Understanding the World Trade Organization (WTO)

The World Trade Organization (WTO)

• The WTO deals with the rules of trade between nations at a global or near-global level.
• The WTO is an organization where member governments discuss trade problems, and its work is based on negotiations.
• The WTO's current work comes from the Uruguay Round (1986-1994) and earlier negotiations under the General Agreement on Tariffs and Trade (GATT).

Functions of WTO

• The WTO helps member countries facing trade barriers through negotiations to liberalize trade.
• It sets rules to maintain trade barriers, such as protection to consumers and prevention of the spread of disease.
• The WTO provides a framework for negotiating trade agreements and a dispute settlement mechanism.

WTO Creation

• The WTO commenced on January 1, 1995, but its trading system is half a century older.
• The General Agreement on Tariffs and Trade (GATT) had provided the rules for the system since 1948.
• The WTO was created as a result of the Uruguay Round (1986-1994) and replaced GATT.

WTO Coverage

• The WTO covers trade in services and trade-related aspects of intellectual property rights.
• It deals with the regulations of trade between participating countries.

Membership

• The Philippines is one of the founding members of the WTO, along with several other ASEAN Member States countries.
• As of July 2016, the WTO has 164 member countries.
• Liberia and Afghanistan were the newest members to accede to the WTO in July 2016.

Main Objectives of WTO

• The WTO's main objectives are to:
  • Raise living standards
  • Ensure full employment
  • Ensure a large and steady growing volume of real income and effective demand
  • Expand the production of and trade in goods and services while allowing for the optimal use of the world's resources in accordance with the objectives of sustainable development