World Trade Organization

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World Trade Organization

• By Heather Peters and Sonia Ricciardelli

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What is WTO

• The only global international organization
  dealing with the rules of trade with nations.
• The goal is to help producers of goods and
  services, exporters, and importers conduct their
  business
• It has been active for over 50 years.
• Legal, political, economic, and cultural
  environments, members are expected to abide by
  the laws of the country they operate in.

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WTO

• WTO is described as
• Member-driven
• Not an advocate of free trade at any cost
• Supports sustainable development
• Commerce does not take priority over the
  envionment
• Does not widen the gap between rich and poor

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WTO

• WTO reported that its agreements have contributed
  positively to globalization in the following ways
• Contributes to world peace
• Allows disputes to be handled constructively
• Is a system based on rules, not power
• Free trade cuts the cost of living
• Gives consumers a broader range of qualities and
  products from which to choose
• Trade raises incomes
• Trade stimulates economic growth
• Basic principles make the system economically
  more efficient
• The system shields governments from narrow
  interests
• Encourages good government and reduces
  opportunities for corruption

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WTO

• Formerly known as the General Agreement on
  Tariffs and Trade (GATT)
• Members agree to ongoing negotiation and to
  reducing tariffs and trade restrictions