Evaluation of the wto, Microeconomics

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Evaluation of the WTO:

The WTO is different from and an improvement over the GATT in the following respects: 

•  The WTO is more global in its membership. 

•  The WTO has introduced commercial activities into the multilateral trading system. 

•  While the GATT had 'contracting parties'. WTO has 'members' and is a legal organisation. 

•  GATT provisions in case of disputes were time-consuming. GATT could levy penalties only through unanimous decisions, which were virtually impossible. Under WTO, unanimous are no longer desired; all disputes are to be settled within 18 months. 

•  WTO has one-country one-vote principle, unlike in the World Bank and IMF where the economic strength of rich countries translates into a voting majority. 

•  Even if developing countries differ on specific issues, they can make a difference if even a few of them stand firm. 

•  Both big and small developing countries no longer accept decisions taken behind closed door by a group of select countries.  

 


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