World Trade Organization (WTO)

Article Title: World Trade Organization (WTO)

04-01-2025

Summits and Organisations Current Affairs Analysis

Why in news?

The World Trade Organization (WTO) celebrated its 30th anniversary on January 4, 2025.

The WTO was established in 1995 following the Marrakesh Agreement, which concluded the Uruguay Round of negotiations (1986-94) under the General Agreement on Tariffs and Trade (GATT).

It succeeded GATT, which had been governing global trade since 1948.

Key Points about WTO:

  • Mission: The WTO is the only international body dedicated to the rules of trade between nations, with the goal of ensuring trade flows as smoothly, predictably, and freely as possible.
  • Key Bodies:
  • Ministerial Conference (MC): The highest decision-making body.
  • Dispute Settlement Body (DSB): Handles trade disputes among member nations.
  • Membership: The WTO has 166 members, representing about 98% of world trade.
  • Headquarters: Located in Geneva, Switzerland.

Key Agreements of the WTO:

  1. Agreement on Trade-Related Investment Measures (TRIMS): Prohibits discrimination against foreign products or restrictions that violate WTO principles, such as local content requirements.
  2. Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS): Deals with trade disputes related to intellectual property rights.
  3. Agreement on Agriculture (AoA): Focuses on liberalizing agricultural trade, including market access and domestic support for agricultural producers.
  4. Other Agreements:
  • Sanitary and Phytosanitary Measures (SPS): Related to food safety and animal and plant health standards.
  • General Agreement on Trade in Services (GATS): Aims to liberalize trade in services.
  • General Agreement on Tariffs and Trade (GATT): Still an important foundation for trade principles.

The WTO plays a crucial role in facilitating global trade and resolving disputes, with its agreements affecting various sectors, including agriculture, intellectual property, and services.