World Trade Organization (WTO)

World Trade Organization

The World Trade Organization (WTO) is the global international organisation dealing with the rules of trade between nations. The WTO agreements, negotiated and signed by the majority of the world’s trading nations and confirmed by their parliaments, are at its heart. The objective is to make trading as seamless, predictable, and unrestricted as feasible. The World Trade Organization (WTO) serves a variety of purposes: it administers a worldwide system of trade regulations, serves as a venue for negotiating trade agreements, resolves trade disputes among its members, and assists developing nations.

History of WTO

• The WTO succeeded the General Agreement on Tariffs and Trade (GATT)
• It was established in 1947
• The World Trade Organization (WTO) was established in 1995
• There have been several rounds of discussions, and the Doha round of talks, which began in 2001, is still ongoing
• Following World War II, 23 nations signed the General Agreement on Tariffs and Trade (GATT), which entered law on January 1, 1948
• The World Trade Organization (WTO) absorbed the GATT in 1995, extending it

General Agreement on Trade in Services

• The WTO’s member nations make all significant decisions, either via their ministers (who convene at least every two years) or through their ambassadors or delegates (who meet regularly in Geneva)
• The Agreement on Agriculture (AoA), the General Agreement on Trade in Services (GATS) and the Agreement on Trade-related Aspects of Intellectual Property Rights (TRIPS) are all key WTO agreements (TRIPS)
• The Uruguay Round’s outcomes went into force in January 1995, and one of the most significant successes was the founding of the General Agreement on Trade in Services GATS
• The GATS  was motivated by basically the same goals as its merchandise trade cousin, the GATT
• All WTO members are also members of the GATS, and have accepted commitments in various service sectors to differing degrees

Achievements of WTO

• The WTO has enabled a huge increase in cross-border economic activity by creating binding standards for global trade in products and services
• The WTO has not only increased trade value and volume but also contributed to the removal of trade and non-trade barriers
• Since 1995, the value of global commerce has nearly tripled, while the volume of global trade has increased by 2.7 times
• The long-term increase in a country’s national income has stemmed from domestic changes and vows to open the market
• An increase in Global Value Chains is due to WTO-created market conditions and better communication
• Trade inside these value chains accounts for over 70 percent of total product trade
• The World Trade Organization (WTO) gives special attention to the world’s poorest countries
• All WTO accords acknowledge the need for maximum flexibility and the need for better-off members to take further steps to eliminate import barriers on exports from LDCs

Issues with WTO

• The organisation’s orientation is perceived to be pro-Western
• As a result, the WTO’s existence is being questioned
• Non-compliance with existing regulations and even WTO Dispute Resolution Authority judgments, as well as a deadlock on crucial topics
• In recent years, the United States has taken several unilateral actions, refusing to abide by the organisation’s collective decisions or even the Dispute Resolution Authority’s rulings
• This has made things tough for other countries that have put their faith in the process and expressed legitimate trade concerns
• The gridlock that has been developed on so many topics has impeded the organisation’s operation as well as the global economic recovery
• Trade agreements such as the Regional Comprehensive Economic Partnership (RCEP) have been reached outside of the WT’s authority

Dispute Settlement System: 

• The World Trade Organization (WTO) considers its dispute settlement system (DSS), to be the primary pillar of the multilateral trading system, as well as the organisation’s “unique contribution to the global economy’s stability”

• Dispute Settlement System is the Multi-Party Interim Appeal Arbitration Arrangement as a contingency appeal arrangement for trade disputes

• The goal of the System is to settle trade disputes among member nations
• For conflict settlement, the system employs both political dialogue and adjudication

Buenos Aires Declaration on Women and Trade:

• The 11th Ministerial Conference in Buenos Aires issued the Buenos Aires Joint Declaration on Trade and Women’s Economic Empowerment

• The Buenos Aires Joint Declaration on Trade and Women’s Economic Empowerment is a non-binding declaration aimed at empowering women by reducing trade obstacles as quickly as possible

• Signed in December 2017, the declaration aims to promote a more inclusive trade strategy that benefits everyone
• The declaration which was adopted at the 2017 WTO Ministerial Meeting, was a watershed moment in women’s trade policy

Conclusion

WTO needs to make efforts to address the various issues the world is facing. Three should be new rules for dealing with digital trade and e-commerce. Chinese trade policies and practices, including improved handling of state-owned businesses and subsidies, should also be dealt with more effectively by WTO members. Trade and environmental sustainability should be more closely aligned in order to combat climate change and rejuvenate the World Trade Organization (WTO).