World Trade Organization (WTO)
What functions does WTO undertake?
What are the WTO’s main accomplishments?
What is the WTO doing to support countries in the developing world?
What is WTO doing about climate change?
What are the important policies by WTO that promote world trade?
As a substitute for the General Agreement on Tariffs and Trade (GATT), the World Trade Organization was established in 1995. The organization’s headquarters is located in Geneva Switzerland. Although the WTO is not a United Nations Specialized entity, the two agencies work closely together. Via collaborations with the United Nations Conference on Trade and Development (UNCTAD), the WTO works with the United Nations to facilitate development-oriented trade and contribute to developing countries’ beneficial integration. The process of joining the organization involves negotiations by countries wishing to join. Members agree on terms and make commitments to honor terms agreed upon during negotiations.
Since its inception, WTO is mandated with several activities. The mandates of WTO include:
- The first mandate for WTO is to act as a negotiating platform for world trading nations. Almost all agreements and deals at the WTO are as a result of negotiations. Member countries come to WTO to discuss their issues regarding trading and find solutions through mutual agreements.
- The WTO is required to develop global economic policies. The organization corporates with other important world organizations such as the World Bank and the International Monetary Fund to formulate coherent policies that govern and regulate global trading.
- It helps member countries export goods amongst each other. It promotes export by member states through the International Trade Centre that it jointly operates with the UN that acts through UNCTAD.
- Helps developing countries and transition economies. Developing countries make up the bulk of WTO members. Thus, it is important to note that the organization focuses on helping developing countries. Developing countries have economic problems and needs that should receive special attention. The WTO through the Secretariat’s Training and Technical Cooperation Institute trains and helps developing economies negotiate better and receive better terms in trade agreements.
- Settling trade disputes. The organization acts as an institution for hearing and settling trade disputes between member states.
In its over twenty years of existence; WTO has made remarkable success while undertaking its functions. The WTO succeeded in eradicating trade barriers between member states. It has enhanced the value and quality of trade between members. The organization has assisted in solving numerous trade disputes. It has developed policies that increase transparency during negotiations and introduced the Trade policy Review to analyze and amend trade policies that contribute to conflicts. Again, WTO has promoted development through sustainable trade agreements. Finally, it has achieved a reduction of tariffs and the elimination of trade barriers.
The WTO is instrumental in support countries that are developing and those undergoing transition. The organization’s policies protect developing countries from exploitation. Developing countries have expanded their export capacity with the aid of the WTO. There is a bigger market. WTO assists such countries to enter into beneficial trade agreements that ensure sustainable developments. The education and training programs developed and implemented by WTO has helped developing countries to have stronger negotiating skills and capacities. Developing countries are granted fair settlement in cases of conflicts by their dispute resolution mechanisms.
There is a link between WTO activities and climate change. Trade liberalization cannot be achieved without sustainable development. The WTO helps to combat climate change favorably through its policies. The WTO helps mitigate climate change by negotiating the elimination of trade barriers on products that benefit the environment. The WTO supports trade promoting negotiations that help in mitigating the negative effects of climate change. Better trade agreements have led to higher income for developing countries, increasing their capacity to tackle climate change issues. The major policies by WTO include tariff-free trade for IT products, the Doha Development Agenda, the Revised Government procurement Agreement, and the abolition of agricultural export subsidies.