Worl

1. WORLD TRADE ORGANISATION (WTO)

2. • The World Trade Organization (WTO) is an organization that intends to supervise
and liberalize international trade.
• It was established on January 1, 1995. It replaced GATT (General Agreements On
Tariffs and Trade), which was formed after the Second World War.
• The purpose was to facilitate international bargaining and to reduce barriers to
trade.
• It has 153 member states. Founder members and subsequent members. India is
a founder member.
• The Director General of WTO is Pascal Lamy.

3. • 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 help producers of goods and
services, exporters, and importers conduct their
business.

4. Its main function is to ensure that trade flows as
smoothly, predictably and freely as possible.
Administering trade agreements
Acting as a forum for trade negotiations
Settling trade disputes
Reviewing national trade policies
Cooperating with other international organizations

5. Assisting developing countries in trade policy issues, through
technical assistance and training programmes.
Negotiating the reduction or elimination of obstacles to trade
(import tariffs, other barriers to trade) and agreeing on rules
governing the conduct of international trade.
Assisting the process of accession of some 30 countries who are
not yet members of the organization.
Conducting economic research and collecting and disseminating
trade data in support of the WTO's other main activities.

6.  The WTO has nearly 150 members, accounting for over 97% of
world trade. Around 30 others are negotiating membership.
 Decisions are made by the entire membership. This is typically by
consensus. A majority vote is also possible but it has never been
used in the WTO, and was extremely rare under the WTO’s
predecessor, GATT. The WTO’s agreements have been ratified in
all members’ parliaments.
 The WTO’s top level decision-making body is the Ministerial
Conference which meets at least once every two years.
 Below this is the General Council (normally ambassadors and
heads of delegation in Geneva, but sometimes officials sent from
members’ capitals) which meets several times a year in the
Geneva headquarters. The General Council also meets as the
Trade Policy Review Body and the Dispute Settlement Body.

7.  At the next level, the Goods Council, Services Council and
Intellectual Property (TRIPS) Council report to the General
Council.
 Numerous specialized committees, working
groups and working parties deal with the individual
agreements and other areas such as the environment,
development, membership applications and regional trade
agreements.

8. BENEFITS OF WTO
The system helps promote
peace.
Rules make life easier for all.
Disputes are handled constructively.
Free trade cuts the cost of living.

9. It provides more choice of product
and quality.
Trade raises income.
Trade stimulate economic growth.
The basic principle make life more.
efficient.

10. INDIA AND THE WTO
 After Marrakesh Agreement, India joined WTO since
inception in 1995.
 Developing countries like India availed of greater
trade opportunities and also challenged certain
policies of developed countries (DCs).
 For India, Exposure to volatile international market would
affect not only domestic prices but also incomes of poor.
 Aim to participate in WTO rule based system with greater
stability, transparency and predictability in governance of
international trade.
 Developmental issues increasingly focused along with trade
issues.

11. IMPACT ON THE
AGRICULTURAL SECTOR
 Farmers Subjected To WTO.
 Various schemes and loans for farmers.
 Liberalization Of World Trade.
 Biotechnological Advancement.

12. IMPACT ON TEXTILE
India a part of Multi-Fibre Agreement
(MFA).
Contributes to 4% of national GDP and
20% of manufacturing value added.
Provides employment to 6.5 million
persons directly or indirectly.

13. CONCLUSION
The WTO’s rules — the agreements — are the result of
negotiations between the members. The current set were the
outcome of the 1986–94 Uruguay Round negotiations which
included a major revision of the original General Agreement on
Tariffs and Trade (GATT).
Through these agreements, WTO members operate a non-
discriminatory trading system that spells out their rights and
their obligations. The Doha Round is the latest round of
trade negotiations among the WTO membership. The
work programme covers about 20 areas of trade. The
aim is to improve the trading prospects of developing
countries. WTO works for the economy as the UN works
for society.

14. THANK YOU
By Heer Khant