Why is it necessary to become a member of WTO?
Why is it necessary to become a member of WTO?
It is necessary to become a member of WTO because of the following reasons:
(i) Rule-Based Trading: WTO is formed to establish a rule-based trading system in which arbitrary restrictions cannot be placed on trade by different nations. This helps in making the trade environment more stable.
(ii) Equality of Opportunities: Under WTO, the member countries confer the status of Most Favoured Nation (MFN) to all other member countries. Thus, WTO provides equal opportunities to all countries in the international market for trading purposes.
(iii) Multilateral Negotiations: The WTO agreements cover trade in goods as well as services to facilitate international trade through multilateral trade negotiations leading to the removal of tariff as well as non-tariff barriers. This helps in providing greater market access to all member countries.
It is necessary to become a member of WTO because of the following reasons:
(i) Rule-Based Trading: WTO is formed to establish a rule-based trading system in which arbitrary restrictions cannot be placed on trade by different nations. This helps in making the trade environment more stable.
(ii) Equality of Opportunities: Under WTO, the member countries confer the status of Most Favoured Nation (MFN) to all other member countries. Thus, WTO provides equal opportunities to all countries in the international market for trading purposes.
(iii) Multilateral Negotiations: The WTO agreements cover trade in goods as well as services to facilitate international trade through multilateral trade negotiations leading to the removal of tariff as well as non-tariff barriers. This helps in providing greater market access to all member countries.
