Examining the Impact of the World Trade Organization on Global Trade

This report provides a comprehensive analysis of the World Trade Organization (WTO), exploring its origins, history, organizational structure, and its multifaceted roles in international trade. It delves into the creation of the WTO, tracing its roots back to the General Agreement on Tariffs and Trade (GATT) and the unfulfilled International Trade Organization (ITO). The report examines the WTO's organizational framework, highlighting its decision-making processes and the involvement of member governments. Furthermore, it discusses the geographical and economic groupings within the WTO, emphasizing the collaborative efforts of various nations. A significant portion of the report is dedicated to the roles performed by the WTO, including its influence on globalization, its contribution to trade liberalization, and its impact on both developed and developing countries. The report also touches upon criticisms of the WTO, such as its potential to exacerbate unequal competition and its effects on local industries and human rights. Finally, the report concludes by summarizing the WTO's enduring significance in shaping the landscape of global trade and economic relations.

The World Trade Organization

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Table of Contents
Introduction................................................................................................................................2
Creation of World Trade Organization..................................................................................3
History of World Trade Organization....................................................................................5
Organizational Structure........................................................................................................6
The composition of Geographical and Economic Groupings................................................7
Roles Performed by World Trade Organization..................................................................12
Role of World Trade Organization in globalization and marginalization........................14
The contribution of WTO is to the unequal competition.................................................14
Conclusion................................................................................................................................15
References................................................................................................................................16

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Introduction
Policymakers and scholars believe that the interdependence is being influenced by the trade
relations and trade relations influence the peaceful relations and trust. In this paper, the
analysis of the concept of World trade organization, its history, and roles will be done.
Though the World trade organization is created on the concept that peace is stimulated
through trade, the makers of the policy do not understand how the trade influence the trade
conditions of different countries and formation of different policies to stimulate smooth
functioning of the business and relations (Aaronson & Abouharb, 2013).
The only institution in the world that looks after the international trades, rules among two or
more than two nations is the World Trade Organization. The WTO is dependent on the
contract signed by the most of the trading countries of the world. The key activity of the
organization is to assist manufacturer of the services or goods, importers, and exporters
manage and protect their businesses. The World Trade Organization’s Protagonists, mostly
multinational corporations, be certain of that the World Trade Organization is valuable to the
business organization. Cynics rely on that the World Trade Organization destabilizes the
organic democracy’s principles and broadens the worldwide wealth gap.
The World Trade Organization is majorly a mediation organization that supports the
international guidelines of trade between different nations. However, the WTO has powered
globalization with both the effects i.e. negative and positive. The efforts of WTO have
enlarged the global expansion of trade; however, there is an adverse impact on the local
society and human rights. Supporters of the WTO consider the encouragement of free trade
and debility in trade arguments as advantageous to the worldwide economy. Detractors of the

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World Trade Organization point to the drop in local industries and cumulative foreign effect
as adverse influences on the economy of the whole world.
World Trade Organization- The Creation
The WTO origin can be outlined back to the formation in 1944 of the International
Organization of Trade (ITO) at the Conference of Bretton Wood. Though the ITO terms
contract were being discussed and drafted (it is a procedure which started in 1946 and ended
up until when the final draft was created in 1948) and nations they will join the main
organization or not (Stewart, 2010). The legislatures from 17 countries group gathered in
Geneva and decided an interim agreement which is also known as GATT in order to reduce
the barriers of trade and tariffs among themselves. The contract, which was decided to come
into effect in 1948, was not for the enduring trade body but was an agreement of stop-gap to
offer service till the time the ITO will come into existence (Barton, Goldstein, Josling &
Steinberg, 2010).
Though, when the administration of Truman definite not to succumb the contract making the
ITO to the US Council for approval (as there were not sufficient votes in the Council in
support of approval) the strategy to make the ITO was unrestrainedly leaving the Treaty i.e.
GATT in its place (Narlikar & Stern, 2012).
While the GATT worked well enough, the foremost members desired to substitute it with an
international trade body such as WTO for various reasons. First, the rules of GATT applied to
the trade in merchandise properties. Along with goods, the World Trade Organization
involves trade in the service area and associated features to the trade of intellectual property
(by the contract on the aspects of related to trade of Intellectual Property Rights-TRIPs).
Second, though GATT was a multifaceted mechanism, by the 1980s there were various new
contracts of a plurilateral, and therefore discerning nature has been added. The contracts that

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establish the WTO are all multifaceted and so; include promises for the complete
membership. Third, the World Trade Organization system of argument settlement is quicker,
more automatic, and therefore much less vulnerable to obstructions, as compared to old
GATT system.
But beyond these applied and useful motives for forming the WTO, there were some extra-
logical and representative reasons. The GATT was said to be the set of regulations and rules,
a multi-dimensional agreement, with no official basics, only a minor related secretariat which
possessed its roots in the effort to create an ITO in the 1940s. By agreement, the World Trade
Organization is a perpetual organization with its individual secretariat. Furthermore, the
GATT was functional on a "temporary basis" even, after forty years; administrations selected
to give it as a perpetual commitment through the WTO promises are completely and
functionally enduring (Alimova, 2017).
Moreover, for the above-mentioned reasons, the formation of a fresh, enduring body of trade
became the main purposes of half-way through the GATT's Uruguay round, which operated
from 1986 to 1994. A draft was drafted for the fresh body of international trade, the World
Trade Organization, and officially accepted at the ancient trade center in the Ministerial
Conference in 1994. Below the word "Final Act" contracted there, the GATT was substituted
by the World Trade Organization in 1995 (Matsushita, Schoenbaum, Mavroidis & Hahn,
2015).
The Introduction of the Contract Founding the World Trade Organization states that
associates must conduct their economic relations and trade with an opinion to improving the
living standards, confirming full employment opportunities and a big and progressively rising
volume of actual revenue and actual demand, and increasing the trade and creation of the
services and products, while permitting for the best usage of the funds of the world in

