This article provides information about the world trade organisation and its objectives!
In 1947, 23 countries including India signed the General Agreement and Tariff and Trade (GATT). GATT was created to reduce global depression and to liberalise and regulate the world trade by reducing trade barriers.
It was created to bring order, security and to bring fair competition in international trade. But due to some limitations GATT was replaced by WTO. And thus the creation of WTO on 1st January 1995 marked the biggest reform of international trade. The head quarter of WTO is located in Geneva, Switzerland.
WTO was formed with an objective to help the producers, exporters and importers to conduct their business at the international level. WTO implements multilateral trade agreement. It resolves the disputes among member nations and monitors the execution of tariff and non-tariff barriers.
WTO is supposed to ensure that disputes are settled in harmony with international trade principles. WTO is the only international body dealing with the rules of trade between nations. Some of the important agreement signed by WTO is TRIPS, TRIMS, and Agreement on Agriculture etc.
It stands for Trade Related Intellectual Property Rights. Under this agreement protection is given to patents, trademarks, layout designs, copyrights and other intellectual properties.
It stands for Trade Related Investment Measures. This agreement has agreed to treat foreign investment at par with domestic measure. This has given a big boost to foreign investment in developing countries.
It stands for General Agreement on Trade and Services. Under this agreement the service sector has to be liberalised or opened up. This has resulted for the opening up of service sectors in the developing nations.
Agreement on Agriculture (AOA):
This emphasised on various measures to promote agricultural trade in international market.
World trade organisation promotes global multilateral free trade.
WTO aims at achieving the following objectives:
1. Trade without discrimination:
WTO aims to trade without discrimination through the application of (MFN) Most Favoured Nation Principle.
2. Settlement of Disputes:
The objective of WTO is to resolve disputes among member nations through consultation and dispute settlement procedures.
3. Raising standard of living:
WTO aims at raising the standard of living and income of the countries and ensures full employment of the citizens of member nations.
4. Optimum utilisation of resources:
WTO ensures optimum utilisation of world resources thereby expanding world production and trade of goods and services.
5. Protection of Environment:
WTO aims at preserving and protecting the world’s environment so as to benefit all the nations of the world.
6. Growth of less developed Countries (LDC’s):
WTO aims at growth of less developed countries. It not only gives opportunity to the developed nations but also seek the growth of less developed nations.