Duty-Free Quota-Free (DFQF) Scheme:
According to a report by the least developed countries Group at the World Trade Organisation (WTO), the Duty-free quota-free (DFQF) scheme remains unutilized by the LDC nations.
- The decision to provide duty-free quota-free (DFQF) access for LDCs was first taken at the WTO Hong Kong Ministerial Meeting in 2005.
- India became the first developing country to extend this facility to LDCs in 2008, providing market access to 85 per cent of India’s total tariff lines
- The scheme was expanded in 2014 providing preferential market access on about 98.2 per cent of India’s tariff lines to LDCs.
World Trade Organisation (WTO):
- It was set up on 1st January 1995 and was born out of the 1986-94 Uruguay Round of Negotiations.
- It is the only global international organization dealing with the rules of trade between nations.
- It is the successor to the General Agreement on Tariffs and Trade (GATT)
- The main function of the WTO is to ensure that trade flows as smoothly, predictably and freely as possible.
- It further consists of two principles, the Most-favoured Nation (MFN) principle and the National treatment principle.
- It is a ‘member-driven’ organisation, with decisions taken by consensus among the member governments.
