World Trade Organization History
It is very important individuals comprehend the world trade organization history in order to understand the current trade happenings in the world. The history of the World Trade Organization (WTO) spans many years, as there was a predecessor organization called General Agreement on Tariffs and Trade (GATT) that dates back to World War II that also dealt with issues related to international trade.
It is important to understand the history of the WTO in order to comprehend the current state of trade and how it affects everything from international relations to the amount of money spent on everyday necessities when you shop in stores or online.
World Trade Organization History
It is important to note that the world trade organization history began officially in 1995. The WTO was created to replace the existing trade program the General Agreement on Tariffs and Trade (GATT) founded in 1948. The GATT was created after World War II in order to foster cooperation amongst countries on an international basis in regards to trade issues. The GATT would remain in effect until 1994.
On January 1, 1995 the World Trade Organization was established to help to officially promote better trade relations on an international level under the Marrakech Agreement. The Marrakech Agreement includes various rules and regulation stipulated under the GATT, as well as additional regulations and stipulations that included agreements related to trade related barriers to trade, and issues with trade related services.
Under the Marrakech Agreement, which essentially established the WTO, all parties who join are aware the agreements that make up the Marrakech Agreement are related, and they must agree to the document as a whole as opposed to a partial agreement. The history of the WTO is built upon a series of rounds that involve negotiations about various trade related issues on an international level.
WTO Trade Rounds
A major part of the world trade organization history is the rounds. There are three major rounds, including the GATT rounds, the Uruguay round and the Doha round. The GATT rounds were very significant in addressing a number of issues related to building a joint mission to further international cooperation on trade issues.
There are seven distinct rounds under the GATT, many of which focus on everything from lowering tariffs, establishing anti-dumping regulations, and addressing issues related to other trade barriers that do not involve tariffs.
The Uruguay round is actually a part of the GATT rounds. However, it has a great deal of significance as a result of the various issues this round tackles. Such international trade problems as reforming trade based on issues with intellectual property and problems with agricultural trade were addressed under the Uruguay round.
As of 2010, the most recent round of in depth trade negotiations included the Doha round which was aimed at making international trade more feasible for many of the poor countries by adjusting farming subsidies and eliminating barriers that make it difficult for underdeveloped countries to participate equally on the world trade platform.
How Trade History Affects the Present
In order to understand why the current international trade system works as it does, it is very important to understand the history of the WTO and what it represents. When countries accept membership in the WTO, there is a common agreement on certain policies regarding trade.
Issues usually arise when there are negotiations to discuss the various issues related to improving or amending current trade policies, such as with the Doha round. Although particular countries may be members of the WTO, this does not automatically mean all countries agree on certain proposed changes to the way international trade currently operates. The establishment of trade regulations on an international level is thus often problematic because there are so many different countries trying to protect their trade agenda.
For example, the Doha round was filled with disagreements because, although it is understood developing countries need a fair shot at trade, many of the wealthy countries may not be willing to jeopardize their trade standing to do so. The current issues are, in many cases, problems continually being readdressed just at a different level.