- Establishment: The World Trade Organization (WTO) was established on January 1, 1995, replacing the General Agreement on Tariffs and Trade (GATT) under the Marrakesh Agreement (1994)
- Purpose: The primary objective of the WTO is to facilitate smooth and free trade across the globe, ensuring that trade flows as smoothly, predictably, and freely as possible.
- Headquarters: Geneva, Switzerland.
- Members: 166 countries, representing 98% of global trade.
- Key Bodies:
- Ministerial Conference (MC): Highest decision-making authority.
- Dispute Settlement Body (DSB): DSB resolves trade disputes.
Core Functions
- The WTO provides a forum for negotiations among member countries to reduce trade barriers and reach agreements on various trade-related issues.
- The WTO has a robust dispute settlement mechanism to resolve trade disputes between members, ensuring that trade rules are respected and applied consistently.
- Regular reviews of member countries’ trade policies are conducted to ensure transparency and understanding of trade policies and practices.
- The WTO assists developing countries in building their trade capacity through technical assistance and training programs.
Subsidies
- In WTO terminology, subsidies in general are identified by “Boxes” which are given the colours of traffic lights: green (permitted), amber (slow down — i.e. need to be reduced), red (forbidden).
Key Agreements
- GATT: The General Agreement on Tariffs and Trade, which focuses on reducing tariffs and other trade barriers.
- GATS: The General Agreement on Trade in Services, which governs international trade in services.
- TRIPS: The Agreement on Trade-Related Aspects of Intellectual Property Rights, which sets minimum standards for the protection of intellectual property.
- TBT and SPS: The Agreements on Technical Barriers to Trade and Sanitary and Phytosanitary Measures, which address regulations and standards to ensure they do not create unnecessary obstacles to trade.
Source: The Hindu