Important for GS Prelims: Economy
About World Trade Organization (WTO)
- A permanent global intergovernmental institution administering trade rules, lowering tariff barriers, and resolving trade disputes between nations.
- Established on 1 January 1995 under the Marrakesh Declaration following the Uruguay Round, replacing the provisional GATT.
- Enforces treaty-based agreements ratified by member parliaments to ensure smooth, predictable, and free international trade flows.
The WTO’s Appellate Body, part of its dispute settlement mechanism, has been non-functional since the United States blocked appointments to it in December 2019.
Key Features
- Administers over 60 multilateral trade agreements and legal texts; operates a four-tiered structure — Ministerial Conference, General Council, sector councils, and subsidiary committees.
- Administers GATS (Services), TRIPS (Intellectual Property), and TRIMS (Investment Measures).
- Governs agriculture via the Agreement on Agriculture (AoA), classifying subsidies into Green Box, Blue Box, and Amber Box.
- Enforces the Trade Facilitation Agreement (TFA), in force since 22 February 2017 after ratification by 112 members.
- Restricts harmful marine subsidies via the Agreement on Fisheries Subsidies, adopted at MC12 in 2022.
- India’s 8th Trade Policy Review (21–23 July 2026, period 2021–2025) recorded exports of US$ 863.1 billion.
- India defends its food-security stockholding programs under the Bali Peace Clause (2013) against the 10% De Minimis threshold.
- At MC13 (Abu Dhabi, 26 Feb–1 Mar 2024), India called for restoration of the Appellate Body.
| Particular | Details |
| Established | 1 January 1995 |
| Legal Basis | Marrakesh Declaration / Uruguay Round |
| Headquarters | Geneva, Switzerland |
| TFA in force | 22 February 2017 |
| MC12 | 2022 — Agreement on Fisheries Subsidies |
| MC13 | 26 Feb–1 Mar 2024, Abu Dhabi |
| India’s 8th TPR | 21–23 July 2026; exports US$ 863.1 billion |
Conclusion
The World Trade Organization, established on 1 January 1995 under the Marrakesh Declaration following the Uruguay Round, administers over 60 multilateral trade agreements from its Geneva headquarters through a four-tiered structure led by the Ministerial Conference. India completed its 8th Trade Policy Review in July 2026, recording exports worth US$ 863.1 billion, and continues actively advocating public stockholding protections and the restoration of the Appellate Body, blocked since December 2019.