Question

1. What is the World Trade Organization (WTO? When was the WTO created and how is it related to the GATT?
2. Roughly how many countries are members of the WTO and what are the broad issues related to agriculture that are being debated in WTO negotiations?
3. Why does the world need organizations such as the World Trade Organization (WTO)? In other words, what is the role of the World Trade Organization?

Answer 1

The World Trade Organization is a worldwide membership organization which encourages and manages free trade. It's doing this in three respects. First, it manages existing multilateral trade contracts. Each member shall be granted the Most Favored Nation Trading Status. This implies that they automatically receive reduced tariffs for their exports. Secondly, they settle trade conflicts. Most of the disputes arise when one member accuses another of dumping. This is when it exports products at a reduced cost than it costs to generate them. The WTO staff shall investigate and, if there has been a breach, the WTO shall levy sanctions.

The origins of the WTO started with trade negotiations after World War II. In 1948, the General Agreement on Tariffs and Trade focused on the reduction of tariffs, anti-dumpingand non-tariff measures. From 1986 to 1994, the Uruguay Round of negotiations led to the official establishment of the WTO. In 1997, the WTO negotiated agreements to promote trade in telecommunications services between 69 nations. It also removed tariffs on information technology goods from 40 employees. Improved trade in banking, insurance, securities and economic data between 70 nations.

GATT is linked to enhancing market access by decreasing the multiple obstacles to trade in distinct nations. The removal of trade constraints was to be accomplished by reducing tariff prices, reducing non-tariff assistance for agriculture, abolishing voluntary export restrictions or phase-out of the Multi-Fiber Arrangement (MFA), cutting subsidies, etc.

The WTO has 164 members and 23 observer governments. Liberia became the 163rd member on 14 July 2016, and Afghanistan became the 164th member on 29 July 2016.

Developing countries are active in negotiations on agriculture, and several organizations have placed their names to the negotiating suggestions. In particular, they represent a wide variety of interests in the discussion, and the differences are not always evident. For instance, the Cairns Group— which favors much higher liberalization of agricultural trade— is an alliance that cuts across developed-and developing-country borders. Fourteen out of its 17 members are developing nations. Like most WTO members, the Cairns Group would also like to see emerging nations receiving some kind of "unique and differential" therapy to take their requirements into consideration.

The main goals of the WTO are: 1. Improving the standard of living of individuals in member nations. 2. Ensure complete jobs and a wide boost in efficient demand. 3. Enlarge the manufacturing and trade of products.

4. Managing laws and procedures linked to the resolution of disputes. 5. To guarantee the optimum utilization of the world's resources. 6. To help international organizations such as the IMF and the IBRD in creating coherence in the determination of the Universal Economic Policy.