Introduction
General agreement on tariff and trade(GATT) was converted into the world trade organization(WTO) on January 1,1995.This decision was taken in the 8th round of talks like ,the uraguay round.Infact the round stared with the pbviou aim to create a more stable and liberal Internatinal trade order so,world trade organizatin you establishing by improving and extending GATT regulation inculding some unregulated sectors in the GATT framework.Such as services,protection of intersectual and industries property rights,trade relevant investment measures and firthen liberazing trade.World trade organization will cooperated with the international monetary fund(IMF) a Woeld Bank(WB) a view to achieve greater adds.
Guiding Principles of WTO.
The guiding principles GATT became the part and parcel of world trade organization.These are as follow.
1. trade is to be conducted in a non-discrimination maner.A nation policy should be applied equall to all states.
2. protection may be applied to domestic industry throw custom tariffs general level of protection should be gradually reduced.
3. Disagreement on trade are to be resolved through consultation.
4. Parties should take certain joint actions as necessary in furtherance of the objectives of world trade organization.
5 .It bans the use of quantitative restrictions on trade .
6. It follows unconditional MFN status.
Objective of WTO.
The exclusive aim of establishing WTO ,a successor organization to the historic institution of GATT is to facilities the implementation and cooperation of all agreements in connection with uruguay round.Theobjectives of the trade organization set,forth are as under
1. Raising the standard of living and income.
2. Ensuring full employment.
3. Expanding production and trade.(out put)
4. Optimum use of world resources.
Legal status of WTO.
The organization will have legal personality and will be accorded legal.Privileges and immunities similar to those accorded to specialized agancies of UNO.The WTO will have the status as the IMF and WB.
Decision making process.
It well follow the same principles for decision making as existed in the GATT.Voting procedure will be adopted if a decision can not be reached by consensus.Decision will be taken by a major of votes, etc on the basis of one vote to each country.
Criticism on WTO.
1. Serving the interests of MNC'S
2 .Underiming national sorvereignity.
3. Penalising poor nations.
4. Enviromental Desgradation.
5 Baised court system.
6 .Coorporate dominated colonialization.
ANALYSIS
The WTO would be concerned with the implementation of various agreement included in the final acts of uruguay round.
The basic theme of uruguay round accord is that the trade rules,discipline,concession,committments and obligations must remain the same for all states developed and developing.
