World Trade Organization

Origin of WTO

 Non Discrimination Transparency Binding enforceable commitments Reciprocity Safety Valves

Basic Principles of WTO

 Raising the standard of living Introduce sustainable development Encouraging nations to adopt non discriminatory trade policy To ensure the growth of developing countries Solving trade disputes

Objectives of WTO

 Administering & implementing multilateral trade agreements Acting as a forum for multilateral trade organizations Seeking to resolve trade disputes Overseeing national trade policies Cooperating with other international institutions involved in global economic policy making

Functions of WTO

Agriculture Health & Safety Measures Helping least developed & food importing countries Textiles & Clothing TRIPS TRIMS GATS Agreement on Subsidies & Countervailing Measures Anti dumping measures Dispute Settlement Procedure

The Final Act

Implications of WTO for India

1. Perceived economic gains 2. Advantage of using International Trade Centre 3. Saved from entering into multiple bilateral trade negotiations with other countries 4. Rules provide protection 5. Facilitates international trade

Arguments for joining WTO

1. Removal of trade barriers will not guarantee expansion in world trade 2. Trap laid by the developed countries

3. Steep hike in prices

Arguments against joining WTO