🌍 Objectives and Features of the WTO
Understanding the Role of the World Trade Organisation
🏛️ Meaning and Background
The World Trade Organisation (WTO) was established on January 1, 1995, succeeding the General Agreement on Tariffs and Trade (GATT). GATT was originally signed in 1947 by 23 countries, including India, with the primary goal of reducing tariff barriers among nations.
The WTO expands on this mission with a significantly wider scope. It addresses not only the reduction or elimination of tariffs but also non-tariff barriers, such as import quotas. The main objective of the WTO is to foster growth in international trade, which in turn promotes higher employment. By April 2004, the WTO's membership had grown to 147 countries, including India.
📜 The Main Objectives of the WTO
🤝 1. Trade without Discrimination
This is achieved by applying the Most Favoured Nation (MFN) principle. According to the MFN clause, a WTO member must grant the same preferential treatment (like tariff reductions) to all other member nations that it grants to any single member.
⚖️ 2. Settlement of Disputes
To provide a clear and effective mechanism for settling trade disputes among members. This is achieved through consultation, conciliation, and, as a last resort, a formal dispute settlement procedure.
📈 3. Raising the Standard of Living
To raise the standard of living and incomes for the citizens of its member nations and to ensure conditions that promote full employment.
💡 4. Optimum Use of World Resources
To ensure the optimal use of the world's resources. This focus aims to expand the global production and trade of both goods and services, promoting sustainability and efficiency.
🌳 5. Protection of the Environment
To preserve and protect the world's environment, ensuring that trade and environmental policies are mutually supportive for the benefit of all nations.
🚀 6. Growth of Less Developed Countries
To recognize the need for positive efforts that help developing countries, especially the least-developed ones, secure a share in the growth of international trade that is commensurate with their economic development needs.
💼 7. Generating Full Employment
The WTO aims to generate conditions for full employment and to foster a broad and effective increase in global demand.
🏭 8. Enlargement of Production and Trade
To work consistently towards enlarging the production and trade of both goods and services across the globe, creating a more prosperous international economic system.