Question

Please discuss how the WTO originated and its purpose. Be sure to discuss the relationship to GATT.

Answer 1

World Trade Organization (WTO)

This is an organization created and established to create and maintain a proper international trade among the countries which are members of the WTO. This organization was established on 1 January 1995. Before that General Agreement on Tariffs and Trade (GATT) was established in 1947 after World War II to increase the economic stability of the countries who are the member of this organization. All the members of GATT were not excepting the agreements prepared by the organizations later on which were accepted by the WTO and they received the WTO membership.

Now let us discuss the purpose of creating the World Trade Organization (WTO)

•  The main purpose of creating WTO was to increase the trade between the developing countries to promote the increase of the economics of the member countries.

•  Due to many different regulations, many of the member countries were not interested in being the part of GATT so to resolve this situation WTO was established to attract and add those countries.

•  Through WTO the small scale industries were able to get the opportunity to showcase their organization in the international market and also to become a well-known brand for the world which is beneficial for both the country and the organization.

•  WTO creates an agreement in which all the participated countries need to give their approval which initially makes it a lot easier for trading among the countries. Which will maintain a level in the international market to let each and every country grow at a medium speed together