What Is The Function Of The World Trade Organization

Weeks, R. (2006). International trade issues. New York: Nova Science Publishers, Inc..World Bank.org. (November, 2011). Globalization and international trade (Chapter12, pp.

Unlike previous years of solely trading goods, the WTO allowed for trade to consist of property and services among different countries. Countries could now be globalized in all goods their country didn’t have through the use of free trade. The process of trading was revolutionized by new developments in technology as more and more countries began to trade.

The World Trade Organization is an international organization that regulates trade between countries. Its main focus is to ensure that international trade is efficient and safe. WTO is the successor for General Agreement on Tariffs and Trade (GATT). At the end of World War II and after procession of trade negotiations, an aimed reduced tariffs for facilitation of global trade on goods and services. The motivation of GATT was established on the basis of Most Favoured Nation (MFN), this gives privilege to other countries from time to time for good trade. GATT gave opportunity of MFN to every country with time so that no one gets over another.

The World Trade Organization (WTO) is a plurilateral body of 159 countries dedicated to the liberalization of world trade. Countries that ascend to the WTO agree to provisions that all other members have already agreed to, including like the reduction of tariffs, non-discrimination, transparency, and reciprocity. Consensus is difficult between 159 countries, and so agreements can be hard to reach. This consensus has been especially difficult during the Doha round. Opened in 2001, talks have been stalled over disagreements between countries, chiefly over intellectual property protections. Without an agreement, the WTO is forced into a stagnant role until the negotiations are completed.

The World Trade Organization (WTO) is a global organization that helps countries and producers of goods deal fairly and smoothly with conducting their business across international borders. It mainly does this through WTO agreements, which are negotiated and signed by a large majority of the trading nations in the world. The purpose of the WTO is to ensure that global trade commences freely, smoothly and predictably while also aiming to create economic peace and stability in the world through a multilateral system. This is based and applied to member states, currently 162 countries, that have consented and ratified the rules of the WTO in their individual countries. Simply put, these documents act as contracts that provide the legal framework for conducting business among nations, integrating into a country 's domestic legal system, therefore, applying to local companies and nationals in the conduct of business internationally. For instance, if a company were to open an office or business in a foreign country, the rules of the WTO dictates how that can be done.1

The original and main goal of the WTO is to remove trade barriers between countries, which is a major idea

By joining the WTO, countries sign over a certain degree of their sovereignty to be under the WTO rules and regulations. They agree to be bound by the rules and regulations agreed upon at the negotiation rounds and cannot create national policies that contradict their obligations.

The Doha round of talks held in 2001 wanted to involve developing countries due to their growing importance, and hence this round was nicknamed the “Development Round.” Critics of this round suggested that nations should pursue more bilateral and regional trade agreements. This meant more Regional Trade

The WTO is governed by the rules of the GATT, however, the decisions it makes are binding, and member states are required to abide by its resolutions. Since its beginnings, the WTO has overseen international trade and has stimulated freer international trade across the globe. In addition, the establishment of the WTO has led to the formation of various other free trade areas across the globe. However, there are many people and politicians who are opposed to free trade and its implications.

One of the major functions of the WTO is implementing and monitoring of trade. The WTO agreements obligate governments to ensure trade policies are transparent by updating them about laws and measures currently or soon to be in force. They also set rules through trade negotiations to maintain this transparency. The Doha round is the latest one beginning in 2001 discussing areas such as services, agriculture and intellectual property.

The objective of the WTO is to guarantee free and fair trade (equal access to markets) through the integration of markets and the trading system (qualitative dimension) on the one hand; and the elimination of quantitative restrictions (quantitative dimension) on the other. Trade is also promoted by the WTO through Differential and More Favourable Treatment, Reciprocity and Fuller Participation of Developing Countries (the Enabling Clause) which empowers developed countries to grant preferential treatment by way of Generalized Systems of Preferences (GSP) to goods originating from developing

It refers to the removal or reduction of trade practices that prevent free flow of goods & services between one nation & another. This includes tariff & non tariff barriers such as (duties, export

Barriers – In domestic marketing there are no barriers but in international marketing there are many barriers such as cross cultural differences, language, currency, traditions and customs.

Due to the global world starting to become one it seems as though every country wants to participate in the trading system. It is currently the biggest phenomenon. Many countries that want to join the trading sector are afraid of some of the issues that comes with it such as laws and regulations that do not align with other countries. Countries have now started to join the World Trade organization (WTO) to help them integrate into the trading sector and help them with laws and regulations. The WTO seems as though they will help benefit countries when joining, but do they actually help them with the trading blockage between other countries and help to increase GDP, export and imports and lower tariff rates.

In recent years, The World Trade Organization trading system has playing a significant role in our nations. More and more nations have taken part in this organization for gaining a great benefit from trading between nations. WTO looks itself as a system that helps trade to flow smoothly and provide countries with a constructive and fair outlet for dealing with disputes over trade issues (WTO, 2008). However, there is a drawback for this system such as it does not claim to be a "free market" organization. According to the WTO, it is sometimes described as a free trade institution but that is not absolutely correct. The system does allow tariffs and in limited circumstances and other forms of protection. More exactly, it is a system of rules for committed to open fair and undistorted competition (Promoting fair competition, 2015). This is similarity to a certain level of protection is proved. By the fact that, cartels like the OPEC have never been involved in trade argument with the WTO, despite the evident contrast between their objectives (Farah, Paolo Davide; Cima, Elena, 2013).