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'''The World Trade Organization''' ('''WTO''') is intended to perform the function of supervising and liberalizing international trade. Any dispute over trade between member countries is brought before the WTO and is solved through a series of negotiations. The organization is driven by its members, and all decisions are made by member governments.<ref>[http://news.bbc.co.uk/2/hi/europe/country_profiles/2429503.stm BBC News-Profile: World Trade Organization]</ref> The agreements signed by various nations under WTO play an important role when forming laws and policies related to international trade.
The '''World Trade Organization''' ('''WTO''') is a coalition to supervise and liberalize international trade. Any dispute over trade between member countries is brought before the WTO and is solved through a series of negotiations. The organization is driven by its members, and all decisions are made by member governments.<ref>[http://news.bbc.co.uk/2/hi/europe/country_profiles/2429503.stm BBC News-Profile: World Trade Organization]</ref> The agreements signed by various nations under WTO play an important role when forming laws and policies related to international trade.
==History==
==History==
* The World Trade Organization supplanted GATT, or the General Agreement on Tariffs and Trade, which was signed into law in October 1947 by 23 countries in order to reduce custom tariffs between them.
* The World Trade Organization supplanted GATT, or the General Agreement on Tariffs and Trade, which was signed into law in October 1947 by 23 countries in order to reduce custom tariffs between them.
* Afterwards, proposal for establishment of International Trade Organization was out forward by delegates from fifty-six countries in November 1947 at Havana, Cuba.
* Proposals for the establishment of an International Trade Organization was forward by delegates from fifty-six countries in November, 1947 in Havana, Cuba.
* On January 1, 1995, the World Trade Organization was established.<ref>[http://news.bbc.co.uk/2/hi/europe/country_profiles/2429503.stm BBC News-Profile: World Trade Organization]</ref>
* In 1982, a failed meeting of the GATT resulted in the preliminary foundation of a new trade organization; this was the beginning of the Uruguay Round. Thus, the GATT slowly built up its scope, and 7 years later it had effectively become the WTO. The process was slow, and the situation often quite bleak.<ref>[http://www.wto.org/english/thewto_e/whatis_e/tif_e/fact5_e.htm WTO.org]</ref> During the early 1980s, the world powers did not find GATT’s principles as applicable to the realities as they used to find them in the 1940s.<ref>[http://www.wto.org/english/thewto_e/whatis_e/tif_e/fact4_e.htm The GATT years: from Havana to Marrakesh]</ref>
* From 1947 until 1994 GATT acted as the provider of rules for most of the trading houses all over the world. Although it seemed to be well established for those 47 years, it was actually a provisional organization and agreement. So, the GATT’s fundamental official principles were almost the same since the time it was established. There were a few additions in the year 1960 and 1970 with the goal to reduce the tariffs.<ref>[http://www.wto.org/english/thewto_e/whatis_e/tif_e/fact4_e.htm The GATT years: from Havana to Marrakesh]</ref>
* In 1986, the GATT members gradually accepted the negotiating program that enclosed almost all the outstanding issues of the trade policy.
* However, major changes occurred during the Tokyo Round which lasted from 1973 to 1979 and saw around 102 countries participating. Tit was held with major improvements in mind, however it received mixed reviews and in most of the cases, there was relatively low participation.<ref>[http://www.wto.org/english/thewto_e/whatis_e/tif_e/fact4_e.htm The GATT years: from Havana to Marrakesh]</ref>
* In 1988, the agenda for the remaining two years was discussed.
