Question

Brief description of WTO Principles, Basic Contents and Its Impact on International Economic Relations

Answer 1

WTO principles are :

• Promoting fair competition: WTO promote fair competition among countries and they do not allowed tariffs imposed on foreign products to protect domestic market or protectionism. They want fair, open and unprotected trade among countries.

• Trade without discrimination: Under WTO agreement you cannot sign any treaty with any country which discriminates among countries. You have to treat every country equally. Imported and locally-produced goods should be treated equally at least after the foreign goods have entered the market. The same should apply to foreign and domestic services, and to foreign and local trademarks, copyrights and patents.

• Development and economic reform: The WTO system contributes to development. Over three quarters of WTO members are developing countries and countries in transition to market economies. During the seven and a half years of the Uruguay Round, over 60 of these countries implemented trade liberalization programmes autonomously. At the end of the Uruguay Round, developing countries were prepared to take on most of the obligations that are required of developed countries.  More recently, developed countries have started to allow duty-free and quota-free imports for almost all products from least-developed countries.

Basic contents of WTO :

WTO is designed to sort out the problems in the world markets. They build the consent over a propaganda on which most countries satisfy. They not only just take the decision by looking at the countries trade problem, they also look at the consumers and producer to minimize the problems in the trading system. The purpose over here is to reduce the trade barrier as goods move like air between countries. The bulk of the WTO current work comes from the 1986-94 negotiations called the Uruguay Round and earlier negotiations under the General Agreement on Tariffs and Trade . The WTO is currently the host to new negotiations, under the Doha Development Agenda launched in 2001.

WTO and its international economic relations:

The World Trade Organization is an largest trade international organization focused on opening trade among countries and to maintain relations. It is an organization for the opening and expansion of international trade, and for the enforcement of trade in the world. The three major contributions to the economic system of WTO is

• It sets rules that govern how members can set domestic policies that affect international trade by looking at consumers, producers, exporters as well as importer.
• The list of import tariffs settles by WTO cannot be changed by any single country except it is signed by majority of them.
• It sets up court which settles dispute and hear complaints when one member believes another is breaking the rules.