The World Trade Organization (WTO) is a global body that regulates trade rules between countries. Established in 1995, it replaced the General Agreement on Tariffs and Trade (GATT) from 1947, which was set up after World War II.
The WTO operates based on agreements made by most of the world’s trading nations. Its primary role is to assist producers, exporters, and importers in safeguarding and managing their businesses.
At the 13th Ministerial Conference in Abu Dhabi on February 26, 2024, Comoros and Timor Leste were welcomed as the 165th and 166th members.
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The WTO acts as a mediator for trade disputes, ensuring that international trade rules are followed by countries. It serves as a space where member governments can discuss and settle trade-related issues with one another. The main goal of the WTO is to keep communication open about trade among its members.
By reducing trade barriers, the WTO has boosted trade between member nations. It also maintains certain barriers when it’s beneficial for the global economy. The organization works to mediate conflicts between countries to support overall economic growth.
In the event of a disagreement after negotiations are finalized, the WTO is there to interpret the agreements. Every WTO agreement comes with a process for resolving disputes, allowing for impartial conflict resolution.
Conclusion
The World Trade Organization (WTO) was established in 1995 and operates on agreements made by a majority of the globe’s trading countries. Its main aim is to support and safeguard producers of goods and services, as well as exporters and importers. While it has its supporters, it also faces criticism.
During his first term, President Trump considered pulling the U.S. out of the WTO, labeling it a “disaster.” Supporters, however, highlight its beneficial role in boosting international economic growth.