World Trade Organisation
Objectives and functions of WTO
A) EMERGENCE OF WTO :-
After the Second World War, many countries got down together to work on ways and means to promote international trade. The result was signing of General Agreement on Tariffs and Trade (GATT) by 23 countries in 1947. India was one of the founder members of GATT.
GATT was created to reduce global depression and to liberalise and regulate the world trade by reducing tariff barriers. GATT has been replaced by WTO in 1995. WTO is wider in scope as it regulates world trade in goods, as well as in services intellectual property rights, and investment. In January 2010, the membership of WTO was 153 countries. Its rules and policies are the outcome of negotiations among WTO members. Thus WTO is a member driven, consensus based organisation.
B. PRINCIPAL OBJECTIVES OF WTO
1) Trade Without Discrimination :-
Trade without discrimination through the application of Most Favoured Nation (MFN) Principle. As per MFN clause, a member nation of WTO must accord (give) the same preferential treatment to other member nations which it gives to any other member nation.
2) Raising The Standard Of Living :-
Raising the standard of living and incomes and ensuring full employment of the citizens of its member nations.
3) Optimum Use Of World's Resources :-
Ensuring optimum use of world's resources and, thereby, expanding world production and trade of goods as well as services.
4) Settlement Of Disputes :-
Settlement of disputes among members through consultation, conciliation, and as a last resort through dispute settlement procedures.
5) Growth Of Less Developed Countries (LDCs) :-
It recognises the need for positive efforts designed to ensure that developing countries especially the LDCs, secure a better share of growth in international trade.
6) Protection Of Environment Preserving and protecting the environment of the world so as to benefit all the nations
A) EMERGENCE OF WTO :-
After the Second World War, many countries got down together to work on ways and means to promote international trade. The result was signing of General Agreement on Tariffs and Trade (GATT) by 23 countries in 1947. India was one of the founder members of GATT.
GATT was created to reduce global depression and to liberalise and regulate the world trade by reducing tariff barriers. GATT has been replaced by WTO in 1995. WTO is wider in scope as it regulates world trade in goods, as well as in services intellectual property rights, and investment. In January 2010, the membership of WTO was 153 countries. Its rules and policies are the outcome of negotiations among WTO members. Thus WTO is a member driven, consensus based organisation.
B. PRINCIPAL OBJECTIVES OF WTO
1) Trade Without Discrimination :-
Trade without discrimination through the application of Most Favoured Nation (MFN) Principle. As per MFN clause, a member nation of WTO must accord (give) the same preferential treatment to other member nations which it gives to any other member nation.
2) Raising The Standard Of Living :-
Raising the standard of living and incomes and ensuring full employment of the citizens of its member nations.
3) Optimum Use Of World's Resources :-
Ensuring optimum use of world's resources and, thereby, expanding world production and trade of goods as well as services.
4) Settlement Of Disputes :-
Settlement of disputes among members through consultation, conciliation, and as a last resort through dispute settlement procedures.
5) Growth Of Less Developed Countries (LDCs) :-
It recognises the need for positive efforts designed to ensure that developing countries especially the LDCs, secure a better share of growth in international trade.
6) Protection Of Environment Preserving and protecting the environment of the world so as to benefit all the nations