The document provides an overview of the World Trade Organization (WTO). It discusses that the WTO was established in 1995 to promote international trade and establish global trade rules and agreements. It operates to reduce trade barriers and resolve disputes between member countries. The WTO has 164 member countries and aims to lower trade barriers, increase employment and economic growth, and take steps to promote development in poorer nations through its principles of non-discriminatory trade, freer trade, transparency, and fair competition. The organization administers trade agreements, acts as a forum for negotiations, settles disputes between members, and provides technical assistance to developing countries.

1. Presented By: Group C
Amit Umredkar
Jay Kumar Garg
Amrut
Srikanth

2. WTO IN BRIEF
Why do we need a WTO?
- Trade is central to human health, prosperity and social welfare. Many of the goods we buy, the
services we use and the foods we eat depend on foreign trade.
- It is the job of the World Trade Organization to establish the rules of trade and preserve this
web of trade activity between nations.
WTO History
 Restoring international economic growth and stability through the promotion of trade was
crucial after World War II. This led to the establishment of General Agreement on Tariffs and
Trade (GATT).
 GATT was the only multilateral trading system governing international trade until WTO was
established in 1995.
 WTO was created by Uruguay round negotiations (1986-94).
 The WTO has about 164 member participating countries, accounting for about 95% of world
trade.

3. WTO ORGANIZATION STRUCTURE

4. WTO Principles for international trade
 A) Trade without discrimination:- 1. MFN treatment (most favored
nation concept):-Equal treatment for the all the members country of the WTO (ex.
Pakistan)
 2.National Treatment:- Treating the international trade partners as equally to
local trade partners.
 B) Freer trade:- intensive negotiations with its members to lower barriers for
between them to encourage trade. allows developing countries to implement
recommended changes gradually. Because the economies of developing countries are
weaker and more fragile on many aspects compared to the economies of developed
countries.
 C) Maintaining predictability through binding and transparency:-any
member can introduce changes in its tariffs or any other trade-related legislation,
however, this must be agreed with trading partners.
 D) Promoting fair competition:-Fair competition principle does allow WTO
members to protect their economies from ‘product dumping.
 E) Encouraging development and economic reform:-contributes to the
development of its members in many ways including helping to promote piece,
protecting the governments from lobbying, raising income for the governments, and
increasing the variety of goods within a country.

5. WTO OBJECTIVES
 The primary aim of WTO is to implement the new world trade agreement.
 To promote multilateral trade .
 To promote free trade by abolishing tariff & non-tariff barriers.
 To enhance competitiveness among all trading partners so as to benefit
consumers.
 To increase the level of production & productivity with a view to increase the
level of employment in the world.
 To expand & utilize world resources in the most optimum manner.
 To improve the level of living for the global population & speed up economic
development of the member nations.
 To take special steps for the development of poorest nations.

6. WTO FUNCTIONS
How WTO ensures trade to flow smoothly, freely, fairly and predictably?
It does this by –
 Administering trade agreements - Setting “rules” for the multilateral trading system in areas like
 Trade-related intellectual property rights,
 trade in services,
 antidumping,
 Subsidies & product standards,
 agriculture,
 textiles and clothing, and much more.
 Acting as a forum for trade negotiations
 Settling trade disputes
 Reviewing national trade policies
 Assisting developing countries in trade policy issues, through technical assistance and
training programmes
 Cooperating with other international organizations.

7. Benefits of WTO System to World Economy
1. The system helps promote peace
2. Disputes are handled constructively
3. Rules make life easier for all
4. Freer trade cuts the costs of living (Ex. Daimler trucks)
5. It provides more choice of products and qualities
6. Trade raises incomes.
7. Trade stimulates economic growth .
8. The basic principles make life more efficient
9. Governments are shielded from lobbying
10. The system encourages good government.

8. HOW WTO RESOLVE THE DISPUTES
 Complaints from member countries after violation of
trade rules.
 Panel of judges chosen
 Judicial type hearing at WTO
 Finding
 Appeal and final ruling
 Implementation or penalties/concessions

11. EFFECT OF WTO on INDIAN INTERNATIONAL TRADE.
 India one of members of General Agreement on Tariffs and
Trade (GATT) since 1948.
 After Marrakesh Agreement, India joined WTO since
inception in 1995.
 Aim to participate in WTO rule based system with greater
stability, transparency and predictability in governance of
international trade.
 Developing countries like India availed of greater trade
opportunities and also challenged certain policies of
developed countries (DCs).Like (decrease the custom duty)
 Developmental issues increasingly focused along with trade
issues.
 S&D treatment for developing and LDCs incorporated.

12. Criticism of WTO
 A) WTO fundamentally undemocratic:- 1. rules are written by and for corporations
with inside access to the negotiations.
2. simple requests for information are denied.
3. proceedings are held in secret .
• B) The WTO Will Not Make Us Safer:-domination of international trade by rich
countries for the benefit of their individual interests fuels anger and resentment that
make us less safe.
• C)WTO Tramples Labor and Human Rights:- WTO encourages a race to the
bottom in wages by pitting workers against each other• The WTO has ruled that it is
illegal for a government to ban a product based on the way it is produced, such as with
child labor• It has also ruled that governments cannot take into account "non commercial
values" such as human rights
 D)The WTO Is Destroying the Environment:-WTO is attempting to deregulate
industries including fishing, water utilities, and energy distribution, which will lead to
further exploitation of these natural resources.
 E)The WTO is Increasing Inequality:-the richest 20 percent of the worlds
population consume 86 percent of the worlds resources while the poorest 80 percent
consume just 14 percent. WTO rules have hastened these trends by opening up countries
to foreign investment and thereby making it easier for production to go where the labor is
cheapest and most easily exploited and environmental costs are low.

13. CONCLUSION
 It is the place where the member country comes and talks together and shares their
grievance in order to resolve their problem related to international trade.
 The countries make their decisions through various councils and committees.
 The system help promote peace by handling dispute of member countries. It provides free
trade which cuts the cost of living and provides more choice of products and qualities and
stimulate economic growth.

14. Recommendations for WTO
 The Organization should operate democratically.
 Every country must have equal representation.
 Rich countries should promote poor countries.
 Some laws must be prepared related with Human
Rights, Child Labor, Environment.
 The Dispute settlement system must be Powerful to
implement decisions.
 Public services must remains profit free.

15. THANK YOU