Adam Rosen - Lead financial writer
The World Trade Organization (WTO) is an international organization that was established on January 1, 1995. It is the only global international organization that deals with the rules of trade between nations. Its main objective is to promote free and fair trade between countries, thereby increasing economic growth and development. The WTO has 164 members and 26 observer governments as of 2021, representing over 97% of world trade.
The WTO was created as a successor to GATT, which was established in the 1940s. The GATT was created in response to the destruction of international trade caused by the Second World War. Over time, the GATT was amended and expanded, leading to the creation of the WTO in 1995.
The WTO has a complex structure, with a number of different bodies and committees that carry out its work. The Ministerial Conference is responsible for setting the agenda for the WTO and making decisions on important trade issues. It is attended by representatives from all of the WTO's member countries.
WTO has subsidiary bodies, including the General Council, the Dispute Settlement Body, and the Trade Policy Review Body. The General Council is responsible for overseeing the work of the WTO and making decisions on a range of trade-related issues. The Dispute Settlement Body is responsible for resolving trade disputes between WTO member countries. The Trade Policy Review Body is responsible for reviewing the trade policies of WTO member countries and making recommendations for improvement.
The main functions of the WTO are to
There are many benefits to WTO membership, including
Despite the benefits of WTO membership, the organization has faced criticism for a number of quarters. Some of the main criticisms of the WTO include:
The future of the WTO remains uncertain, as the organization faces challenges such as a rising wave of protectionism, the increasing influence of mega-regional trade agreements, and a growing disillusionment with the multilateral trading system. Despite these challenges, the WTO remains an important forum for promoting free and fair trade and resolving disputes between nations. It will be important for the WTO to continue to evolve and adapt in order to remain relevant and effective in the years to come.
One of the major challenges facing the WTO is the ongoing Doha Round of trade negotiations, which has been ongoing since 2001. The Doha Round aims to further liberalize trade and provide greater market access for developing countries, but progress has been slow and the outcome remains uncertain. It will be important for the WTO to conclude the Doha Round and make significant progress on these important trade issues in order to maintain its credibility and relevance.
Another challenge facing the WTO is the growing influence of mega-regional trade agreements. It will be important for the WTO to work closely with these mega-regional trade agreements and ensure that they complement and reinforce the work of the WTO, rather than undermine it.
In conclusion, the World Trade Organization remains an essential component of the global trading system, providing a forum for promoting free and fair trade and resolving disputes between nations. Despite facing a number of challenges, the WTO is poised to continue to play an important role in shaping the future of global trade. It will be important for the WTO to continue to evolve and adapt in order to remain relevant and effective in a rapidly changing global landscape.