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By: Naseer Ahmed
University of Balochistan Quetta.


World trade Organization (WTO): World trade organization is an international
organization that deals with the global rules of trade among nations and ensures that
trade flows as smoothly, surely and freely as possible.
he roots of the World Trade Organization (WTO) lie in the General Agreement on Tariffs
and Trade (GATT) which was established in 1948 by 23 original founders. The 8 th round
of talks under GATT, known as the Uruguay Round, led to the birth of the WTO on 1st
January 1995. In the Uruguay Round, new agreements such as the General Agreement
on Trade in Services (GATS) and the Agreement on Trade Related Aspects of
Intellectual Property Rights (TRIPS) and Trade Related Investment Management System
(TRIMS) were negotiated. All the three major agreements along with their associate
agreements now rest under the umbrella organization, namely the WTO.


MEMBERS:Till 26th April, 2015 WTO has 161 member countries.

HEADQUARTER OF WTO: WTO has its headquarter in Geneva, Switzerland.


OBJECTIVES OF WTO:The main objective of WTO is to support its member

countries to extend their trade across national borders
and providing them with a framework of different
agreements to abide for peaceful international business



FUNCTIONS OF WTO:The former GATT was not really an organization; it was merely a legal arrangement. On the other hand, the WTO is
a new international organization set up as a permanent body. It is designed to play the role of a watchdog in the
spheres of trade in goods, trade in services, foreign investment, intellectual property rights, etc.
1. To look after the administration of agreements signed at the Uruguay Round.
2. To keep checks on the implementation of tariff cuts and reduction of non-tariff measures.
3. To examine foreign trade policies of the member nations, and to see that such policies are in tune with
4. To lay down methods for arriving at a harmonious solution in case of trade conflicts.
5. To provide necessary consultancy to the member nations on the development in the World economy.
6. To provide a global platform where member nations continuously negotiate the exchange.





WTO plays an important role in promoting and protecting international trade. Its role can be understood by the
following points.
Helps to run smooth and fair operations: The main goal of WTO is to help the countries involved in international
trade to run their operations fairly and smoothly.
Helps to solve trade disputes: As trade expands in volume, in the numbers of products traded, and in the
numbers of countries and companies trading, there is a greater chance that disputes will arise. The WTO system
helps resolve these disputes peacefully and constructively.
Trade without discrimination: Under the WTO agreements, countries engage in international trade cannot
normally discriminate between their trading partners. Grant someone a special favor such as a lower customs duty
rate for one of their products that practice is considered unfair so you have to do the same for all other WTO


4.Lowering trade barriers through negotiation: Lowering trade barriers allows trade to increase, which adds to
increase national incomes and personal incomes. WTO tries to minimize these barriers so as to enhance free trade.
5. Promoting fair competition: Although WTO is described as a free trade institution, but on the other hand it is
also a system of rules and regulations for international trade to promote fair competition.
6. Stimulate economic growth and employment: WTO system motivates the member countries to produce high
quality goods by using latest technology and skilled labor. These results in high profits for the Countries engaged in
international trade which ultimately improves their economy and creates new employment opportunities.