What is the World Trade Organisation?

The World Trade Organisation (WTO) is the global international body governing the rules of trade between nations. It was established on 1 January 1995 under the Marrakesh Agreement (signed 15 April 1994), succeeding the General Agreement on Tariffs and Trade (GATT, 1947). The WTO is headquartered in Geneva, Switzerland, and currently has 166 members accounting for 98% of world trade.

The WTO's core functions include: administering trade agreements, serving as a forum for trade negotiations, settling trade disputes through its Dispute Settlement Mechanism (DSM) — often called the "crown jewel" of the WTO — conducting trade policy reviews, and providing technical assistance to developing countries. Its foundational principles are Most Favoured Nation (MFN) treatment, National Treatment, transparency, and reciprocity.

The current Director-General is Dr Ngozi Okonjo-Iweala (Nigeria), who took office on 1 March 2021 — the first woman and first African to lead the WTO. She was reappointed for a second four-year term on 29 November 2024, effective 1 September 2025.

Key Features

# Feature Details
1 Established 1 January 1995 (Marrakesh Agreement, 1994)
2 Predecessor GATT (1947)
3 HQ Geneva, Switzerland
4 Members 166 (as of 2025)
5 Director-General Dr Ngozi Okonjo-Iweala (since 2021; 2nd term from September 2025)
6 Highest Body Ministerial Conference (meets every 2 years)
7 Dispute Settlement Dispute Settlement Body (DSB) — legally binding rulings; Appellate Body non-functional since December 2019
8 Core Principles MFN (Art. I GATT), National Treatment (Art. III), Transparency, Reciprocity

Current Status / Latest Developments

  • MC13 (Abu Dhabi, February-March 2024): 166 ministers attended. The e-commerce moratorium was extended until MC14 or March 2026. Deals on fisheries and agriculture fell through.
  • MC14 (Yaounde, Cameroon, 26-29 March 2026): WTO reform — including dispute settlement revival — is the central priority. The Plastics Dialogue has prepared a ministerial statement and outcome package.
  • The WTO Appellate Body has been non-functional since December 2019 (US blocked appointments), crippling the dispute settlement system. Members are negotiating a permanent solution.
  • India's key demands include a permanent solution for public stockholding for food security (interim Peace Clause from Bali MC9, 2013) and special safeguard mechanism (SSM) for developing countries.
  • India is the 5th-largest user of WTO dispute settlement, having been involved in over 50 disputes as complainant, respondent, or third party.

UPSC Exam Corner

Prelims: Key Facts

  • Established: 1 January 1995; predecessor: GATT (1947)
  • HQ: Geneva, Switzerland
  • Members: 166
  • DG: Dr Ngozi Okonjo-Iweala (1st woman, 1st African; 2nd term from September 2025)
  • Highest body: Ministerial Conference (every 2 years)
  • Appellate Body: Non-functional since December 2019
  • MC14: Yaounde, Cameroon (March 2026)
  • India's key demand: Permanent solution for public stockholding

Mains: Probable Themes

  1. "Examine the crisis in WTO's dispute settlement mechanism and its impact on multilateral trade governance."
  2. "Critically evaluate India's engagement with the WTO, with focus on agriculture and food security."
  3. "Is the WTO still relevant in an era of bilateral FTAs and trade wars? Discuss."
  4. "Analyse the significance of MC14 (2026) for the future of multilateral trade negotiations."

Sources: WTO — Who We Are | WTO — Ministerial Conferences | WTO — DG Okonjo-Iweala Reappointed