Essay on The World Trade Organization (WTO)

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The World Trade Organization (WTO) is the most powerful lawmaking and legal body in the world. It is the only global international organization dealing with the rules of trade between nations. The goal of the organization is to help producers of goods and services, exporters and importers handling their business. • Who We Are- The WTO was born out of negotiations, and everything it does is the result of negotiations. The purpose of it is to help trade flows as freely as possible- safeguarding no objectionable effects- as it is important for economic development and well-being. It also confirms the individuals, companies and governments know what the trade rules around the globe and giving them confidence of no sudden changes in policy. •…show more content…
But regional agreement makes it harder for countries outside the region to trade with those inside and may discourage further opening up of markets, ultimately affecting the growth prospects. Essentially, RTA’s are desecrations to WTO’s non-discrimination principle. This is mentioned in the Most-Forward-Nation (MFN) rule in which countries cannot discriminate between their trading partners. However, WTO views RTA’s to be good and encouraged the formation of free trade areas and customs union. To confirm that RTA’s can improve regional trade liberalization without harming global trade liberalization. Article 24 of GATT makes sure that they should trade more freely and also created a Committee on Regional Trade Agreements (CRTA) to observe regional groups and to see that they are steady with WTO rules. Evolution Of Economic Union- • 1945-1959 The European Union is set up with the aim to end the frequent and bloody wars between neighboring countries, which occurred during the Second World War. As of 1950, the European Coal and Steal Community begins to bond with the European countries economically and politically in order to secure peace between the countries. The EU started with six countries, which are Belgium, France, Germany, Italy, Luxembourg and Netherlands. • 1960-1969 The 1960’s see’s the rise

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