What is the World Trade Organization (WTO)?

The World Trade Organization (WTO) serves as a multilateral organization dedicated to promoting global trade by facilitating negotiations and agreements among its member countries. Its primary function is to oversee and regulate international trade agreements aimed at reducing trade barriers, such as tariffs and quotas, thus fostering a more open and predictable trade environment. The WTO plays a crucial role in settling trade disputes, ensuring that nations adhere to the agreed-upon trade rules, and providing a platform for discussions on trade-related issues.

The nature of the WTO as a multilateral organization differentiates it from a national trade agency or a specialized institution focused solely on export financing or trade enforcement. While the WTO may contribute to various aspects of trade enforcement through its dispute resolution mechanism, its broader mission is to enhance trade relations between countries on a global scale, which is central to understanding its purpose and function in the international economic landscape.