WTO was established on 1st January 1995. In April 1994, the Final Act was signed at a meeting in Marrakesh, Morocco. The Marrakesh Declaration of 15th April 1994 was formed to strengthen the world economy that would lead to better investment, trade, income growth and employment throughout the world. The WTO is the successor to the General Agreement of Tariffs and Trade (GATT). India is one of the founder members of WTO. WTO represents the latest attempts to create an organisational focal point for liberal trade management and to consolidate a global organisational structure to govern world affairs. WTO has attempted to create various organisational attentions for regulation of international trade. WTO created a qualitative change in international trade. It is the only international body that deals with the rules of trades between nations.
The key objective of WTO is to promote and ensure international trade in developing countries. The other major functions include:
· Helping trade flows by encouraging nations to adopt discriminatory trade policies.
· Promoting employment, expanding productions and trade and raising standard of living and income and utilising the world’s resources.
· Ensuring that developing countries secure a better share of growth in world trade.
· Providing forum for trade negotiations.
· Resolving trade disputes.
The important functions of the WTO as stated in the WTO agreement are the following: