The Wto's Growing Clout

THE World Trade Organisation (WTO) which came into existence in April, 1994 in Marrakesh, Morroco, when member nations signed the ‘Final Act’ embodying the results of the Uruguay Round of Multilateral Trade Negotiations, was conceived in the aftermath of World War II. It was initially conceived as the International Trade Organisation, which was to be an umbrella organisation to regulate international trade and was to be part of the troika including the World Bank and International Monetary Fund. Unfortunately, the Havana Charter of 1948 fell through and the General Agreement of Trades and Tariffs (GATT), remained a legal instrument only. Till the first seven rounds of GATT, ending with the Tokyo Round in 1979, it confined itself to tariff cuts and reduction of non-tariff barriers while attempting to liberalise global trade in goods, barring textiles and agriculture.

The Uruguay Round added textiles and agriculture, and entered areas like investment, intellectual property rights and services. These additions ensured that the jurisdiction of GATT does not stop at national borders. And the new issues being raised by the North prior to the upcoming Singapore meeting in December will curtail the scope of national policies further.