WTO World Trade Organization (WTO) is an international body (estd on January 1, 1995) dealing with the rules of trade between various nations. It is a place where the governments negotiate trade agreements and settle disputes relating to international trade and commerce. The WTO brings the General Agreement on Trade in Services (GATS), Trade Related aspects of Intellectual Property Rights (TRIPS) and general trade agreement under one roof. The WTO agreements cover goods, services, and intellectual property. The agreements signed by members lay down the legal ground rules for formulation of trade policies. The WTO agreements negotiated and signed by worlds trading nations are contracts which bind them to keep their trade policies within agreed limits. WTO could be viewed not only as an organization that removes barriers in trade but also as an organization that thrive to eliminate the side effects caused to one or more member nations by trade policies of other member nations. WTO acts as a forum where the member countries (150 countries) negotiate liberalization. One country’s commitments become other country’s rights and vice versa. The WTO is driven by its member states and has a secretariat that coordinates the activities with the help of staff including lawyers, economists, statisticians and communication experts who ensure that the system works smoothly in compliance with rules laid down. WTO is multilateral trading system that provides a neutral procedure for harmonious settlement of the differences in accordance with pre-set legal norms. The countries can bring disputes to WTO if they think their rights under the agreements are being infringed. The judgments are made by special independent experts based on interpretation of trade agreements and commitment of individual countries. The Most Favoured Nation (MFN) principle under WTO means non-discrimination ie. treating virtually every trading partners equally. However there are certain exceptions to MFN treatment. The WTO principles seeks to encourage trade and to discourage unfair trade practices. The WTO agreements support introducing changes gradually and in predictable manner. The rules formed under WTO agreements have to be transparent and predictable. The WTO agreement influence development of economies as it cover wide range activities like agriculture, banking, telecommunications, govt purchases, intellectual property, industrial safety standards, food sanitation etc. The WTO agreements contain special provisions for developing countries to help them develop their trading capacities, efficiently handle disputes and implement technical standards. All major decisions are taken by membership as a whole either by ministers or by their ambassadors or delegates. The topmost decision making body is the Ministerial conference which has to meet at least once every two years. The WTO works in such a manner that even help small member countries to compete against their powerful trading partners. Though there are many experts who criticize the WTO, from research it is evident that the forum has contributed much to the economic growth, eradication of poverty and international relations of member countries. source corporategenius.blogspot.in/2013/07/World-trade-organization-meaning-function-MFN-member-agree-what.html
Posted on: Mon, 02 Sep 2013 15:32:09 +0000
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