Covered Agreements in WTO: What You Need to Know

The World Trade Organization (WTO) is an international organization that regulates world trade. It operates on the basis of a set of multilateral agreements, which are known as “covered agreements.” These agreements cover a wide range of issues related to international trade, including tariffs, subsidies, intellectual property rights, and dispute settlement procedures.

The covered agreements in WTO are binding on all WTO members, which currently number 164 countries. They are designed to promote free trade by eliminating discrimination and unfair practices in international trade. In this article, we`ll take a closer look at the covered agreements in WTO and what you need to know about them.

What are Covered Agreements in WTO?

Covered agreements in WTO are multilateral agreements that are binding on all WTO members. These agreements govern a wide range of trade-related issues, including:

1. Tariffs: WTO members are required to negotiate and reduce tariffs on imported goods.

2. Subsidies: WTO members are not allowed to provide subsidies that distort trade.

3. Intellectual property rights: WTO members are required to protect intellectual property rights.

4. Anti-dumping: WTO members are required to prevent the dumping of products at below-market prices.

5. Technical barriers to trade: WTO members are required to prevent unnecessary trade barriers related to product standards and regulations.

6. Sanitary and phytosanitary measures: WTO members are required to protect human, animal, and plant health from imported goods.

7. Services: WTO members are required to provide access to their markets for foreign service providers.

8. Dispute settlement: The WTO provides a dispute settlement mechanism to resolve trade disputes between members.

Each covered agreement in WTO has its own set of rules and regulations that govern trade in that particular area. Additionally, these agreements are periodically reviewed and updated to ensure that they are meeting their objectives.

Why are Covered Agreements Important?

Covered agreements in WTO are important because they provide a framework for international trade that is based on fairness and non-discrimination. They help to promote free trade by reducing trade barriers and ensuring that trade is conducted on a level playing field.

Additionally, the dispute settlement mechanism provided by WTO is an important tool for resolving trade disputes between members. This mechanism helps to ensure that trade disputes are resolved in a timely and fair manner, which helps to promote confidence in the international trading system.

How do Covered Agreements Affect Businesses?

Covered agreements in WTO can have a significant impact on businesses that engage in international trade. For example, businesses that export goods may benefit from the reduction of tariffs on their products, which can make their products more competitive in foreign markets. Similarly, businesses that provide services may benefit from greater access to foreign markets, which can help them to expand their customer base.

At the same time, businesses should also be aware of the rules and regulations that govern trade in different areas. For example, businesses that provide intellectual property rights should be aware of the WTO rules related to intellectual property protection.

Conclusion

In conclusion, covered agreements in WTO are a crucial component of the international trading system that helps to promote free trade and reduce discrimination in international trade. These agreements govern a wide range of trade-related issues, including tariffs, subsidies, intellectual property rights, and dispute settlement mechanisms. By understanding these agreements, businesses can better navigate the complex world of international trade and take advantage of the opportunities presented by the global marketplace.