World Trade Organization-WTO

World Trade Organization  (WTO 1995)

After 1947, GATT was established, later it was change in WTO in 1995. Around 150 countries of the world are members in WTO. Nepal also became member of WTO in 2002 AD. The World Trade Organization came into existence from 1st January 1995. One of the youngest international organization,  the WTO is the successer to the General Agreement in Tarrif and Trade (GATT) established in the wake of the second world war. While WTO is still long multilateral system that was originally  of under GATT is already 60 years old. The system was developed through the series of trade              under the GATT.

The main objective of WTO is to help flow smoothly freely, fairly and predictability.  The major objective or function of WTO are defined as follows.

• Administering trade agreement
• Acting as a forum for trade negotiation
• Settling trade disputes
• Reviewing national trade policy
• Assisting the developing countries in trade policy issues through technical assistance and training programme
• Co-operating with international organization

Basic principles

1. Non discrimination
2. Fair competition
3. Development justice
4. Transparency
5. Increase certainty
6. Simplification and standardization

Positive Impact of WTO

1. Market expansion
2. Industrial development
3. Peace maintenance
4. Dispute settlement
5. Uniformity in system
6. Same rule for all
7. Increase in free trade
8. Increase in competition
9. Increase in consumer choice
10. Employment generation
11. Increase in living standards
12. Economic growth
13. Encourage the good governance
14. Increase in government revenue

NegativeImpact of WTO

1. Dictates policies
2. Always free trade
3. Doesnot care the environment
4. Dominance
5. Unemployment
6. Powerless of small firm
7. Harmful to domestic industries
8. Undemocratic
9. Low quality of goods
10. Only short term benefit
11. Gap between agreement and practice
12. Adverse effect on economic growth