The World Trade Organization (WTO) is an international organization that regulates and promotes international trade. The organization is responsible for ensuring that countries abide by the agreements of WTO, which are designed to promote free trade and economic growth. In this article, we will discuss the agreements of WTO and their importance.
The General Agreement on Tariffs and Trade (GATT) is the most significant agreement of WTO. It is a set of rules governing international trade that aims to reduce tariff and non-tariff barriers to trade. GATT has been in effect since 1948 and was incorporated into the WTO in 1995.
The Agreement on Agriculture (AoA) is another crucial agreement of WTO. It aims to reform trade practices in the agricultural sector, which has traditionally been heavily protected by national governments. The AoA seeks to reduce trade-distorting subsidies and provide greater access to agricultural markets.
The Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) is another important agreement of WTO. It aims to ensure that food safety and animal and plant health measures are not used as unjustified trade barriers. The SPS Agreement provides a framework for countries to develop their own regulations, while also requiring them to base their measures on scientific evidence.
The Agreement on Technical Barriers to Trade (TBT Agreement) aims to prevent unnecessary technical regulations, product standards, and testing procedures from becoming barriers to trade. The TBT Agreement requires countries to base their regulations on international standards, where possible, to avoid creating trade barriers.
The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement) establishes minimum standards for the protection and enforcement of intellectual property rights. The TRIPS Agreement aims to ensure that patents, trademarks, copyrights, and other forms of intellectual property are protected and enforced in a manner that does not unfairly restrict trade.
The Government Procurement Agreement (GPA) is an agreement that promotes open and transparent government procurement practices. The GPA seeks to ensure that government procurement contracts are open to competition from foreign firms.
In conclusion, the agreements of WTO play a significant role in promoting free trade and economic growth around the world. The agreements aim to reduce barriers to trade, promote fair practices, and encourage open markets. By adhering to the agreements, countries can reap the benefits of increased trade and economic prosperity.