World Trade Organisation (WTO)

World Trade Organisation (WTO)
  • Context:

  • The World Trade Organization's 14th Ministerial Conference (MC14) is scheduled for March 26–29 at Yaoundé, Cameroon.

  • As the WTO's highest decision-making body, it is empowered to make all decisions on WTO law and chart the path for the organisation's future work amid a rising retreat of trade multilateralism.

  • The Marrakesh Agreement:

  • The WTO was established on January 1, 1995, following the conclusion of the Uruguay Round (1986–94) of multilateral trade negotiations.

  • It was formally created by the Marrakesh Agreement, replacing the General Agreement on Tariffs and Trade (GATT) as the cornerstone of the multilateral rules-based global trading system.

  • Classification of Agreements:

  • Multilateral Trade Agreements:

  • These form the "bulk" of the WTO's legal framework.

  • They are binding on all members of the WTO.

  • Examples include the GATT 1994, GATS (Services), and TRIPS (Intellectual Property).

  • Plurilateral Trade Agreements:

  • Unlike multilateral ones, these are binding only on the members that have accepted them.

  • Currently, India maintains a deeply entrenched position of opposing these agreements.

  • The Annexed Structure:

  • The WTO's legal framework is organised into several Annexes under the Marrakesh Agreement:

  • Annex 1:

  • Annex 1A: Multilateral Agreements on Trade in Goods (including GATT 1994 and the Agreement on Agriculture).

  • Annex 1B: General Agreement on Trade in Services (GATS).

  • Annex 1C: Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).

  • Annex 2: Understanding on Rules and Procedures Governing the Settlement of Disputes.

  • This is currently in crisis due to the dysfunction of the Appellate Body, which India is seeking to restore at MC14.

  • Annex 3: Trade Policy Review Mechanism, providing for periodic collective appreciation of members' trade policies.

  • Annex 4: Plurilateral Trade Agreements (Agreement on Government Procurement).