Question
List out principles of WTO.
Solution
General Agreement on Tariffs and Trade (GATT) came into existence on Jan. 1, 1948 and remained till Dec. 1994. Various rounds of negotiations have taken place under the auspices of GATT to reduce tariffs and non-tariff barrier. The last one is known as “Uruguay Round” was the most comprehensive negotiation. One of the key achievement of this negotiation was to set up permanent institution on for looking after the promotion of free and fair trade among nations. Hence, came World Trade Organisation (WTO) on 1st Jan. 1995.
Principles of WTO are :
1. It governs trade of both goods and services and intellectual property rights.
2. It helps in the reduction of tariffs and other trade barriers imposed by different countries.
3. Acting as a dispute settlement body.
4. It helps in accelerating the rate of economic growth because of free trade.
