India's Entanglement in the Global Economy

To do so, developed countries enact an orderly market agreements which allow them to reduce or restrict specific imports ("TMB", 2014). Additionally, developed countries have been increasingly using voluntary export restraint agreements which involves developed countries essentially coercing less developed countries to voluntarily lower their imports (Lorenzini, 2014). Moreover increased use of non-trade barriers and strategic trade policies attest to the fact that the General Agreement on Trade and Tariffs is breaking down in its ability to facilitate trade. The rise of protectionist policies which evade the intents of the agreement are evidence that a new, more formal, agreement needs to be established. The World Trade Organization (WTO) is the solution. .
             The proposed World Trade Organization, like its predecessor GATT, seeks to foster multinational trade collaboration by increasing both the scope and enforcement power of the General Agreement on Tariffs and Trade. The WTO describes itself an agreement which seeks "trade without discrimination", with the intents of freer trade, transparency, fair competition, and encouragement of development and economic reform ("Understand the WTO", 2014), Unlike the noncommittal attitude of GATT, the World Trade Organization legally binds its members to a multitude of trade agreements (Cohn, 2012, p. 193). In addition to formalizing GATT, the WTO introduces many new facets, not all of which will serve to benefit the Indian economy. The new agreements include the General Agreement on Trade in Services (GATS), the Trade-Related Intellectual Property Rights (TRIPS) and the Agreement on Trade-Related Investment Measures (TRIMS) (Cohns, 2012, p. 196). The effects of these new treaties will be further discussed later. To more effectively enforce those principles agreed upon and address some of the fundamental issues of GATT, which were previously identified, the WTO is comprised of two main bodies which serve to settle disputes, ensure that all member countries are in compliance, and negotiate the terms of trade.