World Trade Organization

Abstract

The World Trade Organization (WTO) is a multilateral body that regulates world trade and provides a forum for negotiations to reduce trade barriers. It includes a mechanism for settling trade disputes between member states and for authorizing sanctions. The 164 member states agree to abide by negotiated rules governing trade in goods and services. Negotiations take place in rounds of talks about a package of reduced tariffs and trade barriers. A set of principles guides negotiations, including most favored nation treatment, predictability, transparency, fair competition, and special treatment for least developed nations. The most contentious issues in negotiations have been agricultural subsidies in developed nations. The WTO has been the focus of antiglobalization protests that highlight the negative consequences of trade liberalization such as high unemployment and environmental damage.