WORLD TRADE ORGANISATION /wto
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The World Trade Organization (WTO) is a global organization established in 1995 to oversee international trade rules between member nations. It is composed of 164 member countries and replaced the General Agreement on Tariffs and Trade. The WTO aims to raise living standards, ensure full employment, expand production and trade in goods and services, and optimize the use of the world's resources sustainably. However, some argue WTO agreements may erode the autonomy of developing nations' governance and priorities by favoring developed countries' interests over self-reliant growth.
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WORLD TRADE ORGANISATION /wto
- 1. WORLD TRADE ORGANISATION KARTHIKA.K I MBA Reg No: 22PSMBA15 Roll No: 22012115
- 2. WORLD TRADE ORGANIZATION The world trade organization is a global organization which deals with the rules of the trade between the nations. It is made up of 164 member countries. WTO was created in 1995. It replaced the 1947 General Agreement on Tariffs and Trade (GATT). The Ministerial Conference consisting of the representatives of all the member nations is the highest authority of WTO. Day to day expenses by general council. 2
- 3. OBJECTIVES OF WORLD TRADE ORGANIZATI- ONS. To raise the standard of living. To ensure of full employment. To expand the production. To expand trade in goods and services. To optimize use of world's resources. To achieve sustainable development. 3
- 4. DEMERITS 1. NO EXPORT PUSH. India's export may not increase considerably. Flow of goods and services across the world depends more on infrastructure, political environment, quality and technology then on trade barriers. Removal of trade barriers is no guarantee for increase in exports. 4
- 5. DANGER TO SERVICE SECTOR: Service sector in India is less developed than in developed countries. Inclusion of trade in services would be detrimental to India's interests. 5
- 6. PROMINENCE TO DEVELOPED NATIONS: WTO focusses more on the interests of developed countries. TRIMs undermines strategy of self-reliant growth based on local services and technology. Global finance is still moving primarily towards the developed countries. Most of the developing are left high and dry. TRIMs favour the multinational corporations. 6
- 7. NOT REALLY A FREE TRADE AND PRICE RISES World trade has not really opened up. Developed countries are imposing more restrictions than underdeveloped countries. Free dumping duties have become the source of new non tariff barriers. Developed nations want to have monopoly over technology. It causes a steep hike in the prices of drugs and agricultural inputs. 7
- 8. EROSION OF AUTONOMY WTO agreements are likely to erode the autonomy of governance in the third world countries. The governments of these countries will not have full freedom to formulate the policies and identify the priorities in many areas, in which WTO agreements will prevail. Self reliance may be hampered. 8