Question

What was the purpose of the formation of World Trade Organization ?

Hint:

Think of the WTO as the "rule-maker and referee" for international trade. Its main goals are to promote free trade by lowering barriers and to settle disputes peacefully when trade disagreements arise.

Answer 1

The World Trade Organization (WTO) was formed in 1995 as the successor to the General Agreement on Tariffs and Trade (GATT). Its primary purpose is to ensure that global trade flows as smoothly, predictably, and freely as possible.
The main objectives and purposes of the WTO are: \begin{enumerate} \item To Promote Free Trade: The core purpose is to lower trade barriers (like tariffs and quotas) and encourage free trade among member countries. The underlying principle is that free trade boosts economic growth and raises living standards. \item To Provide a Forum for Negotiations: The WTO serves as a platform for member governments to negotiate trade agreements and resolve trade problems. \item To Administer Trade Agreements: It oversees the implementation and administration of the various trade agreements that have been negotiated by its members. \item To Settle Trade Disputes: The WTO has a dispute settlement mechanism, which acts like an international trade court. It provides a rule-based process for resolving trade disputes between member countries, preventing them from escalating into political or military conflicts. \item To Assist Developing Countries: The WTO aims to help developing countries benefit more from the global trading system by providing them with technical assistance and capacity building. \end{enumerate}