The World Trade Organization (WTO) is an international organization that regulates and facilitates trade between nations. Its primary function is to ensure that trade flows as smoothly, predictably, and freely as possible.
To achieve this goal, the WTO has several agreements in place that set out the terms and conditions for trade between member countries. These agreements cover a wide range of issues, including tariffs, subsidies, intellectual property rights, and trade-related investment measures.
One of the most important agreements of the WTO is the General Agreement on Tariffs and Trade (GATT). The GATT is a framework that governs the terms of trade among member countries. It sets out rules for reducing trade barriers and preventing discrimination against foreign goods and services.
Another critical agreement of the WTO is the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). This agreement sets out the minimum standards for protecting intellectual property, such as patents, trademarks, and copyrights, in the WTO member countries.
The WTO also has agreements that deal with specific issues, such as the Agreement on Agriculture, the Agreement on Technical Barriers to Trade, and the Agreement on Trade in Services.
In addition to its agreements, the WTO also provides a forum for member countries to resolve trade disputes. The WTO`s Dispute Settlement Understanding (DSU) is a mechanism for resolving disputes between member countries over alleged violations of WTO rules. The DSU provides a structured process for consultations, mediation, and ultimately, a panel of WTO experts to adjudicate the dispute.
Overall, the functions and agreements of the WTO are crucial for ensuring the stability and predictability of the international trading system. By promoting free trade, reducing trade barriers, and providing a mechanism for resolving disputes, the WTO contributes to global economic growth and development.