WORLD ECONOMY AND ROLE OF WTO

World Economy and Role of WTO

World Economy and Role of WTO

Introduction

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. (World Trade Organization, 2009). Its purpose is to help "trade flow smoothly, in a system based on rules, to settle trade disputes between governments, and to organise trade negotiations" (Acheson, 2001, 52)

The year 1999 was a very important year in the history of World Trade Organization (WTO). The reason of its importance is the agreement for launching new negotiations on global trade liberalization at their 4rth Ministerial meeting and these negotiations are to be completed by January 2005. After its completion, it will promote economic growth and recovery in our country (United States) and around the world and will also strengthen the Rule-Based Multilateral Trading System. (Helleiner, 2002)

The United Nations, The World Bank, Organization for Economic cooperation and Development are some international organizations have governmental authority and act supranational entities. The incident of September 11 and their result have dealt a huge blow to the anti-globalization movement. In order to retrieve the initiative, we must realize our situation, the anti-globalization movement is in strife against both the supranational agencies of globalization, which are now wrapping themselves in U.S. flags, and the dissident groups of the Middle East, who cloak themselves in Islamic flags and want a more valuable deal for themselves and their followers.

The WTO came into existence in 1995 as an outgrowth of a predecessor; the General Agreement on Tariffs and Trade (GATT). As stated by the WTO's former Director General Renato Ruggiero, the primary objectives of the WTO are:

Eliminating or reducing obstacles to trade through negotiation while agreeing on governing rules of conduct for international trade.

The administration and monitoring of rules for trade in goods, intellectual property rights and services.

Reviewing and monitoring trade policies of member state while ensuring transparency of bilateral and regional agreements.

Settling disputes regarding application and interpretation of agreements.

Increasing the capacity of developing countries government's officials to functional in the international arena.

Collecting and distributing data and conducting economic research.

Assisting additional potential member countries as they attempt to join the WTO.

Educating the public about the WTO. (World Trade Organization, 2009).

Key Principles

Trade without Discrimination

Members are required to grant to the products of other members countries no less favored treatment than that the products of any other nation. This is known as “The Most-Favored Nation” (MFN) clause. A provision on “national treatment” requires that once goods have entered a market, they will be treated as equals with domestically produced items.

The aim of World Trade Organization is to strengthen the trade rules that are governing the custom procedures, so as to ensure the free flow of goods and ...