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Line 23: − + − + − + − The numbers of member state of WTO grows to 150 when Vietnam became the member on January 11 2007. Presently it has 153(July 2008) member states.<ref>[http://news.bbc.co.uk/2/hi/europe/country_profiles/2429503.stm BBC News-Profile: World Trade Organization]</ref><ref>[http://www.wto.org/english/thewto_e/whatis_e/tif_e/org6_e.htm WTO-Members and Observers]</ref>+ − The first Ministerial Conference was held in 1996 in Singapore.<ref>[http://www.nationalaglawcenter.org/assets/crs/98-928.pdf CRS Report for Congress-The World Trade Organization: Background and Issues]</ref><ref>[http://en.wikipedia.org/wiki/World_Trade_Organization wikipedia-World Trade Organization]</ref>+ − ==Functions<ref>[http://www.iisd.org/trade/handbook/3_2.htm iisd.org]</ref><ref>[http://en.wikipedia.org/wiki/World_Trade_Organization wikipedia-World Trade Organization]</ref><ref>[http://www.nationalaglawcenter.org/assets/crs/98-928.pdf CRS Report for Congress-The World Trade Organization: Background and Issues]</ref>==+ + + + + + + + + + + + + + + + + + + + + + + + + + + + + + +
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==History==
==History==
The World Trade Organization supplanted GATT, or the General Agreement on Tariffs and Trade, which was signed into law in October 1947 by 23 countries in order to reduce custom tariffs between them.
* The World Trade Organization supplanted GATT, or the General Agreement on Tariffs and Trade, which was signed into law in October 1947 by 23 countries in order to reduce custom tariffs between them.
Afterwards, proposal for establishment of International Trade Organization was out forward by delegates from fifty-six countries in November 1947 at Havana, Cuba.
* Afterwards, proposal for establishment of International Trade Organization was out forward by delegates from fifty-six countries in November 1947 at Havana, Cuba.
On January 1 1995, the World Trade Organization was established.<ref>[http://news.bbc.co.uk/2/hi/europe/country_profiles/2429503.stm BBC News-Profile: World Trade Organization]</ref>
* On January 1 1995, the World Trade Organization was established.<ref>[http://news.bbc.co.uk/2/hi/europe/country_profiles/2429503.stm BBC News-Profile: World Trade Organization]</ref>
* From the year 1947 to the year 1994 GATT acted as the provider of rules for most of the trading houses all over the world. Although it seemed to be well established for those 47 years, it was actually a provisional organization and agreement. So, the GATT’s fundamental official principles were almost the same since the time it was established. There were a few additions in the year 1960 and 1970 with the goal to reduce the tariffs.<ref>[http://www.wto.org/english/thewto_e/whatis_e/tif_e/fact4_e.htm The GATT years: from Havana to Marrakesh]</ref>
* However, major changes occurred during the Tokyo Round which lasted from 1973 to 1979 and saw around 102 countries participating. Although, it was held with major improvements in mind but, it received mixed reviews and in most of the cases, there was relatively low participation.<ref>[http://www.wto.org/english/thewto_e/whatis_e/tif_e/fact4_e.htm The GATT years: from Havana to Marrakesh]</ref>
* During the early 1980s the world trade did not find GATT’s principles as applicable to the realities as they used to find it in the 1940s.<ref>[http://www.wto.org/english/thewto_e/whatis_e/tif_e/fact4_e.htm The GATT years: from Havana to Marrakesh]</ref>
* The numbers of member state of WTO grows to 150 when Vietnam became the member on January 11 2007. Presently it has 153(July 2008) member states.<ref>[http://news.bbc.co.uk/2/hi/europe/country_profiles/2429503.stm BBC News-Profile: World Trade Organization]</ref><ref>[http://www.wto.org/english/thewto_e/whatis_e/tif_e/org6_e.htm WTO-Members and Observers]</ref>
* The first Ministerial Conference was held in 1996 in Singapore.<ref>[http://www.nationalaglawcenter.org/assets/crs/98-928.pdf CRS Report for Congress-The World Trade Organization: Background and Issues]</ref>
==Trading System Principles==
The principles of WTO agreements are the basis of the mutual trading arrangement that has occurred between traders who deal with textiles, agriculture, telecommunications, banking, etc. They are:
==Trade sans discrimination==
Countries should treat each and everyone equally. There should be no discrimination and no country should get extra favor from some other country. Local and imported goods must be considered one and the same.
===Freer trade===
It included lowering of custom duties and tariffs.
===Predictability===
Binding and transparency in the trades makes it more predictable and hence increases the benefits.
==The case for Open Trade==
The case designed for open trading system is very simple and is based on some logical commercial sense. However, evidences support its rules as well. It is very logical to assume that all countries grow according to the assets they have and the utilization of their assets. Some countries have assets but they do not have the means to utilize them. Some have over-utilized their assets.
So, open trade practice makes it possible for countries to share their strengths as well as weaknesses so that both of them grow and prosper. Hence, freer trade leads to better economic growth.
==The Uruguay Round==
The Uruguay round started in 1882, took place for seven and a half years which was twice the actual schedule. Around 123 countries took part in it. Although during the early times of the round it seemed to fail its purpose but gradually it brought about the largest improvement in the trading field all over the world.
In the year 1986, the GATT members gradually accepted the negotiating program that enclosed almost all the outstanding issues of the trade policy.
In 1988, the agenda for the remaining two years was discussed. It finally ended at a positive note.
==Functions<ref>[http://www.iisd.org/trade/handbook/3_2.htm iisd.org]</ref><ref>[http://www.nationalaglawcenter.org/assets/crs/98-928.pdf CRS Report for Congress-The World Trade Organization: Background and Issues]</ref>==
The World Trade Organization performs versatile functions in the area of international trade and they are as follows:
The World Trade Organization performs versatile functions in the area of international trade and they are as follows: