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What is mean by WTO ? How does WTO work for member nations ? What are the main functions of World Trade Organization ? Is there any major achievements ? What is current relevancy of WTO ? Isn’t it important for you ? Let’s start..
What is mean by World Trade Organization
It is an international organization. It was established on the backdrop of GATT negotiations. The goal and functions of WTO is to become a global forum to discuss and deal with rules that helps to smoothen global free trade.
Expectedly, World Trade Organization performs various important functions. These are dispute settlements, administer trading rules, forum for negotiations and catalyst for trade agreements.
Apart from these, WTO also work for poverty reductions to improve standards of living. In need, it seriously assist developing nations in developmental process.
Important functions of World Trade Organization
Presently, International trade is engulfing the total World with explosion of technology. In addition, the ongoing wave of online businesses are boosting the demand for free trade system.
Clearly, this is the reason why WTO always remains a topic of discussion. So, let’s have a look at the major functions of World Trade Organization.
How does WTO act as a global forum for negotiations ?
Understandably, all members are sovereign nations, and they have absolute power to make and enforce laws pertaining to their own territory. But, what about the rules that deal with the pattern of international trade between two or more nations ?
Hence, WTO is a forum for such nations who always advocate the cause of free trade. Accordingly, to become a full member of WTO, aspiring nation has to comply with certain trading rules and norms.
•In this way, all members come together biannually to discuss the issues, set, targets, and resolves issues in respect of free trade.
Multilateral trade negotiations and agreements are very vital to make an integrated free trade system
As I often mentioned that WTO is a global forum and it’s main goal is encourage trade openness through multilateral trade agreements, boosts economic growth, and eradicate the evils of poverty and hunger.
Obviously, its nature is global and works to advance the interests of member nations. It adheres to the norms of organization to serve for more.
Instead, regional blocks, bilateral agreements nothing but the potential bypasses to neglect multilateral network. And, it is against of WTO and its goal to make an integrated free trade system.
Major achievements of WTO
Consistent to this point, It is important to mention that in the late twentieth century, especially in seventy and eighty, as per the official data, volume of international trade saw four times increase.
At that time, it was the GATT (later in 1995, it became WTO) and it took the task to expedite free trade.
Also, substantial reductions of poverty and increased per capita income has been attributed to the efforts of apex organisation
For confirmation, according to compiled data by World Bank, more than one billion people from LDCs and developing countries are freed from the clutched of poverty.
In this, China was the front runner with 800 million following India and others.
Thereafter, in 2015 the World Bank changed the poverty line benchmark from 1.25 $ to 1.90 $ per person.
Current relevancy of WTO
Conversely, in the recent years, the questions over the relevancy of WTO is being raised on the backdrop of US China trade.
And, why the apex organisation proved ineffective to reconcile relations among leading economies averting further escalation.
Furthermore, the frozen negotiations on the issues of agriculture subsidies, patent rights, and many more, needs to resume quickly.
In a nutshell,
Here, we cannot rule out the constructive role and functions of World Trade Organization as a facilitator, catalyst, administer, and impartial mediator to moderate disputes and barriers.
Equally, it is the duty of leading stakeholders to figure out workable solutions instead create deadlocks.
Finally, the relevancy of WTO is totally depends on the members for which it was envisaged by well-wishes.