Question

What is the World Trade Organization? What is its role in the world economy?   

Answer 1

The World Trade Organization came into being in 1995. One of the youngest of the international organizations, the WTO is the successor to the General Agreement on Tariffs and Trade (GATT) established in the wake of the Second World War.

The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business.

The WTO is run by the governments of its member states. All significant choices are produced by the entire membership, either by ministers (generally meeting at least once every two years) or by their ambassadors or delegates (who meet frequently in Geneva).

World Trade organization (WTO) has a crucial role to play in the international trade, global economics, political and legal issues arising in the international business because of the globalization.

The goal of WTO is to provide a fair platform for its member countries to help in services like exports,imports and conduct their business in a peaceful manner.

WTO promotes country-specific execution, administration and smooth operation of trade contracts.
It offers a forum for its member nations to negotiate trade.
Settlement of conflicts between Member States through the laws and regulations that have been developed.
It works with the IMF (International Monitoring Fund) and the World Bank to make worldwide financial strategies cohesive.

The WTO as a whole was established to play a very significant part in the world economy by settling trade-related conflicts through laws, regulations and consensus-based agreement processes that would avoid trade-related wars between strong nations.

Following negotiations, consultations and mediations, by resolving trade-related contested WTO has the ability to thoroughly preserve world peace and bilateral relations between its member nations.