure that trade flows as smoothly. & a directorgeneral. which implements the conference's policy decisions & is responsible for day-to-day administration. The WTO's headquarters are in Geneva. which meets every two years. Switzerland. who is appointed by the Ministerial Conference.
& to ensure the coherence & transparency of trade policies through surveillance in global economic policymaking. these are regarded by analysts as the most important: • • It oversees the implementation. it is the WTO's duty to review the national trade policies. Another priority of the WTO is the assistance & training of developing. administration & operation of the covered WTO trade agreements. leastdeveloped & low-income countries in transition to adjust to WTO rules & disciplines through technical assistance. Finally. It provides a forum for negotiations & for settling disputes. cooperation and training. which are the foundation of the multilateral trading system. 21 . Additionally. The WTO is also a center of economic research & analysis: regular assessments of the global trade picture in its annual publications & research reports on specific topics are produced by the organization. the WTO cooperates closely with the two other components of the Bretton Woods system. the IMF & the World Bank & other international organizations.fundamental principles. Among the various functions of the WTO.
i. it does not define or specify outcomes. and intellectual property.e.Principles of the trading system The WTO establishes a framework for trade policies. Both are embedded in the main WTO rules on goods. Five principles are of particular importance in understanding both the pre-1994 GATT and the WTO: 1. but their precise scope and nature differ across these areas. a WTO member has to grant the most favorable conditions under which it allows trade in a certain product type to all other WTO members. & the national treatment policy. That is. National treatment means that imported and locally-produced goods should be treated 22 . The MFN rule requires that a WTO member must apply the same conditions on all trade with other WTO members. services. It has two major components: the most favored nation (MFN) rule. it is concerned with setting the rules of the trade policy games. Grant someone a special favour & you have to do the same for all other WTO members. Non-Discrimination.
It reflects both a desire to limit the scope of free-riding that may arise because of the MFN rule. Binding & enforceable commitments. 2. If satisfaction is not obtained. 3. Reciprocity. The tariff commitments made by WTO members in a multilateral trade negotiation and on accession are enumerated in a schedules (list) of concessions. but only after negotiating with its trading partners.equally (at least after the foreign goods have entered the market) & was introduced to tackle non-tariff barriers to trade (e.g. security standards et al. technical standards. discriminating against imported goods). A related point is that for a nation to negotiate. it is necessary that the gain from doing so be greater than the gain available from unilateral liberalization. 23 . & a desire to obtain better access to foreign markets. reciprocal concessions intend to ensure that such gains will materialize. which could mean compensating them for loss of trade. the complaining country may invoke the WTO dispute settlement procedures. These schedules establish "ceiling bindings": a country can change its bindings.
5. In specific circumstances.4. & provisions permitting intervention in trade for economic reasons. to maintain institutions allowing for the review of administrative decisions affecting trade. to respond to requests for information by other members. The WTO system tries also to improve predictability & stability. articles aimed at ensuring "fair competition". discouraging the use of quotas and other measures used to set limits on quantities of imports. 24 . Advantages of WTO. governments are able to restrict trade. The WTO members are required to publish their trade regulations. Transparency. & to notify changes in trade policies to the WTO. Safety valves. These internal transparency requirements are supplemented and facilitated by periodic country-specific reports (trade policy reviews) through the Trade Policy Review Mechanism (TPRM). There are three types of provisions in this direction: articles allowing for the use of trade measures to attain non economic objectives.
25 . As trade expands in volume. and in the numbers of countries & companies trading. The 10 benefits of the WTO are: The system helps to keep the peace. Nevertheless. The system allows disputes to be handled constructively.The WTO is a body designed to promote free trade through organising trade negiotiations & act as an independent arbiter in settling trade disputes. & it would be wrong to make too much of it. & if we understand why. in the numbers of products traded. Free trade has many advantages: • Lower prices. • Greater competitiveness. 1. • Increased growth. we have a clearer picture of what the system actually does. the system does contribute to international peace. To some extent the WTO has been successful in promoting greater free trade. there is a greater chance that disputes will 2. This sound like an exaggerated claim.
movies. 6. 4. our necessities & luxuries. books. and everything else in between. It gives consumers more choice. A system based on rules rather than power makes life easier for all. The prices we pay for our food and clothing. But it does reduce some inequalities. & so on. 3. & at the same time freeing the major powers from the complexity of having to negotiate trade agreements with each of their numerous trading partners. giving smaller countries more voice. We are all consumers. foods. clothing & other products that used to be considered exotic. are affected by trade policies. music. 5. Freer trade cuts the cost of living. The WTO system helps resolve these disputes peacefully and constructively. Trade raises incomes. Think of all the things we can now have because we can import them: fruits & vegetables out of season. cut flowers from any part of the world. all sorts of household goods.arise. 26 . The WTO cannot claim to make all countries equal. & a broader range of qualities to choose from.
