Wto and Gatt free essay sample

General Agreement for Trade and Tariff, which is considered as the first step towards the formation of a common platform for international trade, came into existence with effect from 1st Jan 1948, and remained till December 1994. In 1994, at Uruguay Round of GATT negotiations, it was decided to set up a permanent institution for looking after the promotion of free and fair trade amongst nations. Consequence to this decision, the GATT was transformed into World Trade Organisation (WTO) with effect from 1st Jan 1995. The Head Quarters of WTO is situated in Geneva, Switzerland. WTO is a powerful successor of GATT and a permanent organisation created by an international Treaty ratified by Government of member states which governs trade not only in goods but also in services and intellectual property rights. IT has a member driven rule – based organisation in which decisions are taken by the member government on general consensus. It has global status as World Bank and IMF being the principal international body concerned with solving trade problems. We will write a custom essay sample on Wto and Gatt or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page As on 11th December 2005, there are 149 nations as members of WTO. Objectives of WTO WTO objectives are based on the idea of sustainable development in relation to the optimal use of world’s resources so as to ensure protection and preservation of the environment. The major objectives of WTO are as follows: 1. To ensure reduction of tariffs and other trade barriers imposed by different countries. 2. To engage in such activities which improve the standard of living, create employment, increase income and effective demand and facilitate higher production and trade. 3. To facilitate the optimal use of the world’s resources for sustainable development. . To promote an integrated, more viable and durable trading system. Functions of WTO ? ? ? ? ? To promote an environment that is encouraging to its member countries to come forward to WTO in mitigating their grievances. To lay down a commonly accepted code of conduct to reduce the trade barriers including tariffs and to eliminate discriminations in international trade. To act as a dispute se ttlement body. To ensure that all the rules and regulations prescribed in the Act are followed by member countries for the settlement of disputes. To hold consultations with IMF and IBRD (International Bank for Reconstruction and Development) and its affiliated agencies to have better understanding and cooperation in global economic policy making. To supervise the operations of the revised Agreements and Ministered declarations relating to goods, services and Trade Related Intellectual Property Rights (TRIPS). ? Benefits of WTO Since 1995, WTO has been constituting the legal and institutional foundation for today’s multilateral trading system. Major benefits of WTO are as follows: ? ? ? ? ? ? ? ? WTO helps to promote international peace and facilitate international business. WTO helps to settle all the disputes between member nations with mutual consultations. WTO’s rules make international trade and relations very smooth and predictable. WTO helps to improve the living standards of people by increasing the income level through free trade. Helps to provide ample scope of getting varieties of qualitative products through free trade. Economic growth has been fastened because of free trade. WTO encourages good government. WTO helps to foster growth of developing countries through special and preferential treatment in trade related matters.