WTO and SAFTA

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Overview

World Trade Organization known as WTO is a specialized organization of United Nations. SAFTA is a mutual agreement made by SAARC countries to promote the mutual trade and enhance economic cooperation by ensuring the free flow of goods and services among member countries. This note has information about World Trade Organization (WTO) and South Asian Free Trade Area(SAFTA).
WTO and SAFTA
World Trade Organization
World Trade Organization

World Trade Organization (WTO)

World Trade Organization is known as WTO, a specialized organization of United Nations. The foundation of WTO was developed in 8th GATT (General Agreement on Trade and Tariffs) in Uruguay in 1994. WTO is an international level organization established to manage, regulate and facilitate the global trade by maintaining trade discipline among member nations. It was established on 1st January 1995. It aims to develop trade rules, extend trade and solve trade problems among member countries. It works to maintain a fair and healthy competition among the member nations in their trade activities.

Functions of WTO

The following are the main functions of WTO as specified in its Charter:

  1. To administer and implement the trade agreements
  2. To act as a forum for multilateral trade negotiations
  3. To seek to resolve trade disputes
  4. To oversee national trade policies
  5. To co-operate with other international institutions involved in making global economic policy
  6. To act as a watchdog of international trade by examining the trade rules of member countries
  7. To act as a management consultant for international trade
  8. To provide technical assistance and training for developing countries
  9. To maintain trade-related database

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South Asian Free Trade Area (SAFTA)

South Asian Free Trade Area
South Asian Free Trade Area

SAFTA means South Asian Free Trade Area. It is a new business strategy developed during 10th SAARC Summit held in Kathmandu. SAFTA is a mutual agreement made by SAARC countries to promote the mutual trade and enhance economic cooperation by ensuring the free flow of goods and services among member countries. It came into effect on 1st July 2006 which replaced the earlier SAPTA. It is established to promote regional trade among the SAARC countries which include Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri-Lanka. The main objective of SAFTA is to promote fair competition in trade in SAARC countries to ensure their equitable benefits for economic development.

Functions of SAFTA

The major functions of SAFTA are as follows:

  1. To establish a free trade area in South Asia through the elimination of tariffs
  2. To form and implement the rules of origin to ensure that the product is manufactured by the country which is desirous to export
  3. To allow member countries to prepare a list of products which are to be restricted to import for the protection of national interest
  4. To form compensation scheme for the losses of revenue to the least developed member countries due to the arrangement of free trade area
  5. To provide technical support to the least developed member countries to promote export competitiveness
Things to remember
  • World Trade Organization known as WTO is a specialized organization of United Nations. 
  • SAFTA is a mutual agreement made by SAARC countries to promote the mutual trade and enhance economic cooperation by ensuring the free flow of goods and services among member countries.
  • SAFTA means South Asian Free Trade Area.
  • The main objective of SAFTA is to promote fair competition in trade in SAARC countries to ensure their equitable benefits for economic development.
  • The foundation of WTO was developed in 8th GATT (General Agreement on Trade and Tariffs) in Uruguay in 1994.  
  • WTO is an international level organization established to manage, regulate and facilitate the global trade by maintaining trade discipline among member nations. 
  • It includes every relationship which established among the people.
  • There can be more than one community in a society. Community smaller than society.
  • It is a network of social relationships which cannot see or touched.
  • common interests and common objectives are not necessary for society.
Questions and Answers

The full form of WTO is World trade Organization.

The full form of SAFTA is South Asian Free Trade Area.

The following are the main functions of WTO:

  1. To administer and implement the trade agreements
  2. To act as a forum for multilateral trade negotiations
  3. To seek to resolve trade disputes
  4. To oversee national trade policies
  5. To co-operate with other international institutions involved in making global economic policy
  6. To act as a watchdog of international trade by examining the trade rules of member countries
  7. To act as a management consultant for international trade
  8. To provide technical assistance and training for developing countries
  9. To maintain trade related database

World Trade Organization is an international level organization established to manage, regulate and facilitate the global trade by maintaining trade discipline among member nations

World Trade Organization was established on 1st January 1995.

WTO aims to develop trade rules, extend trade and solve trade problems among member countries. It works to main a fair and healthy competition among the member nations in their trade activities.

GATT stands for General Agreement on Trade and Tariffs.

Nepal became the member of WTO on 23rd April 2004 AD.

SAFTA is a mutual agreement made by SAARC countries to promote the mutual trade and enhance economic cooperation by ensuring the free flow of goods and services among member countries.

The major functions of SAFTA are as follows:

  1. To establish a free trade area in South Asia through the elimination of tariffs
  2. To form and implement the rules of origin to ensure that the product is manufactured by the country which is desirous to export
  3. To allow member countries to prepare a list of products which are to be restricted to import for the protection of national interest
  4. To form compensation scheme for the losses of revenue to the least developed member countries due to the arrangement of free trade area
  5. To provide technical support to the least developed member countries to promote export competitiveness

The main objective of SAFTA is to promote fair competition in trade in SAARC countries to ensure their equitable benefits for economic development.

SAFTA means South Asian Free Trade Area. It is a new business strategy developed during 10th SAARC Summit held in Kathmandu. SAFTA is a mutual agreement made by SAARC countries to promote the mutual trade and enhance economic cooperation by ensuring the free flow of goods and services among member countries. It came into effect on 1st July 2006 which replaced the earlier SAPTA. It is established to promote regional trade among the SAARC countries which include Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri-Lanka. The main objective of SAFTA is to promote fair competition in trade in SAARC countries to ensure their equitable benefits for economic development.

World Trade Organization known as WTO is a specialized organization of United Nations. The foundation of WTO was developed in 8th GATT (General Agreement on Trade and Tariffs) in Uruguay in 1994. WTO is an international level organization established to manage, regulate and facilitate the global trade by maintaining trade discipline among member nations. It was established on 1st January 1995. It aims to develop trade rules, extend trade and solve trade problems among member countries. It works to main a fair and healthy competition among the member nations in their trade activities.

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