Essay Sample on World Trade Organization

Introduction

The WTO is an international institution that allows nations to negotiate and implement trade policies of engagement that foster members' adherence to formulated trade agreements. Founded in January 1995, the intergovernmental institution provides its members with a platform to settle trade disputes and problems that face them. Significantly, its primary objective is to create a negotiation forum, resolve conflict, cater needs of developing states, and eliminate exploitation and discrimination to create freer trade.

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WTO Objectives

Firstly, the WTO focuses on enhancing the living standards of people in its member states through trade. Secondly, it aims at promoting the production of goods and services and increase global business (World Trade Organization, 2018a). Thirdly, it focuses on ensuring optimal use of the world's resources for trade purposes with minimal side effects to the environment. Significantly, the institution aims at promoting equal trade between nations using the "most favored nation" (MFN) ideology. The MFN suggests that if one country offers trade privileges to one trading partner, it must extend the same benefits to the other members so that they can all maintain the MFN status.

Additionally, the institution focuses on ensuring that developing countries participating in international trade benefit equitably like other developed countries. Developing countries are the majority members in the WTO (World Trade Organization, 2018b). The phenomenon is supported by the Doha Development Agenda, which aims at providing these nations with trade opportunities to improve their development and growth goals.

WTO Goals

The primary goal of the organization is to create a global partnership for development in line with the United Nation's Millennium Development Goals (MDGs). In this case, the institution opens up export markets for developing countries (World Trade Organization, 2018b). Secondly, it focuses on reducing transaction costs and tariffs that would inhibit and reduce international trade. Thirdly, it aims at eradicating poverty among its members through fair trade.

WTO Functions

The primary function of the WTO is to provide a trade negotiation forum for its members. In this case, governments participate and issue their commitments in lowering trade tariffs, open up markets, eliminate trade barriers and provision of a conflict resolution rationale. Secondly, the institution monitors the implementation of trade agreements by its members. Thirdly, it resolves trade conflicts based on its trade agreements and individual commitments to ensure smooth international trade.

Fourthly, WTO builds up the trading capacity of developing countries by issuing Aid for Trade policies to allow the states to build infrastructure and skills required to increase their trade activities. Fifthly, through the Trade-related intellectual property rights (TRIPs) the organization ensures the protection of copyrights, trade secrets, trademarks, and other intellectual properties.

Recent Business Event

On 23, November 2018, the WTO, the International Trade Center (ITC), and the United Nations Conference on Trade and Development (UNCTAD) agreed to advance the development of the Global Trade Helpdesk platform by signing a memorandum of association (World Trade Organization, 2018b). The platform will aid businesses, especially small and medium enterprises (SMEs), to access international trade information concerning export markets more easily and conveniently. The three organizations will provide technical help to developing countries to allow them to maintain updated information on the platform. The situation will increase awareness among SMEs regarding market opportunities (World Trade Organization, 2018b). Moreover, the site will ensure organizations make informed market decisions and investment policies to capitalize on global trade.

Conclusion

Overall, the WTO is an essential institution in governing international trade and elimination of disputes. It provides a negotiation forum, settles disputes, monitors the implementation of agreements, and fosters fair trade among its members. It is incumbent on developing countries to capitalize on the opportunities provided by the organization to build their economies.

References

World Trade Organization (2018b). What we do. Retrieved from https://www.wto.org/english/thewto_e/whatis_e/what_we_do_e.htm

World Trade Organization. (23 November, 2018a). WTO, UNCTAD, ITC sign MoU to provide businesses with better access to trade data. Retrieved from https://www.wto.org/english/news_e/news18_e/igo_23nov18_e.htm