WTO Report: An Examination of Global Trade and Disputes

This report provides an overview of the World Trade Organization (WTO), detailing its establishment, functions, and impact on international trade. It examines the benefits of WTO membership, such as reduced trade barriers and increased foreign investment, as well as the disadvantages, including criticisms of tariff rules and the impact of trade deals like TIPP. The report also explores the WTO's dispute resolution mechanisms, highlighting the importance of the multilateral trading system and specific cases, such as the dispute between the United States and Mexico regarding increased duties. The report concludes by emphasizing the importance of mutual negotiation in resolving trade disputes and maintaining good relations among member countries, referencing relevant sources for further information. The report is a student submission that is available on the website Desklib, a platform that provides AI-based study tools.

Running head: WORLD TRADE ORGANIZATION
WORLD TRADE ORGANIZATION
Name of the Student:
Name of the University:
Author Note:

1Answer to question 5:Answer to question 5:World Trade Organization
Table of Contents
Answer to question 1:......................................................................................................................2
Answer to question 2:......................................................................................................................3
Answer to question 3:......................................................................................................................4
Answer to question 4:......................................................................................................................5
Answer to question 5:......................................................................................................................6

2Answer to question 5:Answer to question 5:World Trade Organization
Answer to question 1:
The world trade organization is one of the intergovernmental organization that is allowed
to manage the operation of international trade. This organization was commenced on 1st January
1995 and operated under the initial Marrakesh Agreement. Almost 123 nations signed this on
15th April 1994. This agreement was signed to replace the previous agreement of General
Agreement on Tariffs and Trade (GATT) which was commenced during 1948. The member
countries who have agreed upon the regulations can participate into the negotiation process
during the trading process between two or more countries (Wto.org., 2020).

3Answer to question 5:Answer to question 5:World Trade Organization
Answer to question 2:
There are many benefits for being the member if the World Trade Organization like the
responsibilities of the members is abide with avoiding the trade barriers of the opponent
countries and resolve any disputes among themselves responsively. The members will also have
a benefit for paying low tariff charge and import quotas in another country barrier. Selling the
product in the global market helps the countries to earn more foreign investments and also attain
a good relation with the other country (Wto.org., 2020). This also helps the nation to develop
more because other countries are also allowed to import their technologies to help the country to
achieve sustainability.

4Answer to question 5:Answer to question 5:World Trade Organization
Answer to question 3:
Along with advantages, there are many disadvantages as well for being a member of
WTO like a lot of member countries have criticized the tariff rules so that they can protect the
new domestic industries from the outside developed industries which may affect the growth of
the domestic industries. The WTO rules are also overruled by the TIPP trade deals because this
focuses mainly into the business of US and UE. This TIPP rule excludes all other countries to
expand their business globally and violates the global importance in the market (Wto.org., 2020).

5Answer to question 5:Answer to question 5:World Trade Organization
Answer to question 4:
WTO manages to resolve their dispute among the participating countries with the help of
central pillar which is the multilateral trading system. The Uruguay Round agreement have
adopted a more effective method of clearing the disputes in a much defined procedure. The
agreement has fixed a specific deadline before which the dispute must be resolved and the simple
steps which must be followed by the official authorities. It is very important for the WTO to
resolve the disputes so that a flexible deadline can be maintained by each and every country
while working under the agreement (Wto.org., 2020).

6Answer to question 5:Answer to question 5:World Trade Organization
Answer to question 5:
DS560: Mexico – Additional Duties on Certain Products from the United States
United States have requested to government of Mexico regarding the increased duties in
certain products from US. The dispute was solved by WTO with the help of mutually agreed
solution of lowering the duties (Econ.economicshelp.org., 2020).
This negotiation was made on 28th May 2019 which was justified because for increasing
the faith over the WTO agreement by the third parties it was important to maintain the mutual
negotiation. This has helped the other countries to decrease their duties as well in certain
situations and also the increase a good relation among the countries.

7Answer to question 5:Answer to question 5:World Trade Organization
References:
Econ.economicshelp.org. (2020). Advantages and disadvantages of WTO. Retrieved 6 March
2020, from https://econ.economicshelp.org/2007/06/advantages-and-disadvantages-of-
wto.html
Wto.org. (2020). World Trade Organization - Global trade. Retrieved 6 March 2020, from
https://www.wto.org/
Wto.org. (2020). WTO | dispute settlement - DS560: Mexico � Additional Duties on Certain
Products from the United States. Retrieved 6 March 2020, from
https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds560_e.htm
Wto.org. (2020). WTO | Understanding the WTO - A unique contribution. Retrieved 6 March
2020, from https://www.wto.org/english/thewto_e/whatis_e/tif_e/disp1_e.htm