World Trade Organisation and Major Agreements
GATT – General Agreement for Trade and Tariff, which is considered as the first step towards the formation of a common platform for international trade, came into existence with effect from 1st Jan 1948, and remained till December 1994. In 1994, at Uruguay Round of GATT negotiations, it was decided to set up a permanent institution for looking after the promotion of free and fair trade amongst nations. Consequence to this decision, the GATT was transformed into World Trade Organisation (WTO) with effect from 1st Jan 1995. The Head Quarters of WTO is situated in Geneva, Switzerland. WTO is a powerful successor of GATT and a permanent organisation created by an international Treaty ratified by Government of member states which governs trade not only in goods but also in services and intellectual property rights. IT has a member driven rule – based organisation in which decisions are taken by the member government on general consensus. It has global status as World Bank and IMF being the principal international body concerned with solving trade problems. As on 11th December 2005, there are 149 nations as members of WTO.
Objectives of WTO WTO objectives are based on the idea of sustainable development in relation to the optimal use of world’s resources so as to ensure protection and preservation of the environment. The major objectives of WTO are as follows: 1. To ensure reduction of tariffs and other trade barriers imposed by different countries. 2. To engage in such activities which improve the standard of living, create employment, increase income and effective demand and facilitate higher production and trade. 3. To facilitate the optimal use of the world’s resources for sustainable development. 4. To promote an integrated, more viable and durable trading system.
Functions of WTO To promote an environment that is encouraging to its member countries to come forward to WTO in mitigating their...
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