Full form of WTO is world trade organisation . It is an international organisation which established after conversion of GATT in 1995 . In 1944 , when bretton woods conference was completed . In that meeting leaders of developed countries wanted to make international trade organisation but they accepted only GATT's policies in 1948 . After Uruguay discussion , all GATT members included in WTO .
Main objective of making WTO is to reduce restrictions in international trade with more globalisation and liberalisation policy.
Functions and policies of WTO
1. Reduction of the rate of Tariffs :
Tariffs means tax on imported goods . For developing international trade , it is compulsory to all member countries to reduce 24 % to 30 % tariffs with in 6 to 10 years .
2. Reduction the subsidy to domestic trade
For more smooth competition , WTO has made rule to reduce the amount of subsidy or other assistance which is given by govt. to their domestic industry .
3. TRIPS
Trips means trade and intellectual property rights . WTO has made some rules for prohibiting piracy in intellectual property rights . All countries will have to accept these trips .
4. Other GATT rules
Some of GATT rules will still apply
Main objective of making WTO is to reduce restrictions in international trade with more globalisation and liberalisation policy.
Functions and policies of WTO
1. Reduction of the rate of Tariffs :
Tariffs means tax on imported goods . For developing international trade , it is compulsory to all member countries to reduce 24 % to 30 % tariffs with in 6 to 10 years .
2. Reduction the subsidy to domestic trade
For more smooth competition , WTO has made rule to reduce the amount of subsidy or other assistance which is given by govt. to their domestic industry .
3. TRIPS
Trips means trade and intellectual property rights . WTO has made some rules for prohibiting piracy in intellectual property rights . All countries will have to accept these trips .
4. Other GATT rules
Some of GATT rules will still apply
