The World Trade Organization (WTO)

1400 Words6 Pages
1. World Trade Organization (WTO)
The WTO was a result of negotiations at Uruguay Round in 1986 to 1994 and negotiations from General Agreement on Tariffs and Trade (GATT). The latest negotiations, called ‘Doha Development Agenda’ was launched in 2001 and hosted by the WTO. WTO helps countries facing trade barriers to open markets for trade and set rules to maintain the trade barriers. (World Trade Organization) As of today, there are 160 members in WTO, where 117 are developing countries.
WTO provides trading nations will a forum to negotiate agreements to reduce obstacles to international trade. This will ensure a level playing field for the nations and thus contributing to economic growth and development. WTO also offers a legal and institutional
…show more content…
It also aims to be transparent in its conduct of its activities. (World Trade Organization) Ultimately, this will help a country in sustainable development, raise its population’s welfare, cut down poverty and encourage peace and stability.
2. Thailand
Thailand joined the WTO as a member in January 1995 with the objective of working toward trade liberalization, restructuring its public sector and strengthening its financial system. Thailand’s export-led development has successfully turned it into a major exporter of industrial goods with high economic growth. This has allowed Thailand to reduce poverty and meet its Millennium Development Goals even though there are still income and regional disparities.
Thailand’s open economy has made it vulnerable to external shocks but it also had contributed to the resilience of the economy through adapting and overcoming challenges. Most of Thailand’s exports are manufactured and processed goods while most imports are raw materials and
…show more content…
Benefits of WTO Regime to Thailand
Thailand has benefitted from the WTO regime in many areas from all the members in WTO. In return for the benefits, Thailand has to observe WTO’s fair free trade and principle and its general principles. These general principles include non-discriminatory treatment, transparency, and protection for domestic manufacturing with tariffs. (Office of the Permanent Secretary for Agriculturals and Cooperatives) Having these rules promotes fair competition in trade and boost traders and investors’ confidence.
Hence, manufacturers and exporters in Thailand are better able to manage and plan their processes and internationally trade more efficiency. Consumers on the other hand, have more choices to select from and will receive goods and services that are of higher quality at lower prices due to international free trade.
The forum provided by WTO helps to benefit Thailand from large countries who uses trade-distorting measures and imposes trade barriers. Some of the examples includes sugar dispute lodged by Thailand, Australia and Brazil on European Union (EU) for its alleged export subsidy for sugar.
The benefits of WTO regime will be further discussed in the report below in different categories like tariffs, agriculture, textile and

More about The World Trade Organization (WTO)

Open Document