The GATT no longer exists. It was subsequently replaced by the WTO, which was formed on January 1, 1995 after the Uruguay Round of GATT negotiations. According to the WTO (2003), membership stands at 144 countries (as of January 1, 2002), accounting for 90 percent of world trade. .
The WTO's overriding objective is to help trade flow smoothly, freely, fairly, and predictably. It does this by: .
o administering international trade agreements,.
o facilitating trade negotiations, .
o settling trade disputes, .
o providing technical assistance and training to developing countries, .
o monitoring national trade polices, and.
o cooperates with other international organizations (WTO, 2003).
The WTO is the only international organization that deals with global rules of trade between nations. As a member-driven society, decisions are reached by consensus among all members. Members are responsible for monitoring compliance with the agreements and setting the WTO's course. However, developed countries have made key decisions in closed meetings, excluding other WTO nations. The U.S. is one of those developed countries along with Canada, Japan, and the European Union. These countries are commonly known as the QUAD countries (The Working Group, 1999).
The Debate.
Advantages.
One of the fundamental principles of the WTO is to help trade flow smoothly. By fostering free trade, the WTO provides countries with a constructive and fair outlet for dealing with disputes over trade issues. Smoothly flowing trade can help people all over the world become better off and the goal is to improve the welfare of the people of the member countries. If trade flows smoothly everyone enjoys a healthy relationship and political conflict is less likely. By promoting free trade among nations, the WTO helps to foster a system that contributes to international peace. The WTO trading system plays a vital role in keeping the peace among nations.