The World Trade Organization (WTO) was established in 1995 to oversee global trade rules and liberalize trade. It grew out of the General Agreement on Tariffs and Trade (GATT) established in 1948. The WTO has 161 member countries and its headquarters are in Geneva, Switzerland. Its main objectives are to support member countries in expanding trade across borders according to agreed upon trade agreements. It plays an important role in promoting fair and smooth international business by helping to resolve trade disputes, lowering trade barriers through negotiation, and stimulating economic growth.

1. WORLD TRADE
ORGANIZATION (WTO)
By: Naseer Ahmed
University of Balochistan Quetta.
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2. ESTABLISHMENT AND HISTORY:
• World trade Organization (WTO): World trade organization is an international
organization that deals with the global rules of trade among nations and
ensures that trade flows as smoothly, surely and freely as possible.
• he roots of the World Trade Organization (WTO) lie in the General Agreement
on Tariffs and Trade (GATT) which was established in 1948 by 23 original
founders. The 8th round of talks under GATT, known as the Uruguay Round,
led to the birth of the WTO on 1st January 1995. In the Uruguay Round, new
agreements such as the General Agreement on Trade in Services (GATS)
and the Agreement on Trade Related Aspects of Intellectual Property Rights
(TRIPS) and Trade Related Investment Management System (TRIMS) were
negotiated. All the three major agreements along with their associate
agreements now rest under the umbrella organization, namely the WTO.
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3. MEMBERS:-
Till 26th April, 2015 WTO has 161 member countries.
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4. HEADQUARTER OF WTO:-
• WTO has its headquarter in Geneva, Switzerland.
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5. OBJECTIVES OF WTO:-The main objective of WTO is to support its member
countries to extend their trade across national
borders and providing them with a framework of
different agreements to abide for peaceful
international business activities..
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6. FUNCTIONS OF WTO:-
The former GATT was not really an organization; it was merely a legal arrangement. On the other hand, the WTO is a new
international organization set up as a permanent body. It is designed to play the role of a watchdog in the spheres of
trade in goods, trade in services, foreign investment, intellectual property rights, etc.
1. To look after the administration of agreements signed at the Uruguay Round.
2. To keep checks on the implementation of tariff cuts and reduction of non-tariff measures.
3. To examine foreign trade policies of the member nations, and to see that such policies are in tune with WTO’s
guidelines.
4. To lay down methods for arriving at a harmonious solution in case of trade conflicts.
5. To provide necessary consultancy to the member nations on the development in the World economy.
6. To provide a global platform where member nations continuously negotiate the exchange.
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7. ROLE OF WTO IN INTERNATIONAL BUSINESS:
WTO plays an important role in promoting and protecting international trade. Its role can be understood by the following
points.
Helps to run smooth and fair operations: The main goal of WTO is to help the countries involved in international trade to run
their operations fairly and smoothly.
Helps to solve trade disputes: As trade expands in volume, in the numbers of products traded, and in the numbers of
countries and companies trading, there is a greater chance that disputes will arise. The WTO system helps resolve these
disputes peacefully and constructively.
Trade without discrimination: Under the WTO agreements, countries engage in international trade cannot normally
discriminate between their trading partners. Grant someone a special favor such as a lower customs duty rate for one of
their products that practice is considered unfair so you have to do the same for all other WTO members.
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8. 4.Lowering trade barriers through negotiation: Lowering trade barriers allows trade to increase, which adds to increase
national incomes and personal incomes. WTO tries to minimize these barriers so as to enhance free trade.
5. Promoting fair competition: Although WTO is described as a “free trade” institution, but on the other hand it is also a
system of rules and regulations for international trade to promote fair competition.
6. Stimulate economic growth and employment: WTO system motivates the member countries to produce high quality
goods by using latest technology and skilled labor. These results in high profits for the Countries engaged in international
trade which ultimately improves their economy and creates new employment opportunities.
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