Give the meaning of WTO? What is the major aim of WTO? Mention any two shortcomings of WTO?

WTO stands for World Trade Organisation. The major of the aim of WTO is that all barriers to foreign trade and investment should be removed as they are harmful to the growth of a country’s economy in the long run. The practice of trading should be free between countries and that all the countries in the world should liberalize their policies. Shortcomings of the WTO-

1. Although the WTO is to allow a free trade for all, in practice, it has been observed that the developed nations have unfairly retained trade barriers and manipulated the situation.

2. It has also been observed that the WTO rules, formulated in an exploitative manner, have forced the developing nations to remove trade barriers and initiate policies of liberalization.

NOTE – As the name suggests, WTO (World Trade Organisation) establishes rules related to trade practices. Started at the initiative of the developed nations, the WTO establishes rules regarding international trade and keeps in check that these rules are obeyed. But it has been noticed that the implementation of such policies has always favoured the Developed Nations and their positions in the International market. The will of the developed nations has always been centric to the policies of this organization.