WORLD TRADE ORGANIZATION AND ITS FUNTIONS AND MERITS

World Trade Organization :

Meaning :

The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between the nations. The goal is to help producers of goods and services, exporters, nations. The goal is to help producers of goods and services, exporters, and importers in the conduct of international trade. Its main aim is to ensure smooth flow of trade. The World Trade Organization (WTO) was established in 1995. In 1999, there were 135 member countries in the WTO.

Functions :
The following are the functions of WTO.

1. It facilitates the observations, implementations and administration of the objectives of Trade agreements.

2. It provides negotiation facilities among member countries for smooth world trades.

3. It helps for the settlement of disputes between the member countries.

4. It co-operates with International Monetary Fund and the Word Bank to get greater coherence in global economic policy making.

Merits:

1. The system helps to promote peace.

2. Disputes are handled constructively.

3. Rules make life easier for all.

4. Free trade cuts the costs of living.

5. It provides more choice of products and qualities.

6. Trade raises incomes.

7. Trade stimulates economic growth.

8. The basic principles make life more efficient.

9. Governments are shielded from lobbying.

10.The system encourages good government.