WTO economic functions

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:53

The World Trade Organization is an international association that deals with the regulation of foreign economic commerce for member countries. Founded in early 1995,

The functions of the WTO include monitoring the implementation of the General Agreement on Tariffs and Trade (GATT). The number of its members includes more than 150 states. The headquarters of the world trade organization is located in the city of Geneva (Switzerland).

Apply for WTO accession can countries that legally regulate international economic activity in accordance with the terms of the Uruguay Round agreement. The process of entering the World Trade Organization is very meticulous and lengthy, taking about 5 years. First, the economy of the state and trade policy are carefully studied, then negotiations on the interaction of benefits from the accession of the country's market to the WTO follow, in conclusion, an agreement is reached and documents are drawn up. Membership is paid according to the rates of the general council.

It will not be difficult for any country to withdraw from the terms of the agreement: a written notification of desire is submitted directly to the CEOleave the WTO. After six months from the date of filing the notification, the validity of membership in the organization will expire. However, there have been no cases of a desire to break the cooperation agreement in the history of the existence of the association.

Main functions of the WTO:

• monitoring the commercial policies of Member States;
• monitoring compliance with the terms of the Uruguay Round agreement and other agreements between WTO member countries;
• organization and support of commercial negotiations of the association;
• providing States with an information manual under the WTO program;
• cooperate with international organizations to strengthen trade policy;
• help in resolving disputes that have arisen.

The task and functions of the WTO is to expand the freedom of the world economy through the adjustment of tariffication processes by reducing import duties, removing restrictions and barriers. Observers of the life of the association: UN, IMF, OECD, UNCTAD, WIPO and many others.

The WTO is governed by a conference of representatives of all participating countries at the ministerial level. Meetings are held at intervals of once every two years. They discuss the accumulated questions regarding the function of the WTO and consider candidates for entry into the agreement. At the conference, all decisions are reached by consensus. In the absence of a unanimous decision, a vote is permissible when the representative of each State Party has the right to one vote. Documents, decisions, contracts and agreements in the work of the organizationrecorded in three languages: English, Spanish, French.

Accession to the WTO requires agreement with the international standards of trade rules established by its members. It is necessary to create conditions for trade between countries, regulating market relations in the process of negotiations. General issues are discussed directly within the organization, together with all stakeholders.

The creation of a large economic market Russia-WTO lasted about 17 years. In 1993, an application was submitted for joining the GATT, and since 1995, the Russian Federation has revealed a desire to join the World Trade Organization. A commission was set up to study the Russian trade industry, which was looking for mutually beneficial terms of cooperation.

There were also some difficulties in adjusting the laws to trade organization standards. It was necessary to open the market for other states, adjust the customs fee, determine subsidies for the export of goods and raw materials, and provide state support for the agricultural sector. Courses of economic transformation were drawn up, and lengthy negotiations were held with interested countries. The entry of the Russian Federation into the ranks of the WTO took place in the summer of 2012. However, today Russian analysts do not consider such an alliance as a comprehensive gain for the country and predict certain difficulties in the Russian economy.