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Definition: World Trade Organization (WTO)
World Trade Organization is an international organization dealing with rules and regulations regarding trade between different countries. WTO facilitates agreements, negotiations that are ratified by countries and governments get them passed in their parliaments. The goal is to help exporters and importers by making trading of goods and services easier.
Major part of WTO’s negotiations comes from negotiations from 1986 to 1994 called the Uruguay Round. Negotiations before that were under GATT (General Agreement on Tariffs and Trade). Currently WTO is holding new negotiations under Doha Development Agenda launched in 2001.
Wherever trade barriers were hindering business, WTO negotiations have helped remove them and encourage open trade. Also wherever maintaining trade barriers was necessary to prevent consumers’ interest for example a spreading disease WTO has done its part.
These agreements and negotiations signed by bulk of the countries provide a common legal ground to conduct international business where all the parties are on same ground.