World Trade Organisation WTO


 
 
Concept Explanation
 

World Trade Organisation WTO

WORLD TRADE ORGANISATION (WTO): World Trade Organisation (WTO) is organisation dealing with the global rules of trade berween nations. Its main funcrion is to ensure that trade flows as smoothly, predictably and as freely as possible. It supported the liberalisation of foreign trade and investment in India. According to WTO, all barriers to foreign trade and investmennt are harmful. There should be no barriers. Trade between countries should be 'free'. All countries in the world should liberalise their policies.

WTO was started at the initiative of the developed countries. Its objective is to liberalise international trade and ensure that its members obey its rules. 160 countries of the world were members of the WTO on June, 2014, (162 on 30 November, 2015).an international Though WTO is supposed to allow free trade for all, actually it is found that the developed countries have unfairly implemented some trade barriers and forced the developing Countries to remove barriers.

An example of this is the trade in agricultural products. Agriculturists in the USA are heavily subsidied by their government, so that they can export products like whear and cotton at very low prices to developing countries, thus competing with and adversely affecting farmers in these countries,

 
 


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