Established on January 1, 1995, the WTO (World Trade Organization) is an institution that is multilateral. They have been charged with the administration of the rules of trade between countries who are members of the organization. Officially there are 145 member countries. During negotiations between the United States and other countries between 1986 through 1994, the formation of the WTO was called for to embody the trade disciplines that were adopted.
The WTO Explained
As the principal international body, the WTO is concerned with negotiations pertaining to trade barrier reduction and any other measures that potentially distort competition. They also serve as the platform for issues among trading partners over trade policies. The basic goal is to organize world trade in a secure fashion and to contribute to the world's economic development and growth.
The general agreement on Tariffs and Trade aims toward the promotion of practice of free trade all over the world. The WTO is a forum where governments come together to properly negotiate trade agreements. This is the arena for disputes to be settled. They operate on a specific system of trade rules. Basically, member nations view the WTO as a contractual body that enforces agreed upon rules and regulations in a protective fashion.
Maintaining peace among member countries is a priority for the WTO. They avoid trade disputes. They are the guiding force behind keeping trade barriers from occurring and making sure that war doesn't break out among country members. It is the basis of why the organization was formed. As more trade among member countries arises, chances of disputes that could lead to serious conflict is inevitable. Countries seek out help from the WTO to settle any trade disputes. This helps to reduce tension in international trade agreements.
With a system based on rules, life is easier for everyone involved instead of a system that is built on power alone. The agreement that formed the WTO was negotiated by all of the members. This gave everyone involved a say in what was formed. In the WTO, poor and rich countries have equal rights. They can settle disputes by challenging each other and it makes things easier all around. The end result is a higher bargaining ability for smaller countries. This keeps larger countries from imposing their will on smaller countries and it gives every member a voice. Economic growth is boosted worldwide through trade. This growth leads the way to more jobs. It is a benefit to everyone.