World Trade Organization: Objectives of WTO and Functions of WTO

World Trade Organization (WTO)

WTO is the only international organization dealing with the global rules of trade between nations.

Its main function is to ensure that trade flows as smoothly, predictably and freely as possible.

 WTO administrates trade agreements.

It acts as a forum for trade negotiations.

It settles international trade disputes.

It reviews national trade policies.  

It assists developing countries in trade policy issues, through technical assistance and training programme

Decisions are made by the entire membership.

This is typically by consensus or agreement.

A majority vote is also possible but it has never been used in the WTO.

The WTO’s agreements have been ratified in all members’ parliaments.

The WTO’s top level decision−making body is the Ministerial Conference which meets at least once every two years.

Below this is the General Council (normally ambassadors and heads of delegation in Geneva, but sometimes officials sent from members’ capitals) which meets several times a year in the Geneva headquarters.

The General Council also meets as the Trade Policy Review Body and the Dispute Settlement Body.

At the next level, the Goods Council, Services Council and Intellectual Property (TRIPS) Council report to the General Council.

Numerous specialized committees, working groups and working parties deal with the individual agreements and other areas such as the environment, development, membership applications and regional trade agreements.

Keep in Mind

Functions of WTO

The major functions of WTO are given below:

(a) WTO acts as a management consultant for international trade.

(b) It resolves the international trade dispute.

(c) It administrates trade policy review.

(d) It helps to develop national trade for international.

(e) It maintains trade related database.

(f) It provides forum for its member countries for multilateral (mutual) trade relations.

(g) It provides frame work for the implementation, administration and operation of the multilateral trade agreements.

(h) For global economic policy making, the WTO cooperates with the International Monetary Fund (IMF) and with the International Bank for Reconstruction and Development (IBRD).

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Objectives of WTO

The major objectives of WTO are given below:

(a) To implement the new world trade system as visualised in the agreement;

(b) To promote World Trade to benefit every country.

(c) To ensure that developing countries secure a better balance in the sharing of international trade to their development.

(d) To demolish or defeat all hurdles to open world trading system for economic growth.

(d) To enhance competitiveness among all trading partners so as to benefit consumers and help in global integration.

(e) To increase the level of production and productivity with a view of employment in the world.

(f) To expand and utilize world resources to the best.

(g) To improve the level of living for the global population and speed up economic development of the member nations.

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