The Evolution of the World Trade Organization (WTO) Introduction The World Trade Organization (WTO) came to existence in

The Evolution of the World Trade Organization (WTO)

Introduction

The World Trade Organization (WTO) came to existence in 1995 as a result of the generation of liberalization of trade among countries of the world which initially began with General Agreement on Tariffs and Trade (GATT) in 1947. First, the GATT aimed at lowering tariffs and avoiding protectionist measures that had wrecked the world economy in between the wars. With time, the GATT was transformed to be a permanent trading system of 23 countries which led to the founding of the WTO.

WTO widened the horizons and horizons of world trade regulations. It also was supplemented with a mechanism of dispute settlement and transparency and can be useful to guarantee that cooperation between member states is established. The system is effective as it has seen more than 450 disputes adjudicated since 1995 with most of the result implemented by the losing parties. Membership has consequently expanded to the key economies like China and Russia, giving the association strength in the globe.

Nonetheless, the organization has been struggling. Lack of conclusion of the Doha Development Round and growth of bilateral trade agreements have cast doubt on its applicability. The WTO has also been reformed under pressure due to the criticism by the civil society and the worries of the developing nations regarding the inequity in the gain of trade. In spite of these problems, WTO is still a foundation of the whole trading mechanism of the world, where stability and fairness is found in its consensus-based structure.

 References

Hoekman, B. (2017). Global Trade Governance. In The 1995 Establishment of the World Trade Organization (WTO). World Trade Organization.