World Trade Organisation

Establishment: The World Trade Organization (WTO) was established on January 1, 1995, replacing the General Agreement on Tariffs and Trade (GATT), which was formed in 1948.
Purpose: The primary objective of the WTO is to facilitate smooth and free trade across the globe, ensuring that trade flows as smoothly, predictably, and freely as possible.

Membership: As of 2024, the WTO has 164 member countries, accounting for over 98% of world trade.
Decision-Making Body: The highest decision-making body of the WTO is the Ministerial Conference, which meets at least once every two years. The General Council oversees the day-to-day operations.
Secretariat: Headquartered in Geneva, Switzerland, the WTO Secretariat supports the organization’s activities and is led by a Director-General.

Trade Negotiations: The WTO provides a forum for negotiations among member countries to reduce barriers to trade and create agreements on various trade-related issues.
Dispute Resolution: The WTO has a robust dispute settlement mechanism to resolve trade disputes between members, ensuring that trade rules are respected and applied consistently.
Trade Policy Review: Regular reviews of member countries’ trade policies are conducted to ensure transparency and understanding of trade policies and practices.
Capacity Building: The WTO assists developing countries in building their trade capacity through technical assistance and training programs.

In WTO terminology, subsidies in general are identified by “Boxes” which are given the colours of traffic lights: green (permitted), amber (slow down — i.e. need to be reduced), red (forbidden).

GATT: The General Agreement on Tariffs and Trade, which focuses on reducing tariffs and other trade barriers.
GATS: The General Agreement on Trade in Services, which governs international trade in services.
TRIPS: The Agreement on Trade-Related Aspects of Intellectual Property Rights, which sets minimum standards for the protection of intellectual property.
TBT and SPS: The Agreements on Technical Barriers to Trade and Sanitary and Phytosanitary Measures, which address regulations and standards to ensure they do not create unnecessary obstacles to trade.

Doha Round: Launched in 2001, aimed at improving trading prospects for developing countries by reducing trade barriers and subsidies in agriculture, services, and industrial products.
Trade Facilitation Agreement (TFA): Entered into force in 2017, the TFA aims to expedite the movement, release, and clearance of goods across borders, reducing trade costs and enhancing cooperation.

Stalled Negotiations: Some negotiations, such as the Doha Round, have faced significant challenges and delays due to differences among member countries.
Dispute Resolution Crisis: The Appellate Body, an essential part of the dispute resolution mechanism, has faced a crisis due to the blockage of judge appointments, affecting its functioning.
Global Trade Imbalances: Critics argue that the WTO’s policies sometimes favor developed countries, leading to imbalances and inequities in global trade.