The World Trade Organization (WTO) is an international organization that regulates and facilitates international trade. The WTO was established in 1995 and is based in Geneva, Switzerland. It currently has 164 member countries. The WTO`s main function is to ensure that trade flows as smoothly, predictably, and freely as possible. The organization does this through various agreements that member countries have agreed upon. In this article, we will explain the major agreements of the World Trade Organization.
1. General Agreement on Tariffs and Trade (GATT)
The General Agreement on Tariffs and Trade (GATT) was the first agreement of the WTO. It was signed in 1947 and has been amended several times since then. The GATT is an agreement on the regulation of international trade in goods. It aims to reduce tariffs and eliminate other trade barriers such as quotas and subsidies. The GATT has been replaced by the WTO Agreement on Agriculture, which now governs trade in agricultural products.
2. Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)
The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) is an agreement that aims to protect intellectual property rights. It was signed in 1994 and sets out minimum standards for the protection and enforcement of patents, trademarks, and copyrights. The TRIPS agreement also sets out rules for the enforcement of intellectual property rights and the settlement of disputes between member countries.
3. Agreement on the Application of Sanitary and Phytosanitary Measures (SPS)
The Agreement on the Application of Sanitary and Phytosanitary Measures (SPS) is aimed at protecting human, animal, and plant health from potential risks associated with trade in food and agricultural products. The SPS agreement sets out rules for the use of measures such as quarantine and inspection to protect against pests and diseases.
4. Agreement on Technical Barriers to Trade (TBT)
The Agreement on Technical Barriers to Trade (TBT) aims to ensure that technical regulations, standards, and testing procedures do not create unnecessary obstacles to trade. The TBT agreement sets out rules for the preparation, adoption, and application of technical regulations and standards.
5. Agreement on Government Procurement (GPA)
The Agreement on Government Procurement (GPA) aims to promote transparency and non-discrimination in government procurement. The GPA sets out rules for the awarding of government contracts, including the requirement to give equal treatment to foreign suppliers.
6. Agreement on Rules of Origin (ROO)
The Agreement on Rules of Origin (ROO) sets out rules for determining the origin of goods. The ROO agreement is important for determining whether goods are eligible for preferential treatment under free trade agreements.
In conclusion, the World Trade Organization has several agreements in place to regulate and facilitate international trade. These agreements aim to reduce trade barriers, protect intellectual property rights, promote transparency and non-discrimination in government procurement, and protect human, animal, and plant health. It is important for member countries to comply with these agreements to ensure a level playing field for international trade.