y WTO substituted GATT for providing more effective stimuli to multilateral trading system.EVOLUTION OF WTO y WTO had its origin in Bretton woods conference after the end of second world war. It was founded in 1948 with 23 members by the name of GATT[General Agreement on Tariffs and Trade]. y WTO replaced GATT on 1st January 1995. y The WTO provides a permanent arena for member governments to address international trade issues and it oversees the implementation of the trade agreements negotiated in the Uruguay Round of trade talks .

Differences Between GATT and WTO y GATT was a provisional legal agreement whereas WTO is an organization with permanent agreements. y The real critical distinction between GATT and WTO is creation of a binding dispute settlement system. But in WTO an effective enforcement mechanism exists. Under GATT contracting parties could bring cases before international body but there was no effective enforcement mechanism. y GATT dealt only with trade in goods while WTO covers services and intellectual property rights as well. y WTO has members while GATT had only contracting parties. .


Multilateral Agreements Some of the important agreement are: y AGRICULTURE The agreement on agriculture included three aspects : market access. a standard that is closer to the level of protection provided in the developed world. y y y . GENERAL AGREEMENT ON TRADE IN SERVICES(GATS) It involved reduction and elimination of barriers to international trade In services and establishment of Most-Favored Nations (MFN) in this area. domestic support and export subsidies y TEXTILES and CLOTHING The WTO agreement on the textiles and clothing states that the Multi-Fibre Agreement (MFA) will eventually be eliminated. TRADE POLICY REVIW MECHANISM(TPRM) The purpose of TPRM is to monitor the trade policies and practices of the member countries and to achieve a greater degree of transparency. THE TRADE RELATED ASPECTS OF INTELLECTUAL RIGHTS (TRIPS) It set minimum standards for protection of IPRs.

Plurilateral Agreements y PUBLIC PROCUREMENT ±Implies that the foreign suppliers must be given equal treatment in government procurement as the domestic suppliers get. . y TRADE IN CIVIL AIRCRAFTS ±Aims at elimination of import duties on all aircraft. y AGREEMENT FOR INTERNATIONAL DAIRY PRODUCTS ±It tries to introduce greater stability in the market by seeking to limit surpluses. shortages and fluctuation in price.

so as to create the necessary impetus to enable developing country members to catch up with their developed country counterparts . in order that developing countries are facilitated in their developmental efforts. Within the WTO.INDIA and WTO ISSUES y India is a founding member of the GATT (1947). enforceable dispensations. y y It also has to see that the different WTO Agreements are translated into specific y India feels that the multilateral system would itself gain if it adequately reflected these concerns of the developing countries. India is committed to ensuring that the sectors in which the developing countries enjoy a comparative advantage are adequately opened up to international trade. including some who are not members of WTO. it actively participated in the Uruguay Round Negotiations. and is a founding member of the WTO. y India strongly favours the multilateral approach to trade relations and grants MFN treatment to all its trading partners.

The problems that India faced before the formation of WTO were the following: (1)Absence of Anti ± dumping (2)No Subsidy Facilities (3)Absence of TRIMs & TRIPs (4)Lack of Market Scenario & Strategies After becoming the member of WTO: India benefitted due to the following agreements: (1)Anti-Dumping laws (2)Dumping Technical barriers to trade (3) Right of market (4)TRIMs (Trade related investment measures) .IMPACT ON INDIA Before becoming the member of WTO: Its agreed that India was one of the founder member of WTO. it faced problems in Foreign Trade grounds.

Geneva. 1995 Centre William Rappard. Spanish Pascal Lamy 189 million Swiss francs (approx.WTO AT A GLANCE FIELDS Formation Headquarters Membership Official languages Director -General Budget Staff INFORMATION January 1. French . Switzerland 153 member states English. 625 . 182 million USD) in 2009.