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International relationsInternational organisations1995

World Trade Organization

Successor to GATT; India is a founding member.

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Headquartered in Geneva.

Centre William Rappard, Geneva, headquarters of the World Trade Organization.
Centre William Rappard, Geneva, headquarters of the World Trade Organization. E. Murray, CC BY-SA 3.0, via Wikimedia Commons
Practise this in the app: flashcards, quiz and a timed answer
Prelims

Quick recall

When was the WTO established?
1 January 1995.
What did it replace?
GATT (1947).
Where is it headquartered?
Geneva.
What is its top decision-making body?
The Ministerial Conference.
Why is the Appellate Body non-functional?
The US has blocked appointments, so it lost quorum in 2019.
Which agreement covers farm subsidies?
The Agreement on Agriculture.

Asked before in UPSC

Recurring theme: WTO rules, agricultural subsidies and India's food security

Mains
  1. 2026 · GS3 · 15 marks

    Discuss the different types of subsidies and supports provided by the Government of India to agricultural sector. Examine the related issues pertaining to Agreement on Agriculture of World Trade Organisation (WTO).

    Repeats the 2023 theme: India's farm support measured against WTO Agreement on Agriculture limits.

  2. 2023 · GS3 · 15 marks

    What are the direct and indirect subsidies provided to farm sector in India? Discuss the issues raised by the World Trade Organization (WTO) in relation to agricultural subsidies.

    Tests the Agreement on Agriculture boxes, de minimis limits and the peace clause for public stockholding.

  3. 2018 · GS2 · 15 marks

    What are the key areas of reform if the WTO has to survive in the present context of 'Trade War', especially keeping in mind the interest of India?

    Appellate Body paralysis, special and differential treatment and dispute settlement are the reform areas this answer needs.

  4. 2016 · GS2 · 12.5 marks

    The broader aims and objectives of WTO are to manage and promote international trade in the era of globalization. But the Doha round of negotiations seems doomed due to differences between the developed and the developing countries. Discuss in the Indian perspective.

    Tests the WTO's objectives and the North-South split that stalled the Doha Development Round.

  5. 2014 · GS2 · 12.5 marks

    WTO is an important international institution where decisions taken affect countries in profound manner. What is the mandate of WTO and how binding are their decisions? Critically analyse India's stand on the latest round of talks on Food security.

    Tests the WTO's mandate as GATT's successor and India's public stockholding position after the Bali package.

Prelims
  1. 2017 · Prelims

    Consider the following statements: 1. India has ratified the Trade Facilitation Agreement (TFA) of WTO. 2. TFA is a part of WTO's Bali Ministerial Package of 2013. 3. TFA came into force in January 2016. Which of the statements given above is/are correct? (a) 1 and 2 only (b) 1 and 3 only (c) 2 and 3 only (d) 1, 2 and 3

    Tests the Trade Facilitation Agreement from the 2013 Bali ministerial.

  2. 2015 · Prelims

    The terms 'Agreement on Agriculture', 'Agreement on the Application of Sanitary and Phytosanitary Measures' and 'Peace Clause' appear in the news frequently in the context of the affairs of the (a) Food and Agriculture Organization (b) United Nations Framework Conference on Climate Change (c) World Trade Organization (d) United Nations Environment Programme

    Tests identification of core WTO agreements; the answer is the World Trade Organization.

The basics

Why it matters

The World Trade Organization sets rules for international trade and settles disputes. Its Appellate Body has been non-functional since 2019, weakening dispute settlement.

1995
Year the WTO was established
Replacing GATT (1947); headquartered in Geneva.

How it evolved

Key milestones.

WTO
  1. 1947GATT signed
  2. 1986-94Uruguay Round
  3. 1995WTO established
  4. 2001Doha Round launched
  5. 2019Appellate Body stops functioning

You now know

  • Established on 1 January 1995, replacing GATT.
  • Headquartered in Geneva; decisions by consensus.
  • Ministerial Conference is the top body.
  • Appellate Body non-functional since December 2019.

Go deeper

In one line: The WTO is the rulebook of world trade, now weakened by a stalled dispute system.

Why it matters for UPSC

India's food security and farm subsidies are frequent WTO topics.

The core idea

India defends Public stockholding for food security and faces limits under Agreement on Agriculture boxes.

Where to go next

In one line: India seeks a permanent solution on food stocks and restoration of dispute settlement.

Peace clause

Agreed at Bali (2013) to protect stockholding programmes from disputes. See Agreement on Agriculture and Public stockholding for food security.

Where to go next

Agreement on Agriculture

WTO rules on farm support

In one line: The WTO Agreement on Agriculture limits trade-distorting farm support.

Boxes

Amber (distorting), Blue (production-limiting) and Green (minimal distortion).

De minimis

10% of production value for developing countries.

Where to go next

Public stockholding for food security

India's key WTO issue

In one line: Public stockholding means governments buying and storing food, such as India's MSP procurement.

WTO issue

It can breach subsidy limits.

Peace clause

Bali (2013) protects it until a permanent solution.

Where to go next

Prelims-style quiz

  1. The WTO replaced:

    1. GATT
    2. OECD
    3. IMF
    4. UNCTAD
    Show answer

    Answer: (a) GATT. GATT.

  2. Consider the following:
    1. The WTO Appellate Body has been non-functional since 2019.
    2. WTO decisions are usually by majority vote.
    Which of the statements given above is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Show answer

    Answer: (a) 1 only. Decisions are usually by consensus.

  3. The WTO was established in:

    1. 2001
    2. 1986
    3. 1995
    4. 1947
    Show answer

    Answer: (c) 1995. 1995.

  4. Farm subsidies are covered under the WTO's:

    1. TRIMs
    2. Agreement on Agriculture
    3. GATS
    4. TRIPS
    Show answer

    Answer: (b) Agreement on Agriculture. Agreement on Agriculture.

Syllabus

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