World Trade Organization (WTO)

World Trade The World Trade Organization (WTO) is an international body established to define the rules of global trade, resolve commercial disputes, and promote the liberalization of trade among its member countries. The WTO officially began operations on 1 January 1995, following the signing of the Marrakesh Agreement as a result of the Uruguay Round negotiations. Organization It emerged from the General Agreement on Tariffs and Trade (GATT), established in 1947 and one of the earliest efforts to regulate global trade. Although GATT played a significant role in promoting trade liberalization and reducing protectionist policies especially after the Second World War, it did not have the status of a binding international organization. The Uruguay Round negotiations conducted between 1986 and 1994 aimed to address areas where GATT proved inadequate and to establish a more comprehensive framework, ultimately leading to the creation of the World Trade Organization. The key difference between the WTO and GATT is that the WTO encompasses a broad trade regulatory framework covering not only goods trade but also trade in services (GATS – General Agreement on Trade in Services) and intellectual property rights (TRIPS – Trade-Related Aspects of Intellectual Property Rights).

World Trade Organization Building

Objectives and Functions

The primary objective of the WTO is to ensure that global trade operates freely, fair and predictable. To this end, the organization monitors the implementation of trade agreements among member countries, promotes transparency and consistency in trade policies, and facilitates the resolution of commercial disputes between nations. The main functions of the WTO are as follows:

1. Management of Trade Agreements: The WTO ensures the implementation and oversight of multilateral agreements that regulate trade among member countries. These agreements are based on rules designed to promote free trade.
2. Resolution of Trade Disputes: One of the WTO’s most important functions is to provide a neutral platform for resolving commercial disputes between member countries. The organization has developed a specialized Dispute Settlement Mechanism to resolve conflicts. Under this mechanism, disputes between members are examined by independent experts and binding decisions are issued.
3. Trade Liberalization: The WTO conducts negotiations aimed at reducing tariffs and trade barriers. In this context, multilateral trade negotiations are among the organization’s most important activities.
4. Monitoring of Trade Policies: The organization regularly reviews the trade policies of member countries to enhance transparency and ensure compliance with international trade rules.
5. Support for Developing Countries: The WTO provides various technical assistance and capacity-building programs to facilitate the integration of developing countries into the global trading system.

Institutional Structure and Operation

The WTO has more than 160 member countries and is a broad organization covering approximately 98% of global trade. The highest decision-making body of the organization is the Ministerial Conference. The Ministerial Conference, which typically meets every two years, sets the fundamental direction of the WTO and makes decisions on major trade agreements.

In addition to the Ministerial Conference, the General Council, the Dispute Settlement Body and the Trade Policy Review Body are supported by various committees and work groups. The headquarters of the WTO is located in Geneva, Switzerland, and the organization conducts its daily operations through professional staff.

Trade Negotiations and Criticisms

One of the WTO’s most important missions is to conduct multilateral trade negotiations. In this context, the Doha Development Agenda, launched in 2001, has been one of the organization’s most significant negotiations, aiming to prioritize the needs of developing countries. The objectives of the Doha Round included reducing agricultural subsidies, increasing market access for industrial goods and services, and providing trade advantages to developing countries. However, negotiations have remained deadlocked for years due to deep divisions between developed and developing countries.

The WTO faces criticism regarding lack of transparency, the dominance of major economies in decision-making processes, and insufficient protection of the interests of developing countries. In particular, agricultural subsidies, pharmaceutical patents, and inequalities in services trade are among the main sources of criticism against the organization. Globalization Critics argue that the WTO serves the interests of multinational corporations and large economies, and that it undermines the agricultural and industry sectors of developing countries.

Conclusion and Future Outlook

The World Trade Organization continues to play a critical role in regulating global trade. However, in recent years, rising protectionist tendencies, the increasing substitution of bilateral trade agreements for the multilateral system, and escalating international trade tensions have posed significant challenges to the WTO’s effectiveness. In particular, the USA-China trade war, post-Brexit trade policies, and the impact of the COVID-19 pandemic on global supply supply chains have raised important questions about the organization’s future role.

In the coming years, it is frequently argued that the WTO must undergo reform and lead the establishment of a more inclusive, equitable and effective global trading system. Granting developing countries greater word participation, making trade negotiations more transparent, and establishing new trade rules compatible with the digital economy are among the necessary steps for the WTO to build a sustainable global trading order.