Q.Explain the objectives of W.T.O.

The World Trade Organisation, set up in 1995 in place of GATT, is the global body that frames and enforces the rules of international trade. Its objectives are to free world trade from tariffs and barriers, raise living standards and employment, expand trade and production, use world resources optimally with sustainable development, uphold non-discrimination, and resolve trade disputes. This is an AP Intermediate 2nd-year Economics topic on globalisation and trade reforms.

The WTO is an international organisation that came into existence on 1 January 1995, replacing the earlier General Agreement on Tariffs and Trade (GATT). It provides the framework for conducting world trade and settling trade disputes among member countries. Its main objectives are:

1. Promotion of free and fair trade by reducing tariffs, quotas and other barriers to the movement of goods and services across countries.
2. Raising standards of living and real incomes of people in member countries through expanded trade.
3. Ensuring full employment and a steady growth in effective demand.
4. Expanding the production and trade of goods and services at the world level.
5. Optimum use of world resources in keeping with the objective of sustainable development and protection of the environment.
6. Non-discrimination among members through the Most-Favoured-Nation (MFN) and national-treatment principles, so that trade concessions apply equally to all. …