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General Agreement On Tariff and Trade and World Trade Organisation
General Agreement On Tariff and Trade and World Trade Organisation
Organization (WTO)
The World Trade Organization (WTO) deals with the global
rules of trade between nations. Its main function is to ensure
that trade flows as smoothly, predictably and freely as
possible.
The WTO has larger membership than GATT, with the numbers
being 153. India is one of the founder members of GATT.
Functions of WTO:
Benefits of WTO:
GATT / WTO has made significant achievements
in reducing tariff and non tariff barriers to
trade. Developing countries too have been
benefiting significantly.
Liberalization of investments has been fostering
economic growth of a number of countries.
It has a system in place to settle trade disputes
between nations.
It has a mechanism to deal with violation of
trade agreements.
Drawbacks:
Negotiations and decision making in
the WTO are dominated by the
developed countries.