World Trade Organisation (WTO) — KSLU Pil Notes
World Trade Organisation (WTO)
| Feature | Detail |
|---|---|
| Established | 1 January 1995 (replaced GATT 1947) |
| Headquarters | Geneva, Switzerland |
| Members | 164 members |
| Core principles | MFN, National Treatment, Tariff Bindings, Transparency |
| India’s role | Founding member; active in agriculture, IP, and services disputes |
WTO Core Principles
| Principle | Meaning |
|---|---|
| Most Favoured Nation (MFN) | Trade advantage given to one member must be extended to all — GATT Art I |
| National Treatment | Imported goods must be treated same as domestic goods once they enter market — GATT Art III |
| Tariff Bindings | Members bind their tariff rates — cannot raise above bound rate — GATT Art II |
| Transparency | Must publish trade regulations and notify WTO of changes |
| Reciprocity | Trade concessions are negotiated on mutual basis |
WTO Dispute Settlement — DSU
flowchart LR
D[Trade Dispute] --> CONS[Consultations - 60 days]
CONS --> PANEL[Panel established - 3 or 5 members]
PANEL --> REPORT[Panel Report - 6 months]
REPORT --> AB[Appellate Body - 60-90 days]
AB --> DSB[DSB adopts report - reverse consensus rule]
DSB --> COMPLY[Comply within reasonable period of time]
COMPLY -- Failure --> COMP2[Compensation negotiated]
COMP2 -- Failure --> SUSPEND[Retaliatory tariffs - DSB authorised suspension of concessions]Key feature: The DSB adopts panel/AB reports by reverse consensus — the report is adopted unless all members agree to reject it. This makes adoption virtually automatic.