The World Trade Organization (WTO) is the only international institution that deals with the global regulations of trade between nations. It ensures that trade flows as smoothly, predictably and freely as possible. It carries out three main activities:
1.Administering and negotiating multilateral trading agreements
The WTO administers and oversees a wide range of multilateral agreements on trade in goods and services, Intellectual Property Rights and other related topics. It is responsible for monitoring the implementation of these agreements and ensuring a level playing field. These agreements are negotiated by members and finalized in the form of agreements known as ‘trade rules’, which are then legally binding for all members.
2.Settling trade disputes
When trade disputes arise between members, the WTO provides a dispute settlement mechanism. The mechanism enables an impartial ruling on the dispute, ruling on the legality and compatibility of the trade dispute measures with WTO agreements.
3.Managing trade policy reviews
The WTO regularly reviews the trade policies of its members to ensure that they are in line with WTO Agreements and are not discriminatory or disruptive of global trade. The WTO conducts these reviews on both a regular and an ad hoc basis, taking into account all relevant factors, including the economic and social implications of the policies.
The WTO plays an important role in ensuring global trade flows smoothly and in monitoring compliance with WTO Agreements. By providing a forum for discussion and negotiation, the WTO ensures that there is a level playing field between trading countries and that global trade can continue. The WTO also provides an objective platform for resolving trade disputes and promoting good trade relations between countries.
