World Trade Organization (WTO) is celebrating 30 years of the Marrakesh Agreement

Posted 26 Apr 2024

2 min read

Marrakesh Agreement was signed in Marrakesh, Morocco, by 123 countries in 1994 after the conclusion of the Uruguay Round.
- It led to the establishment of the WTO in 1995, replacing General Agreement on Tariffs and Trade (GATT) as an international organization.

About Marrakesh Agreement:
- It serves as basic framework for trade relations among all WTO members.
- It expanded the scope beyond trade in goods to trade in services, intellectual property, and other topics.
- It established modern multilateral trading system, facilitating negotiations, dispute settlement, and economic cooperation among members.
- It created WTO’s governance, establishing the Ministerial Conference (highest decision making body), General Council, and specialized councils.

Achievements of WTO
- Lowering trade barriers: Since 1995, real volume of world trade has expanded by 2.7 times and average tariffs have almost halved, from 10.5% to 6.4%.
- Rise of Global Value Chains: Trade within these value chains today accounts for almost 70% of total merchandise trade.
- Growth in developing countries: Fastest poverty reduction since 1995 and increased purchasing power in all countries.
- International Trade Agreements and Rules: TRIPS Agreement, Nairobi Package, Trade Facilitation Agreement, Doha Development Agenda etc.

Genesis: Established in 1995 and is the only international organization dealing globally with the rules of trade between nations.
Objective: Help its members use trade as a means to raise living standards, create jobs and improves people's lives.
Members: 166 (accounts for 98% of world trade) including India.
Headquarters: Geneva, Switzerland.
Decisions: Typically made by consensus.

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