The World Trade Organization

The World Trade Organization (WTO) is headquartered in Geneva. It has 153 members, and its policies are made by consensus. With so many members and with the organization operating by consensus, it is very difficult to establish new policies.

We visited the WTO and had an opportunity to learn more about its operations. The WTO is an evolution of previous agreements that began in 1944 with a proposal that led to the creation of the International Trade Organization (ITO) in 1947. The ITO never effectuated any real change in world trade, but propelled the idea of open trade along with the General Agreement on Tariffs and Trade which was also established in 1947. In 1994, the GATT led to the establishment of the WTO, which adopted the principles of the GATT and bore responsibility for their execution.

The effect of these organizations on world trade has been great, and currently, the Doha Round is underway in which the members are seeking to develop a policy that will abolish export subsidies in developed countries. Economically speaking, the WTO represents a great deal of progress in the world, yet there are many who oppose its movements, such as domestic workforce groups in and also environmentally conservative groups. Business and trade across the world are the cause of much harm to the environment.

One thing that I find particularly interesting about the WTO is that it does not nor can it impose its policies upon its members, even if they have previously agreed to them. The members work together to motivate members and non-members alike to adopt WTO principles. Members who do not comply will likely be subject to tariffs and other economic barriers from other members, which barriers may lead a member country towards conformance with WTO policy.