Department of Standards Malaysia

Introduction

The World Trade Organisation (WTO) was established on 1 January 1995. The WTO replaced the General Agreement on Tariffs and Trade (GATT) following the conclusion of the Uruguay Round of trade negotiations in 1994. While the GATT establishes rules for trade in goods, the WTO also encompasses other trade-related areas such as services and intellectual property rights.

WTO promotes global trade through market opening measures and strengthening trade rules, which among others:

• Provide transparency,  predictability and stability
• Prevent adoption of unilateral measures on trade matters
• Provide redressal of differences through dispute settlement mechanism, including  remedial action on unfair trade practice through anti-dumping and countervailing measures
  

It is also a forum for continuous negotiations to create a more transparent, predictable, fair and liberal global trading environment. Negotiations are aimed at progressively removing barriers to trade in order to create better market access opportunities for its Members. WTO rules are evolving through periodical review of existing rules and negotiations on new rules.

Malaysia is a founding Member of the WTO by virtue of its membership in the GATT since 1957. Through active participations in WTO negotiations, Malaysia continues to ensure that trade regulations and trade measures that are negotiated are fair and provide the flexibility for Malaysia to continue its development policy.

As a trading nation, membership in the WTO has contributed to Malaysia’s economic growth. The lowering of the trade barriers in the export markets and increased market opportunities has allowed Malaysia’s exports to grow. One of the major benefits enjoyed by Malaysia is the non-discriminatory treatment of Malaysian products in the markets of WTO Members. Any concessions granted by a Member to any other Member will also be accorded to Malaysia.