Learn about the functions of the WTO and how they impact international trade. Discover the key roles of the WTO in shaping global commerce.
Functions of WTO ( World Trade Organisation).
The world Trade Organization was established, as the successor to the GATT, on 1st January 1995. Its headquarters is located at Geneva; Switzerland. It was created by Uruguay Round negotiations 1986 – 1994. Its membership as on June 2000 was 135 countries. Its Director General has a staff of 500 persons. Its annual budget is 12.2 million Swiss France. It is the only international organization dealing with the trade between nations.
- TRIPS – Trade Related Aspects of Intellectual Property Righs. It is aimed to protect intellectual property rights such-, as a) copyright and related rights, b) trade marks including services marks, geographic indications, c) Industrial designs, d). Patterns, e) Layout designs of integrated circuits, and f) Undisclosed information including trade secret.
- GATS – General Agreement on Trade in Services It is the first ever multilateral, legally enforceable rules covering ail internationally traded services, such as a) cross – border supply like international telephone calls, b) consumption abroad services like tourism, c) commercial persons services eg foreign companies and banks, setting operations branches subsidiaries in a country, d) presence of nature1 persons e.g. fashion models of consultants.
- Agreement on Antidumping – If a country exports a product at a lower price than it normally charges on its own home – market, it is said to be dumping the product. Agreement on Antidumping allows concerned government to act against dumping. WTO has developed its own legislation to act against dumping which is awaiting approval implementation.
- Special and differential treatment for developing nations – This agreement provides that the developing nations will be given special and differential treatment to their products as was agreed in GATT negotiations.
- TBT – Technical Barriers to Trade This agreement sets out code and good practices for the preparation, adoption, and application of standard. The agreement ecourages <^ountries to recognize each others testing procedures and free flow of information on the latest standards to manufacturers and exporters.
- Agreement on Agriculture —This agreement relates to market access, domestic support and export subsidies. It also addresses other issues like use of less trade distorting domestic support policies and specific concerns of developing countries. As per agreement, Tariff on agriculture products are to be reduced by an average of 36% in case of developed country and 24% in case of developing countries over a period of 6 and 10 years respectively.
- TRIMS – Trade Related Investment Measures This agreement basically consists of investment incentives as subsidies, investment grants and allowances, priority access to credit, tax relief and examption and other forms of fiscal, financial and commercial inducements. These measures are meant for to regulate foreign investment. It also imposes conditions to use the investment according to its national priority.
- Textile clothing. Like agriculture, textile is one of the li.irdest – fought issues in the WTO, as it was in the former (‘.ATT system. The system of import quotas is being phased out Since 1995, the WTO Agreement on Textile and Clothing (ATC) has taken over the Muiti-Fibre Agreement (MFA), under which, by the year 2005, quota will come to an end and importing countries will no longe be able to discriminate between exporters. The agreement on ATC will no longer exist by 2005