Lowering trade barriers allows trade to increase. 7.is not the way to tackle employment problems.national incomes & personal incomes. They are the result of essential principles at the heart of the system. but they are still important. The basic principles make the system economically more efficient. 8. In practice there is often factual evidence that lower trade barriers have been good for employment. Trade stimulates economic growth. which adds to incomes . Many of the benefits of the trading system are more difficult to summarize in numbers. The system shields governments from narrow interests. Trade clearly has the potential to create jobs. 27 . & they make life simpler for the enterprises directly involved in trade and for the producers of goods & services. Nevertheless. the alternative – protectionism . But the picture is complicated by a number of factors. & they cut costs. & that can be good news for employment. The GATT-WTO system which evolved in the second half of the 20th Century helps 9. But some adjustment is necessary.
It is argued the benefits of free trade accrue mostly to the developed world. the WTO has often been criticized for ignoring the plight of the developing world. The rules also discourage a range of unwise policies. In fact free trade has many disadvantages In response to this the WTO may say that free trade has been an important engine of growth for developing countries in Asia. Disadvantages of Free Trade However. that means greater certainty & clarity about trading conditions. Under WTO rules. The system encourages good government. 10. 28 . For governments it can often mean good discipline. For businesses.governments take a more balanced view of trade policy. Governments are better placed to defend themselves against lobbying from narrow interest groups by focusing on tradeoffs that are made in the interests of everyone in the economy. once a commitment has been made to liberalize a sector of trade. it is difficult to reverse.
The government 29 . Commitments under TRIPS: The USA & European Union complained to WTO that India had failed to meet its commitment to bring an amendment in patent act for granting of exclusive marketing rights (EMR) in India to an international company. 1999. The government of India has made a number of commitments to WTO which are: 1. 2001. The Government of India in line with WTO agreement removed quantitative restrictions on 714 items in the EXIM policy announced on March 31. Reduction of Tariff: India has committed to WTO to reduce tariff on non agricultural & non textile goods. Removal in Quantitative Restrictions: India had to phase out all quantitative restrictions on 1429 items by April 1. 3. 2001. it is worth it in the long run. India’s commitment to WTO India is one of the founder members of WTO.Although there may be some short term pain. The ruling of WTO dispute settlement panel made it obligatory for Indian government to make appropriate amendments in Patents Acts. 2. 1970 by April 19.
Commitment under TRIMs: Under TRIMs agreement. 6. 4. 5. So the Government of India amended Trade & Merchandise Marks Act. The Foreign Service providers will be allowed to enter into these activities. Commitments under GATS: Under the General agreement on Trade in Services (GATS).of India amended Patent Act in March 1999 that grants EMR for given period in field of pharmaceutical. chemicals & agricultural products o an international company. 1958 & passed it in parliament in 1999. India has made commitment to WTO in 33 activities. The Government of India notified to WTO regarding the local requirement in the production of pharmaceutical products. the developing country had a transition period of 5 years during which they could continue to maintain measures inconsistent with agreement provided they were duly notified. Commitments related wit Trademarks: Under WTO agreement the member nations should protect the service trade & merchandise marks. 30 .
The bill related with industrial design & layout design was cleared by parliament in December 1999.Expansion in Trade: 31 . Favourable Effects 1.7. Impact of WTO agreement on Indian economy Signing of WTO had far reaching effects not only on India’s foreign trade but also on internal economy. Commitments related to Industrial design & Layout design of integrated circuit: Under WTO agreement the Government of India has committed to protect new industrial design & layout design of integrated circuit.
4. Benefits from multilateral roles & disciplines: The Uruguay Round Agreement provides for rules & disciplines related to anti-dumping subsidies. India will also gain from it as India’s share in world export will increase from 0. However. merchandise trade in goods will increase by US$ 745 billion in 2005. 2. India as a developing country will continue with agricultural subsidies & higher rate of tariff on imports of agricultural products. Benefits from agreements on textile & clothing: Phasing out of Multifibre Arrangement (MFA) by 2005 will benefit India. The exports of textile & clothing will increase from India.5% to 1%. 3. Better prospects of agricultural exports: Under agreement of agriculture. Hence India expects to gain higher export earnings from agriculture. etc. developed countries will have to reduce subsidies & trade barriers in agriculture. This will create conditions for fair trade & a more 32 . dispute-settlement.The World Bank has estimated that because of Uruguay Round Package.
5.a. as against 6% annual increase in world export. Increase in service export: Due to GATs. 33 . India’s service export has increased.favourable environment for India in new world economic order. It is growing at the rate of 13% p.
