The World Trade Organization (WTO) plays a pivotal role in shaping the global trade environment by providing a multilateral platform for negotiating and enforcing trade agreements, ensuring that international commerce remains predictable, equitable, and transparent.
What is the WTO?
The WTO was established in 1995 following the Uruguay Round of negotiations (1986-94), succeeding the General Agreement on Tariffs and Trade (GATT). Its primary mandate is to promote free and fair trade across its 166 member countries, which account for 98% of global trade. India has been a WTO member since its inception in January 1995.
WTO’s Core Functions
Factors Limiting the WTO’s Effectiveness
Despite its foundational role, the WTO faces several challenges that are eroding its capacity to regulate global trade effectively.
Crucial Reforms for Strengthening the WTO
To adapt to the evolving trade landscape, the WTO must undergo several reforms:
India's Role in Strengthening Multilateral Trade Governance
India, as a major emerging economy, has a significant role to play in shaping the future of multilateral trade governance:
What is Multilateralism?
Multilateralism is a system where three or more countries cooperate to address global issues, governed by shared rules, norms, and institutions. The key features include:
Examples of Multilateralism:
Conclusion
The WTO has long been the cornerstone of the global trade system, fostering cooperation, stability, and fairness. However, the changing dynamics of global trade—marked by the rise of regional trade agreements, protectionist policies, and the challenges of digital trade—have exposed cracks in its structure.
To remain relevant, the WTO must undergo reforms that address the evolving needs of modern trade, including resolving the dispute settlement paralysis, improving transparency, and expanding its focus to include new trade dimensions like digital commerce and green subsidies
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We provide offline, online and recorded lectures in the same amount.
Every aspirant is unique and the mentoring is customised according to the strengths and weaknesses of the aspirant.
In every Lecture. Director Sir will provide conceptual understanding with around 800 Mindmaps.
We provide you the best and Comprehensive content which comes directly or indirectly in UPSC Exam.