Source: TOI
Context: Brazil has lodged a formal complaint with the World Trade Organization (WTO) against the United States’ 50% tariff on Brazilian imports.
About World Trade Organization (WTO):
- What It Is?
- The WTO is the sole global body governing international trade rules, acting as a forum for negotiations, dispute resolution, and ensuring fair trade practices among member nations.
- Headquarters: Geneva, Switzerland
- Established In: 1 January 1995 – replacing the General Agreement on Tariffs and Trade (GATT), which had operated since 1948.
- Historical Background:
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- Origin traces back to post–World War II efforts to create a fair, rules-based global trade system.
- GATT (1947) provided initial tariff-reduction frameworks.
- The Uruguay Round (1986–94) expanded trade rules to services and intellectual property, leading to the WTO’s creation.
- Objectives:
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- Promote free, predictable, and transparent trade flows.
- Reduce tariffs and non-tariff barriers.
- Provide a platform for negotiation and cooperation.
- Ensure dispute settlement through agreed legal processes.
- Support developing and least-developed countries in global trade participation.
- Core Functions:
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- Administer Trade Agreements – Uphold commitments signed by members.
- Forum for Negotiations – Facilitate trade talks in goods, services, and IP rights.
- Settle Disputes – Operate a formal dispute resolution mechanism.
- Review Trade Policies – Promote transparency via the Trade Policy Review Mechanism.
- Capacity Building – Provide training, technical assistance, and infrastructure support to developing members.
- Cooperation – Collaborate with IMF, World Bank, and other global economic institutions.
