There are several advantages of trade. From increasing living standards and ~~~.
However, it is not just living standard that increases - more trade also increases the possibility of trade disputes. International trade disputes can occur when nations do not like the terms of a trade agreement or disagree with policy changes a trading partner has made.
The WTO is run by its member states. All major decisions are made by the membership as a whole, whether by ministers or by their ambassadors or delegates. The WTO agreements of trade are the result of negotiations between the members. Through these agreements, WTO members operate a non-discriminatory trading system that spells out their rights and their obligations. Each county receives guarantees that its exports will be treated fairly and consistently in other countries’ markets. Each promises to do the same for imports into its own markets.
The WTO’s 3 main activities are
* Negotiating the reduction or elimination of various trade barriers (e.g. import tariffs), and agreeing on rules governing the conduct of international trade (e.g. antidumping, subsidies, product standards etc.)
* Administering and monitoring the application of the WTO’s agreed rules for trade in goods and services.
* Settling disputes among members regarding the interpretation and application of the agreements.
The WTO’s procedure for resolving trade disputes under the Dispute Settlement Understanding is vital for enforcing the rules and therefore for ensuring that trade flows smoothly. Countries can bring disputes to the WTO if they think their rights under the agreements are being infringed.
Disputes in the WTO are essentially about broken promises. A dispute arises when one country adopts a trade policy measure or takes some action that one or more fellow WTO members considers to be breaking the WTO agreements, or to be a failure to live up to obligations. WTO members have agreed that if they believe fellow members are...