WTO Contribution to World

 The WTO is an international organization which formulates and

  co-ordinates in world’s economic policy. 

 It is playing a crucial role in the international trade, and global

economics,

 It has emerged as the world's most powerful

institution for reducing trade related barriers between the
countries and opening new markets.

 It cooperates with the IMF and World Bank in terms of making

global economic policies.

 Through resolving trade related disputes, the WTO has got the
potential to maintain world peace and bilateral relations between
its member countries through following negotiations,
consultations and mediations.

 Decisions in the WTO are typically taken by consensus among

all members and they are ratified by members’ parliaments. This
leads to a more prosperous, peaceful and accountable economic
world.

IS WTO A FRIEND OR FOE OF INDIA?

 India is one of the prominent members of WTO and is largely seen as leader of
developing and under developed world.

 At WTO, decisions are taken by consensus. So there is possibility that anything severely
unfavorable to India’s interest can be imposed.

 In absence of such a body INDIA stand to lose a platform through which it can mobilize
opinion of likeminded countries against designs of west.
 WTO provides a forum for such developing countries to unite and pressurize developed
countries to make trade sweeter for poor countries

INDIA and its relation with others-

 India has already marked red line in sectors such as agriculture by making it clear
than there is no scope of compromise on its positions even though West has
relentlessly tried to pressurize India as rigid and uncompromising negotiator.
However, these attributes are better suited to U.S. and other developed countries.
Consequently, majority of countries stand with India irrespective of success or failure
of every meet.

India needs to upscale its diplomatic capability. In recent Nairobi meet, it was seen that
while developed countries spoke in unity, there was no such unity in developing
countries.

 Brazil, a prominent member of WTO, due to its globally competitive agricultural

sector ,has aligned itself close to position held by developed countries.

 India made a serious effort last year at India- Africa summit to arrive at common
agenda for WTO and was largely successful. However, their needs to be a larger
combined effort in bringing a common platform of developing nations in all
continents.

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Advantages of WTO:
-Helps promote peace within nations:
helping trade flow smoothly and providing countries with a constructive and fair
outlet for dealing with disputes over trade issues.

-Disputes are handled constructively: As trade expands in volume, in the

numbers of products traded and in the number of countries and company trading,
there is a greater chance that disputes will arise. WTO helps resolve these disputes
peacefully and constructively.

-Rules make life easier for all: WTO system is based on rules rather than power
and this makes life easier for all trading nations. 

-Free trade cuts the cost of living:  WTO lowers trade barriers through negotiation
and applies the principle of non-discrimination. The result is reduced costs of
production (because imports used in production are cheaper) and reduced prices of
finished goods and services, and ultimately a lower cost of living.

-It provides more choice of products and qualities: It gives consumer more
choice and a broader range of qualities to choose from.

The system encourages good governance: The WTO system encourages good

government. The WTO rules discourage a range of unwise policies and the
commitment made to liberalize a sector of trade becomes difficult to reverse. These
rules reduce opportunities for corruption.

Disadvantages of WTO:

-The WTO is fundamentally undemocratic: The policies of the WTO impact all

aspects of society and the planet, but it is not a democratic, transparent institution.
The WTO rules are written by and for corporations with inside access to the
negotiations.

-The WTO won’t make us safer: The WTO would like you to believe that creating a
world of free trade will promote global understanding and peace. On the contrary,
the domination of international trade by rich countries for the benefit of their
individual interests fuels anger and resentment that make us less safe.

-Difficulty of making progress. WTO trade deals have been quite difficult to form consensus. Various
rounds have taken many years to slowly progress.

-Free trade may prevent developing economies develop their infant industries. For example, if a
developing economy was trying to diversify their economy to develop a new manufacturing industry, they
may be unable to do it without some tariff protection.

 WTO has implemented strong defense of TRIPs ‘Trade Related Intellectual Property’ rights These
allow firms to implement patents and copyrights. In areas, such as life-saving drugs, it has raised the
price and made it less affordable for developing countries.
Evaluation

 In response to this the WTO may say that free trade has been an important engine of growth for
developing countries in Asia. Although there may be some short term pain, it is worth it in the long run.
 Also the WTO has sought to give exemptions for developing countries; enabling in principle the
idea developing countries should be allowed to limit imports more than developed countries.