First and foremost, it is a negotiating forum Essentially, the WTO is a place where member state governments go to try to solve the trade problems they face with each other. The first step is to talk. The WTO was born out of negotiations, and everything the WTO does is the result of negotiations. Most of the WTO`s current work stems from the 1986-94 negotiations, known as the Uruguay Round, and previous negotiations under the General Agreement on Tariffs and Trade (GATT). The WTO is currently hosting new negotiations under the Doha Development Agenda launched in 2001. Critics also argue that the benefits of free trade facilitated by the WTO are not evenly distributed. [124] This criticism is usually supported by historical reports on the outcome of the negotiations and/or data showing that the gap between rich and poor is widening, particularly in China and India, where economic inequality is increasing despite very strong economic growth. [122] In addition, WTO approaches to reducing trade barriers can harm developing countries. There are concerns that trade liberalization, which occurs too early without significant domestic barriers, will trap developing countries in the primary sector, which often does not require skilled labour. And if these developing countries decide to advance their economies through industrialization, premature domestic industry cannot immediately skyrocket as expected, making it difficult to compete with other countries with more advanced industries. [125] The final phase of accession includes bilateral negotiations between the candidate country and other members of the Working Group on Concessions and Commitments relating to the level of tariffs and market access for goods and services. The new Member`s obligations are to apply equally to all WTO Members under normal non-discrimination rules, even if negotiated bilaterally.

[95] For example, following its accession to the WTO, Armenia offered a flat-rate customs duty of 15% for access to its product market. Apart from the fact that collective bargaining is ad valorem, there are no specific or composite tariffs. In addition, there are no tariff quotas for industrial and agricultural products. [97] Armenia`s growth in economic and trade performance has been noted since its first review in 2010, particularly its recovery from the 2008 global financial crisis with an average annual GDP growth rate of 4%, despite some fluctuations. The Armenian economy has been characterized by low inflation, poverty reduction and substantial progress in strengthening its macroeconomic stability, with trade in goods and services, equivalent to 87% of GDP, playing an increasing role. [98] According to a 2018 study published in the Journal of Politics, states are less likely and slower to enforce WTO violations if the violations affect states in a diffuse manner. [85] This is because states face collective litigation issues when pursuing litigation: they all expect other states to bear the costs of litigation. [85] A 2016 study published in International Studies Quarterly questions the fact that the WTO dispute settlement system leads to a greater increase in trade. [86] The tasks of the WTO can be broadly divided into the following categories: The five lists above are the additional functions of the World Trade Organization. As globalization advances in today`s society, the need for an international organization to manage trading systems has been crucial. As the volume of trade increases, problems such as protectionism, trade barriers, subsidies and intellectual property infringements arise due to differences in each country`s trade rules.

The World Trade Organization acts as an intermediary between nations when such problems arise. The WTO could be described as a product of globalization and also as one of the most important organizations in today`s globalized society. Among the various functions of the WTO, these are considered by analysts to be the most important: the General Council is composed of representatives of all member countries and acts as a representative of the Ministerial Conference when it comes to day-to-day work. Its mission is to ensure the implementation and monitoring function of the WTO. This leads to a more prosperous, peaceful and responsible economic world. Decisions in the WTO are generally taken by consensus of all Members and ratified by Members` parliaments. Trade disputes feed into the WTO dispute settlement process, where the focus is on the interpretation of agreements and commitments and how to ensure that Members` trade policies are consistent with them. This reduces the risk that disputes will turn into political or military conflicts. World Trade Organization.

„The top 10 reasons to oppose the World Trade Organization? Criticism, yes. Misinformation, no! (accessed March 30, 2020) Once fully implemented, this agreement, the first multilateral agreement concluded at the WTO, will reduce trade costs by more than 14% and increase global exports by up to $1 trillion per year. Economist Ha-Joon Chang himself argues that there is a „paradox“ in neoliberal beliefs about free trade because the economic growth of developing countries in the period from 1960 to 1980 was higher than in the period from 1980 to 2000, although their trade policies are now much more liberal than before. In addition, research findings show that new countries only actively dismantle trade barriers when they have become significantly rich. According to the results of the study, WTO critics argue that trade liberalization does not guarantee economic growth and certainly not poverty reduction. [122] The WTO establishes a framework for trade policy; The results are not defined or specified. That is to say, it is a question of establishing the rules of „trade policy“. Five principles are of particular importance for understanding both the GATT before 1994 and the WTO: in May 2020, Director-General Roberto Azevedo announced his resignation on 31 August 2020. [118] As of October 2020[update], an appointment and selection process with eight candidates is currently underway and the final selection is expected on 7 November 2020 with the consensus of 164 member countries. [119] A strong consensus had formed around Ngozi Okonjo-Iweala`s candidacy, but on October 28, it turned out that the U.S. representative had vetoed her nomination.

[120] The Trade Policy Review Body is also part of the General Council and is responsible for ensuring that member states` trade policies are consistent with WTO objectives. Member States are required to inform the WTO of changes in their legislation and trade policy. The WTO has 164 members and 24 observer governments. [101] Liberia became the 163rd member on July 14, 2016 and Afghanistan the 164th member on July 29, 2016. [102] [103] In addition to the states, the European Union and each EU country is a full member[104]. WTO Members do not have to be fully independent States; They need only be a customs territory enjoying full autonomy in the conduct of their external trade relations. For example, Hong Kong has been a member since 1995 (since 1997 under the name „Hong Kong, China“), ahead of the People`s Republic of China, which joined in 2001 after 15 years of negotiations. Taiwan joined the WTO in 2002 as a „separate customs territory of Taiwan, Penghu, Kinmen and Matsu“. [105] The WTO Secretariat omits the official titles (such as Counsellor, First Secretary, Second Secretary and Third Secretary) of the members of the Permanent Representation of Taiwan to the WTO, with the exception of the titles of Permanent Representative and Deputy Permanent Representative. [106] It did not take long for the General Agreement to become an unofficial and de facto international organization, also known informally as GATT. Over the years, GATT has developed through several rounds of negotiations. The WTO Secretariat, based in Geneva, employs about 630 people and is headed by a Director-General.

It has no branches outside Geneva. Since decisions are taken by WTO Members, the Secretariat itself has no decision-making role. A 2017 study argues that „political ties and non-functional gains in the field determine who joins“ and shows „how geopolitical alignment shapes the demand and supply sides of membership.“ [93] The „results call into question the view that states are the first to liberalize trade in order to accede to the GATT/WTO. Instead, democracy and the similarity of foreign policy encourage states to adhere to it. [93] The GATT justification was based on the most-favoured-nation clause which, when allocated to one country by another, grants privileged trade rights to the selected country. As such, gatt aimed to help all countries achieve most-favoured-nation status, so that no country had a trade advantage over the others. The WTO also acts as a dispute settlement body in the event of a trade dispute between its member states. WTO Members may lodge complaints against other Member States if they consider that a country`s trade and economic policies differ from their obligations under any of the WTO Agreements. Following the complaint, there are formal hearings, such as in a court, until an agreement is reached. The WTO is essentially an alternative dispute settlement or mediation body that respects international rules of trade between nations.

The organization provides a platform for member governments to negotiate and resolve trade issues with other members. The main objective of the WTO is to provide open channels of communication on trade between its Members. The WTO is based on agreements signed by the majority of the world`s trading nations. The main function of the organization is to help producers of goods and services, exporters and importers to protect and manage their businesses. .