World Trade Organisation (WTO) is a permanent international organisation dealing with global rules of trade between nations. It came into existence in 1995. It is the successor of General Agreement on Tariffs and Trade (GATT) established aftermath of Second World War. The last round 1986-94 Uruguay round led to creation of WTO. At the heart of WTO is multilateral trading system. It consists of WTO agreements negotiated and signed by majority world’s trading nations and their parliaments. One of important functions of WTO is smooth trade flow between nations.
Table of Contents
The objective of WTO is to ensure that trade flows as smoothly, predictably and smoothly as possible. Some of the other objectives of WTO are:
WTO has about 160 members which accounts for 95% of world trade. There are 25 other negotiating memberships.
The secretariat of WTO is based in Geneva, Switzerland headed by Director General. The present Director General of WTO is Roberto Azevêdo.
The decisions at WTO are made by entire membership with consensus. These decisions are ratified in member nation parliaments as well. GATT is principal rule book of WTO for trade in goods.
Trade without discrimination:
If a member country of WTO grants special favour in trade to some favoured country, then all other WTO countries will be given the same favour. Thus all countries become the most favoured nation in all other countries, thereby making every country equal.
It means treating foreign goods and services at par with local equally by all members of WTO
Download this article as PDF
We hope you liked this article. Here are some useful articles for you to read next:
Click to go to RBI Grade B Preparation Page
Tags: Objectives and Functions of WTO
SBI Clerk Course 2023
ECGC PO Course 2023
SIDBI Grade A Course 2023
RBI Assistant Course 2023
SSC CHSL Course 2023
DSSSB JE Electrical 2023
Punjab Civil Services 2023
ESIC Deputy Director 2023