WTO stands for World Trade Organisation and is an international organization established on 1 January 1995 as the successor organization to GATT (General Agreement on Trade and Tariffs). GATT was established in 1948 as a global (international) trade organization with 23 countries fulfilling all multilateral trade agreements by giving fair opportunities to all countries in international exchange for trade prospects. The WTO needs to create a rules-based trading government in which countries cannot impose unreasonable restrictions on trade.
WTO: World Trade Organization
The General Agreement on Tariffs and Trade (GATT) is a precursor to the World Trade Organization. It was established in 1947 by a multilateral treaty of 23 countries in the wake of other new multilateral institutions devoted to international economic cooperation after World War II – such as the World Bank and the International Monetary Fund. A comparable international institution for business, called the International Trade Organization, is sometimes referred to as the U.S. GATT. The other signatories did not ratify the Establishment Treaty, so the GATT gradually became a de facto international organisation.
The purpose of introducing the ITO was to create standard ground rules regarding foreign trade and other global economic matters. The presented charter failed to get the approval of the US Congress, and hence, the WTO came into existence. WTO was established in the year 1995 and served as a complete proof replacement of GATT. This is the reason why WTO is called the successor of GATT. The WTO is the only intergovernmental organisation that deals with the rules of foreign trade between countries.
Today WTO is functioning in additional than 164 member countries. It works with regulates and facilitates international trade between nations.
|WTO||World Trade Organization|
|Headquarters||Centre William Rappard, Geneva, Switzerland|
|Formation||1 January 1995|
|Official languages||English, French, Spanish|
Main Function of WTO
The main function of the WTO are as follow:
- Administering WTO trade agreements
- Forum for trade negotiations
- Handling trade disputes
- Monitoring trade policies
- Technical assistance and training for developing economies
- Cooperation with other international organizations
Main Objective of WTO
The main objective of the WTO is to create a Reduction of tariffs and other barriers to trade.
- To set and execute rules for international trade
- To present a panel for negotiating and controlling additional trade liberalization
- To solve trade conflicts
- To improve the clarity of decision-making methods
Q. What is Full form of WTO?
Ans. World Trade Organization (WTO).
Q. How many countries are in the World Trade Organization?
Ans. There are 164 Countries.
Q. Who is the head of the WTO?
Ans. Ngozi Okonjo-Iweala is the 7th Director-General of the World Trade Organization.