- World Trade Organization (WTO) is celebrating 30 years of the Marrakesh Agreement.
- Marrakesh Agreement was signed in Marrakesh, Morocco, by 123 countries in 1994 after the conclusion of the Uruguay Round.
- It led to the establishment of the WTO in 1995, replacing General Agreement on Tariffs and Trade (GATT) as an international organization.
About Marrakesh Agreement:
- It serves as basic framework for trade relations among all WTO members.
- It expanded the scope beyond trade in goods to trade in services, intellectual property, and other topics.
- It established modern multilateral trading system, facilitating negotiations, dispute settlement, and economic cooperation among members.
- It created WTO’s governance, establishing the Ministerial Conference (highest decision making body), General Council, and specialized councils.
Achievements of WTO
- Lowering trade barriers: Since 1995, real volume of world trade has expanded by 2.7 times and average tariffs have almost halved, from 10.5% to 6.4%.
- Rise of Global Value Chains: Trade within these value chains today accounts for almost 70% of total merchandise trade.
- Growth in developing countries: Fastest poverty reduction since 1995 and increased purchasing power in all countries.
- International Trade Agreements and Rules: TRIPS Agreement, Nairobi Package, Trade Facilitation Agreement, Doha Development Agenda etc.