World Trade Organization (WTO) : History & Facts

The World Commerce Organisation (WTO) is an international organisation whose main goal is to open trade for everyone’s benefit.

The WTO is managed by the governments and its members. All key decisions are made by the entire membership, either by ministers (who meet at least once every two years) or by their ambassadors or delegates (who convene in Geneva on a regular basis). This multilateral trade system is built on some of these principles.

History and Facts of the World Trade Organisation 

The World Trade Organisation (WTO) is a multilateral organisation that oversees global trade. The World Trade Organisation (WTO) was established on January 1, 1995, under the Marrakesh Agreement, which was signed by 123 countries on April 15, 1994, and replaced the General Agreement on the Tariffs and Trade (GATT), which was in place since the year 1948. The World Trade Organisation (WTO) regulates trade between members by providing a framework for negotiating trade agreements and a dispute resolution process aimed at enforcing participants’ compliance with WTO agreements, and are signed by the representatives or by the member governments and ratified by their parliaments. The majority of the concerns addressed by the WTO stem from past trade discussions, particularly the Uruguay Round (1986–1994).

Purpose of WTO

• The World Trade Organisation (WTO) is an international organisation with a global membership that advocates and regulates free trade. This is accomplished in three ways. First, it oversees the implementation of existing international trade accords. Every member is given the status of Most Favoured Nation in terms of trading. As a result, their exports are immediately subject to lower duties.
• It also resolves trade disputes. The majority of disagreements arise when one member accuses another of dumping. When a company exports items at a lower cost than it costs to manufacture them, it is said to be doing so at a loss. The WTO staff investigates, and if a violation is found, fines are imposed by the WTO.
• Third, it oversees ongoing trade agreement discussions. The Doha round in 2006 would have been the most significant. This would have made commerce between all members easier. It placed a strong emphasis on developing countries’ ability to expand their economies.

Objectives of World Trade Organisation

The WTO’s six main goals are to –

 (1) Establish and enforce international trade rules

 (2) To provide a forum for negotiating and controlling further trade liberalisation.

(3) Resolve trade disputes

 (4) Improve the transparency of decision-making processes

 (5) Collaborate with other major international economic institutions involved in global economic management

(6) Assist developing countries in fully benefiting from the global trading system.        

Benefits of WTO Membership

Benefits of WTO membership, provides: —

1. Most economically advantageous nation treatment, which means that all WTO Members’ companies have equal access to all WTO Members’ markets.
2.  National treatment prevents national producers from gaining an advantage over importers.
3.  Reduction of trade barriers, primarily tariffs and quantitative restrictions, which allows for increased trade between Members.
4.  National treatment prohibits national producers from gaining an advantage over importers.
5. Reduction of trade barriers, primarily tariffs and quantitative restrictions, allows for it is necessary to cite the source when using site resources.

Structure of WTO

The World Trade Organization (WTO) has 164 members who account for 98 per cent of global trade. A total of 25 countries are in the process of applying for membership. The entire membership makes decisions. This is usually done through consensus. A majority vote has also been an option, but it has never been utilised in the WTO and was not so uncommon under the GATT, the WTO’s predecessor. All members’ parliaments have accepted the WTO’s accords. The Ministerial Conference of WTO, which is held every two years, is the WTO’s highest decision-making body.

Conclusion

The World Trade Organisation (WTO) has accomplished a lot in its first 20 years, probably even more than some of its founders realised. Global trade barriers are at historically low levels, international trade norms are upheld, and participation in an open, increasingly integrated, and rules-based world trading system is practically universal. As more members use the dispute resolution system, a more relevant corpus of WTO trade law emerges with each new case. Through the WTO’s openness and surveillance procedures, more members have access to information regarding not only national trade policy but also international trade relations. More members are turning to WTO councils, committees, and working groups to coordinate policy and resolve disputes, adding “soft power” to “hard power” rules.