The World Trade Organization (WTO) deals with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible. The ten benefits
1. The system helps promote peace: helping trade to flow smoothly, and providing countries with a constructive and fair outlet for dealing with disputes over trade issues.
2. Disputes are handled constructively As trade expands in volume, in the number of products traded, and in the numbers of countries and companies trading, there is a greater chance that disputes will arise. The WTO system helps resolve these disputes peacefully and constructively.
3. Rules make life easier for all The WTO cannot claim to make all countries equal. But it does reduce some inequalities, giving smaller countries more voice, and at the same time freeing the major powers from the complexity of having to negotiate trade agreements with each of their numerous trading partners.
4. Freer trade cuts the costs of living We are all consumers. The prices we pay for our food and clothing, our necessities and luxuries, and everything else in between, are affected by trade policies.
5. It provides more choice of products and qualities If trade allows us to import more, it also allows others to buy more of our exports. It increases our incomes, providing us with the means of enjoying the increased choice.
6. Trade raises incomes Lowering trade barriers allows trade to increase, which adds to incomes — national incomes and personal incomes. But some adjustment is necessary.
7. Trade stimulates economic growth Trade clearly has the potential to create jobs. In practice there is often factual evidence that lower trade barriers have been good for employment. 8. The basic principles make life more efficient They are the result of essential principles at the heart of the system, and they make life simpler for the enterprises directly involved in trade and for the...
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