The World Trade Organization: What Is The World Trade Organization?

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What is the World Trade Organization?

The world trade organization (WTO) is an trade organization that deals with the global rules of trades between nations. It is a forum for the government to negotiate trade agreements, to settle disputes, and a solve trade problems between countries. (Investopedia & wto)

How was the World Trade Organization founded?

The WTO began in January 1, 1995. It has made from a revision of a previous trade organization the General Agreement of Traiff and Trade (GATT). The GATT was established right after the Second world war. It started off as an set of provisional trade rules that was suppose to be a start to the new multilateral institutions. The GATT aimed to making trade rules, so the worlds trade is more stable and predicatable. They also wanted to reduce protectionism, which is shielding domestic industries from foreign competition by taxing imports, from the world. They felt that protectionism is the cause for poverty, conflict, and instability. They then succeeded at reducing tariff and made trade rules steady.

There are twenty-three countries that joined the GATT in 1948. These twenty-three counrties met ever six months to discuss a range or trade issues and problems and every year they would have large negotiation sessions “rounds” to discuss bigger issues or how to reduce tariff.

Over the years …show more content…

China at that time only exported suplus raw material and simple manufacturing goods which only covered payment for imported goods. They dedided at that time to implement a import substitution policy tat was suppose ti optimize chinas export structure by encouraging the growth of domestic industry during the intial period. There was suppose to be a number of contries that followed chinas led, but due to the lack of competition it could not be achived. China then pursued trade liberalization in 1978. This helped them to be able to intergrate into the global trade

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