Features an establishment of World Trade Organisation (WTO) : Bretten Woods Conference decided to set up an International Trade Organisation (ITO) to promote and facilitate international trade among the member countries and to overcome various restrictions and discriminations as were being practised at that time. But due to United States' stiff competition the idea could not be materialized. Istead of abandoning the idea, the participants of the conference became ready to make some arrangement among themselves so as to liberalise the world from high custom I... iffs and various other types of restrictions that were in practice at the time. This arrangement was known as General Agreement for Tariff and Trade (GATT). This was made in Jan 1,1994. With effect form 15 Jan 1995, GATT was transformed into World Trade Organisation (WTO) with its head quarter at Geneva, Switzerland. WTO was established to offer the promotion of free and fair trade among notions. WTO is a powerful body.
WTO governs trade not only in goods, but also in services and intellectual property rights. It is member driven rule based organisation in the sense that all the decisions are taken by the member Government on the basis of general consensus. It has a global status. India is founding member of WTO. As on Dec 11, 2005 there were 149 members in WTO.
Objectives of WTO :
1. Raising standards of living and incomes, ensuring full employment, expanding production, trade and optimal use of world's resources.
2. Ensuring reduction of tariffs and other trade barriers imposed by different countries.
3. To promote an integrated more viable and durable trading system.
Functions of WTO :
1. Promoting an environment that is encouraging to its member countries to came forward to WTO in mitigating their grievances.
2. Laying down a commonly accepted code of conduct with a view to reducing trade barriers including tariffs and eliminating discriminations in international trade relations.
3. Acting as a dispute settlement body.
4. Holding consultations with IMF and IBRD and its affiliated agencies so as to bring better understanding and cooperation in global economic policy making.
5. Supervising on a regular basis the operations of the revised agreements and ministerial declarations relating to goods, services and Trade Related Intellectual Rights (TRIPS).
WTO agreements : The WTO agreements contain the procedure for settling disputes and also have provisions for special treatment to developing countries. The agreements require that the governments make their trade policies transparent by notifying to WTO office. Some of the WTO agreements are :
1. Agreement on Textile and Clothing (ATC) : This agreement has bren developed under WTO to phase out the quota restrictions as imposed by the developed countries under Multi Fibre Arrangement (MFA) on exports of textiles and clothing from the developing countries. Under the ATC, the developed countries have agreed to remove quota restrictions in a phased manner during a period of 10 years starting from 1995. It is a milestone in the world trade of textile and clothing as virtually it would become quota free since Jan 1, 2005.
2. Agreement on Agriculture (AOA) : It is an agreement to ensure free and fair trade in agriculture. Because of this, developed countries have agreed to lower down the customs duties on their imports and subsidies to the exports of agricultural products. However, developing countries have been exempted from making similar reciprocal offers.
3. General Agreement on Trade in Services (GATS) : The major provisions of GATS are :
1. All member countries are required to remove restrictions on trade in services in a phased manner. The developing countries have been given freedom to decide about the period by which they would liberalise the area of services.
2. GATS provides that trade in services is governed by Most Favoured nations’ (MFNs) obligation that prevents countries from discriminating among foreign suppliers and services.
3. All member countries shall promptly publish all relevant laws and regulations pertaining to services.
4. Agreement on Trade Related Aspects of Intellectual Property Rights : This agreement was negotiated in 1986-1994. Intellectual property means information with commercial values such as idea, inventions, creative expressions and others. The agreement set out the minimum standards of protection to be adopted by the parties in respect of seven intellectual properties viz, copy rights and related rights, trade marks, geographical indication, industrial designs, patents, layout design of integrated circuits and undisclosed information (trade secrets).
Gaurav Seth 5 years, 8 months ago
Features an establishment of World Trade Organisation (WTO) : Bretten Woods Conference decided to set up an International Trade Organisation (ITO) to promote and facilitate international trade among the member countries and to overcome various restrictions and discriminations as were being practised at that time. But due to United States' stiff competition the idea could not be materialized. Istead of abandoning the idea, the participants of the conference became ready to make some arrangement among themselves so as to liberalise the world from high custom I... iffs and various other types of restrictions that were in practice at the time. This arrangement was known as General Agreement for Tariff and Trade (GATT). This was made in Jan 1,1994. With effect form 15 Jan 1995, GATT was transformed into World Trade Organisation (WTO) with its head quarter at Geneva, Switzerland. WTO was established to offer the promotion of free and fair trade among notions. WTO is a powerful body.
WTO governs trade not only in goods, but also in services and intellectual property rights. It is member driven rule based organisation in the sense that all the decisions are taken by the member Government on the basis of general consensus. It has a global status. India is founding member of WTO. As on Dec 11, 2005 there were 149 members in WTO.
Objectives of WTO :
1. Raising standards of living and incomes, ensuring full employment, expanding production, trade and optimal use of world's resources.
2. Ensuring reduction of tariffs and other trade barriers imposed by different countries.
3. To promote an integrated more viable and durable trading system.
Functions of WTO :
1. Promoting an environment that is encouraging to its member countries to came forward to WTO in mitigating their grievances.
2. Laying down a commonly accepted code of conduct with a view to reducing trade barriers including tariffs and eliminating discriminations in international trade relations.
3. Acting as a dispute settlement body.
4. Holding consultations with IMF and IBRD and its affiliated agencies so as to bring better understanding and cooperation in global economic policy making.
5. Supervising on a regular basis the operations of the revised agreements and ministerial declarations relating to goods, services and Trade Related Intellectual Rights (TRIPS).
WTO agreements : The WTO agreements contain the procedure for settling disputes and also have provisions for special treatment to developing countries. The agreements require that the governments make their trade policies transparent by notifying to WTO office. Some of the WTO agreements are :
1. Agreement on Textile and Clothing (ATC) : This agreement has bren developed under WTO to phase out the quota restrictions as imposed by the developed countries under Multi Fibre Arrangement (MFA) on exports of textiles and clothing from the developing countries. Under the ATC, the developed countries have agreed to remove quota restrictions in a phased manner during a period of 10 years starting from 1995. It is a milestone in the world trade of textile and clothing as virtually it would become quota free since Jan 1, 2005.
2. Agreement on Agriculture (AOA) : It is an agreement to ensure free and fair trade in agriculture. Because of this, developed countries have agreed to lower down the customs duties on their imports and subsidies to the exports of agricultural products. However, developing countries have been exempted from making similar reciprocal offers.
3. General Agreement on Trade in Services (GATS) : The major provisions of GATS are :
1. All member countries are required to remove restrictions on trade in services in a phased manner. The developing countries have been given freedom to decide about the period by which they would liberalise the area of services.
2. GATS provides that trade in services is governed by Most Favoured nations’ (MFNs) obligation that prevents countries from discriminating among foreign suppliers and services.
3. All member countries shall promptly publish all relevant laws and regulations pertaining to services.
4. Agreement on Trade Related Aspects of Intellectual Property Rights : This agreement was negotiated in 1986-1994. Intellectual property means information with commercial values such as idea, inventions, creative expressions and others. The agreement set out the minimum standards of protection to be adopted by the parties in respect of seven intellectual properties viz, copy rights and related rights, trade marks, geographical indication, industrial designs, patents, layout design of integrated circuits and undisclosed information (trade secrets).
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