International trade and commerce is perhaps as old as civilization, but the development of international economic on international trade as an independent branch of economic theory is a relatively recent phenomenon. From ancient Greeks to the present, government officials, intellectuals, economist and legalists all have tried to regulate and control for the smooth flow of trade between countries, and more importantly, have tried to determine what trade policy is best for any particular country.
With the advent of modern economic principles and modernization, globalization of world market; particularly at 19th century the need for a free trade system and regulated system for trade felt all round the globe. With the end of world war 2nd this need was felt more than ever. As a result of this, General Agreement on Tariff and Trade (GATT) comes into force in 1947 thereby establishing GATT by major nations of the world. This GATT through various negotiation rounds regulate and systematized trading system throughout the world for a long period stretching from 1947 to 1994. Then with the demand for a more regulated form of International Trade and with the more participant nations demanding for a strong legal frame work and a strong institutions with respect to this World Trade Organization (WTO) was established at the Uruguay Round of negotiation of GATT as a successor to GATT, in order to play a more effective role at International trading system by fulfilling all the above demands.
The World Trade Organization (WTO) is the only International Organization dealing with the global rules of trade between nations; its main function is to ensure that trade flows as smoothly predictably and freely as possible at a global or near global level.
There are a number of ways of looking at the WTO. It is an organization for liberalization trade. It’s a forum for government to negotiate trade agreements. It’s a form for them to settle trade disputes. It... [continues]
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