Multilateral trade agreements
Topic: International Trade Policy, WTO and Intellectual Property · NCERT: Class 11, Ch 3 "Liberalisation, Privatisation and Globalisation: An Appraisal"
Meaning
Multilateral trade agreements are trade deals signed by many countries together, not just two. They were administered first by GATT (the General Agreement on Tariffs and Trade) and, from 1995, by the WTO. Their aim is to give all countries equal opportunities in world markets through common rules. GATT was signed on 30 October 1947 by 23 countries, including India, and applied from 1 January 1948.
Example
The Uruguay Round (1986–94) produced agreements on goods (GATT 1994), services (GATS) and intellectual property (TRIPS). WTO members had to accept all of them together as a "single undertaking". India is bound by all of them.
Don't confuse with
- Plurilateral agreement: this binds only the WTO members that choose to sign it, such as the Government Procurement Agreement. A multilateral agreement binds all members.
- Bilateral FTA: this is a deal between two partners, such as India–UAE CEPA (2022). It sits outside the common WTO-wide rulebook.
Related concepts
- Rule-based trading regime
- Multilateralism
- Plurilateral agreement
- Non-discrimination principle
- Most-favoured-nation principle
- National treatment
- Exceptions to MFN
- Enabling clause
- Generalised System of Preferences
- Duty-free quota-free market access