Multilateral Trading System And WTO

Abstract

Multilateral trading system and WTO had some conflicting aspects to deal with. Apprehensions regarding the introduction of non-trade issues were the matter that had to be settled.

As of 2001, multilateral trading system and WTO or World Trade Organization was at crossroads. Things were a bit uncertain and apprehensions ruled supreme whether members of WTO would put in efforts to nullify the imbalances and lacunae existing in the trade system. It was also being ascertained whether the members would accept the "new comprehensive Round". The main concern was whether the changes, which were being proposed for implementation would actually repair the damage prevailing in the trading system or make matters worse for the imbalances, which were already existing.

It was decided that through the implementation of the "New Comprehensive Round", few topics would be dealt with. The World Trade Organization or the WTO would do this. These topics would include procurement, investment and competition. Simultaneously, it was felt that introducing the New Comprehensive Round was not appropriate. The reasons why it was felt so are given below:

The principles of national treatment and transparency and the operations, which were meant for issues related to Trade may not be appropriate for issues related to non-trade.

The developing countries were attempting to incorporate into WTO several non-trade issues, not with an objective of strengthening trading activities but with the hope that this would use WTO's enforcement system.

The World Trade Organization is trade dominated and is responsible for framing as well as enforcing norms pertaining to trade. It was decided that the WTO ought to adhere to the trade issues only and not indulge in non-trade issues.

The main reason why the non trade issues were not allowed to be incorporated into WTO agenda lay in the fact that in the event these non trade issues are applied to the developing nations, these nations would be affected in an adverse manner thereby losing the sovereignty in economy.