Explanations:The World Trade Organisation (WTO) is an international organization that was established in 1995 to regulate and liberalize international trade. It was formed by the initiative of developed countries, primarily to create a more structured and predictable system for international trade. The WTO replaced the General Agreement on Tariffs and Trade (GATT), which had been in place since 1947.
The primary purpose of the WTO is to ensure that trade flows as smoothly, predictably, and freely as possible. It does this by setting and enforcing rules for international trade, providing a forum for negotiations, and resolving disputes between member countries. The WTO has a membership of 164 countries, and its decisions are made by consensus among its members.
The formation of the WTO was a significant step in the evolution of international trade governance. It was initiated by developed countries to address the limitations of the GATT, which was a set of rules and agreements rather than a formal organization. The WTO provides a more robust framework for trade negotiations and dispute resolution, which has helped to reduce trade barriers and increase global trade.
It is important to distinguish the WTO from other international organizations. For example, the United Nations (UN) is a broader organization that deals with a wide range of global issues, including peace and security, human rights, and development. The World Bank, on the other hand, is focused on providing financial and technical assistance to developing countries for development projects.
The Earth Summit, also known as the United Nations Conference on Environment and Development, is another international conference that focuses on environmental issues and sustainable development. It is not related to the regulation of international trade, which is the primary focus of the WTO.
Understanding the formation and purpose of the WTO is crucial for students preparing for competitive exams, as it is a key topic in general knowledge and international relations. The WTO plays a significant role in the global economy, and its rules and decisions can have a substantial impact on international trade and economic relations.