Wto Essay

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Introduction of WTO:
WTO or World Trade Organization is establish in 1st Jan 1995 before that it was called as GATT or General Agreement on Tariffs and Trade in 1948.WTO came out of negotiations, and what WTO does is the result of negotiation. WTO is an organization for liberalizing trade WTO also a place to settle trade disputes and also operates a system of trade rules. WTO today has 153 members from all around the world. It represents more than 95% of trade in the world. The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. The goal is to help manufacturers of goods and services, exporters, and importers do their business. The General Agreement on Tariffs and Trade (GATT) was established after World War II in the wake of other new multilateral institutions dedicated to international economic cooperation, similar international institution for trade, named the International Trade Organization was successfully negotiated. The ITO was to be a United Nations specific agency and would address not only trade barriers but other issues related to trade, including employment and investment. But the ITO treaty was not approved by the U.S. Advantages of WTO:

World Trade Organization helps member states in various ways and this gives them benefits such as: * Helps promote peace within nations
* Rules makes life easier to all
* Provides more choices of products and qualities
* Trade raises income
Helps promote peace within nations: Peace is a result of two most important principle of the trading system, helping trade flow smoothly and providing countries with a useful and fair outlet for dealing with disputes over trade issues. Rules make life easier for all: WTO system is based on rules rather than power and this makes life easier for all trading nations. WTO reduces some differences giving smaller countries more confidence, and at the same time freeing the major powers from the difficulty of having negotiates trade agreements with each of the member states. It provides more choice of products and qualities: It gives consumer more choice and a wider range of qualities to choose from. This expands the range of final products and services that are made by domestic producers, and it increases the range of technologies that they can use. For example mobile telephone equipment available services sprang up even in the countries that did not make the equipment. Trade raises income: Through WTO trade barriers are lowered and this increases imports and exports so earning the country foreign exchange raises the country's income for example to helping companies and workers adjust by becoming more productive and competitive in what they are doing or by changing to new activities. Disadvantages of WTO:

WTO is a group of Countries that negotiates between trades. A disadvantage is that the countries never agree on anything. For example, the countries have to vote on a decision and a country like Uganda's vote would not even be taken into account. Some countries with higher status such as the USA will encourage other countries to change their votes and agree on their decisions. WTO is destroying the environment and increasing inequalities and it encourages trade which are not enjoyed by poor countries, create sun employment and increases dependency on other countries. Thesis:

WTO gives free market access to countries which are developing and allows free trade to the organisations. WTO promotes peace within the nations by dealing with all the countries and it makes life easier by reducing the costs to small developing countries Introduction of NAFTA:

The North American Free Trade Agreement was signed in 1994 between the US, Canada, and Mexico. This results a new way of free trade agreements between developed and developing countries and is closely watched by economists. It can be said that NAFTA...
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