World Trade Organisation: International Relations: Four Main WTO Guidelines

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World Trade Organisation

  • After consensus agreement of December 1993, the representatives of 125 countries including India , signed the new treaty on 15th April 1994 at Marrakesh , Moracco.

  • Founded on January 1, 1995 as successor of General Agreement on Trade and Tariffs (GATT).

  • It is based in Geneva.

  • GATT primarily focused on trade in goods.

  • WTO covered the cross-border trade in services and ideas and the movement of personnel.

  • It was hoped that it will strengthen international economic order by establishing justice, equality and cooperation.

Principles

To create an international environment that enables the free flow of goods, services and ideas.

The four main WTO guidelines are-

1. Trade without discrimination

2. Predictable and growing market access.

3. Promoting fair competition.

4. Encouraging development and economic reform.

  • Full time representatives from member countries.

  • Functions on basis of one member one vote.

  • Members contributes to administrative costs.

  • Full time Secretary General for four-year term.

  • Highest authority is Ministerial Conference , meets every two years.

  • How it works?

  • The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations.

  • At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to ensure that trade flows as smoothly, predictably and freely as possible.

  • The WTO has many roles: it operates a global system of trade rules, it acts as a forum for negotiating trade agreements, it settles trade disputes between its members, and it supports the needs of developing countries.

  • All major decisions are made by the WTO’s member governments: either by ministers (who usually meet at least every two years) or by their ambassadors or delegates (who meet regularly in Geneva).

  • A number of simple, fundamental principles form the foundation of the multilateral trading system.

  • The primary purpose of the WTO is to open trade for the benefit of all.

World trade organisation

World Trade Organisation

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MCQs

1. Number of WTO countries_____?

  1. 126

  2. 169

  3. 145

  4. 164

Ans .d

Explanation; 164 members since 29 July 2016 , with dates of WTO membership. The WTO has over 160 members representing 98 per cent of world trade. Over 20 countries are seeking to join the WTO.

2. Which among the following countries did not joined WTO on 1 January 1995?

  1. India

  2. Seychelles

  3. Pakistan

  4. Srilanka

Ans. B

explanation: Seychelles — 26 April 2015

  • India — 1 January 1995

  • Pakistan — 1 January 1995

  • Sri Lanka — 1 January 1995

3.Who is the current Director General of WTO?

a. Roberto Azevêdo

b. Carlos FORADORI

c. Rashidi SAID

d. None

Ans. A

Explanation :Roberto Azevêdo is the sixth Director-General of the WTO. He became Director-General on 1 September 2013, serving a four-year term. At a meeting of the General Council in February 2017, WTO members agreed by consensus to appoint Roberto Azevêdo as Director-General for a second four-year term, which started on 1 September 2017.

4.Doha round was launched in the year____?

  1. 200

  2. 2001

  3. 2002

  4. 2003

Ans. B

Explanation: The Doha Round was launched in 2001 to achieve major reform of the international trading system through the introduction of lower trade barriers and revised trade rules. A fundamental objective of the Doha Development Agenda is to improve the trading prospects of developing countries.

5. When was WTO established?

a.1994

b.1995

c.1996

d.1997

Ans . B

Explanation: Established: 1 January 1995

Created by Uruguay Round negotiations (1986-94).

WTO functions for -

Administering WTO trade agreements

Forum for trade negotiations

Handling trade disputes

Monitoring national trade policies

Technical assistance and training for developing countries

Cooperation with other international organizations

#Uruguay Round

#General Agreement on Trade and Tariffs (GATT)

#WTO

#Ministerial Conference

#international organization

# Doha Development Agenda