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agreement with the objective of justifiable growth, looking for both to defend and reserve the
atmosphere and to improve the reasons for acting in such a way reliable with their individual
wants and anxieties at diverse development stages.
Besides this, members identify the desire for the optimistic efforts intended to confirm that
emerging nations, and particularly least established among all of them, locked a portion in
global trade proportionate with the wants of their financial growth. In order to add to the
attainment of these purposes, the members of WTO have decided to enter into "mutual and
commonly beneficial preparations focussed to the considerable decrease of barriers and
tariffs to trade and to the removal of biased behavior in international trade relations."
(Baldwin, 2011)
World Trade Organization- The History
The WTO is an intercontinental body which controls worldwide trade. The WTO formally
initiated on 1 January 1995 in the Marrakesh Agreement, contracted by 123 countries in
1994. This body replaced the GATT, which was established in 1948. The WTO take care of
trade regulations among participating nations by offering an outline for discussing the
agreements for trade and procedure of dispute resolution-focused towards implementing
participants devotion to World Trade Organization agreements, which are signed by the
member government representatives and approved by their assemblies. Maximum of the
concerns that are focused by WTO on derive from preceding trade negotiations, particularly
from the Uruguay Round (Baldwin, 2016).
The prototype of WTO, the GATT, came into existence after the 2nd World war in the rouse
of fresh multifaceted institutions fanatical to international economic cooperation- principally
the Bretton Woods organizations called as the International Monetary Fund and the World
Bank. A similar international body for trade called the International Trade Organization was

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successfully conveyed. The International Trade Organization was used to be the United
Nations committed agency and used to consider not just barriers of trade but indirectly trade-
related issues, comprising investment, commodity agreements, employment, and restrictive
practices of business. However, the ITO contract was not acknowledged by the U.S. and
other parties and not even once it went into influence (WTO, 2013).
Organizational Structure
Source [(Pinterest, 2018)]
The WTO possesses around 153 members who are comprised of world trade's 97%. Approx.
30 others are assigning association. Verdicts are provided by the complete association. This is
characteristically by agreement. Majority of the vote is possible however it is never utilized
in the World Trade Organization and has tremendously infrequent under the predecessor of
WTO, GATT (Mukher, 2018). The agreement of WTO has been sanctioned in all the
members' associations. The highest body of decision making of WTO is known as the
Ministerial Conferences which conduct meetings at least one time in two years. Under this,
there is a General Council (usually involves representatives and delegation supervisors in
Geneva, however sometimes bureaucrats are sent from the members’ capitals) who conduct
meetings numerous times in every year in headquarters of Geneva. The General Council also

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conduct meeting being as the Disputes Settlements Body and the Review body of Trade
Policy (Chand, 2018).
At subsequent level, the Council of Intellectual property, the Council of Services, and the
Council of Goods, report to the General Council. Many dedicated groups, working parties,
and working groups covenant with the separate agreements and former areas like membership
applications, regional trade, development, and environment agreement (Legal Bites, 2018).
The composition of Geographical and Economic Groupings
The members of World Trade Organization are mostly mentioned as "countries", though
some associates are not said to be as countries normally but are formal "customs territories"
(WTO, 2011).

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Source [(WTO, 2011)]

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Source [(WTO, 2011)]
The operations of the World Trade Organization is carrying out by the legislatures of the
member governments then its origins lie in the dairy industry's activity and commerce. The
negotiating positions and policies of trade are framed in capitals, commonly with a
considerable review input from businesses, farmers, private companies, along with customers
and all other interest groups. Maximum countries have a political mission in Geneva,
occasionally controlled by a superior Legate to the WTO, whose spokespersons join

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conferences of the numerous bodies of negotiating and administrative at headquarter of
WTO. Every so often expert legislatures are directed directly from capitals to keep the views
of their government on particular questions. As an outcome of regional economic integration
in terms of free trade areas, customs unions, geographic arrangements and looser political
arrangement, certain countries groups work together in the World Trade Organization with a
sole representative in negotiations and meetings.
The most inclusive and largest groupings are the European Union along formed with its 15
member states. It is said to be a customer unions who have external tariff and trade policies.
While the states which are a member of the association organize their place in Brussels and
Geneva, the commission of Europe unaccompanied voices for the EU in nearly every meeting
of WTO. The European is the member of WTO and possesses some rights same as its
member states (Foxley, 2010).
A less important economic integration degree has been attained by the nations which are
members of GATT of the South East Asian Nations Association (ASEAN)- Indonesia,
Thailand, Malaysia, Brunei Darussalam, Philippines, and Singapore. However, they have
various interests of common trade and are regularly capable to organize places and to express
with a sole voice (Kaberia, 2016).
Among other assemblages which sometimes present united reports is the SELA (Latin
American Economic System) and the ACP (African, the Caribbean and Pacific Group). More
modern exertions at local economic integration, for example, NAFTA (Mexico, U.S, and
Canada) and MERCOSUR (Argentina, Uruguay, Brazil, and Paraguay) have not touched the
point where their components regularly have a sole representative on issues of WTO.
A renowned association in the Uruguay Round carry a resemblance of the interest of trade in
place of a county individuality – it was called as the Cairns Group which encompassed, and