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WTO for UPSC: Functions, Agreements & Subsidy Boxes Explained

Introduction

The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade. Established in 1995 (Marrakesh Agreement).

1. Key Principles

• MFN (Most Favoured Nation): Treat all countries equally. If you lower tariff for one, you must for all.
• National Treatment: Treat foreign goods same as local goods once they enter your market.

2. Agreement on Agriculture (AoA)

Classifies subsidies into "Boxes":

• Green Box: Non-distorting (R&D, Pest control). Allowed.
• Amber Box: Trade distorting (MSP, Input subsidies). Capped at 10% (de minimis) for developing nations.
• Blue Box: Subsidy with production limits.

3. TRIPS

Trade Related Aspects of Intellectual Property Rights. Covers Patents (20 years), Copyrights, GI Tags.

Conclusion

WTO is currently facing a crisis as its Appellate Body is dysfunctional. India fights for the rights of the Global South (e.g., Public Stockholding of food grains).