ROLE AND FUNCTION OF WORLD TRADE ORGANISATION (WTO)
Meaning: -The World Trade Organisation came into existence with effect from 1-1-1995 . The WTO replaced General Agreement on Tariffs and Trade (GATT). The main objective of WTO is to increase world trade and thereby employment. In 1947, 23 countries including India India
- Administration of Agreements: -It looks after the administration of the 29 agreements (signed at the conclusion of Uruguay Round in 1994), plus a number of other agreements, entered into after the Uruguay Round.
- Implementation of Reduction of Trade Barriers: -It checks the implementation of tariff cuts and reduction of non-tariff measures agreed upon by the member nation at the conclusion of the Uruguay Round.
- Examination of Member’s Trade Policies: -It regularly examines the foreign trade policies of the member nations, to see that such policies are in line with WTO’s guidelines.
- Collection of Foreign Trade Information: -It collects information in respect of Export-Import trade, various trade measures and other trade statistics of member nations.
- Settlement of Disputes: -It provides conciliation mechanism for arriving at an amicable solution to trade conflicts among member nations.
- Consultancy Services: -It keeps a watch on the development in the World economy and it provides consultancy services to its member nations.
- Forum for Negotiation: -WTO is a forum where member nations continuously negotiate the exchange of trade concessions. The member nations also discus trade restrictions in areas of goods, services, intellectual property, etc.
- Assistance of IMF and IBRD: -It assists IMF and IBRD for establishing coherence in universal economic policy administration.