Two basic functions of the WTO are:

To confirm whether the agreements that have been covered are implemented, administrated
and executed effectively.

To settle negotiations and disputes by providing a forum check..

The main functions of the WTO can be described in very simple terms. These are:

• To oversee implementing and administering WTO agreements;

• To provide a forum for negotiations; and
• To provide a dispute settlement mechanism.

Function of World Trade Organization (WTO)

* Administering World Trade Organization (WTO) trade agreement

* Forum the trade negotiation
* Handling trade disputes
* Monitoring national trade policy
* Technical assistance and training for developing countries
* Co-operation with other international organization (like help from World Bank and IMF).

1.The WTO facilitates the implementation, administration and operation, and furthers the objectives, of this
Agreement and the Multilateral Trade Agreements, and also provide framework for the implementation,
administration and operation of the Plurilateral Trade Agreements.

2. The WTO provides the forum for negotiations among its members concerning their multilateral trade
relations in matters dealt with under the agreements and a framework for the implementation of the results
of such negotiations, as may be decided by the Ministerial Conference.

3. The WTO administers the Understandings on Rules and Procedures governing the Settlement of Disputes.

4. The WTO administers the Trade Policy Review Mechanism (TPRM).

5. With a view to achieving greater coherence in global economic policy-making, the WTO cooperates as
appropriate, with the International Monetary Fund (IMF) and with the International Bank for
Reconstruction and Development (World Bank) and its affiliate agencies.

Four Basic Rules

1. Protection to Domestic Industry Through Tariffs:

a. The General Agreement on Tariffs and Trade (GATT) covers international trade in goods. The workings of
the GATT agreement are the responsibility of the Council for Trade in Goods (Goods Council) which is made
up of representatives from all WTO member countries. GATT requires the member countries to protect their
domestic industry/production through tariffs only.

b. It prohibits the use of quantitative restrictions, except in a limited number of situations.

2. Binding of Tariffs: The member countries are urged to

a. Eliminate protection to domestic industry/ production by reducing tariffs and removing other barriers to
trade in multilateral trade negotiations.

b. The reduced tariffs are bound against further increases by listing them in each country's national
schedule.

c. The schedules are an integrated part of the GATT legal system.

3. Most Favoured-Nation(MFN) Treatment:

a. The rule lays down the principles of non-discrimination amongst member countries.

b. Tariff and other regulations should be applied to imported or exported goods without discrimination
among countries.

c. Exceptions to the rules i.e., regional arrangements subjected to preferential or duty free trade agreements,
Generalized System of Preferences (GSP) where developed
countries apply preferential or duty free rates to imports from developing countries.

4. National Treatment Rule:

The rule prohibits member countries from discriminating between imported products and domestically
produced like goods in the matter of internal taxes and in the application of internal regulations