Q:

What is the importance of the WTO?

A:

Quick Answer

The World Trade Organization ensures that countries that trade goods and services have a say in how trade is conducted on an international level, thereby promoting peaceful relations, stimulating global economic growth, lowering the cost of living for residents of many nations and creating challenges to governments that seek to gain an economic advantage through corrupt trade practices. The WTO generally encourages transparent government among its members.

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Full Answer

According to Aspenia Online, the WTO serves as a forum for solving global problems, including food security, climate change and commodity price volatility. For example, during a year in which certain crops experience poor yields, the organization works with all nations that grow the crop to help affected nations feed their own citizens without creating a high spike in that particular crop's prices worldwide.

The WTO touts its own effectiveness and value in part based on its ability to even the playing field for smaller and poorer nations by offering those countries a voice during trade negotiations. It also encourages small countries to form economic alliances when this would be advantageous to global trade and the respective nations. The WTO also allows larger nations to spend less time negotiating the details of agreements and focus more on productivity.

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