This article has been written by Ms. Ayushi Notani, a 1st year BBALLB(HONS) student from Vivekananda Institute Of Professional Studies.
INTRODUCTION
WTO-World Trade Organisation , was established on 1st January, 1995 following the Marrakesh Agreement which was ratified on April 15, 1994 as the heir organization to the GATT(General Agreement on Trade and Tariff). GATT was founded in 1948 with 23 nations as the global trade organization to serve all multilateral trade agreements by giving fair chances to all nations in the international exchange for trading prospects. WTO is required to build a rule-based trading government in which countries cannot place unreasonable constraints on trade.In addition, its mission is to increase stock and trade of services, to assure maximum utilization of world resources and to preserve the environment. The WTO deals include trade in commodities as well as services to promote international trade through the elimination of the tax as well as non-tariff obstacles and implementing greater marketplace access to all member nations.As a influential member of WTO, India is at the lead of building fair global laws, statutes and shields and supporting the concerns of the developing system. India has fulfilled its promises towards the liberalization of trade, made in the WTO, by eliminating quantitative limitations on imports and decreasing tariff charges.The WTO is the only such global international entity that deals with the rules and regulations related to international trade between different countries. In brief, the World Trade Organisation is the only international organization dealing with the global rules of trade. Its main function is to ensure that trade follows as smoothly, predictably and freely as possible.
OBJECTIVES OF WTO
Some of the major objectives of the World Trade Organisation are-
ESTABLISHING AND ENFORCING RULES FOR INTERNATIONAL TRADE-The enforcement of rules by the WTO takes place by way of a multilateral system of disputes settlement in the instances of violation of trade rules by member countries. The members are obligated under ratified agreements to honor and abide by the procedures and judgements.
ACTING AS A GLOBAL APEX FORUM- World Trade Organization is the global forum for monitoring and negotiating further trade liberalization. The premise of trade liberalization measures undertaken by WTO is based on the benefits of member countries to optimally utilize the position of comparative advantage due to a free and fair trade regime.
RESOLUTION OF TRADE DISPUTES- Trade disputes, before the WTO, usually arise out of deviation from agreements between member countries. The resolution of such trade disputes does not take place unilaterally but through a multilateral system involving set rules and procedures before the dispute settlement body.
INCREASING TRANSPARENCY IN THE DECISION-MAKING PROCESS- The World Trade Organization attempts to increase transparency in the decision-making process by way of more participation in the decision-making and consensus rule, in particular.
COLLABORATION BETWEEN INTERNATIONAL ECONOMIC INSTITUTIONS- The global economic institutions include the World Trade Organization, the International Monetary Fund, the United Nationa Conference on Trade and Development, and the World Bank.
SAFEGUARDING THE TRENDING INTEREST OF DEVELOPING COUNTRIES- Stringent regulations are implemented by the WTO to protect the trading interests of developing countries. It supports each member countries to leverage the capacity for carrying out the mandates of the organization, managing disputes, and implementing relevant technical standards.
OBJECTIVES OF WORLD TRADE ORGANISATION
To set and execute rules for international trade.
To present a panel for negotiating and controlling additional trade liberalization.
To improve the clarity of decision-making methods
To raise the standard of living in member countries.
To reduce tariff and non-tariff barrier.
FUNCTIONS OF WORLD TRADE ORGANISATION
FACILITATE INTERNATIONAL TRADE- It facilitates international trade through the removal of tariff and non-tariff barriers. It provides greater market access to all member countries.
FORMULATION OF RULES- It establishes a rule-based trading regime, in which nations cannot place arbitrary restrictions on trade.
PROTECTING THE INTEREST OF DEVELOPING COUNTRIES- It frames fair global rules and regulations. It also safeguards and advocates the interest of the developed and developing countries.
OPTIMU UTILISATION OF WORLD RESOURCES- It is also responsible to increase production and trade of services. It also ensures optimum utilization of world resources.
STRENGTHS OF THE WORLD TRADE ORGANIZATION
The WTO serves as a platform which allows to settle disputes and conflicts through negotiation. It also works to reduce the costs of international trade by removing trade barriers.
WEAKNESSES OF THE WORLD TRADE ORGANIZATION
Despite its strengths , the World Trade Organization has come under criticism for its lack of transparency and enforceable rules. Some small countries may feel that their voices are not heard by larger members, who can dominate decision-making at times.
EFFECT OF THE WORLD TRADE ORGANIZATION ON INDIA
Trading is an excellent weapon for any developing country, and one who uses it rightly wins prosperity and wealth for their country. India, as a developing nation, does the same. India is an agricultural country, and most of its GDP depends upon agriculture, as it exports agranian products across the world. Trading can play a huge role in developing any nation, if adequately used, because it also has harmful impacts.
FEATURES OF WORLD TRADE ORGANIZATION
The major features of the World Trade Organization are-
The WTO agreements encompasses all the member states and act as a common forum of deliberation for the members.
Each member country of the WTO carries a single voting right and all members enjoy privilege on the global scale.
These are rules implemented for the protection of small and weak countries against the discriminatory trade practices of developed and developing countries.
The scope of WTO is far more expensive than the erstwhile General Agreement on Trade and Tariff, For instance, GATT solely focused on goods while excluding textiles and agriculture. On the other hand , WTO covers all goods and services and investment policies along with intellectual property.
WTO Secretariat has formalized and bolstered the machanisms for the review of policies as well as the settlement of disputes. This aspect has become crucial due to the proliferation of member countries and more goods and services being covered by the World Trade Organizaton. Another important consideration in this regard is the substantial increase in open access to different international markets.
CONCLUSION
The World Trade Organisation plays a critical role in keeping global trade fair and efficient.With 164 members that include both developed and developing countries, the WTO has one of the most diverse and influential membership bases of any international organization.Ultimately, the WTO is a powerful tool for global economic growth and stability. It protects the environment from any potential damage and maintains secure and ethical business practices. It also regulates cross-border trade between countries, eliminates trade barriers, and resolves disputes through binding decisions. Since it has only been functioning since 1995, it is too early to say whether or not the WTO will be beneficial to global trade; the world simply has to wait and watch. For India, the World Trade Organization seems like a life- uplifting organization. It also helped India and still does toward making it a developed country. It also has negative impacts, but they are overshadowed by the positive impacts.
REFERENCES
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