Wto and Its Role in International Business

Contents

Introduction 3

What is WTO 3

Fact File of WTO 3

Functions: 4

Trade negotiations 5

Implementation and monitoring 5

Dispute settlement 5

Building trade capacity 6

Outreach 6

Protect the environment 6

Understanding the WTO 6

Overview: a navigational guide 15

Trade policy reviews: ensuring transparency 19

SETTLING DISPUTES 20

10 benefits of the WTO trading system 25

10 common misunderstandings about the WTO 25

Conclusion: 26

Bibliography: 26

The World Trade Organization (WTO) & Its role in International Business

Introduction

The World Trade Organization (WTO) is the only 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.

The result is assurance. Consumers and producers know that they can enjoy secure supplies and greater choice of the finished products, components, raw materials and services that they use. Producers and exporters know that foreign markets will remain open to them.

The result is also a more prosperous, peaceful and accountable economic world. Virtually all decisions in the WTO are taken by consensus among all member countries and they are ratified by members' parliaments. Trade friction is channeled into the WTO's dispute settlement process where the focus is on interpreting agreements and commitments, and how to ensure that countries' trade policies conform to them. That way, the risk of disputes spilling over into political or military conflict is reduced.

By lowering trade barriers, the WTO’s system also breaks down other barriers between peoples and nations.

At the heart of the system — known as the multilateral trading system — are the WTO’s agreements, negotiated and signed by a large majority of the world’s trading nations, and ratified in their parliaments. These agreements are the legal ground-rules for international commerce. Essentially, they are contracts, guaranteeing...