Which of the following are the main functions of WTO? 1. To organize meetings of member countries to arrive at trade agreements covering international trade 2. To ensure that member countries conduct trade practices as per agreement agreed upon and signed by the member countries
1, 2 and 3
Understanding the Main Functions of the WTO in International Trade
The question asks about the primary roles and responsibilities of the World Trade Organization (WTO). The WTO is the global international organization dealing with the rules of trade between nations. Its main functions are crucial for ensuring smooth and predictable international trade flows.
Let's analyze each statement presented as a potential function of the WTO:
-
Statement 1: To organize meetings of member countries to arrive at trade agreements covering international trade
This is a fundamental function of the WTO. The WTO provides the forum for governments to negotiate trade agreements and resolve trade problems they face with each other. These negotiations cover various aspects of international trade, aiming to lower trade barriers and establish fair rules.
-
Statement 2: To ensure that member countries conduct trade practices as per agreement agreed upon and signed by the member countries
Monitoring how member countries implement and follow the trade agreements they have signed is another essential role of the WTO. The organization oversees the application, administration, and operation of the WTO agreements, ensuring transparency and compliance among members. This helps maintain stability and predictability in the international trading system.
-
Statement 3: To provide a platform to negotiate and settle disputes related to international trade between and among member countries
The WTO has a unique dispute settlement system that is considered one of the most important pillars of the multilateral trading system. If a member country believes another is violating a trade agreement, they can bring the case to the WTO. The system provides a structured process for consultation, panel review, and potentially binding rulings, helping to resolve trade conflicts peacefully and according to agreed rules.
Based on the analysis, all three statements accurately describe core functions of the World Trade Organization.
Therefore, the correct answer includes all three functions.
Revision Table: Key WTO Functions
| Function | Description |
|---|---|
| Administering Trade Agreements | Overseeing the implementation and application of WTO agreements. |
| Acting as a Forum for Trade Negotiations | Providing a platform for members to negotiate trade agreements. |
| Settling Trade Disputes | Operating the dispute settlement system to resolve trade conflicts. |
| Providing Technical Assistance | Helping developing countries participate effectively in the global trade system. |
| Monitoring National Trade Policies | Reviewing the trade policies of member countries. |
Additional Information on WTO Functions and Principles
The World Trade Organization (WTO) operates based on several fundamental principles aimed at making trade as smooth, predictable, and free as possible:
- Non-discrimination: This includes Most-Favoured-Nation (MFN) treatment (treating all trading partners equally) and National Treatment (treating foreigners and locals equally).
- Freer trade: Gradually lowering trade barriers through negotiation.
- Predictability: Making trade rules stable and transparent.
- Promoting fair competition: Discouraging unfair practices like dumping and subsidies.
- Encouraging development and economic reform: Giving developing countries more flexibility and assistance.
These principles guide the functions discussed above and underpin the entire multilateral trading system managed by the WTO.
Important Questions from Ethical Governance in Business
- The list of human values was given by whom ?
- Which of the following is an ethical issue in counselling?
