world Trade Organization
The World Trade Organization (WTO) is a global international organization dealing with the rules of trade between nations. The work of WTO moves around WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business.
Why Do We Need WTO?
1. The main benefits of World Trade Organization are as follows:
– 2. The system helps to contribute towards international peace, by helping the trade to flow smoothly and dealing with disputes over trade issues.
3. The system allows disputes to be handled constructively. With Global boundaries evading, more and more trade is taking place, and hence, leading to more chances for disputes. To put forth to the claim, around 300 cases have been filed since inception of WTO, and without peaceful and harmonious way to resolve them, they could have led to a political crisis.
4. It’s a system, which is based on rules and has nothing to do with power of the nation.
5. It gives consumers more choice and a broader range of qualities to choose from.
6. The fact that there exists a forum to handle crisis, gives confidence to nations to do more and more trade, thereby increasing the income, and stimulating economic growth.
Role of India in WTO
India is a founder member of the General Agreement on Tariffs and Trade (GATT) 1947 and its successor, the World Trade Organization (WTO), which came into effect on 1.1.95 after the conclusion of the Uruguay Round (UR) of Multilateral Trade Negotiations. India’s participation in an increasingly rule based system in the governance of international trade is to ensure more stability and predictability, which ultimately would lead to more trade and prosperity for itself and the 149 other nations which now comprise the WTO. India also automatically avails of MFN and national treatment for its exports to all WTO members.
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According to the WTO Secretariat Report, along with the policy statement by the Government of India, India is expected to snatch most of the business deals that are presently catering the developed nations which includes major service based industries like telecom, financial services, infrastructure services such as transport and power. The increase in availability and reduction in tariffs has prompted many developed nations to go for business with India especially in IT and ITeS industry. If the trend continues then by 2025, India is expected to cater to the software and services demands of major giants of the business world. Analyzing the present relationship with the promising economic growth of India, one can be sure that India is going to enjoy a very candid and bright relationship with WTO and associated member nations by 2025.