World Trade Organization
The World Trade Organization marked its Silver Jubilee on 1st January 2020. The World Trade Organisation was the biggest reform in international trade towards the end of the Second World War.
World Trade Organization, was constituted as an organization in 1995 under the Marrakesh Treaty. This replaced the General Trade and Tariff Treaty (GATT) which was in force since 1946. It presided over international trade ever since its inception. It is the global international organization dealing with the rules of trade between nations. The WTO has 164 member states and 23 governments which are its observers.
The WTO’s global system operates under the principle of non-discrimination and aims to lower trade barriers through negotiation. WTO’s system deals by talking to countries to negotiate rules that are acceptable to all. The other is by settling disputes. The World Trade Organization can stimulate economic growth and employment to a better level. It also cut the cost of doing business internationally. The WTO pushes for good governance, transparency, mutual knowledge and level the playing field. Rules reduce arbitrariness which in turn reduces opportunities for corruption.
WTO’s trading system is a more open trade that can boost economic growth and help countries to develop. It also takes into account the interests of developing countries. The WTO gives the weak a stronger voice: those small countries would be weaker without the WTO. Differences in bargaining power are limited by negotiated rules, decision-making by consensus and building coalitions. The rule of law replaces the culture of might makes right.
The WTO efforts are also focussed upon the environment and health. The WTO contributes to peace and stability when economy is in turmoil, this multilateral trading system can supply to stability.
India role must be focussed to dynamically engage in making WTO a more equitable organization. India needs to work on persuading all members of the WTO to return to the table and discuss on issues like agriculture, industrial tariffs, and services. India’s journey towards a better economy is possible with our advancement of our basket of global trade.