World Trade Organization
The World Trade Organization (WTO) is an intergovernmental organisation that regulates and facilitates international trade. Established in 1995 as the successor to the General Agreement on Tariffs and Trade (GATT), it provides a framework of rules for trade between nations, a forum for trade negotiations, and a mechanism for settling disputes.[1]
Purpose
The WTO's stated aims include:
- Raising standards of living and incomes.
- Expanding the production of and trade in goods and services.
- Reducing tariffs and other barriers to trade.
- Eliminating discriminatory treatment in international trade.
- Providing a forum for negotiating trade agreements and resolving disputes.
Key functions
| Function | Description |
|---|---|
| Administering trade agreements | Overseeing the implementation of WTO agreements. |
| Negotiating forum | Hosting rounds of multilateral trade negotiations. |
| Dispute settlement | Adjudicating trade disputes between member states. |
| Monitoring trade policies | Reviewing members' trade practices. |
Principles
The WTO system rests on several core principles, including non-discrimination (most-favoured-nation and national treatment), reciprocity, transparency, and binding commitments. These principles are designed to make trade predictable and to prevent arbitrary discrimination between trading partners.[1]