What Is World Trade Organisation (WTO) ?
World Trade Organisation:
You may heard about World Trade Organization (WTO) or seen news footage about the World Trade Organization’s (WTO), You may have query on that what is the World Trade Organization, what its role why it is Crucial in the Economic Growth and Development.The following article addresses these questions and concerns regarding the world’s only international organization that deals with the global rules of trade.
What Is World Trade Organisation ?
The World Trade Organization (WTO) is an intergovernmental organization that regulates international trade. The WTO officially commenced on 1 January 1995 under the Marrakesh Agreement, signed by 123 nations on 15 April 1994, replacing the General Agreement on Tariffs and Trade (GATT), which commenced in 1948. It is the largest international economic organization in the world. The WTO deals with regulation of trade between participating countries by providing a framework for negotiating trade agreements and a dispute resolution process aimed at enforcing participants’ adherence to WTO agreements, which are signed by representatives of member governments and ratified by their parliaments.
The WTO was born out of the General Agreement on Tariffs and Trade (GATT), which was established in 1947. A series of trade negotiations, GATT rounds began at the end of World War II and were aimed at reducing tariffs for the facilitation of global trade on goods. The rationale for GATT was based on the Most Favored Nation (MFN) clause, which, when assigned to one country by another, gives the selected country privileged trading rights. As such, GATT aimed to help, all countries obtain MFN-like status so that no single country would be at a trading advantage over others.
The WTO replaced GATT as the world’s global trading body in 1995, and the current set of governing rules stems from the Uruguay Round of GATT negotiations, which took place throughout 1986-1994. GATT trading regulations established between 1947 and 1994 (and in particular those negotiated during the Uruguay Round) remain the primary rule book for multilateral trade in goods. Specific sectors such as agriculture have been addressed, as well as issues dealing with anti-dumping.
The Uruguay Round also laid the foundations for regulating trade in services. The General Agreement on Trade in Services (GATS) is the guideline directing multilateral trade in services. Intellectual property rights were also addressed in the establishment of regulations protecting the trade and investment of ideas, concepts, designs, patents, and so forth.
The purpose of the WTO is to ensure that global trade commences smoothly, freely and predictably. The WTO creates and embodies the legal ground rules for global trade among member nations and thus offers a system for international commerce.
Benefits Of WTO.
How It Functions
The current head of the World Trade Organization is Roberto Azevêdo; however, decisions are made by consensus, though a majority vote may also rule (this is very rare). Based in Geneva, Switzerland, the Ministerial Committee, which holds meetings at least every two years, makes the top decisions. There is also a General Council, a Goods Council, Services Council, and an Intellectual Property Rights Council, which all report to the General Council. Finally, there are many working groups and committees.
Currently WTO have 164 member countries and 22 Observer countries. Within five years of being granted observer status by the WTO, states are required to begin negotiating their accession to the organization.
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