Page 49 - LECTURETTE TOPICS eBOOK

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Trade (GATT) which was an effort to retrieve from the aborted attempt to create the
ITO.

World Trade Organization membership showed a sharp increment from 23 countries
in 1947 to 123 countries by 1994.

India was one of the founder members of GATT which was later redefined as World
Trade Organization.

Principles of WTO
• The basic principles followed by World Trade Organization in order to
define its working are mentioned below:

• Zero tolerance to malpractices in Trade and business.
• To encourage healthy competition.
• Each one is treated equally irrespective of any favoritism.
• Neutrality in Trade.
• Proper distinction of trade and commerce.
• Courtly platform to resolve trade related issues.

Reasons for WTO’s Rise:

• Colloquium for trade negotiations
The WTO serves as a platform for discussion among its Members about
their multilateral trade relations with others.
• Administer and Monitor WTO trade agreements
The WTO provides a governing body to look after all the trade transactions
made globally turns-on the alarm to alert the member countries.
• Handling trade disputes
The WTO works as a regulating body in-case of any disputes between
members related to trade and provides a middle way solution to handle
the conflicts in order to maintain peace.
• Assistance and support to developing countries

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