WTO

[World Trade Organization and International Trade]

Abstract

World Trade Organization was established to promote the trade process between member countries. It presented guidelines for easing the international trade and addressing any disputes arising out of it between member states. While, there has been other international bodies also working to facilitate trade but there is no such organization which has left the same impact as in the case of WTO. On one hand, the organization has done a great deal to promote international trade which includes abolishment of trade barriers, on the other hand, the activities of the organization has been subject to much criticism. The purpose of this paper is to analyze the topic from different aspects so that a meaningful conclusion can be drawn out of it.

World Trade Organization and International Trade

Introduction

The formation of WTO was the direct result of the General Agreement on Tariffs and Trade (GATT) during the Uruguay Round which subsequently codified "Marrakesh Protocol to the General Agreement on Tariffs and Trade 1994." Before the advent of WTO, GATT was already involved in informal negotiation. WTO was intended to replace this negotiation forum with a material organization whose primary purpose is to promote global trade practices. The organization now holds the power to implement trade agreements, administer disputes arising in the course of trade and present global framework for trade under common legal umbrella. The rules of the WTO are legally binding on all member countries. WTO now only replaced GATT but its scope is way broader than GATT and comprises of trade in intellectual property as well as services. The headquarters of the WTO were established in Geneva, Switzerland, and came into operation on January 1, 1995. The 128 nations of GATT became members and by 2000 the WTO had 136 members, with others, including China and Russia, applying for membership. The United States approved China's entry in 2000; China was admitted in late 2001.

There are many ways of looking at WTO; it is regarded as an organization for liberalization trade. The other way of looking at WTO; it is a place to settle dispute among trading countries. The legal policies of trade among members of WTO are sanctioned by the top authority. In simple term, WTO is a perfect forum for trade negotiation; it's a place to set fair trade rules and regulations, it is place to trade disputes between two countries. World trade organization has played an integral part in mounting the global economy.

Discussion

Statement of Purpose

The purpose behind establishing WTO is to advance the economic condition of all its member countries through their healthy trade and economic relations. The preamble to the Uruguay Round Agreement Establishing the World Trade Organization noticeably reports the members' objectives, preferred means for attaining these goals and objectives, and principles for the process of organizing. Apart from defining the explicit economic criterion to be developed in all member states, the preamble emphasizes the call for endeavors to completely integrate developing member states into the one single and ultimate global ...