What is WTO?
The World Trade Organization (WTO) is an international organization established to promote free, fair, and smooth international trade among countries.
Thank you for reading this post, don't forget to subscribe!- It was formed on 1 January 1995, replacing the earlier General Agreement on Tariffs and Trade (GATT).
- The WTO provides a common platform where member countries create rules for trade, settle disputes, and negotiate agreements to reduce barriers such as tariffs, quotas, and restrictions.
The main concept behind the WTO is to ensure that trade flows as freely as possible, without unnecessary obstacles, discrimination, or unfair practices.
- It encourages open markets, transparency, and equal treatment for all member countries—whether large or small.
Objectives of WTO
- To promote free, fair, and smooth international trade among all member countries.
- To reduce trade barriers such as tariffs, quotas, and restrictions to encourage the free flow of goods and services.
- To create a predictable and transparent trading environment by establishing clear and stable trade rules.
- To ensure equal opportunities for all member countries, preventing discrimination in global trade practices.
- The organization promotes healthy competition by discouraging unfair practices like dumping and subsidies.
- To protect the interests of developing and least-developed countries by providing technical assistance, negotiation support, and special provisions.
- To settle trade disputes peacefully through its formal dispute settlement mechanism.
- To increase global production, trade, and economic growth by fostering cooperation among member nations.
- To improve the standard of living, create employment, and support sustainable development through trade.
Roles and Functions of WTO
- Formulating and Implementing Trade Agreements
- Providing a Forum for Trade Negotiations
- Settling Trade Disputes
- Monitoring and Reviewing Trade Policies
- Promoting Free and Fair Trade
- Encouraging Economic Growth and Development
- Ensuring Transparency in Trade
- Reducing Trade Barriers
Principles of WTO
- Trade without Discrimination
- Free Trade
- Predictability and Stability
- Promoting Fair Competition
- Transparency
- Promoting Development and Economic Reform
WTO – Opportunities and Threats for Nepalese Business
1. Opportunities/ Benefits for Nepalese Business
- Access to Global Markets
- Attraction of Foreign Investment (FDI)
- Transit Rights
- Settlement of Trade Disputes
- Enhance Efficiency
- Protection of Consumer Rights
- Employment Generation
- Maintain Intellectual Rights
- Economic Growth
- Increased Competitiveness
- Technology Transfer and Skill Development
2. Threat/ Limitations for Nepalese Business
- Affect Domestic Industries
- Decrease in Revenue Collection
- Decline National Expertise
- Eliminate Quota System
- Minimize Domestic Investment
- Ignore Environment
- Encompass Protectionism