Knowledge Nugget | How countries join the WTO: From Application to Accession explained
India and Ethiopia's recent bilateral accession protocol brings the World Trade Organization (WTO) membership process into focus. But what is the WTO and how does a country become part of the global trade system? Here’s all you need to know. Also, go ‘Beyond the Nugget’ to know the key takeaways of the 14th Ministerial Conference.
According to the WTO, any state or customs territory having full autonomy in the conduct of its trade policies may become a WTO member (“accede to the WTO") provided that all WTO members agree on the terms. (Reuters/File) Take a look at the essential events, concepts, terms, quotes, or phenomena every day and brush up your knowledge. Here’s your UPSC Current Affairs knowledge nugget for today on WTO accession process.
Knowledge Nugget: WTO accession process
Subject: International organization
(Relevance: Questions have previously been asked about the WTO in Prelims and Mains. The WTO has been in the news for various reasons, such as the 14th Ministerial Conference (MC14), and now in the context of the WTO accession process. Thus, it becomes important to know about it in detail.)
Why in the news?
India and Ethiopia signed the bilateral accession protocol in the context of Ethiopia’s accession to the World Trade Organization (WTO) on 22nd May 2026 in Geneva. In this context, it becomes important to know WTO and its accession process.
Key Takeaways:
1. According to the WTO website, the first step in the accession process takes place when the candidate country sends a request to the WTO to become a member.
2. The General Council then establishes a Working Party composed of WTO members. This group of countries, normally chaired by a Geneva-based ambassador from a WTO member, is the forum for the negotiations with the candidate country. Any WTO member can join the Working Party at any stage of the negotiation.
3. The Working Party studies the candidate country’s trade regime to examine whether it is compatible with WTO rules. In those areas where they are not in compliance the candidate country must amend its laws or adopt new ones to bring the trade policy in line with WTO rules. Notably, the applicant must inscribe WTO rules into its national legal system.
4. Simultaneously, the applicant negotiates bilaterally with Working Party members to open its market further to imports of goods and services. Once all the bilateral agreements are signed, the results will be compiled and combined into two documents: the goods and services schedules.
5. At the time of accession, all tariffs and commitments on goods and services are offered on the same terms to all WTO Members under the principle of Most Favoured Nation.
6. Once the candidate country amended its trade laws to meet WTO standards and has signed all its bilateral agreements, the working party is ready to adopt the accession package which contains 5 documents:
(i) Working party report outlining all the reforms undertaken by the acceding country and its commitments
(ii) The goods schedule: list of bound and applied tariffs on industrial and agricultural goods
(iii) The services schedule: list of commitments in terms market opening in services
(iv) The Protocol of accession containing the terms it has negotiated to become a member, and which have been accepted by all other members of the WTO in the General Council or at a Ministerial Conference.
(v) A decision taken by the General Council or the Ministerial Conference.
7. After the working party adopts the accession package, it is forwarded to the General Council or the Ministerial Conference for final adoption. The applicant becomes a member 30 days after the WTO is notified of ratification in the candidate country.
About WTO
1. The World Trade Organization is the only international organization that deals with the rules of trade between countries. Founded in 1995, the WTO is run by its 166 members, and according to its rules, all decisions are taken through consensus, and any member can exercise a veto. Dr. Ngozi Okonjo-Iweala is the seventh Director-General of the WTO. She is the first woman and the first African to serve as Director-General.
2. Its aim is to promote free trade, which is done through trade agreements that are discussed and signed by the member states. The WTO also provides a forum for countries to negotiate trade rules and settle economic disputes between them.
3. WTO’s Appellate Body, set up in 1995, is the standing committee that presides over appeals against judgments passed in trade-related disputes brought by WTO members. It is a standing body of seven persons which requires at least three members to function. However, due to lack of consensus in appointment of Appellate Body it has been dysfunctional.
BEYOND THE NUGGET: WTO’s 14th Ministerial Conference and Reports published by it
1. The WTO’s 14th Ministerial Conference (MC14) was held in Yaounde, Cameroon. The conference, chaired by Luc Magloire Mbarga Atangana, Cameroon’s Minister of Trade, started on 26th March and continued till 29 March 2026. The Indian delegation was led by Minister of Commerce and Industry, Piyush Goyal. The conference concluded without agreements on major issues, including extension on e-commerce moratorium.
2. Notably, the Ministerial Conference is the topmost decision-making body of the WTO, which usually meets every two years. According to the WTO, “It brings together all members of the WTO, all of which are countries or customs unions. The Ministerial Conference can take decisions on all matters under any of the multilateral trade agreements.”
Reports published by the WTO
1. World Trade Report: A wide range of publications related to trade-related issues are produced by the WTO. The World Trade Report is published by the WTO. According to the World Trade Report 2025 titled Making trade and AI work together to the benefit of all, artificial intelligence could boost the value of trade in goods and services by nearly 40% by 2040, but without adequate policies it could also exacerbate economic divides.
2. Global Trade Outlook and Statistics: It analyzes recent global trade developments and presents the organization’s forecasts for merchandise trade volume. According to the March 2026 edition, the prospects for trade in 2026 and 2027 were improving, with GDP projections and trade-related indicators receiving modest upgrades; however, the recent conflict in the Middle East has cast doubt on the near-term outlook for the global economy.
Post Read Question
Consider the following statements with reference to the WTO accession process:
1. The WTO accession process begins when a candidate country submits a formal request for membership.
2. The Working Party on accession is composed only of WTO member countries selected by the General Council and no other member can join it later.
3. During accession, the candidate country is not required to align its national laws with WTO rules.
Which of the statements given above is/are correct?
(a) 1 and 3 only
(b) 1 only
(c) 2 and 3 only
(d) 1, 2 and 3
| Answer Key |
|---|
| (b) |
(Sources: wto.org, eoiaddisababa.gov.in)
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