Why is it necessary to became a member of WTO?
It is necessary to become a member of the WTO to establish a rule-based trading regime where nations cannot place arbitrary restrictions on trade. This creates a stable and predictable environment for international commerce.
Membership facilitates international trade in both goods and services by ensuring the removal of tariff and non-tariff barriers. This provides greater market access to all member countries, allowing them to compete on equal terms in the global market.
Additionally, the WTO aims to ensure optimum utilisation of world resources and protect the environment. For India, being a member is crucial for framing fair global rules and advocating the interests of the developing world.
Explanation
The answer is constructed using the first and second text chunks. The first chunk outlines the core objectives of the WTO, such as establishing a rule-based regime, removing trade barriers, and ensuring optimum resource utilisation. The second chunk highlights the strategic necessity for India, specifically regarding framing fair rules and advocating for developing nations.
Solution Steps
Step 1: State the primary objective of the WTO (establishing a rule-based trading regime).
Step 2: Explain the economic benefits like removal of barriers and greater market access.
Step 3: Mention the broader goals of resource utilisation and environmental protection.
Step 4: Conclude with the specific advantage for India in framing global rules.