THE WORLD TRADE ORGANISATION

WTO and Its impact On Trade

Executive Summary

The paper discuss about the role of WTO and its impact on the world trade. Today the organization is engaged in boosting and helping out almost 150 member countries. Thus, one of the contributing factor might be that the WTO is in any case one and only multilateral institution that is formed recently and especially for the wholly and global interdependent economy. The study also focuses on the issue of trade negotiations between developing; least developed and developed countries (Felbermayr, 2007, pp 12-45). World Trade Organization (WTO) was the first organization that promoted free trade. The WTO succeeded the General Agreement on Trade (GATT), which was created in 1947 with the goal of eliminating all methods protectionism. Thus, the objectives of the WTO are to carry out the rules of international trade and prevent trade disputes as they may become trade wars. By fostering these two principles, free trade is developing in all parts of the world, protectionist barriers have come down significantly, there are more exchanges between developing countries and there is a reduction of unfair methods such as counterfeit or dumping . Consequently, all these changes have enabled international trade to meet a significant increase since 1970.

WTO and Its impact On Trade

Introduction

Internationalization of economic life, the growing interdependence among countries in the world economy and the emergence and intensification of global issues objectively determines the need for a focused management of international economic relations, basically the joint efforts of countries. The Multilateral interstate regulation of individual areas of the world economy was born before the Second World War. However, a major factor in the world economy, it was only after the war (Ghemawat, 2005, Pp 98).

Currently, there are around 300 international trade and economic organizations with wide and narrow participation. However, the major role in the formation of trade flows, and establishing the rules of an international business plays a relatively small circle of economic and trade organizations, this includes the most crucial that is the World Trade Organization (WTO).

Research Objective

The project aims at reviewing the work of WTO and analysing the impact it had on the World Trade.

WTO and Its Role

The World Trade Organisation (WTO) was established by “the Marrakesh Agreement” and among its many objectives; it offers the structure that governs the proceedings of international trade in goods and services, the safeguard of intellectual property rights, dispute settlement and the monitoring of governments' trade policies. The end of the Second World War instigated the basis of the multilateral structure of international trade. Governments had learned their lesson from the previous occurrence of the Great Depression of the late twenties and early thirties, followed in its wake by the trade protection imposed by major trading nations, that there was a need for a multilateral parameter in the area of international trade. This knowledge acquired a fresh exigency as a result of the destruction caused by the Second World War and the extension of ...