WTO and Its impact in Nepalese Economy

World Trade Organization (WTO)

Since 13 years ago, Nepal has been taking action to join the World Trade Organization (WTO). Being admitted as a full WTO member presents a number of difficulties for a structurally weak and economically underdeveloped nation like Nepal. The nation's general development and educational frameworks need to be updated. The educational system in Nepal needs to be updated in order to remove the hurdles and shadows of traditionalism and stagnation. The ineffective delivery method that caused issues needs to be changed to one that promotes the nation-overall state's development. It also emphasizes on precautions to take in order to make the most of opportunities that comprise WTO membership opportunities. This will contribute to a modern change and give the workplace culture a legal foundation. It attempts to develop the growth-oriented millennium goals plan that the country hopes to implement in the upcoming days. The World Trade Organization (WTO) membership of Nepal in 2004 was a significant step toward the integration of its economy into the world market. It is also accurate to say that we have not yet been able to benefit from the opportunities provided by WTO participation. It aids LDC members in the process of improving their trade-related capacities to some extent. Although the WTO does not directly contribute to export promotion, it does so indirectly through its National Treatment provision. Exports from Nepal could compete on the global market.

The sole international agency that regulates international trade laws is the World Trade Organization. Its main goal is to make trade as predictable, easy, and unrestricted as possible. Additionally, a more stable, wealthy, and ethical economy results from this. Producers and consumers are aware that there is a wider variety of completed goods, raw materials, services, and other components available to them, and that these supplies are secure. Exporters and producers are aware that there will still be access to overseas markets. Almost all WTO decisions are reached through consensus among all member nations and are approved by member parliaments. Trade conflict is resolved through the WTO's dispute resolution procedure, which focuses on how to interpret commitments and agreements and how to make sure that nations' trade practices comply with them. In this approach, there is less chance that disagreements will escalate into political or military war. The WTO's framework reduces trade obstacles while also removing other barriers between governments and peoples.

The WTO agreements, which were signed and negotiated by a vast number of the world's trading nations and approved in their parliaments, form the foundation of the system known as the multilateral trading system. The legal guidelines that govern global trade are contained in these accords. They are contracts, which is significant since they secure significant trade rights for member nations. Additionally, they surround governments in an effort to help them maintain their trade policies within predetermined bounds. Governments negotiated and signed the agreements. However, their goal is to assist exporters, importers, and manufacturers of goods and services in running their businesses. The objective is to raise the standard of living for the citizens of the member nations.

Benefits and Challenges of WTO in Nepal

The World Commercial Organization is a globally recognized legal institution for preserving trade relations between various nations. On January 1st, 1995, the organization formally began operations. On Baisakh 11, 2061 B.S., Nepal was granted WTO membership. Nepal ranks as the WTO's 147th member. The WTO's headquarters are in Geneva, Switzerland.

The WTO aids in preserving a favorable climate for international trade and mediating trade disputes between nations. By offering a framework for formalizing and resolving trade disputes and agreements between the participant countries, the organization deals with the regulation of trade between participating countries. The WTO accords encompass a wide range of industries, including textiles and apparel, banking, government procurement, intellectual property, industrial standards and product safety, agriculture, food and sanitary regulations, and telecommunications. Under the WTO agreements, nations are generally not allowed to discriminate against their trading partners. Goods made in-country and those imported should be treated similarly. The same ought to hold true for copyrights, patents, and trademarks as well as for local and international services. Countries are obligated to uphold their commitments under the WTO when they decide to open their markets to foreign goods or services. These restrictions are essentially caps on customs duty rates for items. Sometimes import taxes are lower than the bound rates, especially in underdeveloped nations. The rates that are actually charged and the bound rates frequently coincide in economically developed nations. The WTO is a set of regulations devoted to transparent, equitable, and undistorted competition. While waiting for the system agreements to be implemented, emerging nations need flexibility. The agreements also carry over the prior GATT clauses that allowed for specific trade advantages and aid for developing nations.

Intellectual property, products, and services are all covered by the WTO Agreements. They make the fundamentals of allowed exceptions and liberalization more clear. They include each nation's pledges to establish and maintain open services markets as well as cut customs tariffs and other trade obstacles. They establish protocols for resolving conflicts. They recommend giving developing nations preferential treatment. Governments must make their trade policies known by notifying the WTO of legislation in effect and actions taken, as well as by requiring the secretariat to report on nations' trade policies on a regular basis. However, it's critical to keep in mind that the regulations are actually agreements that nations negotiated.

The WTO accords include a number of clauses that grant developing and least-developed nations unequal and special treatment, such as special rights or increased leniency. Additionally, these clauses permit wealthier nations to treat developing nations better than other WTO members. A particular section on trade and development is included in the General Agreement on Tariffs and Trade (which regulates trade in products) and it includes preparations for the idea of non-reciprocity in trade discussions between rich and developing countries.

Other measures pertaining to developing nations are included in the WTO agreements, such as additional time for them to fulfill their commitments, provisions aimed at improving their trading opportunities through greater market access (for example, in services, technical trade barriers, and textiles), and provisions requiring WTO members to protect the interests of developing nations when adopting certain domestic or international measures (for example: in s. (for instance: to deal with commitments on animal and plant health standards, technical standards, and in strengthening their domestic telecommunications sectors). In the WTO, the least developed nations are given special consideration. All WTO agreements acknowledge that they must enjoy the maximum degree of flexibility and that wealthier members must exert further effort to reduce import restrictions on exports from least developed nations.

Only if their economies can adjust will developing nations benefit from the changes. This depends on a variety of initiatives, from better macroeconomic management and policy-making to better investment and training. All significant choices are taken by the members collectively, either through their ministries or delegates (who meet regularly in Geneva). Consensus is typically used to make decisions. The WTO secretariat must be notified of any new or altered trade measures, according to many WTO agreements.

As a WTO member, Nepal committed to a number of obligations, including protecting intellectual property rights and lowering tariffs on industrial and agricultural goods. It is anticipated that the accords on agriculture will increase the competitiveness of Nepal's agricultural products in the future if discriminatory domestic agricultural regulations are repealed. For the protection of a patent holder's or processor's rights, the trade-related intellectual property rights have established particularly strict conditions. More than 90% of global trade and 95% of the world's population are covered by WTO member states. It depends on Nepal's capacity to properly navigate the hurdles presented by the vast and important global market.

References

imnepal.com/wto-nepal-world-trade-organization/

thehimalayantimes.com/opinion/wto-and-nepal-opportunities-and-challenges/