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World Trade Federation

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Submitted By wiley327
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The World Trade Organization (WTO) is an international body whose purpose is to promote free trade by persuading countries to abolish import tariffs and other barriers. As such, it has become closely associated with globalization.

The WTO is the only international agency overseeing the rules of international trade. It polices free trade agreements, settles trade disputes between governments, and organizes trade negotiations.

WTO decisions are absolute and every member must abide by its rulings. So, when the US and the European Union are in dispute over goods, it is the WTO, which acts as judge and jury. WTO members are empowered by the organization to enforce its decisions by imposing trade sanctions against countries that have breached the rules.

Based in Geneva, the WTO was set up in 1995, replacing another international organization known as the General Agreement on Tariffs and Trade (Gatt). Gatt was formed in 1948 when 23 countries signed an agreement to reduce customs tariffs.
The WTO has a much broader opportunity than Gatt. Whereas Gatt regulated trade in merchandise goods, the WTO also covers trade in services, such as telecommunications and banking, and other issues such as intellectual property rights.
Membership of the WTO now stands at 153 countries (as at July 2008). China formally joined the body in December 2001 after a 15-year battle. Russia wants admission, but must first convince the EU and US that it has reformed business practices. (Daniels, 2011)

. Founded: 1995 . Members: 151 states (December 2007) . Budget: 158 million US dollars . Staff: About 600 . Key players: US, the EU, Japan

The highest body of the WTO is the Ministerial Conference. This meets every two years and, among other things, elects the organization’s chief executive - the director-general - and oversees the work of

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