Question

Describe the world trade organization WTO and its role in facilitating global trade today. Has the WTO always been in its current form?

Answer 1

An only international organization that deals in the rules of trading between countries is World Trade Organization (WTO). The organization was actually established by the name of General Agreement of Trade and Tariffs (GATT) in 1948. In the Uruguay round of GATT in April 1994, the organization signed an agreement and become a new organization named as WTO.

Role of WTO:

1. One of the primary motive of the WTO is to set provisions and rules for trade and see that if the trade is running smoothly between the members of WTO.
2. It gives a platform to decide prospect policies for trade and tariffs.
3. It ensures the efficient and effective use of resources of world.
4. It is a place for settling disputes through rules and provisions.
5. It assists other international organizations such as IMF and IBRD for establishing economic policies.