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World Trade Organization Establishes Framework for Global Trade Agreements

WHAT'S THE STORY?

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 trade disputes among its 164 member countries. The organization aims to liberalize international trade by reducing or eliminating trade barriers such as tariffs and quotas, thereby enabling open, fair, and predictable trade. The WTO's structure includes various councils and bodies that address goods trade, intellectual property rights, and trade policy reviews.
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Why It's Important?

The WTO plays a crucial role in facilitating global trade, which is vital for economic growth and development. By reducing trade barriers, the WTO helps member countries access international markets, promoting economic integration and cooperation. This can lead to increased trade volumes, economic diversification, and improved living standards. However, the WTO also faces criticism for potentially widening the global wealth gap and undermining national sovereignty. Its dispute resolution mechanism is essential for maintaining stability in international trade relations, preventing conflicts, and ensuring compliance with trade agreements.

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