83  WTO and Multilateral Regulation of Trade

83.1 Concept

The World Trade Organization (WTO) = the only global international organisation dealing with the rules of trade between nations. Established on 1 January 1995 through the Marrakesh Agreement (1994), replacing GATT (General Agreement on Tariffs and Trade 1947). Headquartered in Geneva. 164 members; India is a founding member. Director-General (2026): Ngozi Okonjo-Iweala (since 2021).

83.2 From GATT to WTO

TipGATT to WTO rounds
Round Year Outcome
Geneva 1947 GATT founded
Annecy 1949 Tariffs
Torquay 1951 Tariffs
Kennedy 1964-67 Tariffs, anti-dumping
Tokyo 1973-79 Tariffs, NTBs
Uruguay 1986-94 WTO created, TRIPS, TRIMS, GATS
Doha Development Round 2001- Agriculture, services, IP — stalled

83.3 WTO Structure

TipWTO hierarchy
  • Ministerial Conference — highest body; every 2 years.
  • General Council — day-to-day; Geneva.
  • Subsidiary bodies — Goods, Services, TRIPS.
  • Dispute Settlement Body (DSB).
  • Trade Policy Review Body.
  • Secretariat — DG.

83.4 WTO Agreements

TipMajor WTO agreements
Agreement Coverage
GATT 1994 Trade in goods
GATS General Agreement on Trade in Services
TRIPS Trade-Related Intellectual Property Rights
TRIMS Trade-Related Investment Measures
DSU Dispute Settlement Understanding
TPRM Trade Policy Review Mechanism
AoA Agreement on Agriculture
SPS Sanitary & Phytosanitary Measures
TBT Technical Barriers to Trade
Anti-Dumping GATT Art. VI
Subsidies & Countervailing Measures (SCM)
Safeguards
GPA Government Procurement (plurilateral)
ITA Information Technology Agreement
TFA Trade Facilitation Agreement (2017)
Fisheries Subsidies (2022)

83.5 WTO Principles

TipCore principles
  • Non-discrimination:
    • MFN (Most-Favoured-Nation) — equal treatment among trading partners.
    • National Treatment — equal treatment foreign vs domestic after entry.
  • Trade liberalisation via negotiation.
  • Predictability — bound tariffs.
  • Fair competition.
  • Special & differential treatment for developing countries.
  • Transparency.
  • Reciprocity.

83.6 Dispute Settlement

TipDSU process
  • Consultations (60 days).
  • Panel establishment.
  • Panel report.
  • Appellate Body review.
  • DSB adoption.
  • Implementation.
  • Retaliation if non-compliance.

Note: Appellate Body has been non-functional since 2019 due to US blocking appointments — Multi-Party Interim Appeal Arbitration Arrangement (MPIA) being used.

83.7 TRIPS and Public Health

TipTRIPS key features
  • Minimum 20-year patent.
  • Doha Declaration on TRIPS and Public Health (2001) — flexibilities for generics.
  • Compulsory licensing — Indian Patents Act Section 84 (Natco-Bayer Nexavar 2012).
  • COVID-19 TRIPS waiver (2022) — partial.
  • India is global generic pharma leader.

83.8 Ministerial Conferences

TipRecent ministerial conferences
  • MC1 Singapore 1996.
  • MC2 Geneva 1998.
  • MC3 Seattle 1999 — protests; failed.
  • MC4 Doha 2001 — Doha Round launched.
  • MC5 Cancun 2003 — collapsed.
  • MC6 Hong Kong 2005.
  • MC7-MC9 Geneva, Bali.
  • MC11 Buenos Aires 2017.
  • MC12 Geneva 2022 — fisheries subsidies; vaccines.
  • MC13 Abu Dhabi 2024 — moratorium on e-commerce duties.

83.9 India and WTO

TipIndia’s stance
  • Founding member 1995.
  • Champion of developing-country concerns: agriculture subsidies (food security), generic pharma, services (Mode 4), data localisation, special and differential treatment.
  • Peace Clause (2013 Bali) — protects India’s food procurement.
  • Active in TRIPS, services, agriculture, environment.
  • Opposes Singapore issues (trade-investment, government procurement, competition).
  • Bilateral trade disputes with US (steel, solar, technology).

83.10 Modern Issues at WTO

TipModern WTO issues
  • Reform of dispute settlement — Appellate Body restoration.
  • E-commerce moratorium on customs duties (extended at MC13).
  • Digital trade rules.
  • Plurilateral negotiations — JSI (Joint Statement Initiatives).
  • Environment / Climate — Trade and Climate Change.
  • CBAM compatibility with WTO rules.
  • Industrial policy and subsidies debate.
  • Global value chains.
  • WTO at crossroads — US-China tensions, China subsidies, IPR.
  • MSME / women in trade.

