WORLD TRADE ORGANISATION (W.T.O.)
GATT was converted from a provisional agreement into a formal

International organization called World Trade Organization (W.T.O) with effect

from January 1,1995. It will be directed by a Ministerial Conference that will meet

at once two years and its regular business will be overseen by a General Council.

FEATURES

o The WTO is the main organ of implementing the Multilateral Trade Agreements

o The WTO is global in its membership. It prospective membership is already around 150 countries.

o It is the forum for negotiations among its member. In this forum, the member-nations discuss issues related to the Mats and associated legal instruments.

FUNCTION

• The WTO shall facilitate the implementation, administration and operation and further the objectives of the multilateral trade agreements.
• The WTO shall provide the forum for negotiations among its members concerning their multilateral trade relations in matters dealt with under the agreements.
• The WTO shall administer the ‘understanding on rules and procedures governing the settlement disputes’.
• The WTO shall administer the ‘Trade Review Mechanism’.

STRUCTURE

o The ministerial conference (MC) is the highest body. It is composed of the representative of the members. The MC is the executive of the WTO and responsible for carrying out the functions of the WTO. It has the authority to take decision in any matter under the relevant multilateral trade agreement.

o The general council is an executive forum composed of representatives of all the member.

ACHIEVEMENT

o Greater market orientation has become the general rule.

o Tariff based protection has become the rule rather than the exception.

o The use of restrictive measures has declined markedly.

o Service trade has been brought into the multilateral system .

o Improved the efficiency of the resource use

LIMITATION

o The trade reform is not complete in many countries.

o Concerns have been raised that the combination of the globalization and technological changes creates a premium on high skill than low-skill with the growing divisions.

o Not all WTO members are equally integrated in the multilateral system.