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Prepared by:
Rocky Das
1st Sem, IMA
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

 
„ e establis ment of t e World „rade Organization (W„O) as
t e successor to t e GA„„ on 1 January 1995
1995..
„ e GA„„ 1947 and t e W„O co- co-existed for t e period on one
year in 1994
1994.. In January 1995
1995,, owever, t e W„O completely
replaced t e GA„„
GA„„..

„ e members ip of t e W„O increased from 77 in 1995 to 127

by t e end of 1996
1996..
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Protection to domestic industry t roug tariffs.

Binding of tariffs.

Most favoured Nation (MFN) „reatment.

National „reatment
V  

  


V nlike t e International Monetary Fund (IMF) and t e World
Bank (WB) it is not an agent of t e nited Nations.
V nlike t e IMF and t e World Bank, t ere is no voting, but all
t e W„O members ave equal rig ts.
V nlike t e GA„„, t e agreements under t e W„O are
permanent and binding to t e member countries.
V nlike t e GA„„, t e W„O dispute settlement system is a
based automatic mec anism. It is also quicker and binding on
t e members. As suc , t e W„O is a powerful body.
V nlike t e GA„„, t e W„O¶s approac is rule-based and
time-bound.
V nlike t e GA„„, t e W„O¶s as a wider coverage. It covers
trade in goods as well as services.
V nlike t e GA„„, t e W„O¶s as a focus on trade-related
aspects and several ot er issues of agreements.
V Above all, t e W„O is a uge organizational body.
V  
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V „o ensure t e reduction of tariffs and ot er barriers to
trade.
V „o eliminate discriminatory treatment in international
trade relations.
V „o facilitate ig er standards of living, full
employment, a growing volume of real income and
effective demand, and an increase in production and
trade in goods and services of t e member nations.
V „o make positive effect, w ic ensures developing
countries, especially t e least developed secure a
level of s are in t e growt of international trade t at
reflects t e need of t eir economic development.
V „o facilitate t e optimal use of t e world¶s resource for
sustainable development
V „o provide an integrated structure of t e
administration, t us, to facilitate t e
implementation, administration and fulfillment
of t e objectives of t e W„O Agreement and
ot er multilateral „rade Agreements.
V „o act as a forum for t e negotiation of
furt er trade liberalization.
V „o cooperate wit t e IMF and WB for trade
policy-making.
V „o settle t e trade-related dispute WORLD
„RADE ORGANISA„ION
V „o promote trade among countries wit its
ead quarters in Geneva.
V (a) W„O as significantly influenced t e
liberalization and globalization in most of
t e developed countries including India.
V „ e aim of W„O is to conduct International
„rade among countries of t e world in an
open, uniform and non-discriminatory
manner.
V (c) W„O facilitates trade among countries
and it expects countries to follow w at it
wants.
V (d) BILA„ERAL „RADE AGREEMEN„ - Is
an agreement between two countries to
develop good trade relations among
countries.
V Import Quota: In order to prevent competition
from producers of ot er countries wit local
manufacturers t e countries impose restriction of
imports and taxes on t e imported goods to protect
t e local producers.
V Govt also places restrictions on export of goods
in order t at t e goods are freely made available to
t e people.
V But W„O wants t e import and export restrictions
to be abolis ed. Instead of aving bilateral
agreements W„O wants multilateral agreements
V W„O regulates t e International trade of goods
and services and expects t e members to adopt t e
laws and policies
V          
 
V (a) Gives opportunity for India to trade wit
ot er member countries wit out many
restrictions.
V (b) „ec nology form developed countries
will be made available to India at reduced
cost.
V (c) Major s are of world trade is taking
among developed countries; t e benefit of
being a member of W„O to India is very
limited.
V Many of t e present W„O rules are not in favor
of developing countries. „ ese rules force t e
developing countries to open t eir economies to
t e developed countries.
V India it is possible t at industries in India may
not be able to compete wit International
Companies and survive and may be forced to
close down. „ is will reduce employment.
V It is said t at W„O is used by t e developed
countries to interfere in t e management of t e
domestic economy of a country. For e.g. if India
abides by t e rules and regulations of W„O, t e
prices of many essential and life saving drugs
may go up.
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