The WTO was created in 1995 out of the Uruguay trade round to establish a set of rules for international trade negotiations. It has 153 member countries and functions to facilitate trade, formulate trade rules, protect developing countries' interests, and optimize resource use globally. Key principles of the WTO trading system include non-discriminatory trade, national treatment of imports, freer trade through negotiation, predictability through binding commitments and transparency, and fair competition and economic development. Trading blocs form different levels of trade agreements from free trade areas to full economic unions with common external tariffs and regulations.

1. WTO & TRADE

2. WTO
•WTO created in the Uruguay trade round
•Established in Geneva in 1995
•153 member countries
•GATT was updated and still forms the legal
framework for WTO negotiations on the
goods trade

3. What is the WTO?
•A negotiating forum
•A set of rules (international agreements)
•GATT
•GATS (General Agreement on Trade in Services)
•TRIPS (Agreement on Trade-Related Aspects of
Intellectual Property Rights)
•A place to settle trade disputes

4. Functions of WTO:
• Facilitate international trade
• Formulation of rules
• Protecting the interest of developing countries
• Optimum utilisation of world resources

5. Features of WTO
1. It is a much wider concept than GATT.
2. Each member has a single voting right.
3. Its member enjoys the international privilege.
4. It administers a unified package of an agreement to
which all members are committed.
5. It is a forum of discussion between its member
countries.

6. Principles of the trading system
•Trade without discrimination
•National treatment
•Freer trade: gradually, through negotiation
•Predictability: through binding and transparency
•Promoting fair competition
•Encouraging development and economic reform

7. TRADE BLOCS
Trading blocks are groups of countries who form trade
agreements between themselves. Trading blocks can
include
•Free trade areas – elimination of tariffs between
economies in the trading block
•Customs union – free trade area + a common external
tariff with non-members
•Economic union/Single market – Customs union +
common rules and regulations.