1.2 AND 1.3 ROLE OF WTO AND TRADE BLOCS
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What is the primary objective of the World Trade Organization (WTO)?
The WTO aims to facilitate smooth, predictable, and free international trade by providing a framework of rules governing trade between member nations and serving as a forum for negotiating trade agreements.
What is the WTO Agreement on Agriculture (AoA) and its significance for trade finance?
AoA reduces agricultural subsidies and trade barriers, affecting commodity financing.
When was the WTO established and what did it replace?
The WTO was established on 1 January 1995 and replaced the General Agreement on Tariffs and Trade (GATT), which had been in operation since 1948.
What is the WTO's Information Technology Agreement (ITA) and what does it cover?
ITA eliminates tariffs on IT products among participating member countries.
What is the most-favoured-nation (MFN) principle under WTO?
The MFN principle requires that any trade advantage, favour, privilege, or immunity granted by a WTO member to any other country must be extended immediately and unconditionally to all other WTO members.
What is a Preferential Trade Agreement (PTA) and how does it differ from an FTA?
PTA reduces tariffs on select goods between countries, unlike full FTA coverage.
What does the National Treatment principle under WTO mandate?
The National Treatment principle requires that imported goods, once they have cleared customs, must be treated no less favourably than domestically produced goods in terms of taxes, regulations, and other requirements.
What is the role of WTO's Trade Policy Review Mechanism (TPRM)?
TPRM periodically reviews member countries' trade policies to ensure transparency.
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