The World Trade Organisation (WTO) is an international organisation that deals with the global rules of trade between nations. It was established on January 1, 1995, and is based in Geneva, Switzerland. The WTO is the successor to the General Agreement on Tariffs and Trade, which was created in 1947.
The primary goal of the WTO is to promote and facilitate free and fair trade among its member countries. It provides a framework for negotiating and implementing trade agreements, resolving trade disputes, and monitoring trade policies and practices. The WTO operates on the principles of non-discrimination, transparency, and predictability in international trade.
Trade negotiations: The WTO facilitates negotiations among member countries to develop and update trade agreements. The most significant of these agreements is the Agreement on Trade-Related Aspects of Intellectual Property Rights, which sets global standards for the protection and enforcement of intellectual property rights.
Dispute settlement: The WTO has a dispute settlement system that helps member countries resolve trade disputes. It provides a forum for negotiation and, if necessary, a panel to adjudicate disputes. The rulings of the dispute settlement system are binding and enforceable.
Trade policy review: The WTO conducts regular reviews of the trade policies and practices of its member countries. Through these reviews, the WTO promotes transparency and monitors compliance with the agreed rules and commitments.
Technical assistance and capacity building: The WTO provides technical assistance and capacity-building programs to help developing countries participate effectively in the global trading system. This includes support in areas such as trade policy development, legal and regulatory frameworks, and trade-related infrastructure.
Special and differential treatment: The WTO recognises the needs of developing countries and provides special and differential treatment to assist them in their trade development efforts. This includes longer implementation periods for certain obligations and technical assistance to help them comply with WTO agreements.
Currently, the WTO has 164 member countries, accounting for the majority of global trade. It operates on the basis of consensus among its members and seeks to promote a rules-based and open trading system that benefits all participants. The WTO plays a vital role in promoting economic growth, fostering stability, and resolving trade disputes at the international level.
You can learn more about this topic with our Intellectual Property notes.
