To issues that the WTO focuses on derive

To
present the context of the relationship of India with WTO it could be said that
India has been a founding member of the WTO when it was started long way back
in 1970 s and besides this fact India has always been in favour of multilateral
trading with the other countries of the world. In order to achieve the gains
from WTO the government of India has announced the Export-Import policy
1992-1997 to liberalize trade and boost domestic manufacturing sector. The
ministry of commerce of the Government of India expects that by WTO India would
benefit by creating 10 million additional jobs annually and India’s market
share in world exports would improve.

So what is actually WTO and its
relevant policies?

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The World Trade Organization abbreviated as WTO is
an organization which is managed by the collaborative efforts of different
governments that regulates international trade. The WTO was officially
established on 1 January 1995 under the Marrakesh Agreement, signed by a
community of 123 nations on 15 April 1994. It is enumerated amongst the largest
international economic organization in the world and also WTO deals with
regulation of trade in goods, services and intellectual property between the
participating countries by providing them with a sound framework for
negotiating the trade agreements and a dispute resolution process aimed at
enforcing participants’ adherence to WTO agreements, which are signed by
representatives of the member governments and verified properly by their
parliaments. Most of the issues that the WTO focuses on derive from previous
trade negotiations, revolving around the Uruguay Round held from the span of
1986 to 1994.

The WTO has many roles to perform under different
circumstances. It operates a global system of trade rules, it acts as a forum
for negotiating trade agreements, it settles various trade disputes between its
members and it supports the needs of developing countries. The consequence is
that, the number of free trade agreements between governments of the different nations
from both the ends have increased substantially. During July 2012, many
negotiation groups in the WTO system for the current agricultural trade
negotiation which is in the condition of a halt or no progress.  With the advent of
advanced technology, would be obtained at low cost and besides this because of
wide arrangement for resolving trade disputes under WTO, India would be in a
better position to get quick redressal of the trade disputes, if they exist.
The scope of creating more job would be expanded. The Indian exporters have
deficient market information, this can be removed by the help of WTO and
country can get wider market information, and eventually due to increasing
competition and exposure the competitive edge and productivity of Indian
industry will improve. All major
decisions are made by the WTO’s member governments: either by ministers who
have a meeting schedule of meeting once in two years. or by their ambassadors
or delegates who have a regular meetings in the city of Geneva
 A number of simple, fundamental principles
form the foundation of the multilateral trading system. The primary purpose of
the WTO is to open trade for the benefit of all.

A
Federation of Indian Chamber of Commerce and Industry (FICCI) Task Force reports
(March 1996) on WTO, rightly observed that in changing scenario there is no
alternative to Indian industry but to gear up itself to raise the efficiency
and competitiveness, so that India is able to meet the competition in both, the
domestic and external markets. By, this, under certain areas like agricultural
and allied exports, textiles and trade in services India can meet not only the
challenges and will be able to exploit opportunities successfully when
developed countries will co-operate to share the fruits of growth and openness
in the new world trade order.

 

The
main perspectives based on which the Indian economy has been affected by the
WTO policy rests on the fact that there will be a reduction in the subsidies to
Indian trade along with a slight increase in the India’s share of agricultural
earnings in the near future. In addition to the above mentioned points the WTO
policy has also provoked multilateral trade relations between India and the
other countries of the world globally. The Tariff lines and the quantitative
restrictions have also been increased and bound by means of this WTO policy.

 

About
67 per cent of its tariff lines were bound. For non-agriculture goods, with a
few exceptions ceiling bindings of 40 per cent and 25 per cent on intermediate
goods have been undertaken. The phase of reduction is extended to the year,
2005.The most significant impact of the WTO policy in the Indian financial system
comprises mainly of the following points: