New Chief of WTO

On 15th February, 2021, Nigeria’s Ngozi Okonjo-Iweala has been appointed the new chief of the World Trade Organization (WTO), becoming the first woman to ever lead the institution and the first African citizen to take on the role.

  • She is the seventh Director-General of the WTO. She will hold the position from March 1, 2021, to August 31, 2025.
  • The appointment came after new US President Joe Biden endorsed her candidacy, which had been blocked by former President Donald Trump.

World Trade Organisation (WTO)

  • It was formed in 1995 to promote global trade among nations under the Marrakesh Agreement signed in 1994.
  • It superseded the 1947 General Agreement on Tariffs and Trade (GATT) created in the wake of World War II.
  • While WTO came in to existence in 1995, GATT didn’t cease to exist. It continues as WTO’s umbrella treaty for trade in goods.

Members

  • The WTO has 164 members (including European Union) and 23 observers.
  • India is a founder member of the 1947 GATT and its successor, the WTO.

Objectives

  • Its aims to set and enforce rules for international trade, provide a forum for negotiating and monitoring trade liberalization, resolve trade disputes, increase transparency in decision making, and cooperate with other major international economic organisations.

Structure

  • The General Council comprises the representatives of all member countries and acts as the representative of the Ministerial Conference when it comes to daily operations. Its job is to carry out the implementation and monitoring function of the WTO.
  • The Dispute Settlement Body is a part of the General Council and is responsible for settling trade disputes between member states. There is also an Appellate Body, where member states can appeal any decisions made against them during a dispute settlement.
  • The Trade Policy Review Body is also a part of the General Council and is responsible for ensuring the trade policies of member states are in line with the goals of the WTO. Member countries are required to inform the WTO about changes in their laws and trade policies.

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