What Is Multilateral Trade Agreement

The WTO is a multilateral, rules-based organization that creates an open, secure, transparent, fair and predictable environment for world trade. From 1948 to 1994, the General Agreement on Tariffs and Trade (GATT) provided for the rules for much of world trade and involved periods of highest rates of international trade growth. It seemed well established, but during those 47 years it was a preliminary agreement and an interim organization. The creation of the WTO on 1 January 1995 was the largest reform of international trade since and after the Second World War. He also brought in an updated form the failed attempt in 1948 to create an International Trade Organization. The WTO is currently facing considerable and unprecedented challenges in its 25-year history. These challenges stem from unilateral trade measures that lead to protectionism and new trade tensions that threaten wto multilateral trade rules. A weak, rules-based multilateral trading system and a protectionist global trading environment are hurting the prosperity of the global economy, and in particular for developing countries – including small developing countries, such as Pacific countries, which need open markets to increase trade and generate economic growth, to comply with their national sustainable development plans and the 2030 agenda. The WTO MC12, a biennial meeting to make decisions on new global trade rules and mandates, and MC12 could be one of the WTO`s most difficult ministerial conferences because of current global differences in the multilateral trading landscape and within the WTO itself. To date, it is the only global organization responsible for trade rules between nations.

The organization deals primarily with WTO agreements signed by nations and ratified in their national parliaments for those with a dual legal system. Its main objective is to ensure trade as smooth, predictable and free as possible – trade liberalization. In addition, it is the main forum for negotiating trade agreements and has a well-established dispute resolution body that operates under well-defined rules and sets timetables for finalizing a case.