* During the early 1980s the world trade did not find GATT’s principles as applicable to the realities as they used to find it in the 1940s.<ref>[http://www.wto.org/english/thewto_e/whatis_e/tif_e/fact4_e.htm The GATT years: from Havana to Marrakesh]</ref>
* On January 1, 1995, the World Trade Organization was established.<ref>[http://news.bbc.co.uk/2/hi/europe/country_profiles/2429503.stm BBC News-Profile: World Trade Organization]</ref>
* From 1947 until 1994 GATT acted as the provider of rules for most of the trading houses all over the world. Although it seemed to be well established for those 47 years, it was actually a provisional organization and agreement. So, the GATT’s fundamental official principles were almost the same since the time it was established. In fact, there were few additions in the 1960s and 1970s to reduce the tariffs.<ref>[http://www.wto.org/english/thewto_e/whatis_e/tif_e/fact4_e.htm The GATT years: from Havana to Marrakesh]</ref>
* The number of member states in the WTO grew 150 when Vietnam became a member on January 11, 2007. Presently it has 153 member states.<ref>[http://news.bbc.co.uk/2/hi/europe/country_profiles/2429503.stm BBC News-Profile: World Trade Organization]</ref><ref>[http://www.wto.org/english/thewto_e/whatis_e/tif_e/org6_e.htm WTO-Members and Observers]</ref>
* The number of member states in the WTO grew 150 when Vietnam became a member on January 11, 2007. Presently it has 153 member states.<ref>[http://news.bbc.co.uk/2/hi/europe/country_profiles/2429503.stm BBC News-Profile: World Trade Organization]</ref><ref>[http://www.wto.org/english/thewto_e/whatis_e/tif_e/org6_e.htm WTO-Members and Observers]</ref>
==The Uruguay Round==
==The Uruguay Round==
The Uruguay round started in 1882, took place for seven and a half years which was twice the actual schedule. Around 123 countries took part in it. Although during the early times of the round it seemed to fail its purpose but gradually it brought about the largest improvement in the trading field all over the world.
The Uruguay Round was a turning point as the world trading system saw some major reforms. It saw some results very early and within two years, the participants agreed that they would implement a cut package on import duties on the tropical products, exported mainly by the developing countries. Rules to settle disputes were also revised and measures were taken to implement them on the spot. To make the trade regimes transparent they suggested that GATT members submit regular reports on their trade policies.<ref>[http://www.wto.org/english/thewto_e/whatis_e/tif_e/fact5_e.htm The Uruguay Round]</ref>
The Uruguay Round’s seeds were sown at the Geneva meeting in November, 1982. The meeting was a failure, but its work programme became the agenda for the Uruguay Round, which was held in Punta del Este, Uruguay in 1986. The negotiation was to extend the present trading system to include trade in [[Intellectual Property|intellectual property]] and services, and to bring about reforms in the sectors of textiles and agriculture.
Another meeting was held by the ministers in December, 1988 in Montreal, Canada to assess the progress and to elucidate the agenda, but it ended in a deadlock with no proper solutions. They met again in Geneva in April, 1989 and resolved the matters. The ministers met again in December, 1990 in Brussels to end the Round, but the talks were extended to reform the agricultural trade.
The political approach seemed to be poor, but the technical work was taken up at a good pace in the subsequent year, and the Final Act was tabled in the year 1992, by Arthur Dunkel, who was the Director General of GATT.<ref>[http://www.wto.org/english/thewto_e/whatis_e/tif_e/fact5_e.htm The Uruguay Round]</ref>
In the year 1986, the GATT members gradually accepted the negotiating program that enclosed almost all the outstanding issues of the trade policy.
The following two years were full of successes and failures. The key point was the differences between the European Union and the United States. In 1992, almost all the major differences between the United States and the European Union were settled, in a deal best known as the “Blair House Accord”. By the end of 1993, almost all the issues like market access, services and goods were resolved, and in April 1994, a meeting was held in Morocco, and a deal was signed by around 123 countries.<ref>[http://www.wto.org/english/thewto_e/whatis_e/tif_e/fact5_e.htm The Uruguay Round]</ref>
GATT was replaced by WTO, but General Agreement did not become obsolete.
