World Trade Organization Analysis

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The world today is characterized as a globalized world and the WTO is a key player in the

globalization of the world. The world trade organization (WTO) is an intergovernmental organization

that oversees the trade activities among member nations. The WTO is the successor of the General

Agreements on Tariffs and Trade (GATT), it was formed during the Uruguay round and it came into

existence in 1995. The WTO provides a forum for member states to negotiate and carry out trade

activities amongst each other based on the rules and regulation of the organization and also to reduce

trade barriers and plans to eliminate it completely in the future, it also tries to help developing

countries. The WTO is made up of 160 members with majority
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Like Moore stated in his article, equality is a key issue in every

organization and there is inequality there will be no success, the WTO has been able to rid itself of

inequality and due to this it has been able to act effectively.

In the article Building on the WTO'S Success by William A. Niskanen, views WTO has the

single most effective international agency (2000). According to Niskanen the WTO has been effective

in his duties and for it to continue to be effective some amendments should be made. Firstly, the

members of the WTO keep increasing and almost all countries are now members and this may lead to

overloading the organization, according to the author if this happens the organization will lose its

effectiveness and to solve this problem, Niskanen believes that the WTO should enforce broader rules

that will make some members pull out of the organization. Secondly the author stated that amendments

should be made in the area of giving sanctions to offenders, according to the author, retaliatory

sanctions should be reduced rather offenders should compensate the aggravated government and

retaliatory sanctions should only be used if offenders fail to abide by the WTO rulings.
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The National Treatment is another policy that insures

the smooth implementation of the elimination of trade barriers. The NT ensures that foreign and local

goods and services are treated equally in the market; this policy applies only if the goods and services

have reached the market. Furthermore, the WTO tries to reduce customs duties and high tariffs and

because of this development, developing countries are able to trade with developed countries without.

Finally the WTO provides a ground for fair competition by applying the free trade system and trying to

bring the developing and developed countries on the same level and give protection to developing


The majority of the members of the WTO are the developing countries, and to ensure the

success and effectiveness of the organization, some special treatments were giving to those countries.

The WTO is based on the principle of ensuring utmost trading relationship amongst its members, and

due to the diversity in the economic condition of its members some amendments were made.
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