World Trade Organization (WTO)

Source: TOI

Context: Brazil has lodged a formal complaint with the World Trade Organization (WTO) against the United States’ 50% tariff on Brazilian imports.

About World Trade Organization (WTO):

• What It Is? The WTO is the sole global body governing international trade rules, acting as a forum for negotiations, dispute resolution, and ensuring fair trade practices among member nations.

• The WTO is the sole global body governing international trade rules, acting as a forum for negotiations, dispute resolution, and ensuring fair trade practices among member nations.

• Headquarters: Geneva, Switzerland

• Established In: 1 January 1995 – replacing the General Agreement on Tariffs and Trade (GATT), which had operated since 1948.

• Historical Background:

• Origin traces back to post–World War II efforts to create a fair, rules-based global trade system. GATT (1947) provided initial tariff-reduction frameworks. The Uruguay Round (1986–94) expanded trade rules to services and intellectual property, leading to the WTO’s creation.

• Origin traces back to post–World War II efforts to create a fair, rules-based global trade system.

• GATT (1947) provided initial tariff-reduction frameworks.

• The Uruguay Round (1986–94) expanded trade rules to services and intellectual property, leading to the WTO’s creation.

• Objectives:

• Promote free, predictable, and transparent trade flows. Reduce tariffs and non-tariff barriers. Provide a platform for negotiation and cooperation. Ensure dispute settlement through agreed legal processes. Support developing and least-developed countries in global trade participation.

• Promote free, predictable, and transparent trade flows.

• Reduce tariffs and non-tariff barriers.

• Provide a platform for negotiation and cooperation.

• Ensure dispute settlement through agreed legal processes.

• Support developing and least-developed countries in global trade participation.

• Core Functions:

• Administer Trade Agreements – Uphold commitments signed by members. Forum for Negotiations – Facilitate trade talks in goods, services, and IP rights. Settle Disputes – Operate a formal dispute resolution mechanism. Review Trade Policies – Promote transparency via the Trade Policy Review Mechanism. Capacity Building – Provide training, technical assistance, and infrastructure support to developing members. Cooperation – Collaborate with IMF, World Bank, and other global economic institutions.

• Administer Trade Agreements – Uphold commitments signed by members.

• Forum for Negotiations – Facilitate trade talks in goods, services, and IP rights.

• Settle Disputes – Operate a formal dispute resolution mechanism.

• Review Trade Policies – Promote transparency via the Trade Policy Review Mechanism.

• Capacity Building – Provide training, technical assistance, and infrastructure support to developing members.

• Cooperation – Collaborate with IMF, World Bank, and other global economic institutions.