Introduction and history

A treaty created following the conclusion of World War II. The General Agreement on Tariffs and Trade (GATT) was implemented to further regulate world trade to aide in the economic recovery following the war. GATT's main objective was to reduce the barriers of international trade through the reduction of tariffs, quotas and subsidies. Investopedia explains 'General Agreement on Tariffs and Trade - GATT' Formed in 1947 and signed into international law on January 1, 1948, GATT remained one of the focal features of international trade agreements until it was replaced by the creation of the World Trade Organization on January 1, 1995. The foundation for GATT was laid by the proposal of the International Trade Organization in 1945; however the ITO was never completed. Then GATT is changed into WTO. World Trade Organization is an international organization dealing with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably, and freely as possible.

What is WTO?
The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. WTO agreements are negotiated and signed by the trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct and grow their business.

Goal of WTO
To improve the welfare of the peoples of the member countries.

Present, past and future

International Trade Organization (ITO) after WW-II thought of -1945 The WTO came into being in 1995.

The WTO is the successor to the General Agreement on Tariffs and Trade (GATT), established in the wake of the Second World War. Merchandise exports grew on average 6% annually Total trade in 1997 was 14 times the level of 1950 In 1997, 40 governments concluded negotiations for tariff free trade. Many rounds of GATT negotiation. The Uruguay Round (1993) leads to World Trade Organization (WTO) With 125 Countries In 1994 at Marrakech In present drive awareness and campaign Building capacity capital, technology and skill Political commitments Administrative reforms System compatibility Radical changes for competitiveness Cross society's support Future course of WTO TRIPS (patent Copyrights, Trademark Designs, Geographical Indications) - new laws and implementation required Rule based transparent business Agriculture - Protecting the rights of Farmers Opening of the diverse, new & service sector Technical assistance for enhancing competitive strength Identification and development of thrust \ core sectors Competition Law & facilitating mechanism Investment friendly law & policy Transparency in govt. procurements WTO has 159 members till now

Major WTO Functions

Administering WTO trade agreements Forum for trade negotiations Handling trade disputes Monitoring national trade policies Technical assistance and training for developing countries Cooperation with other international organizations

Objectives of WTO

To set and enforce rules for international trade To provide a forum for negotiating and monitoring further trade liberalization To resolve trade disputes To increase the transparency of decision-making processes To cooperate with other major international economic institutions involved in global economic management To implement the new world trade system as visualized in the Agreement; To promote World Trade in a manner that benefits every country To ensure that developing countries secure a better balance in the sharing of the advantages resulting from the expansion of international trade corresponding to their developmental needs; To demolish all hurdles to an open world trading system To enhance competitiveness among all trading partners so as to benefit consumers and help in global integration To increase the level of production and productivity with a view to ensuring level of employment in the world To expand and utilize world resources to the best To improve the level of living for the global population and speed up economic development of the member nations

Set of rules
The negotiated legal rules included in the various WTO agreements cover the following topics: Trade in Goods Trade in Services Trade-related aspects of intellectual property rights Dispute Settlement Trade Policy Reviews