If you have ever heard of the World Trade Organization, and wondered what role they play, this article would explain what they do and how they contribute to world trading. It is the only organization that deals with the rules of trade between nations.
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The World Trade Organization does a lot of work underground to ensure that trades between nations go according to plan. Their roles and contribution include but are not limited to the following.
Administering Trade Agreements
There are many reasons why one country would want to outsmart another and make more profit than they ought to. The World Trade Organization ensures that all trades are fair and devoid of any tricks. They created rules in 1986, and administer them till date. They ensure that every trade agreement follows the rules and each party is sure to get a fair bargain.
Whenever goods are exchanged, everyone is trying to get a good deal and make as much profit as possible. For this to happen, all parties have to be in agreement. The world trade organizations help the parties to make this agreement peacefully. They agree on tariff, subsidies and many more.
After they have created rules and facilitated negotiations, they still have to monitor the trade and ensure that nothing changes in between. They make sure every part of the agreement is fulfilled and no party has a course to complain. It is because of their capability that most of their members have confidence in them to see their trade through until the final stage.
The WTO has rules put in place to ensure that trades go smoothly and is favorable for everyone in it. Governments of nations who feel like their right is being infringed under the rules of the world trade organization come to them to help settle disputes. When this happens they set up a panel that looks into the issue and finds ways to solve it peacefully in accordance to their rules.
Technical Assistance and Training
After all of the above, they also offer technical assistance when necessary. They offer technical help and training to developing countries that need them. This will help produce faster and make better products that boost their trading capacity.
It has been said that if the world trade organization did not exist, the obstacles to trading would have been more and the disputes between countries would have doubled or gone unresolved. Simply put, they facilitate trades between two countries and make sure that all trades are devoid of abnormalities. They also combat inequality and create a level playing ground for third world countries in the international market.