The World Trade Organization (WTO) is an international organization that was established to facilitate free and fair trade among its member countries. The agreement of WTO refers to the legal framework that governs international trade and commerce. In this article, we will take a closer look at the key components of the agreement of WTO and how it impacts global trade.
The Agreement of WTO
The agreement of WTO is a comprehensive legal framework that covers various aspects of international trade, including the rules governing the exchange of goods and services, intellectual property rights, and dispute resolution. The agreement consists of several agreements and annexes, including the General Agreement on Tariffs and Trade (GATT), the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), and the Agreement on the Application of Sanitary and Phytosanitary Measures (SPS).
The General Agreement on Tariffs and Trade (GATT) is the cornerstone of the WTO`s legal framework. GATT sets out the principles of non-discrimination, including most-favored-nation (MFN) treatment and national treatment, which requires countries to treat foreign products and services the same as their own. GATT also promotes the reduction of trade barriers, such as tariffs and quotas, to facilitate more open and fair international trade.
The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) addresses the protection of intellectual property rights, such as patents, copyrights, and trademarks. TRIPS aims to provide a level playing field for businesses and promote innovation and creativity by protecting the rights of inventors and creators.
The Agreement on the Application of Sanitary and Phytosanitary Measures (SPS) addresses health and safety regulations related to food and agricultural products. SPS aims to prevent the spread of diseases and pests by establishing standards for the testing, inspection, and certification of agricultural products.
Impact of the Agreement of WTO on Global Trade
The agreement of WTO has had a significant impact on global trade by promoting free and fair trade among its member countries. The principles of non-discrimination and the reduction of trade barriers have helped to facilitate increased trade and investment, leading to economic growth and development. The WTO`s dispute resolution mechanism also provides a forum for resolving trade disputes between member countries, promoting stability and predictability in international trade.
However, the agreement of WTO has also faced criticism from some quarters. Some argue that the organization has not done enough to address the concerns of developing countries and that free trade policies have led to job losses and environmental degradation in some parts of the world.
Conclusion
The agreement of WTO is a comprehensive legal framework that governs international trade and commerce. It covers various aspects of trade, including the rules governing the exchange of goods and services, intellectual property rights, and dispute resolution. While the agreement has had a significant impact on global trade, it has also faced criticism for not doing enough to address the concerns of developing countries. Despite these challenges, the WTO remains an essential organization in promoting free and fair trade among its member countries.