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World Trade Organization

World Trade Organization

The World Trade Organization, or WTO, is a faction that was formed for the overall purpose of bring trade liberalization at the global level. The WTO was enacted on January 1st, 1995 with the Marrakech Agreement, which effectively replaced the General Agreement on Tariffs and Trade which had been in place since 1948. The World Trade Agreement provides for those involved in trade a set of guidelines in which to conduct trade business.

These regulations and rules are established among the member countries under the World Trade Organization, so as to provide the best possible compromise to generate profitable and mutually beneficial trade relationships. Because the WTO provides for a uniform structure, trades without such provisions may prove to be much more complex if the agreement was not in place.
There various countries that are members to the World Trade Organization and all of the decisions made by the WTO are on the basis of a general consensus, meaning that all members will agree upon decisions before they are implemented or enacted. Even though the agreements under the WTO are meant to be structured so that every member will benefit from them, it is natural that there will be differences.

The fact is that countries will have different values and cultures, which can have quite an impact on how business and trade is conducted. However, the World Trade Organization, acting as the overall monitoring agency for trade, will try to implement legislation that will take into consideration the inherent differences and formulate regulations that most members will be satisfied with.

NEXT: Quick Facts about International Trade Services

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