BL Unit VI Assessment 2 of 2

WTO Name: Institution: Born of the (GATT) General Agreement on Tariffs and Trade, the World Trade Organization (WTO) came into operation in 1995. Like the predecessor the WTO was formed to regulate the trade between the member countries. Specifically the purpose of the organization can be split into four main entities (World trade organization, 2013). First the organization deals with discrimination between the different member states, where it roots out the element of the Most-Favored-Nation otherwise known as the MFN. This means no nation is to be accorded any special treatment at the expense of the others. Secondly the organization also works to ensure that the member states are engaging in trade that is predictable while they access each other’s markets. All the countries have to abide by the rules set to regulate the tariffs charged for goods that come from their market. This way the trade between the countries is most predictable as the conditions put up a level field that is consistent. Thirdly the organization’s purpose is tied to making sure that the trade practices between the member states promote the element of fair competition. The organization also has provisions that allow the developing countries to grow and reform economically. The industrialized nations are required to assist the developing nations, by allowing them more benefits and flexibility to market access. Today the WTO has 153 member states, among them are Sweden and Paraguay (World trade organization, 2013). When the member states are involved in a trade dispute amongst themselves, there is a concise procedure that has been laid out to be followed to help i...