What's Happening?
The World Trade Organization (WTO) is a multilateral organization that oversees global trade, established on January 1, 1995, under the Marrakesh Agreement. It replaced the General Agreement on Tariffs and Trade (GATT), which had been in place since 1948. The WTO provides a framework for negotiating trade agreements and resolving disputes among its 164 member countries. It aims to liberalize international trade by reducing or eliminating trade barriers such as tariffs and quotas. The organization also focuses on improving transparency in decision-making processes and assisting developing countries in benefiting from the global trading system.
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Why It's Important?
The WTO plays a crucial role in facilitating international trade, which is essential for economic growth and development. By reducing trade barriers, the WTO helps increase market access for member countries, promoting economic integration and cooperation. This can lead to increased trade volumes, job creation, and economic prosperity. However, the organization faces criticism for its perceived inability to address modern trade issues, such as digital trade and China's trade practices. Reforming the WTO to better handle these challenges is vital for maintaining its relevance and effectiveness in the global economy.