83.11 Practice Questions

Q 01WTO foundedEasy

WTO was established on:

  • A1 Jan 1995
  • B1 Jan 2000
  • C1 Jan 1994
  • D1 Jan 1947
View solution
Correct Option: A
WTO formed 1 Jan 1995, succeeding GATT 1947.
Q 02HQEasy

WTO headquarters is in:

  • AGeneva
  • BNew York
  • CBrussels
  • DWashington
View solution
Correct Option: A
Centre William Rappard, Geneva.
Q 03MarrakeshMedium

Marrakesh Agreement (1994) established:

  • AWTO
  • BIMF
  • CUN
  • DASEAN
View solution
Correct Option: A
Marrakesh Agreement 15 April 1994.
Q 04MFNMedium

MFN principle means:

  • AEqual treatment among trading partners
  • BEqual treatment foreign vs domestic
  • CFree movement of labour
  • DCurrency convertibility
View solution
Correct Option: A
Most-Favoured-Nation — no discrimination among trading partners.
Q 05TRIPSMedium

TRIPS provides minimum patent term of:

  • A14 years
  • B20 years
  • C25 years
  • D30 years
View solution
Correct Option: B
20 years from filing.
Q 06DohaMedium

Doha Development Round was launched in:

  • A2001
  • B1995
  • C2008
  • D2015
View solution
Correct Option: A
MC4 Doha 2001 — focus on developing-country issues.
Q 07DGMedium

Current WTO Director-General (since 2021) is:

  • ANgozi Okonjo-Iweala
  • BRoberto Azevêdo
  • CPascal Lamy
  • DMike Moore
View solution
Correct Option: A
First African and first woman DG.
Q 08National TreatmentMedium

National Treatment ensures:

  • AEqual treatment of foreign and domestic products after entry
  • BNo tariffs ever
  • CFree trade zones only
  • DCurrency exchange
View solution
Correct Option: A
Same treatment after products clear customs.
Q 09Appellate BodyHard

WTO Appellate Body has been non-functional since:

  • A2019
  • B2022
  • C2010
  • D2016
View solution
Correct Option: A
US blocked appointments from 2017; quorum lost Dec 2019.
Q 10MC13Hard

WTO MC13 (2024) was held in:

  • AAbu Dhabi
  • BGeneva
  • CBali
  • DNew Delhi
View solution
Correct Option: A
Abu Dhabi, Feb-Mar 2024.
Q 11GATSMedium

GATS deals with:

  • AServices
  • BGoods
  • CIP
  • DInvestment
View solution
Correct Option: A
General Agreement on Trade in Services.
Q 12TFAHard

Trade Facilitation Agreement came into force in:

  • A2017
  • B2013
  • C2020
  • D2022
View solution
Correct Option: A
TFA entered force Feb 2017.
Q 13BaliHard

Bali Peace Clause (2013) protects:

  • AIndia's food-security procurement
  • BEU dairy subsidies
  • CUS cotton
  • DBrazil sugar
View solution
Correct Option: A
Indefinite peace clause for developing countries' public food stockholding.
Q 14Compulsory licenceHard

India's first compulsory licence (Natco-Bayer Nexavar) was granted in:

  • A2012
  • B2000
  • C2015
  • D2018
View solution
Correct Option: A
March 2012 — Natco/Sorafenib.
Q 15MatchHard

Match:

(i) GATT (a) Services
(ii) GATS (b) IP
(iii) TRIPS (c) Investment
(iv) TRIMS (d) Goods
  • A(i)-(d), (ii)-(a), (iii)-(b), (iv)-(c)
  • B(i)-(a), (ii)-(b), (iii)-(c), (iv)-(d)
  • C(i)-(b), (ii)-(c), (iii)-(d), (iv)-(a)
  • D(i)-(c), (ii)-(d), (iii)-(a), (iv)-(b)
View solution
Correct Option: A
GATT—Goods; GATS—Services; TRIPS—IP; TRIMS—Investment.

83.11.1 Advanced Format Questions

AR 1Assertion-ReasonHard

A: MFN means equal treatment among trading partners.
R: National Treatment means equal treatment of foreign vs domestic after entry.

  • ABoth true; R explains A
  • BBoth true; R does not explain A
  • CA true, R false
  • DA false, R true
View solution
Correct Option: B
S 1Statement-basedMedium

WTO agreements: (i) GATT. (ii) GATS. (iii) TRIPS. (iv) TRIMS.

  • AAll four
  • B(i) and (ii) only
  • C(iii) and (iv) only
  • D(i) only
View solution
Correct Option: A
S 2Statement-basedHard

WTO principles: (i) MFN. (ii) National Treatment. (iii) Liberalisation. (iv) S&DT.

  • AAll four
  • B(i) and (ii) only
  • C(iii) and (iv) only
  • D(i), (ii), (iii) only
View solution
Correct Option: A

83.12 Quick Recall

ImportantQuick recall
  • WTO: 1 Jan 1995 (Marrakesh 1994); Geneva HQ; 164 members; India founding.
  • DG (since 2021): Ngozi Okonjo-Iweala.
  • Rounds: Geneva-Annecy-Torquay-Kennedy-Tokyo-Uruguay (WTO formed)-Doha (2001, stalled).
  • Agreements: GATT (goods) · GATS (services) · TRIPS (IP) · TRIMS (investment) · DSU · AoA · SPS · TBT · Anti-Dumping · SCM · Safeguards · GPA · ITA · TFA (2017) · Fisheries Subsidies (2022).
  • Principles: MFN · National Treatment · liberalisation · predictability · fair competition · S&DT · transparency · reciprocity.
  • Dispute Settlement: consultations → panel → Appellate (suspended since 2019) → adoption → retaliation; MPIA as workaround.
  • TRIPS — 20-year patent · Doha Health Declaration 2001 · COVID waiver 2022 · India CL Natco-Bayer 2012.
  • Ministerials: Singapore ’96 → Seattle ’99 → Doha ’01 → Bali ’13 (Peace Clause) → Nairobi · BA · Geneva MC12 2022 · Abu Dhabi MC13 2024.
  • India: founder; champions agriculture (food security), generics, services Mode 4, S&DT; opposes Singapore issues.
  • Modern: AB reform · e-commerce moratorium · digital trade · plurilateral JSI · environment/CBAM · industrial subsidies · GVCs · US-China.