Context:
World Trade Organisation (WTO) celebrates 30th anniversary.
World Trade Organization (WTO):
- Established in – 1995
- Established after the Marrakesh Agreement following the Uruguay Round negotiations (1986-94)
- Succeeded the General Agreement on Tariffs and Trade (GATT), which regulated world trade since 1948.
- Key Institutional Mechanisms –
- Ministerial Conference (MC): The highest decision-making body.
- Dispute Settlement Body (DSB): Handles trade disputes.
- Members – 166 members
- Headquarters – Geneva, Switzerland.
Major Principles of WTO:
- Non-Discrimination –
- Most-Favoured-Nation (MFN): Treating all WTO members equally in terms of trade.
- National Treatment: Treating foreign goods, services, and intellectual property no less favorably than domestic ones.
- Free Trade – Promoting the reduction of trade barriers such as tariffs, quotas, and subsidies to encourage free trade among nations.
- Predictability – Ensuring trade policies are stable and predictable through binding commitments and transparency.
- Fair Competition – Discouraging unfair practices like dumping and subsidies that distort competition.
- Encouraging Development and Economic Reform
Key Agreements of WTO:
- Agreement on Trade-Related Investment Measures (TRIMS): Prohibits measures that discriminate against foreign products or lead to quantitative restrictions (e.g., local content requirements).
- Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS): Resolves trade disputes over intellectual property.
- Agreement on Agriculture (AoA): Focuses on agricultural trade liberalization, market access, and domestic support for agricultural producers.
- Other Agreements –
- Agreement on Sanitary and Phytosanitary Measures (SPS).
- General Agreement on Trade in Services (GATS).
- General Agreement on Tariffs and Trade (GATT).
Source: Vietstock
Previous Year Question
Consider the following statements:
1. India has ratified the Trade Facilitation Agreement (TFA) of WTO.
2. TFA is a part of WTO’s Bali Ministerial Package of 2013.
3. TFA came into force in January 2016.
Which of the statements given above are correct?
[UPSC Civil Service Exam – 2017 Prelims]
(a) 1 and 2 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3
Answer: (a)
Explanation:
Statement 3 is not correct. It came into force in February 2017 and not in 2016.