WORLD TRADE ORGANISATION (WTO)

According to the agreement made by the Uruguay Round, GATT was converted into an international organization called World Trade Organisation with effect from January 1,1995.This WTO will serve as single institutional framework encompassing GATT and also all the results of the Uruguay Round.WTO will be directed by a Ministerial Conference that will meet at least once in every two years.Its regular business will be overseen by a General Council.

Objectives of W.T.O

Inheriting the principles of GATT,the World Trade Organisation,based in Geneva,Switzerland,professes the following objectives.

1. Raising the standard of living and incomes,promoting full employment,expanding production and trade,and optimum utilization of world’s resources.
2. Introducing sustainable development-a concept which envisages that development and environment can go together.
3. Taking positive steps to ensure that developing countries,especially the least developed one’s,secure a better share of growth in world trade.

Functions of WTO

1. It shall provide the necessary framework for the implementation,administration and operation on Trade agreements made on multilateral basis. It should also facilitate the actual implementation,administration of the Multilateral Trade agreements and thereby promote the objectives of these agreements.
2. The WTO shall make necessary arrangements to provide negotiation facilities among the member countries concerning their multilateral trade relations and matters of agreements.
3. WTO shall administer the ‘Understanding on Rules and Procedures Governing the settlement of Disputes’
4. It is the duty to administer the ‘Trade Review Mechanism’.
5. It is the duty of the WTO to cooperate appropriately with the IMF and IBRD and its affiliated agencies to achieve greater coherence with them in shaping the global policy.