is the only global international organisation dealing with the rules of trade between nations.
Emergence of WTO:-
WTO officially commenced on January 1st,1995
replacing the general agreement on tariffs and trade (GATT) which commenced in 1948.
Established on: January 1ST,1995
DOHA DEVELOPMENT AGENDA
The conference approved the joining of china as 143rd member.
Started in at 4th ministerial conference in DOHA,QATAR 2001 and continues till today
equitable participation of the poor countries.
make globalization more exclusive.
URUGUAY ROUND The Uruguay round started in september 1986 and continued until April of 1994. It sets out rules and principles to cover all global trade, from banking to consumer products.
MAJOR HIGHLIGHTS OF URUGUAY ROUND: Agreement on agriculture: deals with 3 aspects of agriculture namely trade in agriculture,goods and agriculture policies. The members have to substitute non-tariff barriers like quotas by tariff measures. Agreement on trade in textiles and clothing: the member nations have to phase out import quotos on textiles and clothing over a period of ten years.
Agreement on trade related investment measures: under this, the agreement has provided for the removal of restrictions on foreign investment. Agreement on trade related intellectual property rights: it refers to patent right, copy right etc. in the earlier years certain items like food, medicine, drugs and chemical products were given only process patents and now they are given product patents also.
Agreement on services: many countries have restrictions on entry of foreign sector in finance, media, transport etc. to promote international trade, it was argued that services should also be free from barriers. Dispute settlement body: it is constituted for the settlement of disputes without any delay. A time limit of 18 months has been given to this body to settle the disputes between member countries.
binding and enforceable commitments
MEMBERS AND OBSERVERS
WTO has 153 members in all and the non members are called as observers.
India became a member of WTO on january 1st,1995.
some of the observers are as follows:-
How does a country become a member of WTO?
government has to apply for membership.
talks between prospective new member.
finalizing theterms of membership in a draft membership treaty.
voting by the existing members.
Is it “COMPULSORY” for a country to become a member of WTO?
benefits are given only to the members
most of the countries want to be members of the trading system.
How are disputes settled?
responsibility of Dispute settlement body(DSB)
FIRST STAGE-CONSULTATION:(upto 60 days)
if countries in dispute can solve their problems themselves.
SECOND STAGE-THE PANEL:(45 DAYS+6 MONTHS)
if perishable goods-45 days + 3 months)
mostly acceptable decision
many rounds of negotiations
in reality its not by mostly acceptable decision but by small groups of countries called“GREEN ROOM” negotiations.
What are trade barriers?
Any number of government placed restrictions placed on trade between nations.