The World Trade Organisation (WTO) is an international body that is important for the UPSC syllabus. In this article, you can read about the WTO, its mandate, its functions, and the dispute settlement mechanism for the IAS exam.
World Trade Organization
- The WTO oversees international trade between nations, and acts as the forum for nations to negotiate and develop the rules that govern international trade.
Mandate of WTO
- Its major mandate is to reduce trade barriers, tariffs and quotas, while promoting free trade.
Functions of WTO
- Among the different elements of the WTO, these are viewed by examiners as the most essential:
- It directs the execution, organization and operation of the secured assentions
- It gives a gathering to arrangements and for settling debate
Dispute settlement in WTO
The WTO also has a body for dispute settlement. When a country fails to comply with WTO rules, any other country may take it to WTO’s dispute settlement body. The countries are encouraged to settle the disputes through consultation; if the consultation fails, however, a panel is constituted to hear the case.
The verdict of this panel is circulated amongst WTO members, who can also reject the ruling. However, if the ruling is accepted and a violation is proved, the country violating the rules must change its rules in line with the WTO agreements, unless it chooses to appeal the ruling. If the violating country fails to do this, the complaining country and the violating country may determine a mutually-acceptable compensation, failing which, the complaining country may retaliate suitably.
Doha Development Round
The Doha Development Round or Doha Development Agenda (DDA) is the latest trade-negotiation round of the World Trade Organization (WTO) which commenced in November 2001 under then director-general Mike Moore.
The general goal is to bring down exchange boundaries around the globe, which would help encourage the expansion of worldwide exchange. The Uruguay round had effectively included numerous concessions to essential issues, for example, exchange farming and exchange administrations. The plan in Doha Round was to grow the farming and administrations converse with permit exchange offs and accordingly accomplish more noteworthy exchange advancement.
|Trade Facilitation Agreement (TFA)|
|World Federation Of Trade Unions|
|India may ratify WTO trade facilitation pact|