What is WTO and it’s role in International trade

October 23, 2020 Lokesh kumar 0 Comments

 


World Trade Organization (WTO) is the Only International organization which deals with Import-Export businesses.It deals with the trade rules and to open trade for the benefit of all the countries in the world. It gives equal rights to both small and large countries. This is the organization which is run by it’s members, where all the trading nation come and sort their trade issues face to face. It has 600 staff and the experts from all the domain such as lawyers, economists, statisticians and communications experts who all provide assistance to WTO on regular basis to ensure that work is going smoothly for applying the trade rules correctly. 

Under Advance Licence scheme Exporters are allowed to take the advance license to save the custom duty.

WTO Roles:-

It has only mission to open International Market for all the countries, It has four major role to play –

It act as Monitor for Import-Export:-

The WTO check and monitor the foreign trade policies and members, It checks whether they are following the trade rules or not. Monitor the domestic policies and it’s effect on International trade of all the member nation and the objective of this monitoring is to prevent all the trade issues which may arise in future well in advance.

Trainer for nation involved into International trade:-

It provide training programmes to all the countries if any new trade rules introduced to inform them before implementation.

Main role is to settle disputes between all the trading countries who are the member of WTO. It act as a trade tribunal where anyone can file the complaint against other nation if they fail to follow the Import-Export trade rules.

Trade Negotiations:-

The agreements cover all the type of export-import trade agreements, service agreements, and property agreements which are not fixed and may change after the negotiations.

Now the negotiation at WTO done as per the Doha Development Agenda introduced by world trade organization, which is located in Qatar.

Government of India launched EPCG Licence scheme to issue the license which allows duty free import of machinery or capital goods to manufacture the export products with the condition of EO which stands for export obligation and needs to be fulfilled by the license holder within given time period. After fulfilment of export obligation license holder needs to apply for the redemption of license at the DGFT office.

Incentive Schemes & Import Authorisation:-

As per WTO norms Government can provide export benefits to exporters to promote the exports and to make their product cost competitive in the global market, benefits are given in the form of transferable duty credit scrip which can be used in waiver of custom duties.

Indian Government has launched various scheme such MEIS Scheme and SEIS Scheme to provide incentive of 2% to 7% on the FOB value of exports and 5% to 7% on net foreign exchange earned respectively. To claim the benefits under MEIS Scheme and SEIS Scheme exporter needs to do online application on DGFT website by attaching the required documents such as shipping bills, valid copy of RCMC, eBRC etc.

To get the EPCG License exporters needs to do the application under EPCG Scheme on DGFT portal if they wish to import duty free machinery.

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