Global trade integration among countries is often facilitated by both international and regional institutions. These institutions can focus on global trading systems or financial and monetary systems. Such institutions can help to solve problems including economic development, intellectual property, environmental protection, unfair practices, and dispute settlement (Luo, et al, 2004). The goals of these institutions are to help raise living standards in member countries, encourage wealthier nations to remove trade policies and barriers that are unfair, and to commit the countries to open their markets further to developing nations. This paper will focus on the role of the World Trade Organization (WTO), its impact on promoting international trade, and an example of the WTO's involvement in promoting international trade. Finally, the WTO will be compared to that of a regional financial institution. The Asian Development Bank (ADB) will be discussed in comparison to the WTO.
WTO's Role in Promoting TradeAs trading partners, governments often work together in effort to improve trade transaction and to remove trade barriers.
The WTO is the sole multilateral organization that governments use to form trade agreements and settle trade disputes. The WTO currently has 152 members that collectively account for more than 97% of world trade. These countries include both developed and developing nations. Around 30 other countries, such as the Russian Federation and the Bahamas, are currently in the accessions process and negotiating to become members of the WTO. Decisions within the WTO are made by consensus of all 152 member countries. However, there are provisions for a majority vote if there is a non-decision by member country. When agreements are finalized they must then be ratified by the governments of the member nations.
Of all the international organizations in existence, the WTO is one of the most powerful. The role of the...