World Trade Organization (WTO)

World Trade Organization (WTO)

The International trade is based on multilateral trading system. It is a system involving trade amongst various countries. it is therefore, necessary that the rules and regulation of such system are properly define. In the year 1947, an attempt was made by 23 countries in the world to define the basic norms for conduct of international trade. The trade negotiation amongst these 23 countries in multilateral treaty called general agreement On Traffic and Trade (GATT) in the year 1948. The GATT was established to secure the conduct of international trade based on the principles of non-discrimination, transparency and liberalization. The GATT had been organizing international trade negotiation to define the regulation for and strengthening multilateral trading system over the years. The latest round of international trade regulation was conducted under auspices of GATT from 1986 to 1993. It was on 15 December that the latest round of international trade negotiation among 117 countries was conducted at Uruguay. The agreement so conducted were signed on April 16,1994 by 123 countries. The agreement has come to known as a Uruguay round or the GATT 94. One of the agreements during the Uruguay round was regarding renaming of GATT as World Trade Organization (WTO). The GATT 1994 is being implemented with effect from 1 of January 1995 when the very first agreement regarding the establishment of world trade organization (WTO) was established. Thus the World Trade Organization (WTO) held its last round of international trade negotiation at Doha in July 2006. At present 151 countries are member of World Trade Organization (WTO).

Objective of World Trade Organization (WTO)

* To ensure the conduct the international trade on non-discrimination basis.
* To raise standard of living and income, ensuring full employment
* To expend production and trade
* Protecting environment
* Ensuring better share for developing countries.

Function of World Trade Organization (WTO)

* Administering World Trade Organization (WTO) trade agreement
* Forum the trade negotiation
* Handling trade disputes
* Monitoring national trade policy
* Technical assistance and training for developing countries
* Co-operation with other international organization (like help from World Bank and IMF).

Legal framework of World Trade Organization (WTO)

* Protection through import traffic
* Reduction in traffic and binding against further increase
* Conduct of trade according to M.F.N. clauses
* Commitment to national treatment rule.