World trade organization (WTO)



World trade organization (WTO)

The World Trade Organization (WTO) is an international, multilateral organization which deals with the global rules of trade between nations. It is the policeman of global trade. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible. Headquarter of WTO is located in Geneva, Switzerland. It was established in 1 January 1995. The first concept initiation was done by Uruguay Round negotiations (1986-94). Till the data of 2 March 2013 there are 159 countries as a member in WTO. It has estimated budget of 197 million Swiss francs for 2013. There are 640 secretarial staff .the director general of WTO is Pascal Lamy (Director-General)

Objectives:

  • Administering WTO trade agreement
  • Raising standard of living and incomes
  • Promoting full employment,
  • Expanding production and trade
  • Optimum utilization of world’s resources
  • Forum for trade negotiations
  •  Handling trade disputes
  • Monitoring national trade policies
  • Technical assistance and training for developing countries
  • Cooperation with other international organizations

Principles:

  • Trading system should be discrimination free in the sense that a country cannot favor another country or discriminate against foreign product or services.
  • A trading system should be more free and there should be little trade barriers.
  • A trading system should be predictable where foreign companies and governments can be sure that trade barriers would not be raised and markets will main open.
  • A trading system should be more competitive.
  • A trading system should be more accommodating for less developed counties giving them more time to adjust, greater flexibility and more privileges