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World Trade Organization


According to the approved GATT accord, the WTO (World Trade Organization) was established on April 15, 1994 which started functioning from Jan, 1 1995. WTO is a modern organization which is more powerful and widespread in comparison to GATT. The main function of WTO is to simplify the international trade and increase its sphere.

Features Of WTO


WTO is basically a forum for international bargaining on minimizing the barriers of trade to liberalize it among maximum countries. Its main function is to implement the Multilateral Trade Agreements. The membership of WTO is opened to all countries. Nearly 153 countries are at present its members.

The main features of WTO are as under:

  1. It is a global organization.
  2. The decision of each issue is taken by consensus. In case of failure, the issue is decided by voting. Each member can cast one vote.
  3. WTO is a legal body. If any member is not following its rule, legal action can be taken against that member.
  4. It is run on the basis of agreement. The agreement approved by WTO is honoured by all its members.
  5. WTO is more powerful in comparison to GATT. It’s areas of working is more widespread that GATT.
  6. It is an international body of negotiation. Different issues of international trade have been discussed and reached to the negotiation. It is a worldwide dimension which works along with IMF (International Monetary Fund) and the World Bank.
  7. The scope of WTO is wider than GATT. It has included trade in services, intellectual property protection and investment in its functions.

Functions Of WTO


The main functions of WTO are as under:

  1. ‘Understanding on Rules and Procedures Governing Settlement Disputes’ will be administered by WTO.
  2. ‘Trade Review Mechanism’ will also be administered by WTO.
  3. WTO shall provide an international platform for negotiations among its members.
  4. WTO shall co-operate to establish appropriate relationship with IMF, World Bank, IBRD and its affiliated agencies.
  5. WTO shall provide its service for the implementation of Multilateral Trade Agreements and Plurilateral Trade Agreements.

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