Thursday 15 August 2013

World Trade Organisation (WTO)

The World Trade Organisation is a driver of globalisation. The WTO supervises and encourages international trade. It was set up in 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade (GATT). The WTO regulates trade between participating countries; providing a framework for negotiating and formalising trade agreements and a dispute resolution process. The WTO's current director-general is Roberto Azevêdo, who leads a staff force of over 600 people in Geneva, Switzerland.
 
The organisation is attempting to complete negotiations that focus on addressing the needs of developing countries. There are obstacles to agreeing trade deals between MEDCs and LEDCs however. Free trade on industrial goods and services with the retention of protectionism on farm subsidies to domestic agricultural has been requested by developed countries. Developing countries require international liberalisation of fair trade on agricultural products. These issues are central to the current debate and have hindered any progress to launch new WTO negotiations. As a result of this impasse, there have been an increasing number of bilateral free trade agreements signed.

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