3. 2. insurance. Trade Related Investment Measures: The agreement protects the interest of foreign investors in developing countries. Trade Related Intellectual Property Rights: (TRIPS): Agreement on TRIPs is highly weighted in favour of patent holders. It could prove a drain on foreign exchange reserves in the form of profit transfer of developing countries causing BOP crisis.Unfavourable Effects As a member of WTO India is likely to face a number of challenges: 1. Competition in services: There is a big difference in level of services like banking. 34 . Since MNCs & developed countries hold large number of patents. telecommunications between developed & developing countries. they will be benefited most. Indian pharmaceutical industry will be worst affected by TRIPs & its extension to agriculture has serious consequences for India.
Non-tariff barriers: Various types of non-tariff barriers. 16 countries have put up 13 different non-tariff barriers against India. 4. 1. Hence developed countries force developing countries to sign certain agreements through bribing or threatening. have hurt experts from developing countries. Developed country has definite advantage over developing countries. Trade Related Intellectual Property Rights: 35 . WTO challenges & problems for Indian economy As India goes for globalization & opens the market for foreign commodities & investment. 2. many new challenges are arising in front of Indian economy. Inequality within the structure of WTO: The structure of WTO is such where inequality exists among the members. which have come up around the globe following the formation of WTO.Therefore GATS will benefit more to developed countries & go against India.
5. This will certainly serve the interests of developed countries. every WTO member will have to provide 20 years protection to patents & 50 years protection to copyright. Now developing countries cannot discourage foreign investment in their economy. 4. 6. Agreement on agriculture: 36 . Non-tariff barriers: Use of non-tariff barriers by developed countries after the formation of WTO has affected the exports from developing countries. Trade Related Investment Measures: Developed countries achieved everything they wanted from TRIMS.Agreement on TRIPS is highly in favour of developing countries. Competition in Services: GATS provides for movement of services of different types from one country to another. Under TRIPS. 3. But it is silent on controlling restrictive business practices of foreign investment. 16 countries have introduced 13 types of non-tariff barriers against India. Agreement on TRIMS provides for parity between home 7 foreign investments.
7. But it will also set rules & regulations to be followed by the member nations. 8. It will force the member countries to change. Protection of environment: It implies that a country like India which has limited resources will have to divert them to environment protection rather than on development of facilities. 37 . Trespassing of Sovereignty of Nations: WTO is an international body which will not only encourage trade among its members. amend & introduce laws in accordance with WTO agreements. This agreement is also advantageous to developed countries & will go against the interest of India.Developing countries that did not provide subsidies during 1986-88 will not be allowed to introduce new subsidies.
and human 5. The WTO does NOT dictate to governments on issues such as food safety. This does NOT take priority over development. 4. In the WTO. The WTO is NOT for free trade at any cost. commercial interests do NOT take priority over environmental protection.10 common misunderstandings about the WTO The WTO does NOT tell governments what to do. The WTO does not tell governments how to conduct their trade policies. Many provisions take environmental concerns specifically into account. The WTO is NOT only concerned about commercial interests. of give and take. 1. The WTO agreements are full of provisions taking the interests of development into account. It’s really a question of what countries are willing to bargain with each other. it’s a “member-driven” organization. 2. Sustainable development is a principal objective 3. 38 . request and offer. Rather.
7. Again commercial interests do NOT override. The WTO system offers governments a means to reduce the influence of narrow vested interests. The WTO is NOT the tool of powerful lobbies. Sometimes adjustments are necessary to deal with job losses. 39 . Safety concerns are built into the WTO agreements The WTO does NOT destroy jobs or widen the gap between rich and poor. Small countries would be weaker without the WTO. and here the picture is complicated. the alternative of protectionism is not the solution. In any case. Everyone has to follow the same rules.health and safety. 6. 8. The agreements were negotiated by WTO member governments. Often it does just that. Trade can be a powerful force for creating jobs and reducing poverty. The accusation is inaccurate and simplistic. Small countries are NOT powerless in the WTO. and therefore the agreements reflect their concerns. The WTO increases their bargaining power.
That’s why the list of countries negotiating membership includes both large and small trading nations. In principle.com 40 . Bibliography TYBCom – Economics .Aphale Vipul Prakashan Webliography www. Most countries do feel that it’s better to be in the WTO system than to be outside it.google.D. they are NOT forced to join the WTO. that’s even more democratic than majority rule because no decision is taken until everyone agrees. Decisions in the WTO are generally by consensus. 10. Agreements are ratified in parliaments.Managerial Economics – S. The WTO is NOT undemocratic. 9.Seth publications FYBMS .Weaker countries do have a choice.
wto.org www.com 41 .wikipedia.www.