==Functions==
==Functions==
The World Trade Organization performs a variety of functions, including:<ref>[http://www.iisd.org/trade/handbook/3_2.htm iisd.org]</ref><ref>[http://www.nationalaglawcenter.org/assets/crs/98-928.pdf CRS Report for Congress-The World Trade Organization: Background and Issues]</ref>
The World Trade Organization performs a variety of functions, including:<ref>[http://www.iisd.org/trade/handbook/3_2.htm iisd.org]</ref><ref>[http://www.nationalaglawcenter.org/assets/crs/98-928.pdf CRS Report for Congress-The World Trade Organization: Background and Issues]</ref>
===Trade Negotiations<ref>[http://www.iisd.org/trade/handbook/3_6.htm iisd.org]</ref><ref>[http://www.nationalaglawcenter.org/assets/crs/98-928.pdf CRS Report for Congress-The World Trade Organization: Background and Issues]</ref>===
===Trade Negotiations===
The organization plays an indispensible role in the area of trade negotiations. The agreements signed by WTO include goods, intellectual property, and services under it. The exceptions that are permitted during the international trade have also been mentioned in these agreements. The best feature of these agreements is they are not static at all. The organization continuously revises the terms and conditions mentioned in the agreement such that they are well suitable to the changing needs and requirements of countries participating in international trade.
The organization plays an indispensible role in the area of trade negotiations, and the agreements signed by the WTO deal with goods, [[Intellectual Property|intellectual property]], and other materials. Exceptions that are permitted during the international trade are also mentioned in these agreements. An important feature of these agreements is that they are not static. The organization continuously revises the terms and conditions mentioned in the agreement such that they are better suited to the changing needs and requirements of countries participating in international trade.<ref>[http://www.iisd.org/trade/handbook/3_6.htm iisd.org]</ref><ref>[http://www.nationalaglawcenter.org/assets/crs/98-928.pdf CRS Report for Congress-The World Trade Organization: Background and Issues]</ref>
===Monitoring and Implementations===
===Monitoring and Implementations===
The WTO agreements lay down rules and conditions for member companies. The company is not only responsible for formulating laws but it also monitors whether the companies are following them properly or not. Periodically, the organization makes a check on member companies and ensures that each of the laws is implemented to the best extent possible.
The WTO agreements lay down rules and conditions for member countries. The country is not only responsible for formulating laws but it also monitors whether the companies are following them properly or not. Periodically, the organization makes a check on members and ensures that each of the laws is implemented to the best extent possible.
===Settlement of Disputes<ref>[http://www.iisd.org/trade/handbook/3_2.htm iisd.org]</ref><ref>[http://www.wto.org/english/thewto_e/whatis_e/tif_e/disp1_e.htm UNDERSTANDING THE WTO: SETTLING DISPUTES]</ref>===
===Settlement of Disputes===
In order to make sure that international trade takes place smoothly and harmony is maintained amongst member companies the organization performs the function of dispute settlement as well. if any of the member companies experience problem while carrying out trade then they can bring the matter to the WTO without giving a second thought. The organization has appointed some experts who can carry out this task efficiently.
In order to make sure that international trade takes place smoothly, the organization performs the function of dispute settlement as well. if any of the member companies experience problem while carrying out trade then they can bring the matter to the WTO without giving a second thought. The organization has appointed some experts who can carry out this task efficiently.<ref>[http://www.iisd.org/trade/handbook/3_2.htm iisd.org]</ref><ref>[http://www.wto.org/english/thewto_e/whatis_e/tif_e/disp1_e.htm UNDERSTANDING THE WTO: SETTLING DISPUTES]</ref>
==Reaching Out to People==
==Reaching Out==
The organization does not work by keeping itself isolated from other firms available in the market. Rather the organization maintains contact with non-government organizations and media such that it can stay aware of happenings taking place in different parts of the world. Moreover, it helps the organization in fetching support whenever required.
The organization does not work by keeping itself isolated from other firms in the market; instead, the organization maintains contact with non-government organizations and media such that it can stay aware of happenings taking place in different parts of the world. Moreover, it helps the organization in fetching support whenever required.
The organization plays a key role in improving trade capacity of member countries as well.
The organization plays a key role in improving trade capacity of member countries as well.
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[[Category: Companies]]
[[Category: Organizations]]
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