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Shumeet K. Grewal
(GATT), the predecessor of WTO, was born in 1948 as a result of the international desire to liberalize trade.
The GATT was transformed into a World Trade
Shumeet K. Grewal
WTO
WTO reiterates the objectives of GATT which are as follows: Raising standard of living and income, promoting full employment, expanding production and trade, and optimum utilisation of world resources. Introduce sustainable development a concept which envisages the development and environment can go together. Taking positive steps to ensure that developing countries, especially the least developed ones, secure a better share of growth in world trade. Promote trade flows by encouraging nations to adopt non-discriminatory and predictable trade policies. Establish procedures for solving trade disputes among members.
Shumeet K. Grewal
OBJECTIVES : 1. To help trade flow as freely as possible. 2. To achieve further liberalization gradually through negotiations. 3. To set up an impartial means of settling disputes.
Shumeet K. Grewal
2. Provide a forum for trade negotiations. 3. Handle trade disputes. 4. Monitor national trade policies. 5.Provide technical assistance and training for developing countries. 6.Cooperate with other international organizations.
Shumeet K. Grewal
PRINCIPLES
Trade without discrimination
Most-favoured-nation (MFN): treating other people
equally
duty rate for one of their products) and you have to do the same for all other WTO members. treatment
Shumeet K. Grewal
treated equally at least after the foreign goods have entered the market.
The same should apply to foreign and domestic
Shumeet K. Grewal
Lowering trade barriers is one of the most obvious means of encouraging trade.
The barriers concerned include customs duties
(or tariffs) and measures such as import bans or quotas that restrict quantities selectively.
From time to time other issues such as red tape
Shumeet K. Grewal
Predictability: through binding and transparency - Sometimes, promising not to raise a trade barrier can be as important as lowering one, because the promise gives businesses a clearer view of their future opportunities.
With
stability and predictability, investment is encouraged, jobs are created and consumers can fully enjoy the benefits of competition choice and lower prices.
discrimination MFN and national treatment are designed to secure fair conditions of trade.
So too are those on dumping (exporting at below
Shumeet K. Grewal
in
Uruguay Round, over 60 of these countries implemented trade liberalization programmes autonomously
Shumeet K. Grewal