Q:

What are the functions of the World Trade Organization?

A:

Quick Answer

The main function of the World Trade Organization, or WTO, is ensuring that international trade flows as smoothly as possible in the multilateral trading system between its 157 member countries. The WTO is the only international organization dealing with the global rules of trade between nations.

Continue Reading
What are the functions of the World Trade Organization?
Credit: AFP AFP Getty Images

Full Answer

Other interrelated functions of the WTO that operate in support of its main purpose include providing a forum for negotiations among countries and serving as a dispute settlement mechanism. When conflict arises between member nations, the countries bring their cases before the WTO, where virtually all decisions are made by consensus and are ratified by member nations' legislative or governing bodies. Settling conflicts through the WTO reduces the risk of disputes spilling over into political or military conflict.

Another main function of the WTO is the oversight of the development, implementation and administration of WTO agreements. The WTO oversees at least 60 agreements that have the status of international legal texts. These agreements, negotiated and signed by governments, are contracts that guarantee important trade rights to WTO member countries. The WTO agreements also bind governments to keep their trade policies within agreed limits.

The WTO officially was formed in 1995 under the Marrakesh Agreement. It grew out of the General Agreement on Tariffs and Trade, which was signed in 1947.

Learn more about Economics

Related Questions

  • Q:

    What are the advantages and disadvantages of the WTO?

    A:

    Proponents of the WTO, or World Trade Organization, assert that it creates a strong, stable international economy, while opponents contend that it favors wealthy, developed nations and is widening the global divide between the rich and poor.. The WTO was created in 1995 to encourage and regulate trade between its over 150 participating member nations. The primary objective of the WTO is to create economic growth and encourage free trade among nations: supporters contend the WTO creates economic opportunities, while others say it is disfavors lower class citizens, limiting their opportunities for social and economic mobility.

    Full Answer >
    Filed Under:
  • Q:

    What does the WTO do?

    A:

    The World Trade Organization (WTO) is the only international entity to oversee trade between nations. The WTO helps negotiate and draft trade agreements that are recognized by the majority of trading nations.

    Full Answer >
    Filed Under:
  • Q:

    What does Standardbred Canada do?

    A:

    Standardbred Canada is an organization whose main function is to maintain a record of all Standardbreds in Canada as well as promote the culture of harness racing throughout Canada and the world. Standardbred Canada records, supervises, and distributes information regarding all registered Standardbreds and collects its data through field representatives at member racetracks. The organization records race data live and sends it directly to a computer system located at its headquarters in Mississauga.

    Full Answer >
    Filed Under:
  • Q:

    Why do most economists oppose trade restrictions?

    A:

    Economists oppose trade restrictions because it creates inefficiency in the markets. It is best to have a global trade as opposed to a country closing itself from all kinds of foreign trade. Trade restrictions lock the country from new products, goods, skills available in other parts of the world.

    Full Answer >
    Filed Under:

Explore