WTO – Objectives and Role in International Trade | Meaning, Functions & Features Explained
What is WTO?
WTO = World Trade Organisation
→ Formed in 1995
→ Successor of GATT (1948) – General Agreement on Tariffs and Trade
→ GATT started with 23 countries, WTO began with 123 members
→ Currently has 164 members (as of 29 July 2016)
→ Afghanistan is the 164th member
🎯 Objectives of WTO
➡ To raise the standard of living of people across member countries
➡ To build a strong multilateral trading system
➡ To remove Tariff and Non-Tariff Barriers (quotas, licenses, etc.)
➡ To stop discriminatory trade practices
➡ To balance trade + environment + sustainable development
➡ To support developing nations in global trade
📚 Meaning and Role in Trade
✔️ WTO ensures fair rules-based trade
→ No country can impose unfair restrictions on others
✔️ Covers trade in goods & services
✔️ Promotes both bilateral and multilateral trade
✔️ Encourages maximum use of world resources
✔️ Focuses on sustainable growth + environment protection
🇮🇳 India’s Role in WTO
✅ India is an active member
✅ Supports fair global laws for developing countries
✅ Has liberalized trade as per WTO norms:
→ Removed import limits
→ Reduced tariffs
🔧 Functions of WTO
➡ Facilitates International Trade
→ By removing tariffs and non-tariff barriers
→ Gives better market access to all countries
➡ Formulates Global Trade Rules
→ Builds a system where no country can act unfairly
➡ Protects Developing Nations
→ Creates fair and equal trade rules
→ Advocates their interests
➡ Settles Disputes
→ Provides a platform to resolve trade conflicts
➡ Utilizes Global Resources
→ Encourages efficient use and trade of services
➡ Brings Transparency
→ Makes decision-making more open and clear
🧩 Key Features of WTO
✔️ Broader in scope than GATT (also includes services + intellectual property)
✔️ Each member has equal voting rights
✔️ All members follow one unified set of agreements
✔️ Members enjoy global trade privileges
✔️ Provides a platform for discussion on trade issues
📌 Remember This:
🟢 WTO = Rules + Trade + Fairness + Development
🔵 Focus on removing barriers, resolving disputes, and supporting poor nations
🟣 India is a major voice for developing countries in WTO